Week in Review

Items of interest from June 26 to July 1.

Highwoods rejects takeover bid

Highwoods Properties jilted a Florida suitor, saying it's better off staying single.

The Raleigh real estate company said Thursday that it had rejected an unsolicited $4.4 billion takeover bid from Capital Partners, an investment group based in Orlando, Fla.

The offer, which amounted to $36 per share, was the latest in a string of proposals from suitors who see Highwoods as a potentially strong and undervalued asset. The offer underscores growing interest in publicly traded real estate investment trusts among private investors as demand for office space picks up.

Analysts speculate that Highwoods is holding out for sweeter offers, in the range of $38 to $44 per share. The company's shares ended the week at $36.18, up 15 percent.

Tax credits on hybrids phasing out

The clock is ticking on federal tax credits for the most popular hybrid vehicles, possibly leaving some consumers in the lurch as the deadline draws nearer.

Tax credits for Toyota's best-selling Prius and Camry hybrids will be cut in half for vehicles delivered after September 30 and will phase out altogether over the next year. Local Toyota salesmen are using the deadline, trying to convince consumers to buy now.

Congress last year set a cap on the number of hybrids any one manufacturer could sell, after which tax credits on those vehicles start to phase out. The cap was set to prevent any one carmaker, such as Toyota, from cornering the market.

Meanwhile, struggling U.S. automakers last week resumed incentives meant to lure buyers, including no-interest loans and employee discounts for buyers.

Fans go online to woo Ikea

Ikea, a Swedish retailer of home furnishings, must be feeling the love from this region.

A Raleigh woman and fan of the chain's stores is compiling hundreds of signatures on an online petition to get the retailer to open a store in the Triangle.

Petition organizer Leigh Williams wants 2,000 signatures before sending them to Ikea's corporate office. She said petitioning online is cheaper and allows her to connect with more people of shared interest than sidewalk signature gathering.

Her effort highlights the role of the Internet as a place to campaign for causes, organize events and connect with the like-minded.

Staying put in Smithfield

Andrew Corp. isn't snubbing Smithfield after all.

The company announced plans in December to move its satellite-dish manufacturing plant in Smithfield about 30 miles, to Goldsboro. Then the company got a better deal on rent and decided it was less of a hassle to stay put, despite an offer of up to $4.4 million in tax breaks and other incentives. Smithfield and Johnston County officials were glad to keep the 230 jobs, but the decision left Wayne County wanting.

Cree buying Virginia business

Cree wants to get into more cars. The Durham semiconductor maker announced it would pay $46 million buy Intrinsic Semiconductor of Virginia. The move will accelerate Cree's efforts to develop chips that can be used to improve the performance of hybrid cards.

Intrinsic's technology also will benefit Cree's core business: making light-emitting diodes that illuminate cell phones, signs and car dashboards. Officials said it will be several years before hybrid cars containing Cree's devices hit the road.

Red Hat shares fall on earnings report

Red Hat rattled investors by reporting that costs from a recent acquisition will hurt profits.

The Raleigh software company had some good news: It added 10,000 customers during the first quarter, and sales were up 38 percent, to $84 million. But the purchase of software maker JBoss will cut earnings this fiscal year by 4 cents a share, more than previously expected.

More give benefits to domestic partners

A gay and lesbian lobbying group based in Washington released a survey showing that gay-friendly Fortune 500 companies are now in the majority.

The survey said that 253 of 500 companies offer domestic partner health benefits, including Lowe's of Mooresville and Duke Energy of Charlotte, both newcomers to the list.

The only Fortune 500 company with its headquarters in the Triangle doesn't offer domestic partner benefits. But a spokesman said that Raleigh-based utility Progress Energy is considering adding such perks.

The American Family Association, a conservative nonprofit group that opposes the embracing or promotion of homosexuality, has called for a boycott of high-ranking companies.

In other news

The McClatchy Co., publisher of The News & Observer, completed its purchase of rival Knight Ridder, creating the nation's second-largest newspaper chain by circulation. ... Triangle banker James Beck said he plans to raise $100 million to buy a Greenville community bank and transform it into a larger Raleigh-based lender. ... British software developer Misys Plc is considering a management-led buyout that could trigger the sale of its Raleigh-based health-care division. ... Cary software company Ultimus is building a new headquarters for its growing work force. ... Trimeris of Durham expects a recently approved AIDS drug made by Johnson & Johnson to boost demand for its own medicine, Fuzeon.