BUSINESS BRIEFS
IPhone 3G users warned of faulty USB adapters
Associated Press
CUPERTINO, Calif. — Apple Inc. yesterday advised iPhone 3G users in many countries, including the United States, to replace the device's power adapter following reports that metal prongs broke off and stuck in power outlets, creating a risk of electric shock.
Apple said it will exchange the ultra-compact USB adapters for a redesigned model, without charge, in retail stores and online starting Oct. 10.
In the meantime, iPhone 3G users who received the tiny USB adapter with their phone or who bought it separately should immediately stop using it. Apple said iPhone 3G owners should use its standard USB power adapter, which has fold-up prongs, or charge the device by plugging it into a computer.
Spokeswoman Natalie Kerris could not say exactly how many adapters have broken in this way.
Adapters with a green dot on the bottom are safe and do not need to be replaced, Apple said.
ALCOHOLIC ENERGY DRINK PUT ON HOLD
MILWAUKEE — MillerCoors says it's going to put plans for a new caffeine-infused alcoholic energy drink on hold pending talks with the 25 states that asked the company not to release the beverage.
In a statement yesterday, MillerCoors said the company won't go ahead with its scheduled Oct. 1 launch of Sparks Red.
On Wednesday, attorneys general from 25 states, including Hawai'i, asked the company to abandon its plans for the drink.
SHAREHOLDERS MAY HELP AIG PAY LOAN
CHARLOTTE, N.C. — Some of American International Group Inc.'s shareholders want to help the company pay off the federal government's $85 billion loan and avoid ceding a majority stake in the company, The Wall Street Journal reported yesterday.
The shareholders are considering raising money, which may include bringing in other investors, according to the story on the Journal's Web site.
AIG, one of the world's largest insurers, teetered on the brink of collapse early this week as it looked for fresh cash to help shore up its balance sheet, which was facing a liquidity shortfall amid the continued downturn in the credit markets. On Tuesday, the Federal Reserve agreed to provide the New York-based company with the two-year, $85 billion loan in return for a 79.9 percent stake in AIG and the ability to remove senior management.
An AIG spokesman did not have an immediate comment, and a spokesman for AIG's largest individual shareholder, former CEO Maurice "Hank" Greenberg, declined to comment.
RUSSIAN MARKETS RECOVER QUICKLY
MOSCOW — Russia's financial markets closed up by more than 20 percent yesterday after a volatile session that saw trading suspended twice as stocks shot higher.
The RTS and MICEX stock exchanges were rebounding off the government's efforts to rush through emergency measures that included more money for banks and purchases of shares to stem plunging prices.
Trading was halted twice after shares gained sharply, breaching technical limits. It resumed shortly before the markets closed.
GOVERNMENT SUED FOR $435M BY P&G
CINCINNATI — Procter & Gamble Co., the consumer products maker whose products include Crest toothpaste and Pampers diapers, is suing the U.S. government for nearly $435 million.
The Cincinnati-based company says the government owes it that amount in taxes and interest after it was "erroneously and illegally assessed" in an IRS audit. The IRS had billed P&G in June after an audit of returns for its 2001-2005 tax years, the lawsuit states.
P&G says it paid the additional taxes and interest the IRS claimed were owed, but is suing to get the money back.
The dispute stems over credits and deductions for technologies donated to universities, medical centers and research foundations; donated artwork; costs of obtaining patents; and foreign tax issues involving the six years of tax returns.
