May 9, 2001

European Commission says it will complete probe of General Electric Co's planned acquisition of Honeywell International, despite pressure to speed inquiry; Mario Monti says European antitrust regulators will send GE detailed statement of their objections to deal as it stands; says talks have been constructive, but that several aspects of deal remain worrisome; photo (M)

Twyla Tharp abruptly backs out of plan to open her first permanent dance studio in Lafayette Avenue Presbyterian Church in Fort Greene, a few blocks from Brooklyn Academy of Music; cites cost considerations and reports that two deacons at church were balking at signing final lease; will start searching for a new space; phto (M)

Cisco Has First-Ever Loss As It Writes Off Inventory Cisco, seeking to wipe the slate clean after enduring a sharp plunge in business, said it took $3 billion in charges against its earnings, leading it to report an overall quarterly loss for the first time in its 11-year history. At the same time, when Cisco factors out those charges, predominately related to inventory that it may never have a chance to sell, it managed to narrowly beat the forecast Wall Street analysts gave last month. [Page C4.]

Military analysis; Pres Bush's decision to build missile defenses and eventually break with strategic arms control treaty, central treaty of cold war, is first outward sign of far-reaching debate over whether US should simply abandon business of negotiating strategic arms treaties; question centers on whether with end of cold war there is any need to begin yet another drawn-out arms control negotiation with Russia, which is no longer enemy (M)

Comment on difficulties of carrying on a family business discusses case of Jay Newton, 83-year-old man who opened Beef Eaters steakhouse in Phoenix, Arizona, 40 years ago and has given his heart to the place ever since; for various reasons, he does not want to give restaurant to his sons, and has been unable to find prospective buyer who would maintain restaurant and continue to run it the way he has, so he has decided to give restaurant away; he is holding essay contest to locate the right party to continue his business; drawing (M)

Volkswagen AG reports first-quarter pretax income rose 15 percent, to 708 million euros ($637 million), while after-tax net income rose 57 percent; says sales will probably be flat for rest of year; restates results using international standards, putting first-quarter pretax profit at 1.25 billion euros; photo (M)

Brooklyn District Attorney's office is investigating April 30 fatal collapse of construction site in Williamsburgh in which laborer Rogelio Daze-Villanueva was killed; Buildings Department officials say that companies doing work, Freeport Construction Corp and Mordechai Rubbish Inc, were at time of accident violating two previous orders to stop work at site because of many safety problems; photo (M)

Southern California Edison, supporting complaint by California to Federal Energy Regulatory Commission, says El Paso Corp artifically inflated price of natural gas in state by $3.7 billion over last year by using its partial control of major pipeline to curb gas flow; says manipulation cost Edison alone at least extra $1 billion for electricity generated by gas-fueled power plants over 13 months ended Mar 31; El Paso unit, in response, blames high prices in state on unexpected and unprecedented demand and shortage of pipeline capacity, not withholding of supplies; photo (M)

Minnesota Twins defeat New York Yankees, 2-0; photo (M)

Northrop Grumman Corp makes unsolicited offer to buy Newport News Shipbuilding Inc for $2.1 billion, 25 percent in cash and 75 percent in stock; General Dynamics Corp has made competing $2.1 billion offer, all cash, but that offer faces likely opposition from Navy, because merger of General Dynamics and Newport News would combine Navy's only two nuclear shipyards (M)

Regulators say Ansett Australia can resume flying all but two of its 767 jets, which were grounded in April because of safety problems and lax maintenance; other two 767's were already scheduled for overhauls (S)

Clyde Haberman NYC column discusses findings of Clairol sponsored survey on what makes women beautiful; major response is that beauty is defined not as 'skin deep' features but by woman's personality (M)