Nov. 3 Business Briefs

VIRGINIA

Va. Power to sell stock to parent firm

The State Corporation Commission has authorized Dominion Virginia Power to sell up to $1.5 billion of its stock to parent company Dominion Resources Inc.

The electric utility, which originally sought approval to sell up to $3 billion in stock, says it will use the money to retire short-term debt and pay for capital investments.

The commission staff recommended that the SCC authorize the sale of $1 billion in common stock this year and an additional $500 million in 2010. Dominion Virginia Power agreed with the staff recommendation for the smaller offering.

Dominion Virginia Power does not issue common stock directly to the open market.

Henrico medical lab acquires 2 businesses

Bostwick Laboratories Inc., a medical laboratory services company based in Henrico County, announced yesterday the acquisition of the assets and infrastructure of CBI Services and Fairfax Identity Laboratories.

The two businesses were formerly units within Commonwealth Biotechnologies.

CBI Services is now called American International Biotechnology Services and will operate as a division of American International Pathology Laboratories.

Fairfax Identity Laboratories will retain its name.

Terms were not disclosed.

Fewer apples, low prices foreseen in Va.

Virginia's apple farmers are predicting a smaller crop than usual, and prices are staying low.

The U.S. Department of Agriculture predicts that Virginia growers will produce 30 million fewer pounds than last year. Wholesale prices of apples from the state have fallen about 16 cents per pound, to 34 cents a pound, since last year.

Most Virginia apples end up at processing plants for cutting, canning, peeling and juicing.

THE NATION

Stanley to pay $4.5 billion for top rival

The tool maker Stanley Works is buying rival Black & Decker Corp. for $4.5 billion, the two companies said Monday, uniting two of their industry's most iconic brands.

The deal would create the largest U.S. toolmaker.

Stanley shareholders will own about 50.5 percent of the combined company, which will be called Stanley Black & Decker.

"This is a unique opportunity to bring together two great companies, each with first-rate brands, and provide enhanced opportunities to generate superior returns as we build on this new, larger platform," Stanley Chairman John F. Lundgren, who will be president and CEO, said in a statement.

Black & Decker shareholders are to receive about 1.28 shares of Stanley Works for each share they own. The nine members of Stanley Works' board will remain in place and be joined by six new members from Black & Decker's current board.

GAO: Break-even in GM, Chrysler doubtful

Taxpayers are unlikely to recover their full investment in General Motors or Chrysler, government investigators said yesterday in the latest review to cast doubts that the government will recoup the $80 billion it poured into the two automakers.

The Government Accountability Office concluded that General Motors Co. and Chrysler Group LLC likely won't be valuable enough for the Treasury Department to break even on its investment in the two auto companies that went though bankruptcy this year.

Interest rate drops for 3-month T-bills

Interest rates on short-term Treasury bills fell in yesterday's auction with rates on three-month bills dropping to the lowest level since December.

The Treasury Department auctioned $29 billion in three-month bills at a discount rate of 0.060 percent, down from 0.075 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.170 percent, down from 0.185 percent last week.

The Federal Reserve said yesterday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, was unchanged last week at 0.39 percent.

Elsewhere

• Toyota Motor Corp. said its vehicles are not at risk of accelerating out of control unless the driver's side floor mat is improperly installed or is not meant for that vehicle. The Japanese automaker said the conclusion is the result of a U.S. government investigation into unintended acceleration of some Lexus vehicles.

• The Clorox Co. said it is changing how it makes its namesake bleach so it can stop transporting chlorine to U.S. factories by rail amid growing safety concerns.

• General Motors Co. said it has received permission to use $2.8 billion of its government aid to help buy part of troubled auto parts supplier Delphi Corp., the automaker's former parts division. GM said the Treasury Department granted the release of $1.7 billion to acquire "a membership interest" in the new Delphi. The ownership stake was not disclosed.

-- Staff and Wire Reports