Expedia picks new auditor, replacing Deloitte & Touche
Deloitte & Touche had been Bellevue-based Expedia's auditor since the travel company was founded in 1995, Expedia said in a statement. Ernst & Young is the independent auditor for USA Interactive and its other majority-owned companies, and USA Interactive wants to work with a single auditor, Expedia said.
USA Interactive bought 63 percent of Expedia's shares and 95 percent of its voting stock earlier this year as part of Chairman Barry Diller's plan to build the world's biggest electronic-commerce company. Diller last month said he wants to buy Expedia's remaining shares.
Expedia's shares sank $5.41, or 9.4 percent, to $52 yesterday.
Columbia Banking System's chief executive steps down
TACOMA — Regional bank holding company Columbia Banking System said yesterday it had accepted the resignation of Chief Executive J. James Gallagher and named William Weyerhaeuser as his interim replacement.
The Tacoma-based company said Gallagher, 63, has agreed to work as a consultant for the company. Weyerhaeuser, who is also chairman of Bothell biotech Eden Bioscience, has served as a director for the company since 1998 and the chairman of the board since last year.
Columbia Banking System's stock rose 30 cents, or 2.3 percent, to $13.30 yesterday.
Shurgard buys 74 percent of self-storage company
SEATTLE — Shurgard Storage Centers, a developer of self-storage centers, bought a 74 percent stake in Morningstar Storage Centers for $62 million to add sites in North and South Carolina.
Closely held Morningstar, the largest self-storage company in the Carolinas, operates and owns 40 properties that have about 3.1 million square feet, plus about 500,000 square feet of expansion capacity, Shurgard spokesman Jeffrey Szorik said. The sites will take on the Shurgard brand.
Seattle-based Shurgard owns and operates six sites in North Carolina among its more than 526 storage properties in the U.S. and Europe.
Nation/World
Bear Stearns to adopt conflict-of-interest principles
NEW YORK — Bear Stearns said it would adopt the analyst conflict-of-interest principles Merrill Lynch agreed to in its settlement with New York Attorney General Eliot Spitzer.
Bear Stearns also formed an analyst-oversight committee to be chaired by Kay Booth, global head of research. It will include executives from the legal and compliance department to review and approve initiations of coverage on all stocks and changes in ratings.
The investment-banking company also said it will provide more detailed disclosure on research reports and monitor e-mails between research and investment-banking departments.
New York and North Carolina said yesterday Wall Street firms must abide by the principles Merrill agreed to if the firms want to do business with the states' public pension funds, which represent $170 billion combined.
Allen buys more shares of Charter Communications
ST. LOUIS — Paul Allen, chairman of cable-television company Charter Communications, increased his stake by 5 million shares, to 6.3 percent of common stock outstanding, to show his confidence in the company.
Allen, the billionaire co-founder of Microsoft, already controls Charter through Class B shares that give him about 92 percent of voting rights. His stake in the common shares rose from 4.6 percent.
"It's a vote of confidence," Charter spokesman Dave Andersen said. Charter's stock has tumbled 75 percent so far this year; it climbed 13 cents yesterday, or 3.3 percent, to $4.11. "We're not being rewarded for the continued execution of our business plan."
Charter, Comcast and other cable companies' shares have dropped amid concern about accounting irregularities at Adelphia Communications, which filed for bankruptcy protection last week.
U.S. vehicle sales dip, but stay higher than expected
DETROIT — The expected free-fall in U.S. vehicle sales never materialized in June, as automakers reported sales down only 1.5 percent compared with June 2001.
Strong truck sales and performances from foreign automakers and U.S. automaker General Motors helped buoy the industry that had expected to see a marked sales decline last month.
Of the domestic automakers, GM was the only one to report a sales increase last month, with a 4.3 percent improvement over sales in June 2001.
Sales fell 10.5 percent at Ford, not including its foreign brands, and dropped 4 percent at DaimlerChrysler, the automakers reported yesterday.
Berkshire Hathaway to buy Garanimals clothing maker
OMAHA, Neb. — Billionaire investor Warren Buffett's Berkshire Hathaway agreed to buy Garan, the maker of Garanimals children's clothing, for about $270.6 million in cash.
Berkshire Hathaway will pay $60 a share for Garan, a 6.8 percent premium.
The Garan purchase adds to Buffett's accumulation of companies that make brand-name products.
Compiled from Seattle Times news services.