Hewlett case cites memos

        Lawyers for dissident Hewlett-Packard Co. shareholder Walter Hewlett cited internal company memos and personal documents in court Tuesday as evidence executives deceived investors about the financial prospects of HP's proposed $19 billion purchase of rival Compaq Computer Corp.

        In opening statements in Hewlett's attempt to overturn a shareholder vote approving the deal, Hewlett lawyer Stephen Neal claimed HP executives knew as late as a few days before shareholders were set to vote on the deal last month that internal projections showed the financial benefits would fall well short of what HP publicly touted.

        A personal journal entry Compaq CEO Michael Capellas made in late February or early March was headed “sobering thought” and said “at our course and speed we will fail.”
       

Souvenirs simpler

        New merchandise for Star Wars: Episode II — Attack of the Clones arrived in stores Tuesday as fans lined up for midnight sales of the latest bric-a-brac from a galaxy far, far away.

        After a large surplus of merchandise languished on store shelves following 1999's The Phantom Menace, products for the new film are being kept much simpler.

        “We've scaled it back a lot,” said Lucas film licensing executive Howard Roffman. “We're going to stick to the basics — toys, video games ... the things our fans prefer, rather than some of the fringe items.”
       

Raising limit opposed

        Federal Reserve Chairman Alan Greenspan told Congress Tuesday that the Fed opposes increasing the $100,000 limit on deposit insurance coverage but supports requiring more banks to pay premiums for the insurance.

        Mr. Greenspan, testifying before the Senate Banking Committee, said the Fed, which regulates bank holding companies, agrees with the Federal Deposit Insurance Corp. that a number of aspects of the deposit insurance system need to be reformed.
       

Wal-Mart tries cars

        The world's largest retailer is taking a test drive in the used-car business.

        Wal-Mart Stores Inc. will lease property next to five of its stores in the Houston area to a Connecticut-based car sales company for six months, Wal-Mart spokesman Jay Allen said Tuesday.

        Wal-Mart's only involvement will be to lease the property and help Asbury Automotive develop the program.

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