Business Notes

Washington — XM Satellite Radio Holdings' public offering of 13.4 million shares of Class A common stock, at $11.50 per share, raised $154 million, which will be used primarily for marketing expenses, systems and other general corporate purposes. XM Satellite Radio has exercised it over-allotment option for about 1.09 million shares from the common stock offering. The offering is expected to fund the company's operations into the latter half of the first quarter in 2003.

Cambridge, Mass. — Polaroid has entered a definitive agreement to substantially sell all of its domestic assets and businesses, and common stock of its foreign subsidiaries, to an investor group led by One Equity Partners — the private equity arm of Bank One. The transaction is subject to Bankruptcy Court approval, but is expected to be completed early in the third quarter, allowing Polaroid to emerge from Chapter 11. "We continue to believe that the best way to maximize enterprise value for our creditors is by selling the company in its entirety as an independent, ongoing business to a strong buyer," said Gary T. DiCamillo, Polaroid chairman/CEO.

Denver — Ultimate Electronics has completed an underwritten public offering of its common stock at $28.50 per share. The retailer had offered 3.2 million shares for sale, including 412,500 shares sold pursuant to the exercise of the over-allotment option by the underwriters. Net proceeds of the offering will be used to repay Ultimate Electronics' revolving line of credit, open new stores, relocate or expand existing stores, complete the implementation of the company's management information system and for working capital and other general corporate purposes.

Minneapolis — Best Buy's board has approved a three-for-two stock split, payable in the form of a 50-cent stock dividend. Shareholders of record as of April 26 will receive one additional share for every two shares held. Payment date was May 10. The Best Buy stock split is the seventh in the retailer's common stock since the company went public in 1985. The most recent split, at two-for-one, occurred in 1999.

Amsterdam, The Netherlands — Royal Philips Electronics had entered a strategic agreement with Microsoft, aimed at introducing a remote control as a new Microsoft Windows operating system accessories peripheral. Under the agreement, Philips will license its infrared remote control protocol to OEM customers for use in Windows infrared remote controls. The Philips IR technology limits interference from other remote-control devices in a household. At the same time, Cypress, Calif.-based Universal Electronics (UEI) said Microsoft has extended an agreement to provide UEI's database of infrared codes for Microsoft's Freestyle, a code name for a set of technologies. Freestyle will incorporate UEI's universal device database and allow Freestyle-enabled PCs to inter-operate with and control all cable and satellite set-top boxes made in the United States.