* San Dimas-based American States Water Co. said it is dropping its bid for Dominguez Services Corp., three days after rival California Water Service Group of San Jose raised its offer for the Long Beach-based water utility. American States, which provides water service in California, had made an unsolicited stock-swap offer earlier this month that valued Dominguez at about $32.50 a share.
* PSINet Inc. was ordered to pay $49 million to a company owned by financier George Soros that backed a PSINet European online venture that never got off the ground. PSINet, one of the world's largest providers of Internet access for business, said it would try to have the payment reduced.
* Delta Air Lines Inc. is advising passengers making summer travel plans that it won't be allowing animals to be checked as baggage when the temperature is above 85 degrees. The carrier has begun requiring passengers to notify the airline of plans to check an animal as baggage when they book a reservation.
* Toys R Us Inc. said Bruce Krysiak resigned as president and chief operating officer to pursue other interests. Krysiak, 48, was also president of the retailer's U.S. toy store unit and will be succeeded in that position by Executive Vice President Mike Shannon. A new president and chief operating officer has not yet been named.
* Cort Business Services Corp., a furniture renter, has agreed to be purchased by its management and investment firm, Bruckmann, Rosser, Sherrill & Co., for $453 million, or $26.50 a share, in cash and preferred stock. Cort jumped $6 to close at $22.75 on the NYSE.
* Sabre Group Holdings Inc., which runs the world's biggest computer reservation system and the Travelocity.com Web site, said it is revamping its corporate structure to highlight its focus on computer services and is changing its name to Sabre Inc.
Business on Radio: Times reporters provide perspective on markets, entertainment and other news weekdays on KFWB-AM 980's Noon Business Hour.
Guide to Our Staff: Need to reach Business section reporters or editors? A guide to the section's staff can be found at: http://www.latimes.com/HOME/BUSINESS/staff.htm.