Business Briefs: Tuesday, July 1, 2008

Published: July 1, 2008

SPRINGDALE, Ark. — Tyson Foods Inc. has acquired majority ownership in a major poultry producer in India.

Springdale-based Tyson announced Monday that it has bought 51 percent ownership of Godrej Foods, Ltd., based in Mumbai, India. The joint venture will be called Godrej Tyson Foods and is expected to have annual sales starting at about $50 million.

The venture includes chicken processing plants in Mumbai and Bangalore. The plants have a combined production capacity of 60,000 birds per day and have about 1,000 workers.

Godrej Foods, a subsidiary of agribusiness company Godrej Agrovet Ltd., now sells fresh chicken under the "Real Good Chicken” brand name and processed chicken, such as breaded chicken nuggets and patties. Godrej also sells frozen vegetables under the "Yummiez” brand. The financial terms of the deal were not disclosed.

NEW YORK — Yahoo Inc. began pressing a case to major shareholders Monday that its board and management deserve a chance to prove they made the right move when they rejected a $47.5 billion takeover offer from Microsoft Corp.

The missed opportunity to sell to Microsoft infuriated many Yahoo shareholders, prompting activist investor Carl Icahn to agitate for replacing Yahoo's nine directors and reviving negotiations with Microsoft. If he gains control of the board, Icahn intends to fire Yahoo co-founder Jerry Yang as chief executive.

In response, Yahoo has assembled a 32-page shareholder presentation to elaborate on the points it has been emphasizing since Microsoft withdrew its bid May 3.

Investors will decide the dustup in a vote scheduled Aug. 1 at Yahoo's annual meeting.

WASHINGTON — Interest rates on short-term Treasury bills were mixed in Monday's auction with yields on three-month bills rising while six-month bills declined.

The Treasury Department auctioned $23 billion in three-month bills at a discount rate of 1.9 percent, up from 1.855 percent last week. Another $22 billion in six-month bills was auctioned at a discount rate of 2.135 percent, down from 2.255 percent last week.

The three-month rate was the highest since three-month bills averaged 2.050 percent June 16. The six-month rate was the lowest since these bills averaged 2.05 percent June 9. The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,951.97 while a six-month bill sold for $9,891.47. That would equal an annualized rate of 1.936 percent for the three-month bills and 2.188 percent for the six-month bills.

DENVER — SABMiller PLC and Molson Coors Brewing Co. said Monday they closed on their transaction combining their U.S. and Puerto Rico operations into MillerCoors.

MillerCoors will begin operating as a combined entity today. They have not said where the headquarters will be.

"As a unified company with a world-class board and leadership team in place, MillerCoors will be able to create tremendous opportunities for innovations in products and services that will allow us to drive profitable growth,” MillerCoors Chairman Pete Coors said.

TROY, Mich. — The federal government has obtained court approval to restore $2.2 million in retirement plan assets owed to hourly employees of auto supplier Delphi Corp.

The U.S. Department of Labor said Monday the settlement approved by U.S. Bankruptcy Court ensures assets are available to pay future retirement benefits for workers.

The department launched an investigation into improperly invested dividends the Troy-based company failed to properly disclose or correct.

CHICAGO — Boeing has agreed to pay a $3 million fine for exceeding value limits on the purchases of parts from foreign suppliers for its military products.

Boeing spokesman Tim Neale says the company discovered the violations and reported them to the State Department. The airplane manufacturer violated manufacturing license agreements governing international arms sales.

The suppliers were in Australia, the United Kingdom, Canada, Israel, Italy, Japan, the Netherlands, Switzerland and Austria.

NEW YORK — After watching its bigger rival McDonald's Corp. try to woo mom, Burger King Corp. is launching a new marketing campaign meant to grab her attention.

The centerpiece of the effort is a new kids meal featuring a four-ounce serving of macaroni and cheese, lowfat milk and "Fresh Apple Fries,” uncooked apple slices shaped like french fries and served with low-fat caramel dipping sauce. The meal is priced at $3.49.

The company will be offering free samples of its apple fries through July in New York, Los Angeles, Chicago, Miami and Houston.

CHARLOTTE, N.C. — Beleaguered consumer bank Wachovia Corp. will quit offering a mortgage payment option on new home loans that allows borrowers to pay less each month than the bank charges in interest.

The choice to pay less was one of Wachovia's Pick-A-Payment mortgages, which offer customers four different payment options each month. Wachovia told The Associated Press on Monday that it will no longer offer the less-than-full interest payment option on all new home loans.

The Associated Press

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