Tyco ousts CEO amid tax-evasion probe

Exeter, N.H. >> Tyco International Ltd. ousted Chairman and Chief Executive Officer Dennis Kozlowski after he told the board he is under criminal investigation in New York state for personal tax evasion.

Kozlowski disclosed the investigation Friday, Chief Strategy Officer Brad McGee said. "He felt, and the board agreed, that the business would be able to focus better without him at this time."

A sales-tax investigation involving Kozlowski and others has been opened, Manhattan district attorney spokeswoman Sherry Hunter said. No one else at Tyco is involved, McGee said. The inquiry follows months of questions about Tyco's accounting and liquidity, peaking when the conglomerate said in January it would split into four. Tyco reversed that plan in April after its stock plunged.

Napster Inc. files for Chapter 11 bankruptcy

SAN FRANCISCO >> Napster Inc. filed for Chapter 11 bankruptcy today, seeking court protection from creditors under a plan by music industry heavyweight Bertelsmann AG to take over what's left of the company.

The Internet music-swapping service has agreed to sell its assets to Bertelsmann for $8 million in cash and the assumption of certain liabilities, according to papers filed in a Wilmington, Del., court.

The liabilities include any new loans to Napster and forgiveness of the $91 million Bertelsmann loaned Napster before the filing, Napster's bankruptcy lawyer Rick Cieri said.

After the bankruptcy process is complete, Napster will sell itself to Bertelsmann, unless another company submits a higher bid, Cieri said.

El Paso treasurer commits suicide

Houston >> El Paso Corp. said Treasurer Charles Dana Rice committed suicide yesterday, four days after the biggest U.S. pipeline operator said it would restructure to raise cash and trim debt.

Rice, 47, was found dead at his home at 1 p.m. Sunday of an apparent self-inflicted gunshot wound.

El Paso last week reduced its 2002 profit forecast, cut energy-trading jobs by half and said it plans to sell assets and $1.5 billion in stock to support its credit rating.