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Business news in brief

In the Region

Pa. gaming board sued

Greenwood Gaming & Entertainment Inc., the owner of PhiladelphiaPark Casino and Racetrack in Bensalem, has sued the Pennsylvania Gaming Control Board for awarding a slots license to an investor group that plans to put 500 slot machines at the Valley Forge Convention Center. The suit, which became public yesterday, was filed in state Supreme Court. It says the board erred in selecting Valley Forge Convention Center Partners L.P. for a Category 3 slots license. Among Greenwood's complaints is that the convention center was too near PhillyPark and would siphon away customers. Board representative Doug Harbach said it "fully intends to vigorously defend the correctness of this decision." - Suzette Parmley

J.G. Wentworth out of bankruptcy

J.G. Wentworth Inc., a Bryn Mawr finance company, said it had completed a speedy trip through bankruptcy reorganization, emerging with $370 million less debt and an infusion of $100 million in new capital. The company, which pays people discoun-

ted lump sums for settlements that would otherwise be paid out over a number of years, filed for a prearranged Chapter 11 bankruptcy on May 19. It employs 70 in Bryn Mawr. - Harold Brubaker

Fracture risk appears higher

GlaxoSmithKline P.L.C.'s Avandia and Takeda Pharmaceutical Co.'s Actos both appear to significantly increase the risk of bone fractures, especially in women, according to researchers at Medco Health Solutions Inc., the pharmacy benefits manager, and the University of Texas Health Sciences Center in San Antonio. The diabetes drugs also have been hurt by research showing a greater likelihood of heart problems. - Miriam Hill

Rite Aid to offer $400M in notes

Drugstore operator Rite Aid Corp. said it planned to offer $400 million senior secured notes due 2016 as part of a refinancing. Rite Aid had said it wanted to refinance some debt due September 2010. The refinancing includes a $525 million term loan due June 2015. - AP

Pa. fund sues over cholesterol pills

Pennsylvania Employees Benefit Trust Fund, which administers health-care benefits to state employees and retirees, is accusing Merck & Co. and Schering-Plough Corp. of misleading consumers about cholesterol pills Zetia and Vytorin. The suit, filed Friday in federal court in Philadelphia, seeks to recoup more than $9 million spent on the two drugs since October 2002 on the grounds that an older, less expensive medication, simvastatin, was just as effective. Merck, Whitehouse Station, N.J., has Philadelphia-area operations. - Bloomberg News

Participants' loss not as severe

While the U.S. stock market fell 44 percent in the 15 months that ended in March, the average loss for three million participants in defined-contribution plans administered by the Vanguard Group, Malvern, was just 17 percent, thanks to diversification and steady contributions, the mutual fund company said. Vanguard also said that only 6 percent of the participants made changes to their portfolios during the period. - Harold Brubaker

Comcast notes high-speed access

Comcast Corp. told federal regulators in a filing that almost all the households in its franchise areas have access to high-speed Internet services. A national broadband policy should focus on both access to high-speed Internet services in rural areas and the adoption of those services in urban areas. Most of Comcast's franchise areas are in cities. - Bob Fernandez

Orthovita gets OK for spine treatment

Orthovita Inc., Malvern, said it had gotten clearance to market a new treatment for spinal fractures. The fast-track clearance was issued by the Food and Drug Administration for Cortoss, an injectable material. - Roslyn Rudolph


Boston Globe union rejects contract

BOSTON - Members of The Boston Globe's largest union have narrowly rejected a new contract marked by $10 million in concessions despite threats of even deeper wage cuts or the possible closure of the 137-year-old newspaper.

The Boston Newspaper Guild voted 277-265 against the new contract negotiated after the Globe's parent company, The New York Times Co., said it needed $20 million in annual savings from Globe unions - half from the Guild.

The contract included an 8.3 percent wage cut, five-day unpaid furloughs and cuts in health and pension benefits. It also would have eliminated lifetime job guarantees for 190 Guild workers.

The Times Co. has said that if the contract was rejected, it would try to impose a 23 percent wage cut. - AP

Evergreen paying $40M in accord

An investment fund owned by Wells Fargo & Co. has agreed to pay $40 million to settle federal charges that it inflated the value of a mutual fund that invested mainly in securities tied to home mortgages and only selectively told shareholders about the fund's problems. The Securities and Exchange Commission announced the settlement with Evergreen Investment Management Co., Boston, which did not admit or deny wrongdoing. - AP

Accounting board chairman resigns

The head of the independent board overseeing the accounting industry said he would resign more than a year before his term is set to expire. Mark W. Olson has been chairman of the Public Company Accounting Oversight Board since July 2006. Olson whose resignation takes effect July 31, said the decision "is entirely personal." His term expires in October 2010. - AP

Rates rise at Treasury auction

Interest rates on short-term Treasury bills rose in yesterday's auction. The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.190 percent, up from 0.150 percent last week. Another $31 billion in six-month bills was auctioned at a discount rate of 0.345 percent, up from 0.290 percent last week. The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,995.20, while a six-month bill sold for $9,982.56. - AP

Yield for 1-year T-bills up

The Federal Reserve said the average yield for one-year Treasury bills, an index for making changes in adjustable-rate mortgages, rose to 0.50 percent last week from 0.49 percent the previous week. - AP