Yahoo! News: Business

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• BofA director settlement over Merrill triples to $62.5 million: source
• AIG sues NY Fed over right to sue Bank of America, others
• Americans feel austerity's bite as payroll taxes rise
• Analysis: Big flows into U.S. stocks may be sign of things to come
• Apple won't blindly pursue market share, Chinese paper reports
• Malaysia's Hong Leong Capital may be taken private: source
• HP's Meg Whitman made $15.4 million in fiscal 2012
• FBI takes probe into Universal payments to Manila: sources
• U.S. launches safety review of 787 after recent issues
• KLM to cease flights to Iran in April
• With almonds' rising revenues, land values soar
• Washington state bank closes; first failure of '13
• Hostess to sell Wonder bread to maker of Tastykake
• More money, time needed to remove Concordia wreck
• Judge: Tully's Coffee to go to Dempsey's group
• Fashion world keeps pressure on Missoni search

BofA director settlement over Merrill triples to $62.5 million: source Posted: 12 Jan 2013 10:08 AM PST (Reuters) - Bank of America Corp directors have reached a $62.5 million settlement to resolve investor claims over the bank's acquisition of Merrill Lynch & Co, a person familiar with the matter said, after a federal judge expressed reservations about an earlier version of the accord. U.S. District Judge Kevin Castel in Manhattan on Friday agreed to increase the size of the settlement from $20 million, the person said. This came after Castel had indicated in a January 4 order that he had yet to be persuaded of the fairness of the settlement, which also includes governance reforms. ...

AIG sues NY Fed over right to sue Bank of America, others Posted: 11 Jan 2013 06:03 PM PST NEW YORK (Reuters) - American International Group Inc has filed a lawsuit against a vehicle created by the Federal Reserve Bank of New York to help bail out the insurer, in a bid to preserve its right to sue Bank of America Corp and other issuers of mortgage debt that went sour. The complaint filed in the New York State Supreme Court in Manhattan seeks a declaration that AIG has not transferred billions of dollars of "litigation claims" to Maiden Lane II, including many related to the insurer's $10 billion lawsuit against Bank of America. ...

Americans feel austerity's bite as payroll taxes rise Posted: 12 Jan 2013 06:29 AM PST WASHINGTON (Reuters) - Americans are beginning to feel the pinch from Washington's decision to embrace austerity measures aimed at bringing down the nation's budget deficit. Paychecks across the country have shrunk over the last week due to higher federal tax rates, and workers are already cutting back on spending, which will drag on the economy this year. In Warren, Rhode Island, Ben DeCastro got his first paycheck on Friday in which taxes on his wages rose by 2 percentage points. That works out to about $30 a week. ...

Analysis: Big flows into U.S. stocks may be sign of things to come Posted: 12 Jan 2013 04:08 AM PST NEW YORK (Reuters) - The biggest weekly inflow into U.S.-based equities mutual funds in more than 11 years could be a sign that stocks are coming back into favor for a broad swath of investors after lawmakers avoided the fiscal cliff, some top money managers said. "We are at an inflection point where, especially in the U.S., you'll start to see net inflows into equities," said Margaret Patel, senior portfolio manager at Wells Capital Management, which oversees $331 billion in assets. "The risk-taker will be rewarded this year." In the week ended Wednesday, investors in U.S. ...

Apple won't blindly pursue market share, Chinese paper reports Posted: 12 Jan 2013 02:07 AM PST SAN FRANCISCO/BEIJING (Reuters) - In a revised version of an interview published Thursday in a Chinese newspaper, Apple Inc marketing chief Phil Schiller said the company would focus on making "the best products" for customers and "never blindly pursue market share". On Thursday, the Shanghai Evening News had originally cited Schiller as saying that Apple would not develop a cheaper smartphone for the sake of expanding its market share. ...

