Business briefs for July 1, 2004

Thursday, July 1, 2004 | 11:15 a.m.

School sale finalized

A group of parents completed the purchase Wednesday of Warren-Walker upper and lower schools in Henderson.

In May, the parents announced that they planned to purchase the private schools to save the upper-level school, 1165 Sandy Ridge Ave., from being purchased by Arlington, Texas-based home builder D.R. Horton. The lower-level school, 2150 Windmill Parkway, was not among the home builder's interests, but was included in the parent's purchase agreement.

Knowledge Learning Corp. sold the private schools for $9.2 million. The schools will be converted from for-profit to nonprofit schools that will be run by a board of trustees selected by the parents, said Ira Levine, an attorney and parent of four children at the schools.

Warren-Walker opened in 1992 and teaches about 510 children from kindergarten through 12th grade at its two campuses.

Antitrust settlement upheld

WASHINGTON -- A U.S. appeals court Wednesday unanimously approved the landmark antitrust settlement Microsoft Corp. negotiated with the Justice Department, setting aside objections by Massachusetts that sanctions were inadequate against the world's largest software company.

In a significant victory for Microsoft and the Justice Department, the appeals court ruled 6-0 that the settlement was "in its entirety" in the public's interest. The decision relieves Microsoft's biggest courtroom headache in the United States.

In exuberant language, the U.S. Court of Appeals for the District of Columbia Circuit applauded provisions of the complex settlement that permit computer makers to hide Microsoft's built-in Web browser software so that consumers can more seamlessly use software from Microsoft's rivals.

Microsoft's top lawyer, Brad Smith, described the 83-page decision as a "clear and emphatic message" that its settlement with the Bush administration was proper.

Electronic snooping by firm OK'd

BOSTON -- In an online eavesdropping case with potentially profound implications, a federal appeals court ruled it was acceptable for a company that offered e-mail service to surreptitiously track its subscribers' messages.

A now-defunct online literary clearinghouse, Interloc Inc., made copies of the e-mails in 1998 so it could peruse messages sent to its subscribers by rival Amazon.com Inc. An Interloc executive was subsequently indicted on an illegal wiretapping charge.

An advocacy group said Tuesday's ruling by the 1st U.S. Circuit Court of Appeals opens the door to further interpretations of the federal Wiretap Act that could erode privacy rights.

Ellison defends PeopleSoft bid

SAN FRANCISCO -- Oracle Corp. CEO Larry Ellison defended his company's $7.7 billion bid for rival business software maker PeopleSoft Inc. as a radical but necessary move during testimony Wednesday in an antitrust trial challenging the proposed deal.

"We thought the only way we could survive and prosper was through an acquisition strategy," Ellison told a packed federal courtroom in San Francisco. "Oracle had to consider a strategy we had never considered before. If we wanted to survive and grow, we (decided) we will have to start an acquisition strategy. PeopleSoft was on top of the list."

The jaunty billionaire's long-awaited courtroom appearance, coming near the end of a monthlong trial, injected another dramatic moment into a Silicon Valley soap opera that has riveted the high-tech industry since Oracle launched its hostile takeover attempt more than a year ago.

During 2 hours and 20 minutes of testimony, Ellison avoided his penchant for outrageous remarks. The gregarious CEO triggered laughter at one point when he began one of his signature spiels about high-tech's future and advised the courtroom reporter to "stop me, if I run on."

Firm tied to SEC chief investigated

WASHINGTON -- Federal investigators are examining a company on which William H. Donaldson, the chairman of the Securities and Exchange Commission, served as a member of the board and the audit committee, a person involved in the inquiry said Wednesday.

The company, EasyLink Services of New Jersey, which provides electronic data services for companies, is being investigated for accounting irregularities, the person said.

Donaldson, who stepped down from the board to head the SEC, has removed himself from consideration of the proceeding. The commission has retained a lawyer from another agency to review its findings.

The inquiry was disclosed Wednesday by Dow Jones News Service, which reported that problems at the company are said to involve the way it booked revenue.

Matt Well, a spokesman for the commission, declined to comment.