This is Bob Doughty with the VOA Special English EconomicsReport.
Last Friday, a jury in New York found that businesswoman MarthaStewart lied and tried to interfere with a federal investigation.She is in the business of advice and products for home design. Butthe case did not involve Martha Stewart Living Omnimedia. She builtthat company and headed it until the charges last June.
The case involves her sale of shares of a biotechnology company,ImClone Systems. In December of two-thousand-one, Martha Stewartsold her shares for two-hundred-twenty-eight-thousand dollars. Thenext day, some bad news about ImClone caused the share price todrop. Government lawyers charged that she had illegally used insideinformation from a friend, the man who started ImClone. She deniedany wrongdoing.
At the end of February, the judge cancelled a charge of insidertrading. But the jury found her guilty of all four other charges.Her stock trader was found guilty of similar charges and also lyingto the court.
Her lawyers have been preparing their appeal. Sentencing is setfor June and could result in prison. Martha Stewart is one of anumber of business leaders accused recently of crimes.
But last week another business leader faced a different kind ofjudgment. This came at a shareholders meeting of the Walt DisneyCompany. Investors had to vote yes or no to re-elect Michael Eisneras chairman and chief executive officer. Forty-three percent votedno.
The Disney board of directors answered within hours. It keptMister Eisner as chief executive. But it made board member GeorgeMitchell acting chairman. Mister Mitchell is a former Senatemajority leader and diplomat.
Many shareholders, including former directors Roy Disney andStanley Gold, were not satisfied. They say Mister Eisner has done apoor job. He has led the company for twenty years. Critics also sayMister Mitchell is too much of his friend.
The Disney board also again rejected an offer by the cabletelevision company Comcast to buy Disney. Last month, Comcastoffered more than sixty-thousand-million dollars in stock andacceptance of debt. Since then, Disney shares have gone up; Comcastshares have gone down. Comcast chief executive Brian Roberts saidthis week that Disney was not a "must-have" for his company.
This VOA Special English Economics Report was written by MarioRitter. This is Bob Doughty.