Tyco executive settles

WASHINGTON (Bloomberg) — Former Tyco International Ltd. executive Edward Federman will pay $2.65 million to settle US Securities and Exchange Commission accusations he helped overstate operating income by more than $500 million.Federman, who served as chief financial officer of Tyco’s electronics division until 2001, agreed to a $200,000 fine and will forfeit $2.45 million in profits and interest, the SEC said in a statement. The agency also plans to bar the former executive from serving as an officer or director at a public company for five years.

The SEC’s lawsuit, filed in December, accused Federman and two former executives of involvement in a sham transaction and of improperly using accounts to improve financial results. Tyco is the world’s biggest maker of electronic connectors and security and fire systems.

Federman’s settlement is subject to the court’s approval, the SEC said. He neither admitted nor denied the allegations under the accord.

HSBC sells London HQ building

LONDON (AP) — HSBC Holdings Plc, Europe’s biggest bank, has sold its global headquarters in London to Metrovacesa SA of Spain more than $2 billion in the biggest single property deal in British history.Metrovacesa paid $1.09 billion ($2.18 billion) for a 998-year lease on the 689-foot tower at 8 Canada Square in Canary Wharf, London’s second financial district.

HSBC will remain in the building under a 20-year lease, with a five-year option.

The company moved into the building in 2002. It houses 8,000 staff in 1.1 million square feet of floor space.

Metrovacesa, based in Madrid, owns more than 43 million square feet for lease in Spain and France, and its residential development business builds 3,000 units per year in Spain.

Dubai fund takes stake in HSBC

LONDON (Bloomberg) — Dubai International Capital LLC, a private equity company owned by the emirate’s ruling sheikh, said it bought a “substantial stake” in HSBC Holdings Plc, Europe’s biggest bank by market value.The company, which bought the stake through its Global Strategic Equities Fund, didn’t disclose the size of its HSBC stake in a statement. A holding of three percent or more would have to be disclosed under UK regulatory rules.

“This is the first of many investments that will eventually see GSEF investing about $10 billion in global companies,” said Dubai International chief executive officer Sameer Al Ansari in the statement.

Sheikh Mohammed bin Rashid al-Maktoum is seeking to diversify Dubai’s sources of income as oil reserves decline. Dubai International has spent $6 billion since 2004 buying companies including the Tussauds Group, owner of the Madame Tussauds waxwork museum in London. Shares of London-based HSBC have declined 8.4 percent in the past six months because of investors’ concern over rising bad debts in the bank’s

US unit.Ingersoll Rand sells roads unit

Bermuda-registered Ingersoll Rand is selling its road development business unit for $1.3 billion to AB Volvo.

The company’s road development unit in all countries, except India, will be transferred to AB Volvo once the deal is completed.

The unit manufactures and sells asphalt paving equipment, compaction equipment, milling machines, and construction-related material handling equipment.

“The sale of the road development business reflects our strategy to transition away from capital-intense, heavy-machinery businesses and improves the company’s efforts to achieve aggressive financial objectives consistently over the long term,” said chairman Herbert Henkel.

“Overall, the sale will generate net cash proceeds of approximately $1.05 billion for Ingersoll Rand. We will use the proceeds of this sale, in conjunction with our strong cash flow, to supplement our organic growth with acquisitions that extend our product lines, expand our geographic markets, and enhance our recurring revenue streams, as well as to increase our share repurchase activity.”

Lexington launches new product

Only days after opening its first office in Bermuda, Lexington Insurance Company has introduced LexAssure(SM) — a primary professional liability insurance designed expressly for small- to mid-sized regional accounting firms with annual revenue greater than $1 million.

The liability insurance is offered as a non-admitted policy and is available on an open brokerage basis. Minimum premiums start at $15,000 for the first $1 million in limit. Capacity is available up to $15 million.