Frontline profit likely to fall

OSLO (Bloomberg) - Norwegian billionaire John Fredriksen's Frontline Ltd., the world's largest oil tanker company by capacity, may say fourth-quarter profit fell the most since 2002 as an expansion in the global fleet reduced freight rates.

Profit probably dropped 74 percent in the three months to December 31 to $130 million, or $1.74 a share, based on the median estimate of seven analysts surveyed by Bloomberg. Bermuda-based Frontline said in November that income in the three months ending Dec. 31 will fall short of 2004's records. Frontline is due to report on February 28.

The world fleet of oil tankers called very large crude carriers, or VLCCs, grew five percent by capacity last year. At the same time, production from the Organisation of Petroleum Exporting Countries jumped to its highest level in almost 26 years.

Morgan buys hedge fund unit

NEW YORK (Bloomberg) - JPMorgan Chase & Co., the third- biggest US bank, agreed to buy the processing business of Paloma Partners Management Co., a closely held hedge fund.

The New York-based bank also struck a multi-year agreement to provide operational services to Paloma, JPMorgan said in a statement.

JPMorgan will fold Paloma into its existing hedge fund administration unit to create JPMorgan Hedge Fund Services. JP Morgan's unit has had a Bermuda-based hedge fund administration unit since 2004 when it bought Tranaut Fund Administration Ltd.

P&O shareholders vote for takeover

LONDON (AP) - Shareholders in British shipping company Peninsular & Oriental Steam Navigation Co. overwhelmingly voted in favour of a takeover bid from Dubai's DP World Monday.

Shareholders at a meeting in London voted 99.52 percent in favour of accepting the ?3.9 billion ($6.8 billion) cash bid for P&O that will create the world's third-largest ports operator. Hutchison Whampoa of Hong Kong is first, followed by Singapore-based PSA International.

DP World, the state-owned port operator in Dubai, won the support of the P&O board after a bidding war for the 165-year-old British stalwart, when PSA pulled out of the running last week saying a deal was not in its best commercial interests.

The vote is the last major hurdle to DP World acquiring P&O, the fourth largest ports company in the world with 29 container terminals and logistics operations globally.

Fundraiser charged in Ohio scandal

TOLEDO, Ohio (AP) - Prosecutors charged a prominent GOP fundraiser yesterday with theft and money laundering in an investigation of a controversial state investment in rare coins that has embroiled Republicans in scandal during an election year.

The 53 charges against coin dealer Tom Noe conclude a ten-month investigation by state and federal prosecutors into the $50 million rare coin investment Noe managed for the state insurance fund for injured workers.

Noe's attorney has acknowledged a shortfall of up to $13 million of the money Noe invested for the Ohio Bureau of Workers' Compensation. The state attorney general has accused Noe of stealing up to $6 million.

A Bermuda-based hedge fund was also caught up in the scandal when it was revealed it had lost millions of dollars for the Bureau.