Business Briefs: Thursday August 14, 2008

Published: August 14, 2008

NEW YORK — Americans still love their plastic, even if they don't trust the credit card companies dishing it out.

A study released Wednesday by CreditCards.com found 58 percent of respondents said they "somewhat” or "strongly” agree with the statement "I don't trust credit card companies.”

At the same time, 82 percent think having at least one credit card is essential, and 77 percent said they like the convenience of credit cards over cash.

While seeing the pros and cons of credit cards, some 78 percent agreed with the statement that nobody really reads the terms and conditions when signing up for a credit card.

One reason people don't bother reading the terms is that all the fine print is so difficult to decipher, said Ben Woolsey, director of marketing and consumer research for CreditCards.com, a privately held company that offers consumers comparisons on credit cards.

The result is that people are later "stunned” by fees and penalties, Woolsey said.

NEW YORK — UnionBanCal Corp. on Wednesday rejected a buyout offer by Japan's Mitsubishi UFG Financial Group, saying the $3 billion price was too low.

Mitsubishi UFJ, Japan's largest bank, offered to buy the remaining shares it doesn't already own in UnionBanCal for $63 per share in cash. The bank already owns a 65.4 percent stake in San Francisco-based UnionBanCal, and wanted to buy the remaining interest through a tender offer beginning Aug. 18.

However, UnionBanCal said the proposed tender offer — which represents an 8 percent premium over the stock's Monday closing price of $58.18 — wasn't enough.

NEW YORK — A federal appeals court has reversed a ruling that awarded John Steinbeck's son and granddaughter publishing rights to 10 of the author's early works, including "The Grapes of Wrath.”

The appeals court in Manhattan said Wednesday a lower court judge made a mistake in calculating that the works belonged to the son, Thomas Steinbeck, and granddaughter Blake Smyle.

The son and granddaughter had won rights previously held by various individuals and organizations, including Penguin Group Inc. and the heirs of John Steinbeck's widow, Elaine. The appeals court ordered the lower court judge to rule in favor of Penguin and Elaine Steinbeck's heirs. She died in April 2003.

NASHVILLE, Tenn. — Sports fans around the country are facing costlier or longer rides to the game because of a recent federal regulation that restricts the use of public shuttles that people take from train stations or offsite parking to the stadium.

The situation has left NFL teams and schools with major college football programs scrambling for alternatives ahead of the upcoming regular season.

The American Public Transit Association says the regulation — designed to foster free-market competition — instead is pushing riders away from public transport at a moment when gasoline costs 82 cents more per gallon than it did at this time last year. The rule also could mean more traffic congestion as fans opt to drive to stadium-area lots.

Under a Federal Transit Administration regulation that took effect May 1, local transit authorities no longer can offer game-day shuttle service to fans if that service is: not part of the regular schedule; if the fee is higher than the regular fare; or if a team or other group is involved, and negotiate a price for the service.

BRASILIA, Brazil — Walmart Stores Inc. says it will invest at least $1 billion in Brazil to expand its operations in Latin America's biggest country.

The announcement was made in a statement issued Wednesday shortly after Craig Herkert, president and CEO of Walmart's America's division and Brazilian President Luiz Inacio Lula da Silva met in the capital city of Brasilia.

The statement says the American retail giant will invest between $1 and $1.12 billion to open from 80 to 90 stores in Brazil beginning in 2009.

The Arkansas-based Walmart opened its first store in Brazil in 1995 and today has 318 outlets in 18 states employing 70,000 people.

The Associated Press

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