AUTOMOTIVE

Chrysler considers scrapping models

Chrysler LLC, hobbled by a 22 percent drop in U.S. sales this year, is considering scrapping its most expensive Dodge Avenger and Chrysler Sebring sedans and adding features to cheaper models, according to a document circulated to parts suppliers. The revisions, part of a strategy called "Fight Back," mean less-expensive models would have standard features such as heated seats now offered only in the costlier versions. "We will always look for ways to improve our product based on customer feedback," said Rick Deneau, a Chrysler spokesman, without verifying the plan.

DEALS

Cleveland-Cliffs shareholder balks

Cleveland-Cliffs Inc.'s largest shareholder, Harbinger Capital Partners, said it opposes the company's proposed $8.06 billion purchase of Alpha Natural Resources Inc. and may take action. Harbinger, which owns 18 percent of Cleveland-Cliffs, said buying Abingdon, Va.-based Alpha isn't in the best interest of shareholders, according to a filing Thursday with the Securities and Exchange Commission. Harbinger, a hedge fund, said in the filing that it may seek to influence the Cleveland-based company's strategy, board structure and operations "as a means of enhancing shareholder value."

FINANCIAL

H&R Block courts same-sex couples

Kansas City, Mo. —- H&R Block Inc. is offering to reimburse part of the costs some gay couples and others in civil unions encountered when the company's online tax filing system refused to submit their returns. The company is offering couples who can show documentation that they started with the online product but had to complete the process at one of H&R Block's retail offices either a $100 coupon toward having their tax returns prepared next year or a free copy of H&R Block's TaxCut software. "We don't discriminate," said company spokeswoman Denise Sposato. "We want to make sure if anyone tried to use TaxCut online they had a recourse here."

IndyMac checks subject to hold

Los Angeles —- The frustration didn't end for some IndyMac customers when they finally were able to withdraw their funds from the Southern California bank seized last week by federal regulators. Some people have run into more problems when they tried to deposit IndyMac cashier checks at other banks. Washington Mutual spokeswoman Olivia Riley said her bank is accepting IndyMac checks, "but depending on the specifics, funds will be subject to an extended hold period." The Office of Thrift Supervision is investigating complaints about the checks.

UBS to refuse some U.S. accounts

UBS AG, the world's largest wealth manager, will stop offering offshore-banking services to U.S. clients through non-U.S. branches, said Mark Branson, chief financial officer of UBS' global wealth management unit. "We have decided to exit entirely the business in question," Branson said. "UBS will no longer provide offshore banking or securities services to U.S. residents through our bank branches. Such services will only be provided to residents of this country through companies licensed in the United States." Branson disclosed the move during testimony to a Senate subcommittee that's investigating tax compliance by banks in so-called tax havens. UBS is cooperating with tax-evasion probes.

Mortgage rates at six-week low

Washington —- Mortgage rates fell this week, with 30-year rates dropping to the lowest level in six weeks. Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.26 percent this week, down from 6.37 percent last week. Rates on 15-year fixed-rate mortgages dipped to 5.78 percent, down from 5.91 percent last week. Rates on five-year adjustable-rate mortgages fell to 5.80 percent, down from 5.82 percent last week, while rates on one-year ARMs dropped to 5.10 percent from 5.17 percent.

Fannie chief: Cash likely not needed

Washington —- The chief executive of troubled mortgage finance company Fannie Mae says his company is "very unlikely" to need a cash infusion from the government to survive the housing bust. The Bush administration is asking Congress to temporarily increase lines of credit to Fannie and Freddie and to let the government buy their stock in an effort to assuage worried investors. Fannie Mae's chief executive, Daniel Mudd, said in an interview Thursday with "The NewsHour with Jim Lehrer" that the government proposal is "very helpful in terms of restoring confidence" but ultimately is unlikely to be put into action.

LEGAL

Merck set to start Vioxx payouts

New Jersey-based Merck & Co. will start cutting checks for former users of its withdrawn painkiller Vioxx next month after announcing Thursday that it will fund a $4.85 billion settlement expected to resolve roughly 50,000 lawsuits. The decision marks the beginning of the end of the four-year legal saga, which began when cardiovascular side effects forced Merck to pull Vioxx off the market in 2004, triggering tens of thousands of lawsuits. The Vioxx case has cost Merck at least $6.38 billion, including more than $1.53 billion through March 31 on legal costs for defense research and individual trials, most of which it has won. Vioxx brought Merck revenues of $2.5 billion at its peak in 2003 and $1.3 billion in 2004.

Mattel wins verdict in Bratz case

Mattel Inc., maker of the Barbie doll, won a jury verdict Thursday concluding that a former employee made original drawings of MGA Entertainment Inc.'s Bratz dolls while he still worked at Mattel. A federal jury in Riverside, Calif., agreed that designer Carter Bryant made most of the first sketches of the pouty, multiethnic Bratz characters while he was employed by Mattel in 1999 and 2000. The verdict might clear the way for Mattel to seek hundreds of millions of dollars in damages for copyright infringement from closely held MGA.

MEDIA

Breakthrough for satellite radio deal

Washington —- The potential deciding vote in the government's review of the $3.1 billion merger between satellite radio companies told The Associated Press he will vote in favor of the deal if the companies agree to tougher conditions. So far, two of the five members of the Federal Communications Commission have voted to approve Sirius Satellite Radio Inc.'s buyout of rival XM Satellite Radio Holdings Inc. That is one vote shy of a majority. FCC commissioner Jonathan Adelstein, a Democrat, wants the companies to cap prices for six years and make one-quarter of their satellite capacity available for public interest and minority programming, among other conditions. If the executives agree, Adelstein told the AP that he will be in favor of the deal.

