Microsoft manager leaves to join Google

Vic Gundotra, a 15-year veteran general manager at Microsoft, has left the company to join rival Google in a year.

Gundotra's departure was first reported by Business 2.0 and confirmed by Mountain View, Calif.-based Google. A Microsoft spokesman wasn't available for comment.

The executive worked as general manager for platform evangelism to get software developers to use Microsoft's software and online offerings when creating new programs. His role at Google hasn't been determined, a Google spokesman said.

It is believed Gundotra is unable to work at Google right away because of a non-compete clause in his contract.

Fortune Bank

Former officers file to open bank

Former officers of a Seattle bank bought by Wells Fargo in 2003 have filed an application to form a new state-chartered commercial bank called Fortune Bank.

David Straus, formerly president of Pacific Northwest Bank, which Wells Fargo bought, would be chief executive officer of the new bank, which would cater to small- and medium-size businesses. The bank's offices would be on the seventh floor of the Washington Mutual Tower, 1201 Third Ave.

The group has letters of intent for about $6.5 million of the $17 million to $22 million it hopes to raise in initial capital.

The proposed bank's chairman is Al Rosellini Jr., son of the former Washington governor.

Takeover bid rises to $28.05 a share

Pulp and paper company Longview Fibre on Thursday said Obsidian Finance Group and Campbell Group sweetened their combined takeover bid to $28.05 a share from $26.

The new bid does not take into account a $7.54 special dividend that the Longview-based company plans to pay. Including the dividend, which totals about $385 million in cash and stock and is payable Aug. 7, the new cash bid is worth $20.51 a share.

Longview said it would review the revised offer "in due course." The company rejected the previous bid, saying it plans to convert to a real estate investment trust, or REIT. The dividend was part of that plan.

Boeing

Slovakian carrier to buy 5 planes

Boeing won an order for five 737-700 planes from SkyEurope Airlines worth an estimated $295 million. The aircraft will be delivered to the Slovakian low-cost carrier in 2008.

Separately Thursday, Boeing said Mexico's largest airline will lease three of its new 787 Dreamliner airplanes from International Lease Finance Corp. for undisclosed terms.

Aeromexico will become the first Latin American carrier to add the 787 to its fleet, with deliveries scheduled to begin in early 2010.

HealthSouth

Former CEO guilty of bribing governor

Richard Scrushy was found guilty of bribing the governor of Alabama, a year and a day after being acquitted of masterminding a fraud at HealthSouth, the company he ran for years.

Former Gov. Don Siegelman, 60, and Scrushy, 53, were convicted today by a Montgomery, Ala., jury on the 12th day of deliberations. Prosecutors said Scrushy paid Siegelman $500,000 for a seat on a hospital regulatory board. At the time, Scrushy was in charge of Birmingham, Ala.-based HealthSouth, the largest U.S. rehabilitation hospital.

The jury returned verdicts on all counts just two days after telling U.S. District Judge Mark Fuller it was deadlocked. The judge twice during deliberations told the stalled panel it was its duty to reach verdicts if possible. His refusal to declare a mistrial could be a ground for appeal, a law professor said.

"The question will become whether the jury was coerced," said Pam Bucy, who teaches at the University of Alabama. Telling jurors to keep trying "will certainly be an issue for appeal," she said.

Both men plan to appeal the convictions, punishable by up to 30 years in prison. They remain free pending sentencing.

"You know we will appeal," Scrushy said as he sat with his wife in the courtroom after the verdicts. "It's not over."

He was convicted of bribery, conspiracy and four counts of mail fraud.

680,000 new users boost revenue 35%

Research In Motion said Thursday it earned $129.8 million in its latest quarter as the maker of BlackBerry wireless devices and services added 680,000 users, boosting revenue by 35 percent.

The profit for RIM's fiscal first quarter, equal to 68 cents per share, was fairly steady compared with the same period last year, when the Canadian company posted net income of $132.5 million, or 67 cents per share.

Analysts had expected a first-quarter profit of 65 cents, according to a survey by Thomson Financial. RIM's stock jumped nearly 4 percent in after-hours trading, rising $3.87 a share. In regular trading, shares gained 26 cents to $65.99.

Notably, rival device maker Palm also reported robust quarterly results on Thursday, saying its quarterly profit surged again on strong sales of its Treo smart phones.

Home Depot

Board's actions questioned

Two unions questioned the actions of Home Depot's board after a contentious annual shareholders' meeting May 25 and the retailer's revelation this month of an investigation into past option grants.

The American Federation of State, County and Municipal Employees today asked Home Depot for documents to explain why some directors didn't attend the session. The American Federation of Labor-Congress of Industrial Organizations called separately for director Ken Langone to resign over the grants.

Shareholders criticized Home Depot directors after Chief Executive Officer Robert Nardelli was the only board member to appear at the annual session, where the size of his pay package was discussed.

Shareholders withheld at least 30 percent of their votes for 10 of the 11 directors at the annual session in protest over his compensation. At the time, Nardelli didn't respond to criticism of his pay or questions about where the other directors were. Home Depot issued a statement June 1 saying that all board members would attend future meetings.

Full ownership of smelters gained

Aluminum producer Alcoa said Thursday it reached an agreement to take complete ownership of its Intalco and Eastalco aluminum smelters.

Affiliates of Mitsui & Co. and YKK will sell their combined 39 percent stake in the two smelters, which will give Pittsburgh-based Alcoa sole ownership of the facilities.

The Intalco smelter, in Ferndale, Whatcom County, is operating at about one-third capacity. The Eastalco smelter in Fredrick, Md., was shut down in December 2005.

Compiled from Dow Jones Newswires, The Associated Press, Seattle Times business staff and Bloomberg News