Burner joins group for two Seattle newspapers

Pacific Northwest

Eighth District congressional candidate Darcy Burner has joined the Committee for a Two-Newspaper Town as a co-chair.

The group says it is working to keep both Seattle dailies alive. The Seattle Times and The Hearst Corp., owner of the P-I, are in private, binding arbitration over the future of their joint-operating agreement (JOA). If The Times prevails, the P-I could close.

With the addition of Democrat Burner, who lost to U.S. Rep. Dave Reichert last fall, the committee now has three co-chairs. Seattle lawyer Anne Bremner and former state Supreme Court Justice Phil Talmadge are the other two.

Bremner said Burner should be a big help in raising money for a court showdown, scheduled for June 29, at which the group's claims against both companies will be considered. "We want to pay our lawyers," Bremner said.

The Times endorsed Reichert last fall, while the P-I backed Burner. Burner said that didn't influence her decision to join the committee. Competition and a diversity of viewpoints are important, she said.

"I was sad to see the King County Journal go under," Burner said, referring to the Kent-based daily that closed in January, "and they didn't endorse me."

Burner has said she plans to run for Reichert's seat again next year.

Delta Marine

Bond money to aid expansion

Luxury-yacht builder Delta Marine Industries of Seattle has scored $18 million in state-arranged bond financing and will use the money to refinance its recent expansion project on the Duwamish River.

The 40-year-old company has installed a 400-ton boat lift pier and built a new assembly building as part of the project, which began in 2003. It also allowed Delta Marine to add 168 employees, bringing its total work force to over 400.

The money is in the form of a $10 million tax-exempt bond and an $8 million taxable bond, both through the Economic Development Finance Authority. The Washington State Department of Community, Trade and Economic Development approves the tax-exempt portion through its Bond Cap Allocation Program.

The state does not actually provide the financing behind the bonds; they're sold to investment funds and backed by a letter of credit from KeyBank.

Starbucks

Anti-labor claims to get hearing

The National Labor Relations Board set a hearing June 12 into whether Starbucks illegally kept workers from unionizing at four Manhattan coffee shops.

The labor board alleged Seattle-based Starbucks violated labor laws 30 times by "engaging in unfair labor practices," based on a complaint filed by the Industrial Workers of the World.

The board said 11 managers were involved in firing two workers who supported unionizing, in threatening to fire others and in barring workers from discussing conditions while on the job.

Apple

EU objects to limits on online music

The European Commission on Tuesday took the first step toward bringing an antitrust lawsuit against Apple and major record companies, objecting to territorial restrictions applied to online music sales.

The commission maintains that Apple and the major record companies are restricting the ability of consumers to choose where to buy music, what music is available and at what price.

Commission spokesman Jonathan Todd said Britons are paying 1.17 euros ($1.56) per song, rather than the 0.99 euro charged in France, Germany and other euro-zone member countries.

Apple said the record companies were to blame.

Humana / Wellcare

Payment increase ups insurer stocks

Shares of some of the largest health insurers rose Tuesday after the government announced higher-than-expected payment increases for companies that operate private Medicare plans.

The Centers for Medicare and Medicaid Services said late Monday that preliminary payments to companies that run Medicare Advantage programs will rise 3.5 percent for 2008. The payment boost, made to insurers for each Medicare participant they cover, is less than last year's 3.9 percent update, but above Wall Street estimates of a 2 to 3 percent increase.

Of the 43 million Americans 65 years or older who receive health care through Medicare, about 8 million are enrolled in Medicare Advantage plans run by private companies. The program was designed to expand Medicare and better manage costs, though recent statistics show the government spends more on patients in Medicare Advantage plans than those in traditional Medicare.

Stock in Humana, a participant in Medicare Advantage, rose $2.11 to $61.16 Tuesday. Competitor Wellcare rose $1.93 to $88.77.

Fannie Mae

Senators question NYSE listing

Fannie Mae's listing on the New York Stock Exchange (NYSE) is a "concern" because the company hasn't filed timely financial statements since 2004, three Republican senators on the panel that oversees the company said this week.

Sens. Chuck Hagel, of Nebraska, John Sununu, of New Hampshire, and Elizabeth Dole, of North Carolina, wrote a letter dated April 2 to Fannie Mae Chief Executive Daniel Mudd.

Fannie Mae hasn't produced timely financial reporting since accounting investigations in 2004 uncovered years of profit manipulation, prompting a $6.3 billion earnings restatement.

The accounting manipulation at Fannie Mae led to the ouster of top executives and a SEC-ordered restatement and a federal fine of $400 million.

Kinder Morgan Energy

Marine terminal in B.C. acquired

Kinder Morgan Energy Partners, the U.S. pipeline partnership headed by billionaire Richard Kinder, agreed to buy a Port of Vancouver marine terminal from the British Columbia Railway on optimism crude shipments from Canada's oil sands will surge.

Royal Dutch Shell and Exxon Mobil are investing billions of dollars to extract extra-heavy crude, sometimes called bitumen, from Alberta's oil-soaked sands. The oil won't flow in pipelines unless it's heated or diluted.

The purchase price for the terminal won't be disclosed until the transaction closes, expected in the second quarter, Kinder Morgan spokesman Larry Pierce said.

From Seattle Times staff, MarketWatch, The Associated Press and Bloomberg News