April 22, 2008 / 6:16 AM / 10 years ago

PRESS DIGEST - Wall Street Journal - April 22

April 22 (Reuters) - The following were the top stories in The Wall Street Journal on Tuesday. Reuters has not verified these stories and does not vouch for their accuracy.

* Marcus Brauchli is expected to resign as managing editor of The Wall Street Journal after only 11 months in the job, but may remain with News Corp NWSa.N in some capacity. Journal publisher Robert Thomson may take over as interim managing editor.

* Until now, losses at many banks have come from multibillion-dollar write-downs on toxic debt. But analysts believe the costs of building bad-loan reserves could cause just as much pain — and for a lot more banks.

* Bank of America Corp (BAC.N), hammered by ballooning losses on home-equity loans and other credit exposure, reported a 77 percent plunge in first-quarter profit and delivered a glum forecast for the rest of this year.

* In a big shake-up at South Korea’s largest conglomerate, Samsung Group Chairman Lee Kun-hee said he will step down in the wake of an indictment on tax violations.

* Linens ‘n Things Inc has begun taking drastic steps to stock its retail stores, as the firm’s chief executive said he has just weeks to save the company from a bankruptcy filing.

* Air France-KLM (AIRF.PA) has definitively yanked its offer for Alitalia AZPIa.MI off the table, leaving the struggling Italian flagship carrier with few options and raising the stakes for Prime Minister-elect Silvio Berlusconi to come up with an emergency rescue plan.

* Texas Instruments Inc TXN.N reported a 28% rise in first-quarter profit, but its outlook for the second quarter fell short of Wall Street expectations.

* UBS AG UBSN.VX offered some details on the internal workings responsible for its $37 billion in write-downs, laying much of the blame on former investment banking head Huw Jenkins.

* U.S. and Chinese officials clashed over where to lay blame for contamination of supplies of heparin, a widely used blood thinner. The U.S. Food and Drug Administration called the contamination “a world-wide problem” that has appeared in 11 countries including the U.S. and is linked to as many as 81 deaths.

* Tribune Co TXA.N is closing in on an agreement to sell its Long Island newspaper Newsday to News Corp NWSa.N for about $580 million, according to individuals familiar with the situation.

* CIT Group Inc (CIT.N) said it plans to offer $1 billion in common and convertible-preferred shares, in a move that will dilute shareholders’ holdings. The news sent shares plummeting 13.7 percent in after-hours trading.

* Netflix Inc’s (NFLX.O) first-quarter net income soared 36% on a big increase in subscribers. But the company trimmed its earnings outlook for the full year, and shares fell sharply in after-hours trading.

* Metro International MTROsdba.ST, the pioneer and biggest publisher of free daily papers around the world, said revenue fell 6.1 percent to 73.4 million euros, or $116 million, in the first quarter from a year earlier.

* Merck & Co (MRK.N) and Eli Lilly & Co (LLY.N) posted mixed data underpinning mostly solid quarterly earnings, amid continued pressure on the industry from generic competition and public wariness of its practices.

* Amid a rare quarterly loss reported, Mattel Inc MAT.N reported flat world-wide sales for the Barbie brand. That reflects a 12 percent decline in the U.S., repeating a pattern the company struggled with last year, when domestic Barbie sales declined as foreign sales increased.

* A former Justice Department official was charged with doing favors for an associate of convicted lobbyist Jack Abramoff while negotiating a possible job and accepting sports tickets valued at thousands of dollars.

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