July 3, 2002

Brilliance China Automotive Holdings says former chairman and chief executive Yang Rong sold all of his stock in company, worth $11 million, when he was removed from his posts two weeks ago (S)

Jean-Marie Messier bids emotional farewell to employees at Vivendid Universal, but his ouster as chairman and chief executive is overshadowed by disclosures about company's accounting practices, which sends its stock crashing and drags down entire French market; French securities regulators demanded earlier this year that Vivendi change way it accounted for sale of shares it held in British Sky Broadcasting; original proposal, drafted with its auditor, Arthur Andersen, would have inflated its 2001 profit by about $1.47 billion; photos (M)

Exhausted New Jersey Senate delivers budget in 21-17 vote approving restructured corporate income tax expected to raise $1.8 billion, more than twice amount collected this year; photo; vote with enough revenue for $23.4 billion budget results from deal to resolve ugly dispute between Gov James McGreevey and mutinous fellow Democrats who scuttled earlier agreement; dispute over sports arena for Newark is put aside pending hearings on plans for state's professional sports teams; new plan pulls together enough revenue to close record budget gap of some $6 billion; budget borrows $1.1 billion against tobacco industry settlement, raises cigarette tax 70 cents to $1.50, and increases scores of state fees (M)

South Africa will probably propose legislation forcing mining companies to cede at least quarter of new projects to people disadvantaged during white rule; may also seek to compel companies to sell equity to disadvantaged groups, including blacks and women (M)

Martha Stewart turned to Merrill Lynch stockbroker Peter E Bacanovic to handle more than $10 million worth of shares offered to friends and associates when her company when public in 1999; Stewart abruptly cancels her regular appearance for July 3 on CBS program Early Show after network says it would require her to answer more questions on air about government investigations into her sale last December of shares of ImClone System; Stewart's decision to cancel her appearance demonstrates pressure she faces as three investigations unfold while she continues to deal with demands of running $296 million media empire; Morgan Stanley, not Merrill Lynch, was lead underwriter on Martha Stewart public offering (M)