BUSINESS DIGEST || Justice OKs Verizon wireless purchases

Justice OKs Verizon wireless purchases

LOS ANGELES

A $3.6 billion deal between Verizon Wireless and several cable companies received a go-ahead Thursday from the U.S. Justice Department.

The agreement now awaits final approval from the Federal Communications Commission. If approved, the deal would allow Verizon to continue expanding its 4G LTE network by gaining unused portions of the airwaves from the cable companies.

T-Mobile also would benefit from the approval. The company entered into a deal with Verizon in June that would help T-Mobile improve its own 4G network and an LTE network expected to roll out next year.

In exchange, Verizon primarily got leverage to get the deal approved by regulators, and that has seemed to work thus far.

The Justice Department, though, did mandate that Verizon and its cable partners agree to restrict the amount of cross-marketing agreements they make. That limitation will last until 2016, and its purpose is to ensure that all the companies involved have an incentive to remain competitive.

Macy’s sues Penney

NEW YORK

Macy’s Inc. is suing rival retailer J.C. Penney Co., claiming Penney’s bid to sell products by Martha Stewart Living resulted in the breach of an exclusive contract held by Macy’s and could cost it potentially billions in sales.

Macy’s filed the lawsuit Thursday in the Supreme Court of the State of New York.

In the complaint, Macy’s claims that J.C. Penney entered into an unlawful contract with Martha Stewart Living to sell some of its home products at its stores starting next February.

Macy’s argues that the pact between Penney and Martha Stewart represents a breach of contract because Macy’s already has a deal in place with options to exclusively sell Martha Stewart goods through 2018.

The lawsuit seeks unspecified damages and an order blocking the Penney-Martha Stewart deal.

Ikea to launch budget-hotel chain

STOCKHOLM

Best known for its budget flat-pack furniture, Scandinavian retailer Ikea is planning to launch a chain of budget hotels in Europe.

The property division of Inter Ikea — the company that owns the Ikea intellectual property rights — is planning hotels in 100 locations across Europe. The first two hotels are expected to open in Germany in 2014. Other locations earmarked for hotels include Belgium, the Netherlands, the Nordic countries, Britain and Poland.

US construction dips

WASHINGTON

U.S. builders broke ground on slightly fewer homes in July than June. But in a hopeful sign for future construction, applications for building permits rose to their highest level since August 2008.

The Commerce Department said Thursday that single-family homes and apartments started in July dipped 1.1 percent to a seasonally adjusted annual rate of 746,000. That’s down from June’s rate of 754,000, the highest since October 2008.

From wire services