Biz bts

Hewlett-Packard buys 3Com, raises guidance

SAN JOSE, Calif. --- Hewlett-Packard Co. said Wednesday it is buying the 3Com Corp. networking company for $2.7 billion, the latest move by the world's No. 1 personal computer maker to expand into areas more profitable than PCs.

HP also raised its 2010 guidance and reported preliminary quarterly earnings that topped Wall Street's forecasts. The company didn't provide specific reasons for its better outlook, other than a statement from CEO Mark Hurd that "significant growth in China" and "solid execution" helped HP in the quarter.

HP said it will give 3Com stockholders $7.90 per share and that the deal is expected to close in the first half of 2010. HP didn't address whether there would be layoffs at 3Com, which has 5,800 employees worldwide.

AIG chief executive says he plans to stay

NEW YORK --- American International Group's CEO said Wednesday he plans to stay in his job at the embattled insurer.

Robert Benmosche announced his intentions in a letter to employees released by AIG after a report in The Wall Street Journal said he was threatening to quit. The Journal said Mr. Benmosche has been frustrated by heavy government scrutiny and cumbersome restrictions on executive pay.

AIG is in the process of trying to sell assets, streamline its operations and improve profitability in an effort to repay the government after being bailed out last fall at the peak of the credit crisis.

Foreclosure notices decline in October

NEW YORK --- The number of homeowners on the brink of losing their homes dipped in October, the third consecutive monthly decline, as foreclosure prevention programs helped more borrowers.

But foreclosure filings are still up 19 percent from a year ago, RealtyTrac Inc. said Thursday, and rising job losses continue to threaten the stabilizing trend.

More than 332,000 households, or one in every 385 homes, received a foreclosure-related notice in October, such as a notice of default or trustee's sale. That's down 3 percent from September.