Business Digest


December 17, 2010 at 12:00a.m.

Merger approved

akron

Utility companies First-Energy Corp. and Allegheny Energy Inc. said Thursday that they have received federal approval for their proposed merger. The Federal Regulatory Commission green-lighted the companies’ proposal for the merger, expected to close in the first half of 2011. The companies applied for approval May 11. The merger already has been approved by the Virginia State Corporation Commission and the West Virginia Public Service Commission. Applications are pending with the Pennsylvania Public Utility Commission and the Maryland Public Service Commission. Shares of FirstEnergy rose 18 cents to close at $36.02 Thursday, and Allegheny shares rose 20 cents to close at $23.41.

Fed: Cap merchant debit fees at 12 cents

NEW YORK

The Federal Reserve on Thursday proposed a 12-cent cap on the fees banks would be allowed to charge merchants for debit-card transactions, a limit that some estimate could cut up to 90 percent of the revenue collected through such fees.

Shares of Visa Inc. and MasterCard Inc. slid more than 10 percent after the proposals were made public.

Capping debit-interchange fees, sometimes called swipe fees, would help merchants. Under the existing system, the Fed said the average fee in 2009 was 44 cents per transaction, or 1.14 percent of the transaction.

4 arrested in NYC in insider trading

NEW YORK

Federal prosecutors in Manhattan broadened their insider-trading crackdown Thursday, arresting four people on charges alleging that so-called “expert consultants” revealed secrets about Apple Inc.’s iPhone and other technology products to hedge funds seeking a trading edge on quarterly earnings reports.

The latest probe targeted Primary Global Research, a Mountain View, Calif.-based firm that offered consulting services to investors on industry trends, issues and regulations. Instead, prosecutors allege, firm executive James Fleishman used four consultants employed by publicly traded companies to create a corrupt clearinghouse for confidential information.

Staff/wire reports