Paul: Give Caterpillar award for tax strategy

Paul: Give Caterpillar award for tax strategy

washington

Caterpillar Inc. executives defended a tax strategy Tuesday that has saved the manufacturing giant billions in U.S. taxes. They got support from Republican senators, including one who said the company deserves an award.

Caterpillar has avoided paying $2.4 billion in U.S. taxes since 2000 by shifting profits to a wholly-controlled affiliate in Switzerland, according to a report released by Sen. Carl Levin, D-Mich.Levin chairs the Senate investigations subcommittee. On Tuesday, Levin grilled Caterpillar executives and their accountants at a hearing on the company’s tax strategy.

Julie Lagacy, a Caterpillar vice president, was adamant that the Peoria, Ill.-based manufacturer follows all tax laws.

Caterpillar got support from Sen. Rand Paul, R-Ky., who said Caterpillar and its accountants have an obligation to shareholders to minimize their taxes.

Rite Aid acquires Health Dialog in deal

NEW YORK

Rite Aid said Tuesday that it bought Health Dialog Services in a deal intended to help the company expand its health coaching program for people with chronic ailments.

The companies didn’t disclose terms of the deal. Health Dialog Services is based in Boston, and it was owned by Bupa, a health care services group headquartered in London.

Rite Aid Corp. is based in Camp Hill, Pa. It runs about 4,600 stores in 31 states and Washington, D.C.

United cuts more nonstop flights

CLEVELAND

United Airlines is cutting more nonstop flights from Cleveland’s main airport after deciding to drop its money-losing hub there.

The Plain Dealer reported that United is cutting direct flights from Cleveland Hopkins International Airport to Baltimore and Albany, N.Y., in addition to several dozen nonstop flight destinations being eliminated starting this month. United travelers heading to Baltimore and Albany later this year will connect through other airports, making for longer trips and higher prices.

The newspaper says a United spokesman blamed the new cuts on regional carrier pilot shortages.

United announced two months ago that it would slash daily flights out of Cleveland and close its hub. That’s expected to cost about 470 jobs.

Judge awards CMU $1.54B in patent case

new york

A court has awarded Carnegie Mellon University $1.54 billion in a patent dispute with chip maker Marvell Technology.

Judge Nora Fisher ruled that Carnegie Mellon is entitled to interest and royalty payments on sales of the chips. But Marvell said she rejected the university’s request for an injunction to stop Marvell from selling the chips and rejected the university’s request for $326 million in pre-judgment interest.

The Pittsburgh university argued Marvell Technology Group Ltd. infringed on 1998 patents covering chips manufactured for computer hard drives.

Associated Press

Selected local stocks

STOCK, DIVIDENDCLOSECHANGE

Aqua America, .61, 25.12 .05

Avalon Holdings,5.32.10

Clear Channel, .61 21.92 —.46

Cortland Bancorp, 10.51—.24

Farmers Nat., .127.69 .00

First Energy, 2.20, 33.56—.48

FirstMerit Corp., .64,21.54 .71

First Niles Financial, .32,7.03.00

FNB Corp., .48,13.62.22

General Motors,34.45.03

General Electric, .76,25.87—.02

Huntington Bank, .20, 10.16.19

JP Morgan Chase, 1.52,60.75.04

Key Corp, .22,14.37.13

LaFarge, 20.06 .48

Macy’s, 1.00, 59.51.22

Parker Hannifin, 1.80, 122.142.43

PNC, 1.76,87.38.38

RTI Intl. Metals,27.59—.19

Simon Prop. Grp.,4.60,164.67.67

Stoneridge 11.49 .26

Talmer Bank, 14.61—.03

United Community Fin. 4.07.15

Selected prices at 4 p.m. Tuesday. Provided by Stifel. Not to be construed as an offer or recommendation to buy or sell any security.