DEALS: H&R Block sells mortgage servicer

Kansas City —- H&R Block Inc. said Monday it will sell its troubled mortgage servicing business for $1.1 billion to billionaire investor Wilbur Ross. Option One Mortgage Corp. services about $53 billion of subprime mortgages, ranking it No. 4 in the nation.

Walgreen to buy clinic operators

Walgreen Co. has agreed to buy I-trax Inc. and closely held Whole Health Management for at least $260 million to add workplace health clinics. Walgreen said Monday in a statement that it will pay $5.40 for each share of Chadds Ford, Pa.-based I-trax, which has almost 300 locations and recorded $143 million in revenue last year. Terms of the Whole Health purchase weren't disclosed.

FINANCIAL: Carlyle Capital to close up shop

London —- Shares in Carlyle Capital Corp. dropped more than 70 percent on Monday after the mortgage bond fund said it will wind up its operations and there would be no payout to shareholders.

Citigroup unit eliminates 185 jobs

Des Moines, Iowa —- The home mortgage division of Citigroup Inc. said Monday that it is laying off 185 employees who worked in its home equity business, saying those types of loans are not salable in today's troubled home loan market.

Buffett's salary again $100,000

Warren Buffett, the world's richest man with a fortune of about $62 billion, took a $100,000 salary for the 27th consecutive year in 2007 as profit surged 20 percent at Berkshire Hathaway Inc. Buffett gets no bonus, stock options or grants for serving as chief executive and chairman, the Omaha, Neb.-based company said in a regulatory filing Monday.

LEGAL: Railroad sues two hedge funds

Jacksonville —- CSX Corp. sued two hedge funds Monday, alleging they violated federal securities laws in their attempt to make changes to the railroad company's corporate structure. CSX said in a federal lawsuit filed in New York that the Children's Investment Fund and 3G Capital Partners used swap agreements to evade federal securities filing requirements. CSX claims TCI acquired more than 5 percent of its common stock without making disclosures required by law. TCI said the "allegations are wholly without merit and we will defend ourselves vigorously."

High court sides with McDonald's

Washington —- The Supreme Court on Monday rejected an appeal by the operator of a Florida Burger King franchise that accused McDonald's of false advertising. The justices, without comment, let stand a lower court ruling that dismissed the lawsuit by Phoenix of Broward Inc., which operates a Burger King in Fort Lauderdale, Fla. The suit stems from the controversy surrounding McDonald's Monopoly game promotions in the late 1990s, which were later found to have been rigged. McDonald's advertised that every customer had a "fair and equal chance" to win the games, lawyers for Phoenix said in court filings, even after the FBI began investigating the games for fraud.

Microsoft loses antitrust ruling

Washington —- The Supreme Court on Monday handed Microsoft Corp. a defeat by refusing to rule on the software giant's request to halt an antitrust suit against it. The suit was brought in 2004 by Waltham, Mass.-based Novell Inc., which said in court papers that Microsoft "deliberately targeted and destroyed" its WordPerfect and QuattroPro programs in order to protect its Windows operating system monopoly.

Ex-Qwest CEO wins new trial

Denver —- A federal appeals court ordered a new trial Monday for former Qwest CEO Joe Nacchio, saying the trial judge wrongly excluded expert testimony and classified information important to Nacchio's defense in his insider trading case. Nacchio was convicted in April on 19 counts involving the sale of $52 million worth of Qwest stock in 2001. He was sentenced to six years in prison but remained free on appeal. Jurors acquitted Nacchio of 23 counts. Prosecutors argued that Nacchio sold the stock when he knew Denver-based Qwest Communications International Inc. was at financial risk but didn't tell investors.

RETAILING: Grocer reports data breach

Portland, Maine —- A security breach at an East Coast supermarket chain exposed 4.2 million credit and debit card numbers and led to 1,800 cases of fraud, the Hannaford Bros. grocery chain announced Monday. Hannaford said credit and debit card numbers were stolen during the card authorization process.

Chinese-made toys recalled

Washington —- Toy distributor Mega Brands Inc. recalled about 2.4 million Chinese-made toys Monday, because small magnets could fall out. These tiny magnets could be swallowed or inhaled by children. Mega Brands is recalling 1.1 million Magtastik and Magnetix Jr. preschool toys.

TRANSPORTATION: Northwest signals cutbacks on way

Minneapolis —- Northwest Airlines has matched the fare increase announced last week by Continental and United, and signaled that belt-tightening measures are on the way, too. Doug Steenland, chief executive of Northwest Airlines Corp., said the airline will spend $1.7 billion more on fuel than it expected when it emerged from bankruptcy in May. "Airfares have to go up, and our passengers will need to pay more. Airlines simply cannot absorb these cost increases," Steenland told workers in a message recorded over the weekend.

Airline traffic up 5.5% from '07

Total February passenger traffic for 16 U.S. airlines rose 5.5 percent to 56.63 billion revenue passenger miles from 53.66 billion a year earlier. A revenue passenger mile equals one paying passenger carried one mile. The February load factor, the average percentage of available seats that are filled with paying passengers on each flight was unchanged at 75.4 percent. February available seat miles, a measure of total capacity, rose 5.5 percent to 75.13 billion miles from 71.19 billion a year ago.

UTILITIES / ENERGY: Gasoline prices rise to record

The average U.S. pump price for regular gasoline rose 5.9 cents to a record $3.284 a gallon in the week ended Monday, the government said. The price was 70.7 cents a gallon higher than a year ago, the U.S. Energy Department said in its weekly report. Diesel fuel rose 15.5 cents to $3.974 a gallon, said the report, based on survey of 800 filling stations.