Chrysalis Capital likely winner of Malden Mills

THE REGION

A $44 million bid from Philadelphia private equity firm Chrysalis Capital Partners has emerged as the likely winning offer for Malden Mills Industries , according to a spokesman for the bankrupt Lawrence textile maker. Managers filed for Chapter 11 protection as part of a planned sale of the maker of Polartec fleece to Boston investor Gordon Brothers Group. Chrysalis later submitted its offer. The lack of any further bidders has left Chrysalis with likely control of the company, pending court approval, said David Costello. Chrysalis managing partner Gregory Segall said that if the firm's bid is approved, "we intend to operate, not liquidate, the company." (Ross Kerber)

Broadway Real Estate Partners of New York has agreed to buy the property in Beacon Capital Partners LLC's third investment fund, including 16 buildings nationwide and two in the Boston area, 200 State St. and Bay Colony Office Park in Waltham. The price was just under $5 billion for about 10 million square feet of office real estate in the Washington, D.C, area, Seattle area, New York, and Los Angeles, according to a real estate executive who asked not to be identified because the sale has not been concluded. The transaction will liquidate Beacon Capital's Fund 3. No one from either Broadway or Beacon Capital would comment on the deal. (Thomas C. Palmer Jr.)

Partners HealthCare , the largest hospital network in New England and parent of Massachusetts General Hospital and Brigham and Women's Hospital , suffered a 55 percent decline in profit, to $86 million, from $190 million in the first quarter of 2006. Partners pointed to weaker performance in investments and philanthropic fund-raising, shortfalls in Medicare reimbursement, and, to a lesser extent, a decline in government funding for research. Operating profit was $10 million lower, including a $2 million drop in academic and research income. (Christopher Rowland)

Bristol-Myers Squibb Co. signed its final deal to buy 89 acres of land for a large drug plant at the former Fort Devens, according to the company and the state. The $3.65 million price tag includes a 25 percent discount on the land price plus a $3 million direct state subsidy, according to MassDevelopment, the agency that controls Devens. The state also has subsidized the site's utilities and other infrastructure. The $660 million factory is expected to create 550 or more jobs. (Stephen Heuser)

Keane Inc. said it is facing two Massachusetts lawsuits in connection with its proposed $854 million acquisition by Caritor Inc. According to a filing with the Securities and Exchange Commission, Susan Nichols filed a suit against the company and certain current and former directors alleging breach of fiduciary duties in connection with the merger. Purported Keane shareholder Henry C. Blaufox filed a derivative class action complaint against certain present and former directors related to past stock option grants, as well as the merger. (Dow Jones)

EMD Serono Inc. agreed to pay $24 million to settle a civil lawsuit that alleged it promoted its AIDS drug Serostim for unapproved uses. This week, the US District Court in Massachusetts granted preliminary approval of the settlement, which would reimburse health plans, health insurance providers, and individuals who paid for the drug. The agreement follows a settlement Serono, whose US headquarters are in Rockland, reached in 2005 with the Department of Justice to pay $704 million in fines for unlawfully promoting Serostim. (Dow Jones)

THE NATION

Housing construction fell last month to the lowest level since August 1997 as the housing industry struggles with a slowdown. Construction of homes and apartments fell 14.3 percent in January, pushing total activity down to a seasonally adjusted annual rate of 1.408 million units, the Commerce Department said. Separately, the Labor Department said a 0.6 percent drop in January in its Producer Price Index was the biggest one-month decline since a 1.8 percent fall in October, providing evidence that inflation pressures are easing. The decline last month was due to a 4.6 percent plunge in energy costs, reflecting lower prices for gasoline, natural gas, and heating oil. (AP)