Business briefing

Gas station owners, mechanics and car dealers have sued the nation's largest manufacturers of oil, air, transmission and fuel filters, accusing them of an almost decade-long conspiracy to drive up prices.

More than 30 federal lawsuits alleging collusion have been filed in recent weeks in Connecticut, Illinois, Tennessee and New Jersey. Defendants include Honeywell International Inc., Champion Laboratories Inc. and Purolator Filters.

"We don't believe there is any merit to this case whatsoever, and we will vigorously defend ourselves against it," said Camilla Denison, Champion's president.

Chevron's tax request denied

A federal appeals court in San Francisco ruled that oil giant Chevron Corp. wasn't entitled to a $101-million tax refund that it claimed it was owed for payments made to the government by Texaco Inc. before the companies merged.

The payments were made to resolve claims by the Energy Department in 1988 that Texaco overcharged for petroleum. Texaco claimed that the settlement sums lowered its taxable income, but government lawyers argued that Texaco couldn't deduct them if they related to refunds or repayments required by a government agency or court or "made in settlement of litigation."

BANKING

Bid for Fremont wins state OK

CapitalSource Inc. won approval from California regulators to buy assets of Fremont General Corp., once the fifth-largest U.S. sub-prime lender.

The deal requires approval of the Federal Deposit Insurance Corp., Chevy Chase, Md.-based CapitalSource said.

Selling its retail bank to CapitalSource may keep Brea-based Fremont from filing for bankruptcy after rising delinquencies forced it to stop making loans last year.

MORTGAGES

FHA to insure foreclosure buys

The Federal Housing Administration will offer mortgage insurance to buyers of foreclosed homes, a signal that the Bush administration may be ready to expand its intervention as the housing slump deepens.

The FHA, which insures mortgages for low-income and first-time buyers, will waive a 90-day waiting period for insurance on foreclosed property, the agency said.

The one-year policy for foreclosure insurance is a sign that the administration may be easing its opposition to using taxpayer money to rescue lenders and investors.

AIRLINES

Delta doubles buyout goal

Delta Air Lines Inc. said 4,000 employees had taken voluntary buyouts, double the number it initially targeted and an increase from the total announced two weeks earlier.

The Atlanta-based airline said 3,000 workers had accepted the severance offers, and since then 1,000 more had agreed to leave.

REAL ESTATE

CEO for Lowe hospitality unit

Los Angeles-based Lowe Enterprises, a national real estate developer, has named Robert J. Lowe Jr. chief executive of the firm's hospitality division. He replaces John B. Platt III, who will remain chairman.

From Times Staff and Wire Reports