The government may seek up to $5 billion — several years’ worth of profits for McGraw-Hill, it said in a civil complaint filed in Los Angeles federal court last week. The company believes the charges lack merit, but the case is likely to drag on for three or more years, general counsel Ken Vittor said on the call.
Despite what the company called ‘‘an outstanding year,’’ analysts on the call focused on its ability to fend off the lawsuit and maintain growth in the Standard & Poor’s Rating Services division.
CEO of scandal-ridden U.K. bank sets new tone
Be honest. Or be gone. That’s the message from the new chief executive at Barclays, the British bank that paid a $453 million fine for manipulating a key global interest rate. As he tried to put a brave face on 3,700 new job cuts and growing financial losses, CEO Anthony Jenkins said Tuesday that ethics matter as much as a given quarter’s bottom line.
‘‘Barclays is changing,’’ Jenkins told reporters at a news conference in London. ‘‘There will be no going back to the old ways of doing things.’’
Jenkins has good reason to embrace the high road. Even though Barclays avoided a government bailout during the global financial crisis— unlike British peers like Royal Bank of Scotland and Lloyds — the lender has faced a string of scandals that are costing it billions of pounds.
Another major Dell shareholder opposes $24.4B sale
A shareholder rebellion against Dell’s proposed $24.4 billion sale to its founder and other investors is gaining more support, fueling a belief that the struggling personal computer maker will have to wrangle a higher price to get the deal done.
Mutual fund firm T. Rowe Price joined the opposition Tuesday. Price and another shareholder, Southeastern Asset Management, believe that founder and CEO Michael Dell and the investment firm Silver Lake are seizing control and ending Dell Inc.’s 25-year history as a publicly held company on the cheap.
T. Rowe Price and Southeastern are the two largest independent shareholders and own nearly 13 percent of the company combined. Michael Dell has committed his 14 percent stake toward the deal. He is the only investor who owns more stock than either of the two.
Intel working on TV set-top box to replace cable
Intel Corp. said Tuesday that it will sell a set-top box that brings Internet-delivered movies and shows to a TV set this year.
There are various boxes today that bring Internet content to TV sets, with popular ones made by Roku and Apple. But Intel wants to go further and make its box and streaming service a replacement for cable.
Rumors of an Intel set-top box and video service emerged last year. Intel didn’t say what the box and service would cost, or when this year such a device be available.
By The Associated Press(equals)
The Dow Jones Industrial average closed up 47.46 to 14,018.70, putting it within 1 percent of the record close of 14,164.53 set in October 2007.
The Standard & Poor’s 500 gained 2.42 points to 1,519.43, also close to its record.
The Nasdaq composite was down 5.51 points at 3,186.49.
Benchmark oil gained 48 cents to finish at $97.51 on the New York Mercantile Exchange.
Brent crude, used to price international varieties of oil, rose 53 cents to end at $118.66 a barrel on the ICE Futures exchange in London.
Wholesale gasoline rose 3 cents to finish at $3.05 a gallon.
Natural gas fell 5 cents to end at $3.23 per 1,000 cubic feet.
Heating oil rose less than a cent to finish at $3.24 a gallon.