AOL EXPANDS WORKERS E-MAIL OPTIONS: AOL Time Warner will allow employees to use rival e-mail providers after some workers said they couldn't send large documents through the company's America Online system. After America Online Inc. bought Time Warner Inc. last year for $124-billion, the new company installed America Online's software at units such as magazine publisher Time Inc. Because most of America Online's more than 34-million subscribers are consumers, the e-mail system is geared toward personal, rather than business, use.
MEMO HURTS HP SHARES: Shares of Hewlett-Packard Co. dipped after an internal memo surfaced saying revenue and profit in the company's services division were "well below plan." The memo from Ann Livermore, who heads the services division, was sent Monday, a day before stockholders voted on HP's contested acquisition of Compaq Computer Corp., a deal now valued at $19-billion. An HP spokeswoman said HP felt no need to update its financial guidance to Wall Street. HP shares closed at $18.15, down 35 cents.
NEW TRIAL FOR BANK DISPUTE: Wachovia Corp. faces a new trial after a Pennsylvania appeals court overturned a $40.5-million punitive damages award over an account dispute. Pioneer Commercial Funding Corp. sued Core-States Bank in 1998, alleging the bank kept $1.7-million owed Pioneer from a 1997 sale of mortgage loans. The bank was later acquired by First Union Corp., which became Wachovia Corp. in September. A panel of the Pennsylvania Superior Court, the state's intermediate appellate court, ruled this week that the amount of punitive damages was "grossly excessive and shocks our sense of justice."