Bear Stearns under investigation by SEC

Bear Stearns Cos., the seventh-biggest securities firm, faces federal criminal and civil probes into whether it helped Canary Capital Partners LLC make illegal mutual fund trades, those familiar with the matter said.

Bear Stearns is being investigated by the Securities and Exchange Commission and the U.S. attorney for the Southern District of New York, the sources said, speaking on condition of anonymity. At least eight brokers that Edward Stern's Canary Capital used to execute trades at Bear Stearns and other firms are also being investigated, they said.

Dan River textiles files for bankruptcy

Dan River Inc., a 122-year-old maker of bedding, clothing and draperies based in Danville, Va., filed for bankruptcy, joining dozens of textile makers unable to pay their debts in the face of competition from lower-cost imports in recent years.

Dan River said its business wouldn't be interrupted, obligations to customers and workers would be fulfilled and it hopes to exit bankruptcy by year's end. Its filing listed $448 million in assets and $373 million in debts.

CSX raised chief's pay 39% as profits fell

CSX Corp. raised the compensation of chief executive Michael Ward by 39 percent to $4.56 million last year, when profit at the third-largest U.S. railroad fell 42 percent on higher expenses and costs for future asbestos claims.

Ward received $808,333 in salary, $182,732 in other compensation and stock options worth $3.57 million in 2003, when CSX shares rose 27 percent, according to a regulatory filing.

Factory orders rise 0.3% in February

WASHINGTON - America's factories saw orders bounce back a bit in February, a sign that manufacturing is continuing to emerge from a three-year slump.

The Commerce Department reported Wednesday that orders placed with factories increased by a modest 0.3 percent last month, compared with a drop of 0.9 percent in January.

Kraft CEO ill, staff to report to chairman

Kraft Foods CEO Roger Deromedi, who took sole control of the company in December, has been hospitalized with an undisclosed ailment and his staff has been told to report to the company chairman, Kraft announced Tuesday.

Deromedi's staff will report to chairman Louis Camilleri, 49.

Lane-departure warnings in Infinitis

Luxury carmaker Infiniti will begin offering lane-departure warning systems in vehicles later this year, the first use of such accident-avoidance technology in North American passenger cars, the Nissan Motor Co. division said Wednesday.

Employing a small camera, speed sensor and warning buzzer, the system is designed to alert drivers of unintentional movement out of a designated traffic lane. It will be offered this fall on 2005 models of Infiniti's FX sport utility vehicle, and next spring on the 2006 M45 luxury sedan.

CORRECTION: Name confused

The Haitian American Apparel Co. S.A., or HAACOSA, is not a Haitian supplier to Cintas Corp., the company says. The name was incorrectly confused with another company, Haitian American Textile Co. S.A. (HATCOSA), in a story in Wednesday's Business section about the union campaign against the company.