DEALS: Indian firm to buy steel maker Esmark

Morgantown, W.Va. —- Steel maker and distributor Esmark Inc. said Wednesday that it has accepted a cash buyout offer valued at about $669 million from India's Essar Steel Holdings Ltd. The offer, $17 a share, is 13.5 percent higher than Tuesday's closing stock price.

FINANCIAL: Kraft Foods beats profit estimate

Kraft Foods Inc. reported a 13 percent drop in first-quarter profits Wednesday, but the results were better than expected and sales improved despite economic pressures and rising outlays for commodities. The maker of Oscar Mayer hot dogs, Maxwell House coffee and Oreo cookies raised prices on 90 percent of its products, which contributed to a 21 percent jump in sales. Overall, the company said the quarter's $608 million profit and other results demonstrated that its three-year turnaround plan is on track as it enters its second year. The Northfield, Ill.-based company's earnings for the January-March period amounted to 40 cents per share, down from $702 million, or 43 cents per share, a year earlier.

Raw materials costs hamper IP

Memphis —- International Paper reported Wednesday that first-quarter earnings sank as the company paid more for raw materials and did not benefit from land sales as it did in the same period last year. The company reported net income of $133 million, or 31 cents per share, compared with $434 million, or 97 cents per share, last year.

Stock sale to net Citi $4.5 billion

New York —- Citigroup said Wednesday that it would sell $4.5 billion of new common shares in another effort to shore up its balance sheet. The offering was priced at $25.27 a share. The bank had initially announced Tuesday that it would sell $3 billion in shares but increased the offering because of demand.

Charges force GM to $3.3 billion loss

Detroit —- General Motors Corp. struggled to a $3.3 billion first-quarter loss, caused in part by a weak U.S. market, a strike at a major parts supplier, and plummeting sales of sport utility vehicles and pickups. The nation's biggest automaker also cut its industrywide U.S. sales outlook for the year. But its earnings excluding one-time items beat Wall Street expectations, and GM shares rose. GM's loss for the January-March period amounted to $5.74 per share. It compares with a profit of $62 million, or 11 cents per share, in the first quarter of 2007.

Earnings dip 2% at Kellogg

Kellogg Co. reported Wednesday that its first-quarter profit dipped 2 percent, despite recent price increases. The Battle Creek, Mich.-based cereal and snack maker said net earnings fell to $315 million, or 81 cents per share, compared with $321 million, or 80 cents per share, during the first three months of last year. Earnings per share increased despite the decline in profit because of the completion of the company's $650 million share-repurchase program. Kellogg reported a 10 percent increase in revenue to $3.3 billion.

Procter & Gamble profits increase

Cincinnati —- Consumer products maker Procter & Gamble Co. said Wednesday that price increases, cost controls and strong growth in emerging markets helped offset soaring costs of oil and other commodities as its fiscal third-quarter profit rose 8 percent. P&G also lifted its full-year outlook. The maker of Pampers diapers and Gillette razors reported a profit of $2.71 billion, or 82 cents per share, for the January-March period, compared with $2.51 billion, or 74 cents per share, a year ago. Revenue rose 9 percent to $20.46 billion.

One-time charges hit Colgate's profit

New York—- Colgate-Palmolive Co., which makes consumer products, including its namesake toothpaste and dish soap, said Wednesday that first-quarter earnings fell 4 percent as the company took restructuring charges and a higher provision for income taxes. First-quarter earnings fell to $466.5 million, or 86 cents per share, from $486.6 million, or 89 cents per share, in the prior year.

Prudential's profit lowest in 5 years

Prudential Financial Inc., the second-largest U.S. life insurer, posted its lowest quarterly profit in five years as net income plummeted 94 percent on investment losses. First-quarter profit declined to $69 million from $1.12 billion a year earlier, the Newark, N.J.-based company said Wednesday. Operating profit, which excludes investment losses and results from policies sold before the company went public, was $1.65 a share, compared with the $1.82 average estimate of 17 analysts compiled by Bloomberg News.

Earnings decline 28% at Starbucks

Seattle —- Starbucks Corp. said Wednesday that its fiscal second-quarter profit fell 28 percent as U.S. consumers responded to rising food and gas prices by making fewer latte runs. For the quarter ended March 30, Starbucks' net income sank to $108.7 million, or 15 cents per share, from $150.8 million, or 19 cents a share, in the same period last year. Revenue rose 12 percent to $2.53 billion.

