BUSINESS DIGEST
By Unknown Author
Chief of SBC Has Turned A Baby Bell Into a Colossus In a string of deals, Edward E. Whitacre, the chief executive of SBC Communications, has amassed the country's most complete telecommunications company. Now he intends to add AT&T for $16 billion. Mr. Whitacre riles critics who argue that he overpays and moves too quickly, but aggressiveness and decisiveness have marked his 40-year career. [Page C2.] Hints of Oil Mergers to Come After a lull since the wave of mergers in the late 1990's, the time for large-scale takeovers in the oil industry may be here again. One potential candidate is Unocal, which has substantial reserves, a strong portfolio of assets and a reputation for underperformance that has discouraged investors recently. [C2.] Low Expectations for Auto Industry Detroit continues to lose American customers to Asian competitors. Ford lost the most last month, with sales falling 4.9 percent. [C8.] Secretary Wants Medicaid Changes Michael O. Leavitt, the secretary of health and human services, called for sweeping changes in Medicaid that would cut payments for prescription drugs. [A12.] Testimony on HealthSouth Numbers A former financial officer for HealthSouth testified that he made up numbers to increase profits under the direct orders of Richard M. Scrushy, the former chief executive. [C5.] Bankers for Bernard J. Ebbers once threatened to sell his stock in WorldCom unless it backed his loans, a banker testified. [C5.] L. Dennis Kozlowski did not violate Tyco policy when he paid a $20 million fee to a board member, a former director said. [C5.] Sharpton Urges a KFC Boycott The Rev. Al Sharpton is joining forces with People for the Ethical Treatment of Animals to urge a boycott of KFC because of its suppliers' treatment of chickens. [C8.] Lego Plays Rough in the Courts Competitors to Lego, the maker of plastic building blocks, say the company is unfairly trying to use intellectual property law to dominate its market. Lego's last significant patent expired decades ago, so the Danish company zealously guards its trademarks and other intellectual property rights. [C4.] Declining Oil Prices Help Stocks Stocks rose, helped by strong earnings and lower oil prices. The Dow Jones industrial average closed up 62 points, at 10,551.94. The Nasdaq composite index rose 6.29 points, to 2,068.70. [C10.] China Loan Helped With Yukos Deal China lent Russia $6 billion late last year to enable a government-owned company to buy a unit of Yukos, Kremlin officials said. [C4.] Promise of a Shuttle Seat Is Gone Delta Air Lines is now flying just one shuttle an hour from La Guardia Airport to Boston and Washington and vice versa, no matter how many people show up. [A1.] The S.U.V. as a Hairy Beast A new public service campaign is intended to inform young men about the rollover risks of sport utility vehicles. Advertising. [C10.]
