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Business news briefs: 5/27/06

Business news briefs: 5/27/06

FedEx Ground CEO to retire

Daniel J. Sullivan, who dreamed up the package delivery company that ultimately became FedEx Ground in a local Hilton Hotel suite 21 years ago, will retire as president and chief executive officer from the Moon-based FedEx Corp. unit on Jan. 5. Mr. Sullivan, 60, has led FedEx Ground and its predecessors since he drew up the business plan in Room 403, creating both a delivery strategy that generated operating income of $187 million on sales of $1.36 billion last year and the sort of lore that has the door to the hotel room on display at headquarters. He will be succeeded by FedEx Express Executive Vice President David F. Rebholz, 53.

Tepper in rarefied company

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Appaloosa Management's David A. Tepper, namesake of Carnegie Mellon University's business school, was the world's seventh highest-paid hedge fund manager, according to Institutional Investor's Alpha magazine. Mr. Tepper earned $400 million last year, the same as Bruce Kovner of Caxton Associates. The top manager, James Simons of Renaissance Technologies Corp., pulled in $1.5 billion, the magazine said.

Glaxo unit files patent suit

The Moon-based unit of GlaxoSmithKline that makes Beano, used to combat intestinal gas, accuses Sedona Laboratories in a lawsuit of infringing a U.S. patent on the dietary supplement. Block Drug Co. asks for a jury trial and unspecified damages in the suit filed Thursday in federal court in Wilmington, Del. Block says Sedona's sales of the over-the-counter digestive aid GasAway+ will cause it "irreparable harm" unless stopped by the court. A Sedona advertisement filed with the suit says GasAway+ helps in digestion of foods such as beans, cabbage, cauliflower and broccoli.

GM recalling Corvettes

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General Motors Corp. will recall more than 30,000 Corvettes after customers complained that the roof flew off while driving the $45,000 sports car. The automaker received 21 reports of roofs detaching from 2005 and 2006 model-year Chevrolet Corvettes coupes, a GM spokesman said yesterday. The recall applies to only 2005 and 2006 vehicles with roofs that are designed to be detachable by releasing latches.

Martha fights civil action

Martha Stewart, who completed a five-month prison sentence a year ago for lying about her sale of ImClone stock, has decided to fight rather than settle civil insider trading charges brought by the Securities and Exchange Commission. In an 11-page response to the SEC complaint filed late Thursday with the U.S. District Court in New York, Ms. Stewart denied allegations that she sold 3,928 shares of ImClone Systems Inc. stock based on "material, nonpublic information." Instead, she said she "acted in good faith."

Also in business ...

Alcoa named Randy E. Phillips, 47, president of corporate development, a new position, in China. Bob Larson, 50, was promoted to president of the aluminum producer's China Mill Products unit ... FedEx Corp. announced a deal to acquire Watkins Motor Lines, a less-than-truckload carrier of general commodities, for $780 million in cash. Watkins, a privately held company based in Lakeland, Fla., will be rebranded FedEx National LTL and operate as a separate network within the FedEx Freight division.

First Published: May 27, 2006, 4:00 a.m.

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