Business news in brief

In the Region

Fed survey: Local output slows

Business conditions at Philadelphia-area manufacturing companies weakened this month, according to a monthly survey released Thursday by the Federal Reserve Bank of Philadelphia. The closely followed current-activity index dipped into negative territory, indicating a slight contraction of the manufacturing sector this month, while the broadest indicator of future activity fell to its lowest reading in 31 months. Overall, the monthly Business Outlook Survey was negative for the first time since September. On a positive note, price pressures on area manufacturers appear to be moderating. The survey covers the eastern two-thirds of Pennsylvania, the southern half of New Jersey, and Delaware. - Bob Fernandez

Multiband to acquire WPCS

Multiband Corp., a New Hope, Minn., home-service provider for DirecTV, said it had signed a letter of intent to acquire WPCS International Inc., Exton, for about $22.3 million. WPCS is an engineering company specializing in wireless communications, specialty construction, and electrical power. Multiband is offering $3.20 in cash per share for WPCS. Multiband also said it had an agreement to buy about 710,000 shares, or 10 percent, from a third party at the same price. WPCS shares rose 71 cents, or nearly 32 percent, to close at $2.94. WPCS did not immediately return a call seeking comment. - Rhonda Dickey

C&D receives buyout offer

C&D Technologies Inc., Blue Bell, said it had received a proposal from a New York private-equity firm to take the company private. The firm, Angelo, Gordon & Co. L.P., already owns 65 percent of the company's stock, and it offered $9.50 in cash for the remainder. That values the company, which makes power systems for industrial use, at $144.4 million, based on the number of shares it had outstanding April 30. In over-the-counter trading, C&D shares closed up $1.11, or more than 13 percent, at $9.35. Their high in the last 52 weeks was $29.31 nearly a year ago, and they have trended down since then. Their 52-week low of $2.55 was in late October. The company said it would appoint a committee of independent members of its board of directors to study Angelo Gordon's offer. Angelo Gordon is one of the owners of The Inquirer, the Philadelphia Daily News, and Philly.com. - Paul Schweizer

Teleflex prepays 2014 debt

Teleflex Inc., Limerick, said it had paid off a $125 million loan that was due to mature in 2014. The company used proceeds from a sale Monday of notes that are to mature in 2019. The two transactions "provide us with additional resources at historically low interest rates to execute our growth strategies," chief financial officer Richard Meier said. While the 2019 notes have a higher interest rate than the 2014 debt, the switch will eliminate possible volatility in interest rates for the company, Meier said. The Federal Reserve has kept interest rates low since late 2008 to boost the economy, but some Fed officials now see a need to raise rates to control inflation. Teleflex makes medical devices for critical care and surgery. The devices are used in cardiac and respiratory care, urology, and other medical areas. - Paul Schweizer

Vishay Precision to join index

Vishay Precision Group Inc., Malvern, said it would be added to the Russell 2000 index of smaller stocks next Friday. The company, which was spun off last June as a separate entity by Vishay Intertechnology Inc., makes sensors for the stress-measurement, industrial-weighing, and process-control markets. It had revenue last year of $208 million compared with $2.7 billion for its former parent. Vishay Precision's shares closed Thursday at $17.76, up 9 cents. - Paul Schweizer

Elsewhere

Recovery of Toyota output picks up

Toyota Motor Corp., slowed by tight parts supplies since Japan's earthquake in March, said vehicle production at its North American plants was recovering faster than planned and would return to normal in September. Full output of eight models - including Camry and Corolla cars, Sienna minivans, and Highlander SUVs - was restored June 6, and Tundra and Tacoma pickups and RAV4 and Lexus RX SUVs will reach that level by September, said Bob Carter, group vice president of U.S. sales. Toyota estimated in April that pre-quake production would resume in November. - Bloomberg News

Senate votes to end ethanol tax credit

The Senate voted to repeal tax credits for producing ethanol, a vote that budget-cutters hope will demonstrate a growing appetite in Congress to end special-interest tax breaks to help reduce government borrowing. The Senate voted, 73-27, to repeal the $5 billion annual subsidy just two days after rejecting an identical measure. The tax credit provides 45 cents a gallon to oil refiners who mix gasoline with ethanol, a renewable fuel additive made mainly from U.S. corn. - AP

U.S. behind on female directors

While European companies are filling board seats with women, U.S. female directors are losing out. Representation of women on boards of Standard & Poor's 500 companies has declined to 16 percent from 16.6 percent in 2010, according to the Bloomberg Rankings annual analysis, which gathered data from public-company information. Discovery Communications Inc., co-owner of Oprah Winfrey's OWN cable channel, and Philadelphia retailer Urban Outfitters Inc. were among 47 companies, or 9.4 percent of the S&P 500, with no female directors, the data showed. U.S. companies are lagging gains in European countries such as Norway and Spain, where female membership is expanding to meet regulatory mandates and corporate governance codes. - Bloomberg News

Fewer Borders stores to be closed

Borders Group Inc. reached agreements with landlords to extend the leases on 11 stores it had asked bankruptcy court permission to close, according to court filings. Last week, the bookstore chain, which filed for Chapter 11 bankruptcy protection in February, asked permission to start liquidating 51 stores because of a condition for its financing. But it said at the time that was working to keep them open. Now Borders has 40 stores on the closing list. However, it said in documents filed with the U.S. Bankruptcy Court that it was continuing to negotiate with landlords and that the number would likely shrink. - AP