VIRGINIA

Rolls-Royce corporate office opens in Reston

Rolls-Royce North America officially opened its 125-person corporate headquarters in Reston yesterday.

The company moved from Chantilly to an office building in the Reston Town Center. It is in the process of consolidating its regional purchasing organization into the Chantilly space.

The company announced plans last year to build an aerospace manufacturing plant in the Crosspointe Centre in Prince George County. Construction on the $100 million plant, which will assemble and test aircraft engines, should begin this year, the company said.

Insect that kills trees found in Fairfax County

HERNDON, Va. -- The emerald ash borer has been discovered in two locations in Fairfax County.

The Virginia Department of Agriculture and Consumer Services said yesterday that the tree-killing pest was discovered in Herndon and in Springfield this week.

The agency says both infestations appear to have begun years ago, indicating that these wood-boring insects may have spread to other areas.

Officials are searching for more evidence of infestation in Fairfax and adjacent counties.

A quarantine will be issued on movement of any ash product -- such as trees or lumber and all hardwood firewood -- for Fairfax County. The agriculture department says it may quarantine additional counties if the insect is discovered there.

Dividend declared

The Brink's Co. will pay a quarterly dividend of 10 cents per share on Sept. 2 to shareholders of record July 22.

THE NATION

Fed to ban fees on some high-cost mortgages

The Federal Reserve, seeking to end abusive lending practices, will ban fees on some high-cost mortgages that make it harder for people to refinance, a person familiar with the decision said.

The rule, part of a broader Fed response to the collapse of the subprime mortgage market, targets high-cost loans with interest rates that reset in the first four years, the person said. The rules would limit the penalties when borrowers seek to pay off their mortgages in the first two years on other types of high-priced loans, the person said.

The Federal Reserve Board of Governors will vote Monday on a series of rules to strengthen protections for borrowers taking out subprime home loans.

Lenders use prepayment penalties to discourage borrowers from refinancing their loans and can trap borrowers in loans they can't afford, consumer advocates said.

Ashland bid for Hercules fuels drop in stock price

WILMINGTON, Del. -- Ashland Inc.'s stock plummeted yesterday after it said it would buy specialty chemicals maker Hercules Inc. in a $2.6 billion cash-and-stock deal that also includes a hefty debt load.

Ashland's stock fell 13 percent after it announced the deal, which also includes the assumption of $700 million of Hercules Inc. debt, sparking worries that the payments would stymie growth.

Standard & Poor's Ratings Services warned of a possible downgrade of Ashland's corporate credit rating, noting that the deal would be mostly debt-financed. The offer represented a 38 percent premium over Hercules' closing price on Thursday. The deal was announced the day after Dow Chemical Co. agreed to Rohm and Haas Co. at a 74 percent premium for more than $15 billion in cash.

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