Business news in brief

In the Region

Source: Hulu may sell itself

A person familiar with the matter says the board of online video service Hulu has begun to explore options for the company to sell itself after Hulu, now owned mainly by media companies including Philadelphia's Comcast Corp., received an unsolicited offer. The development was earlier reported by The Wall Street Journal, which is also owned by News Corp., another Hulu owner. The person said the offer was big enough for the board to consider and seek other potential bidders. Hulu, jointly owned by The Walt Disney Co., News Corp., Comcast's NBCUniversal and Providence Equity Partners, is preparing to hire bankers to start a formal search. The person spoke on condition of anonymity because the discussions are confidential. A Hulu spokeswoman declined to comment. - AP

New CEO, president for FXI

FXI, the Delaware County-based maker of polyurethane foam products, has named John Cowles its new president and chief executive officer, succeeding Jack Johnson, who is retiring but will remain chairman. Cowles, 48, comes to the privately held manufacturer in Upper Providence from Touchstone Wireless Repair & Logistics L.P., a Hatfield services firm, where he had been CEO before its acquisition in December. Johnson, 70, had run FXI since it emerged from bankruptcy in June 2009. He had also been the CEO of its predecessor, Foamex International Inc. Now owned by two private-equity firms, FXI had 2010 revenue of $751 million and employs about 2,100 people, including 110 in its corporate headquarters. - Mike Armstrong

Study: Drillers invested $411M in Pa.

The Marcellus Shale Coalition says its member companies have invested more than $411 million over the last three years to repave, rebuild, and improve roadways and transportation infrastructure in Pennsylvania, according to a membership survey. About 21 percent of the payments were made for local roads, and the rest went toward state roads, the coalition said. It released the data amid a legislative debate over whether the state should assess the natural gas industry with a local impact fee. - Andrew Maykuth

Couple convicted in mortgage fraud

A New Hope couple were convicted of fraud and conspiracy in what federal prosecutors called a $14.6 million mortgage-fraud scheme. Edward and Jacqueline McCusker were convicted of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, and mail and wire fraud. Prosecutors said homeowners were told Axxium Mortgage Inc. would find "investors" to buy homes while the owners rented them back and tried to save money, but they lost both homes and equity. Defense attorneys said their clients were trying to help, not cheat, people. Edward McCusker's attorney, Lyn Wescott, said she was disappointed and the defendants are "devastated." Jacqueline McCusker's attorney, Hope Lefeber, said she was shocked by the verdict and "definitely" planned to appeal. - AP

Cozen O'Connor expands in N.Y.

Cozen O'Connor, a 575-lawyer firm based in Center City, said it would expand its New York office with 19 lawyers from Cohen, Pontani, Lieberman & Pavane L.L.P., a high-profile intellectual property law firm based in New York, effective July 1. Cohen Pontani represents domestic and foreign clients in the biotechnology, pharmaceuticals, and telecommunications industries, among others. - Chris Mondics

US Airways extends Phila. agreement

US Airways Group Inc. said it and other airlines had agreed to a two-year lease extension with the Philadelphia International Airport, giving them time to continue talks about expansion plans for the airport. US Airways said it led a committee of airlines that use the airport, a US Airways hub. It said the committee had "finalized arrangements" with the city's Division of Aviation to extend the Airport-Airline Use and Lease Agreement. - AP

Elsewhere

JPMorgan to settle fraud charges

JPMorgan Chase & Co. has agreed to pay $153.6 million to settle civil-fraud charges that it misled buyers of complex mortgage investments just before the housing market collapsed. The settlement with the Securities and Exchange Commission announced Tuesday is one of the most significant legal actions targeting Wall Street's role in the 2008 financial crisis. As part of the settlement, investors who were harmed will receive all of their money back, the SEC said. JPMorgan, which has credit card operations in Wilmington, also agreed to improve the way it reviews and approves mortgage-securities transactions. In its announcement, the SEC said it had charged Edward Steffelin, who headed the team at an investment firm involved in the selection of mortgage securities. The bank neither admitted nor denied wrongdoing under the settlement. The settlement amounts to less than 1 percent of the bank's 2010 net income of $17.4 billion. JPMorgan would earn that much in less than one week. - Bloomberg News

IPO raises less than expected

Vanguard Health Systems Inc., the hospital operator controlled by Blackstone Group L.P., raised $450 million in an initial public offering, 22 percent less than it sought, after pricing the shares below the marketed range. Vanguard sold 25 million shares at $18 each, according to data compiled by Bloomberg, after offering them for $21 to $23. Vanguard will trade on the New York Stock Exchange under the symbol VHS, according to a regulatory filing. The Nashville company cut its offering to attract buyers as the Standard & Poor's 500 index has fallen 3.7 percent this month amid concern the U.S. economic recovery is stalling. - Bloomberg News

Airlines rank last in customer survey

U.S. airlines fell to last place among 47 industries in a study of customer satisfaction, dragged down by consumers' "pervasive" discontent with service, baggage fees, and ticket prices. The score of 65 on a 100-point scale compared with an average of 76.5 for all industries, according to the University of Michigan's American Customer Satisfaction Index. Airlines were tied at the bottom with newspapers, the worst performers in 2010. The index team surveyed about 1,750 recent passengers among about 9,000 consumers reached by e-mail and telephone from January through March. - Bloomberg News