FOOD / BEVERAGE: CEO: Wendy's got best deal it could

Columbus, Ohio —- Wendy's International Inc. agreed to be acquired by the company that owns Arby's restaurants because it was the best deal the nation's third-largest hamburger chain could get for its shareholders, Chief Executive Kerrii Anderson said Wednesday. "As these two organizations merge, we are committed to supporting employees and franchisees so that we can all focus on our brand and our customers," Anderson said in a conference call with analysts. Atlanta-based Triarc, owned by billionaire investor Nelson Peltz, said April 24 that it will pay about $2.34 billion for Wendy's in an all-stock deal.

HEALTH CARE: FDA cites problems at Merck plant

Trenton, N.J. —- The Food and Drug Administration has ordered drug maker Merck & Co. to correct manufacturing deficiencies at its main vaccine plant in West Point, Pa. Merck says it is working with the FDA.

LEGAL: Judge rules against SunTrust

A federal judge on Wednesday ruled that SunTrust Banks Inc. cannot force 21 employees who are scheduled to be laid off June 30 to withdraw from an overtime-pay class-action suit against the bank as a condition of receiving their severance packages. SunTrust has 10 days to respond to U.S. District Judge Richard W. Story's temporary restraining order to voice any objections; otherwise the ruling becomes permanent. Barry Koling, a spokesman for Atlanta-based SunTrust, said the company had not yet reviewed the 10-page order and did not have immediate comment. The ruling is part of an ongoing lawsuit filed Dec. 16, 2006, by Willie Allen, who alleged the bank owes him back overtime pay. Allen, who is a client technical specialist, is one of the 21 employees whose jobs are being outsourced. Allen's case, which was granted class-action status in March of last year, represents 46 former and current employees. The case is still pending, but Allen's Marietta attorney, Alan H. Garber, filed two new suits against SunTrust on April 14, alleging similar overtime pay violations. The plaintiffs in those cases, which also are pending before Story, are seeking class-action status.

MEDIA: AJC to trim distribution, jobs

The Atlanta Journal-Constitution plans to cut its distribution area from 74 to 49 counties, a move that will eliminate 62 jobs. The cutback will pare circulation by about 2.2 percent daily and 1.9 percent Sunday, the company said Wednesday. The change takes effect June 2 and marks the second time in a little over a year that the AJC has trimmed its print distribution area to cut costs. Counties affected in the latest round are mainly in the northwest corner of the state, along the South Carolina border and northeast of the Columbus area. After the cuts, the AJC will be distributed in 46 Georgia counties and three in North Carolina. The change won't affect the AJC's readership statistics because they are based on a core 28-county market, according to the announcement. The AJC says its total audience of both print and online readers is expanding and recently reached 2.2 million, as measured over a seven-day period. But print circulation has been in decline, and the latest distribution cut will take another bite.

REAL ESTATE: Democrats get way on housing bill

Washington —- Democrats turned back a slew of Republican challenges to their housing rescue package Wednesday as they moved toward committee approval. Republicans, targeting virtually every element of a measure they characterized as an unfair and risky taxpayer-funded bailout, failed to win adoption of any major changes. A final vote of the Financial Services Committee on the bill is scheduled for today, and the House is expected to consider the package next week. The bill would allow the Federal Housing Administration to back up to $300 billion in new mortgages for distressed homeowners now too financially strapped to qualify for such loans.

REGULATORY: Several pesticides pulled from shelves

The Environmental Protection Agency has ordered retailers such as Home Depot, Lowe's, Wal-Mart, Ace, True Value, Sam's Club and K-mart to stop selling several pesticides because of concerns the packaging is mislabeled. The pesticides in question are Miracle-Gro Shake 'n Feed All Purpose Plant Food Plus Weed Preventer and related pesticide products identified on the packaging by EPA registration number 62355-4; Scotts Bonus S Max Southern Weed & Feed and Fire Ant Killer; SLS Fertilizer with .28 Halts; and Scotts Turf Builder Max Plus 2 Weed & Feed and Crabgrass Preventer; and related pesticide products identified by EPA registration numbers 538-301, 538-304 and 538-299. Scotts has set up a hotline at 1-888-295-0671 for consumer questions.

TECHNOLOGY: AT&T to start cell video service

New York —- AT&T Inc. is launching its new video service for cellphones Sunday on two phones. It will charge $15 per month for 10 channels. AT&T Mobile TV is almost identical to Verizon Wireless' V Cast Mobile TV, and is operated by the same company, Qualcomm. AT&T will have two exclusive channels on the service, it said Thursday.

TRANSPORTATION: British Airways seeks U.S. tie-up

London —- British Airways PLC said on Wednesday that it is considering ways of cooperating with American Airlines Inc. and Continental Airlines Inc. BA added that further details would be announced "when appropriate" and did not provide any information on the nature of the cooperation. BA and American Airlines are already partners in the Oneworld global alliance.