Malaysia's Hong Leong Capital may be taken private: source Posted: 12 Jan 2013 12:43 AM PST KUALA LUMPUR (Reuters) - Hong Leong Financial Group Bhd , a Malaysian lender controlled by the country's six richest man Quek Leng Chan, is expected to try and take its 79 percent owned investment banking arm Hong Leong Capital Bhd private to streamline its assets, according to a source familiar with the matter. The deal comes at a time where banks around the world are required to meet higher capital requirements in the revised Basel III rules, which were drawn up to avoid a repeat of the financial crisis that followed the collapse of Lehman Brothers Holdings Inc in 2008. ...

HP's Meg Whitman made $15.4 million in fiscal 2012 Posted: 12 Jan 2013 08:11 AM PST CHICAGO (Reuters) - Chief executive Meg Whitman received compensation worth about $15.4 million in 2012 as Hewlett-Packard Co. posted a net loss in her first full fiscal year in charge, according to a federal proxy filing. Whitman's base salary was just $1. Her bonus was $1.7 million, while the remainder of her compensation was granted in the form of Hewlett-Packard stock options, stock awards and other income, according to the proxy filed with the Securities and Exchange Commission on Friday. Her compensation was about 70 percent of previous targets, as the company posted a net loss. ...

FBI takes probe into Universal payments to Manila: sources Posted: 12 Jan 2013 07:18 AM PST MANILA (Reuters) - The FBI has sent agents to Manila in a widening of its investigation into millions of dollars of payments made by Japan's Universal Entertainment Corp to a politically connected consultant in relation to its casino project in the Philippines, sources with knowledge of the matter said. Agents from the Las Vegas office of the U.S. Federal Bureau of Investigation have been in Manila over the past week working with the National Bureau of Investigation (NBI), the local agency tasked with looking into the payments as a potential bribery case, the sources said. ...

U.S. launches safety review of 787 after recent issues Posted: 12 Jan 2013 08:06 AM PST WASHINGTON/NEW YORK (Reuters) - The U.S. government ordered a wide-ranging review of Boeing's latest passenger jet, the 787 Dreamliner, citing concern over a fire and other recent problems but insisting the plane was still safe to fly. It was unclear how long the review will take or how much it will ultimately cost Boeing, but the company was concerned enough that it sent a top executive to a Washington press conference on the problem. Boeing shares fell 3 percent. ...

KLM to cease flights to Iran in April Posted: 12 Jan 2013 07:52 AM PST AMSTERDAM (AP) — KLM says the company will cancel its flights to Iran as of April, leaving Germany's Lufthansa as the sole Western European-based carrier offering services to Tehran.

With almonds' rising revenues, land values soar Posted: 12 Jan 2013 12:39 PM PST FRESNO, Calif. (AP) — Bill Enns, a central California real estate agent specializing in farmland, fields dozens of calls every week from potential buyers. Many want almond, pistachio or walnut orchards — or any land suitable for growing nut trees.

Washington state bank closes; first failure of '13 Posted: 11 Jan 2013 06:25 PM PST WASHINGTON (AP) — U.S. regulators on Friday closed a small lender in Washington state, making it the first bank failure of 2013 following 51 closures last year.

Hostess to sell Wonder bread to maker of Tastykake Posted: 11 Jan 2013 05:56 PM PST NEW YORK (AP) — Hostess has found a new home for its most popular breads, including the iconic Wonder bread.

More money, time needed to remove Concordia wreck Posted: 12 Jan 2013 12:59 PM PST GIGLIO, Italy (AP) — More time and money will be needed to remove the Costa Concordia cruise ship from the rocks off Tuscany where it capsized last year, in part to ensure the toxic materials still trapped inside don't leak into the marine sanctuary when it is righted, officials said Saturday.

Judge: Tully's Coffee to go to Dempsey's group Posted: 11 Jan 2013 06:43 PM PST SEATTLE (AP) — The auction for the beleaguered Tully's Coffee chain concluded Friday in federal bankruptcy court, with a judge approving the sale to an ownership group led by actor Patrick Dempsey.

Fashion world keeps pressure on Missoni search Posted: 12 Jan 2013 07:27 AM PST MILAN (AP) — The fashion world is urging authorities to keep searching for the missing CEO of Missoni as Milan Fashion Week gets under way.

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