REAL ESTATE

'Risky loans' by Countrywide cited

Countrywide Financial Corp., the mortgage lender bought by Bank of America Corp., ignored low credit scores and made risky loans to people who couldn't afford them and lost their homes, California officials contend in a lawsuit. In one case, the company approved an adjustable-rate mortgage for an 85-year-old disabled veteran with such a low credit score and high debt that he defaulted in less than six months, according to an amended complaint filed Thursday against Countrywide by California Attorney General Jerry Brown. "These shocking new details provide further evidence of Countrywide's dangerous lending practices, which included ignoring borrowers' low credit scores and rewarding employees for selling risky loans," Brown said in an e-mailed statement.

GM picks finalists for Doraville site

General Motors said Thursday that it has selected four finalists to compete to purchase the Doraville assembly plant, which is closing in September. The finalists, who the company declined to identify, are expected to submit "best and final" offers by mid-September, said Dan Flores, a GM spokesman. The company plans to select a winner by November. Flores said GM fielded "hundreds of inquiries on the property, which led to a significant number of proposals being submitted." GM officials say the property, which sprawls over 165 acres, would make an ideal location for a mixed-use development.

REGULATORY

EU expands probe of Intel's practices

Brussels, Belgium —- European Union regulators have added more antitrust charges to their case against chip maker Intel Corp., claiming that the company has deliberately squeezed rival Advanced Micro Devices out of the market. The European Commission said Thursday it has added three charges against Intel, warning that it may order Intel to change its behavior under threat of large fines.

Russian agency investigates Alcoa

Russia's Anti-Monopoly Service has started investigating U.S. aluminum maker Alcoa Inc. for possibly abusing its monopoly position on some products to fix prices.

TECHNOLOGY

Amazon unveils instant movies

Amazon.com Inc., the world's largest Internet retailer, has introduced a Web-based service that will allow customers to instantly watch movies and TV shows on their computer rather than wait for them to download. A test version of the Video on Demand streaming service, which has more than 40,000 titles, was made available Wednesday night to some users, according to Bill Carr, the company's vice president of digital media. Customers of Amazon.com's Unbox video service previously had to download films to their computers or TiVo digital video recorder.

Yahoo slams Icahn, Microsoft

Sunnyvale, Calif. —- Yahoo Inc. sent a letter to shareholders Thursday in which it called Microsoft Corp.'s actions in its dance to acquire all or part of the Internet company "stupefying." The letter from Yahoo Chairman Roy Bostock and Chief Executive Jerry Yang also hammered investor Carl Icahn, Microsoft's partner in the latest acquisition offer, for his lack of knowledge about the Internet business. It said the latest offer from "the odd couple" serves "only their very narrow special interests." The missive marked the latest bit of acrimony to surface in Yahoo's scramble to maintain control of its board.

AMD promotes new chief executive

Advanced Micro Devices Inc., following its seventh straight quarterly loss, announced that Hector Ruiz will step down as chief executive, passing the reins to Chief Operating Officer Dirk Meyer. Ruiz, 62, will continue in his role of chairman. Meyer, 46, a former chip designer who joined the company in 1995 from Digital Equipment Corp., will take over immediately.

TELECOM

EU goes after sellers of ringtones

Brussels, Belgium —- Eight out of 10 Web sites selling mobile-phone ringtones and graphics are tricking consumers with hidden fees or false advertising for "free" products, the European Union said Thursday. The EU's consumer affairs commissioner, Meglena Kuneva, said a Europe-wide investigation showed shoddy sales practices such as hiding the true cost of downloads or not telling customers that they are signing up for a subscription. "It's clear that consumers have been ripped off," she said, adding that she is telling national governments to go after crooked traders.

AT&T runs short of new iPhones

AT&T Inc., the exclusive U.S. mobile-phone service for Apple Inc.'s iPhone, said Thursday that the device remains sold out at almost all its 2,000 retail stores, with new inventory going to buyers who placed preorders. Almost a week after AT&T began selling a faster version of the phone, shoppers who come into stores without an existing order may leave empty-handed. The stores are getting new shipments daily, said Michael Coe, an AT&T spokesman.

TRANSPORTATION

Regional carrier, Delta make up

Pinnacle Airlines Corp. will continue to fly for Delta Air Lines Inc. as a Delta Connection carrier under its existing contract, which expires in 2017, it was announced Thursday night. Delta previously said it intended to terminate the contract, effective July 31, citing Pinnacle's failure to meet minimum arrival-time performance requirements for a period since flights began late last year. Pinnacle said its on-time performance was hurt by factors beyond its control, including the flight schedule created by Delta.

UTILITIES / ENERGY

Texas plans biggest wind-power project

Austin, Texas —- Texas officials gave preliminary approval Thursday to the nation's largest wind-power project, a plan to build billions of dollars worth of new transmission lines to bring wind energy from gusty West Texas to urban areas. Texas is already the national leader in wind power, and supporters say Thursday's move by the Public Utility Commission will make the Lone Star State a leader in moving energy to the urban areas that consume it. "We will add more wind than the 14 states following Texas combined," said PUC Commissioner Paul Hudson. "I think that's a very extraordinary achievement. Some think we haven't gone far enough, some think we've pushed too far." Environmental and consumer groups called the move a critical expansion of the "renewable energy superhighway," predicting it will create jobs, reduce energy costs and reduce pollution.