Business notebook

Hedging its bets: Citigroup Inc., the biggest US bank, agreed to buy Bisys Group Inc. for $1.47 billion to provide accounting and administrative services for hedge funds and private-equity firms.

At home: Novartis AG won approval to sell its Cubicin antibiotic, a drug that can be used to fight infections in hospital patients, in its home country of Switzerland.

$7.1b deal: Clayton Dubilier & Rice Inc. and Kohlberg Kravis Roberts & Co. agreed to buy the US Foodservice unit of Royal Ahold NV, the Dutch owner of the Stop & Shop chain, for $7.1 billion.

Opt out: The two largest US mortgage lenders, Countrywide Financial Corp. and Wells Fargo & Co., have declined to endorse a set of principles that would help troubled subprime borrowers avoid foreclosure, said Senator Christopher Dodd, Connecticut Democrat, who proposed the principles. Oversight: Former Illinois Governor James Thompson testifield that as head of the Hollinger International Inc. audit committee he failed to notice $15.6 million in payments that are now the focus of Conrad Black's federal fraud trial. Forecast: Acme Packet Inc., a Burlington maker of equipment that routes voice and data over IP networks, said it expects revenue to grow each quarter of 2007 but sees higher-than-expected stock option costs. Fueling quandary: Gasoline futures prices settled 1.21 cents lower to $2.2326 a gallon even as the federal Energy Information Agency said US gasoline stockpiles declined 1.1 million barrels last week and are likely to remain tight. And, light, sweet crude for June delivery fell 72 cents to settle at $63.68 a barrel on the Nymex. Pink slips: After nearly three years of sagging sales, clothing retailer Gap Inc. confirmed it is trying to figure out how many workers to lay off as part of a cost-cutting effort designed to lift profits. At right, a Gap shopper in Los Angeles examines merchandise. Loan probe: US Representative George Miller asked the FTC to look into student-loan providers for "unfair and deceptive practices," broadening allegations against the industry. (Globe wire services)