Staff/Wire reports

ALBANY, N.Y. - The state attorney general is preparing to sue former New York Stock Exchange head Dick Grasso and his former board members over nearly $120 million in retirement benefits Grasso received, a source familiar with the case said Monday.

Attorney General Eliot Spitzer's office is in settlement talks with Grasso and board members, but was "leaning toward" bringing a lawsuit if the negotiations fail, the source said, speaking on condition of anonymity.

The suit would accuse Grasso and the board members who approved the lavish pay package of failing in their fiscal responsibilities under state nonprofit organization law, the source said.

European Union slaps sanctions on U.S. items

BRUSSELS, Belgium - The European Union sought to pressure the U.S. Congress into quickly changing its export subsidy laws by imposing sanctions Monday which could total $300 million in key industrial sectors by the end of the U.S. election year.

The 15-nation EU said it had run out of patience with the United States for failing to repeal the Foreign Sales Corporation legislation two years after the tax breaks it offers to exporters were ruled illegal by the World Trade Organization.

The sanctions will hit an array of industries, ranging from jewelry to textiles and agricultural goods. Since the sanctions are gradual, they will increasingly hurt as time ticks down to congressional elections in November.

Prosecutor describes Adelphia family's life

NEW YORK - In the wildly lavish lifestyle of Adelphia Communications Corp. founder John Rigas' family, a Christmas tree cost as much as $20,000, a prosecutor said at the opening Monday of the latest financial scandal to reach trial.

Assistant U.S. Attorney Richard Owens used the holiday episode to describe a family run amok, saying "lies and greed" drove them to steal millions of dollars from their business and live in splendor with a company jet at the ready.

Defense lawyers, however, portrayed the family as full of love for the company they built and a small Pennsylvania town that benefited from their success, and said any financial irregularities were the fault of company crooks turned government witnesses.

Owens said the Rigas family stole hundreds of millions of dollars from 1999 until 2002.

Oil futures price near $37 a barrel

WASHINGTON - Oil futures approached $37 a barrel Monday, the highest level in nearly a year, as traders fretted about low supplies and the high price of gasoline, which averaged $1.72 per gallon at the pump last week.

Crude for April delivery settled at $36.86 per barrel on the New York Mercantile Exchange, up 70 cents. It was the highest settlement price for crude futures since March 12, 2003, when oil traded at $37.83.

Unleaded gasoline futures gained 2.12 cents on Monday to settle at $1.147 per gallon on Nymex.

Wendy's to buy assets of Bess Eaton Donut

Wendy's International Inc., the No. 3 U.S. hamburger chain, agreed to purchase assets of Bess Eaton Donut Flour Co., which filed for bankruptcy protection, to expand its Tim Hortons doughnut chain.

Bess Eaton will sell assets connected with as many as 48 Bess Eaton coffee and doughnut restaurants, Dublin, Ohio-based Wendy's said. The agreement is subject to bankruptcy court approval. Tim Hortons spokesman Nick Javor declined to comment on specifics.

Hasbro enters lottery games agreement

WEST GREENWICH, R.I. - Lottery giant GTECH Holdings Corp. plans to distribute lottery products featuring the Monopoly and Battleship games.

The West Greenwich-based GTECH on Monday announced a three-year licensing agreement with Hasbro Inc., which owns the rights to the Monopoly and Battleship brands.

Rates mixed in Treasury bill auction

WASHINGTON - Interest rates on short-term Treasury securities were mixed in Monday's auction. The Treasury Department sold $19 billion in three-month bills at a discount rate of 0.940 percent, up from 0.930 percent last week. An additional $17 billion was sold in six-month bills at a rate of 0.990 percent, down from 0.995 percent.