October 27, 2000

Hidden Charges, special report on car dealers' lending practices that are under attack in several class-action lawsuits; car dealers and lenders are not required by law to tell consumers about role dealers play in setting interest rate on dealer-arranged car loans; as result, local dealers can add percentage points to loan without consumer knowing about it, and lender pays difference to dealer; this industrywide practice is called dealer markup; class-action suits call such markup fraudulent and deceptive business practice; one suit accuses lenders of participating in arrangements that charge black car buyers higher dealer markups than whites, regardless of their creditworthiness; lenders and dealers named in suits deny any wrongdoing; industry experts say money dealers make on markups can make difference between profit and loss for many dealerships; photos; chart; tips for car-loan shoppers from consumer advocates (L)

Gambro A.B., the world's second-largest provider of dialysis products and services, lowered its fourth-quarter profit target and said the head of its health care unit would quit after eight months on the job. Brad Nutter, 48, will leave Denver-based Gambro Healthcare, which generates more than half of the Swedish company's total revenue. The departure comes less than five months after Mikael Lilius quit as chief executive to head Finland's Fortum. The Stockholm-based company is reorganizing to focus on dialysis, a process that cleanses the blood of patients whose kidneys have failed.

The Brazilian real estate developer Mario Garnero, left, has canceled plans to build the world's tallest building in the center of Sao Paulo after the project's financial backers pulled out of the $1.65 billion deal. The Maharishi Global Development Fund, which is linked to Maharishi Mahesh Yogi, abandoned the project after the Sao Paulo city government appeared unlikely to approve the 108-floor, pyramid-shaped complex. The Sao Paulo mayor's office said that the project had stalled because of a lack of financial guarantees. The fund is in talks to relocate the complex to Dallas. It would hold 50,000 people with offices, apartments, a university, shopping malls, hotels and a convention center. Jennifer Rich (NYT)

Profit for Canada's largest airline, Air Canada, dipped 7 percent to 107 million Canadian dollars ($70.5 million) in the third quarter, the first period to include its former rival Canadian Airlines, acquired earlier this year. While share profit of 73 Canadian cents (48 cents), beat the latest 62-cent consensus estimate by First Call/Thomson Financial, it was well short of the 1.10 Canadian dollars (73 cents) several analysts expected before airline officials phoned them 10 days ago with a profit warning. Third-quarter revenue rose 11 percent, to 3.08 billion Canadian dollars ($2.03 billion), but higher fuel prices and the threat of a strike by Air Canada pilots cut expected operating income by a third. Timothy Pritchard (NYT)

Residents of Ivory Coast who came together to topple military dictator now turn against one another in series of deadly clashes; violence between supporters of two of main political parties is sparked by religious and ethnic difference and leaders' ambitions; it begins in capital city Abidjan and spreads to smaller cities; winner of disputed election, Laurent Gbagbo, is sworn in as president, with backing of security forces; he rebuffs calls for new election from country's two major parities, United Nations, United States and Organization for African Unity; Alassane D Ouattara, former prime minister who was barred from running in election, takes refuge in German ambassador's residence after security forces surround his house and fire tear gas and ammunition; Ouattara claims attack was led by supporters of Gbagbo and backed by paramilitary gendarmes; photo (M)