News Scan A.M.: April 5, 2001


Technology, wealth and Internet news:

• A divided U.S. Senate handed President George W. Bush a major setback yesterday on his $1.6 trillion tax cut plan. In a 53-47 vote, the Senate decided to cut the 10-year reductions by $450 billion and in order to provide more funding to education programs and debt reduction. More...
• Grocery retailer and wholesaler Supervalu (nyse: SVU - news - people) said it will eliminate 4,500 jobs, or 7% of its workforce, and leave some markets. The company said it will take a fourth-quarter restructuring charge of $240 million. More...
• The bad news: Foot-and-mouth disease will cost Britain up to $4.3 billion, according to reports. The good news: The epidemic may be sputtering out. Prime Minister Tony Blair said the disease, which had affected 1,000 sites, appears to be leveling off. Foot-and-mouth has also been found in livestock in the Netherlands, France and Ireland. More...
• U.S. dairy giant Suiza Foods (nyse: SZA - news - people) today said it has acquired competitor Dean Foods (nyse: DF - news - people) in an approximately $1.5 billion cash and stock deal. Suiza will also take on $1 billion of Dean's debt. The combined firm will assume the name Dean Foods.
• The U.S. economy has a 90% probability of going into recession in 2001, according to an economic forecast by the Anderson School at the University of California, Los Angeles. A recession means two consecutive quarters of economic contraction. The report indicated that the economy could make a weak rally by the end of the year, and would recover by 2002. The forecast said the unemployment rate would rise to 4.8% in 2001, up from 4% in 2000, and climb to 6.1% in 2002. More...
• Children's product maker Cosco will pay a $1.3 million fine to settle charges it failed to tell safety regulators about defective cribs and other products linked to two deaths and more than 300 injuries. Based in Columbus, Ind., Cosco manufactures car seats, strollers and toddler beds. More...
• Pequot Capital Management, a Westport, Conn.-based hedge fund, is splitting into two firms. Pequot Chief Executive Arthur Samberg will continue to run Pequot Capital. Pequot President Daniel Benton will become CEO of a new firm to be named Andor Capital Management. More...
• A federal judge has ordered an online pornographer to pay $65 million for stealing domain name sex.com from Gary Kremen, a San Francisco entrepreneur who registered the name in 1994. In the largest verdict in a cyber-squatting case, U.S. District Judge James Ware found Stephen Cohen liable for fraud and forgery. More...

News items can be submitted to Davide Dukcevich at ddukcevich@forbes.net or by calling him at (212) 366-8927.