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March 18, 2010

Business News brief

Wachovia fined $50M

Banking giant Wachovia Corp. will pay $160 million to settle a federal investigation into laundering of illegal drug profits through Mexican exchange houses in the largest case of its kind ever brought against a U.S. bank, prosecutors said Wednesday.

The probe, which began in 2005 when a Drug Enforcement Administration narcotics dog in Florida detected cocaine traces in an airplane, ultimately uncovered at least $110 million in drug profits laundered from Mexico through Wachovia. The settlement includes forfeiture in that amount plus a $50 million fine.

United sees revenue spike

United Airlines said Wednesday it expects a key revenue metric to rise 16 to 17 percent in the first quarter from a year ago.

In a filing with the Securities and Exchange Commission, the Chicago-based airline said it expects consolidated passenger unit revenue per available seat mile between $11.44 and $11.54. The key metric gauges how much money the airline makes for every mile it flies a paying passenger.

The airline is forecasting capacity, or the number of available seats, to decline 3.4 percent in the first quarter.

New phones from Google

Google Inc. is making two new versions of its Nexus One phone: one for AT&T Inc.’s network and one for Sprint Nextel Corp.’s network.

The first U.S. version of the Nexus One, which Google is promoting as its own “super” phone, was designed for T-Mobile USA’s network. It also worked on AT&T’s older, low-speed data network.

The new AT&T version of the Nexus One, which went on sale Tuesday, works on the same high-speed wireless network as Apple Inc.’s iPhone

Oil leases draw bidders

With oil prices up $30 a barrel from last year, energy companies issued $949.3 million in winning bids Wednesday for federal offshore petroleum leases off the coasts of Louisiana, Mississippi and Alabama.

The Minerals Management Service said 67 companies submitted 642 bids on 468 tracts in the central Gulf of Mexico.

Last year, oil was around $50 a barrel — and the sale attracted 476 bids on 348 tracts. That sale garnered $703 million in winning bids. In 2008, with oil well above $100, the sale set a record $3.67 billion in high bids.

Nissan, Daimler in talks

The alliance of Nissan Motor Co. and Renault SA has entered talks with Germany’s Daimler AG over the possibility of forming a comprehensive partnership, including a capital tie-up, potentially creating the world’s third-largest automotive group, sources close to the negotiations said Wednesday.

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