DIGEST
MicroStrategy chief executive Michael J. Saylor has personally guaranteed a line of credit for the Vienna-based software company and has backed the guarantee with collateral, MicroStrategy reported in a filing with the Securities and Exchange Commission. To secure the loan, Saylor pledged all the financial assets held in an account of Alcantara LLC, according to a document filed with the SEC. Alcantara is the vehicle through which Saylor owned 43.1 million of his 43.8 million shares of MicroStrategy, as of March 31. The company had fallen out of compliance with the conditions of a $25 million bank credit line. But with Saylor's guarantee, Bank of America has increased the credit line to $28.6 million. Saylor does not receive any compensation for providing the guarantee, MicroStrategy reported.</br></br>Industrial production last month made its largest gain in 20 months, reinforcing expectations that Federal Reserve policymakers will raise interest rates when they meet today. Output at factories, mines and utilities increased 0.9 percent in April after rising 0.7 percent in March, more than previously reported, Fed figures showed. The April increase was the largest since a 1.8 percent rise in August 1998, when General Motors factories rebounded from a two-month strike.</br></br>Continental Airlines, after leading a round of air-fare increases over the weekend, surprisingly rescinded its decision. Before Continental's reversal, the nation's three largest air carriers-- United, American and Delta--said they would match the increases of $10 to $30 a round trip on business and leisure fares. Arlington- based US Airways had matched both increases Friday but changed course yesterday, keeping the fare increase on business fares but not leisure fares. Continental cited rising fuel costs as its original reasons for boosting fares.</br></br>Choice One Communications will double its territory as a provider of Internet and telephone service with the purchase of US Xchange for about $517.5 million in cash and stock. Choice One, which serves the Northeast, will pay $311 million in cash and 7 million shares for the closely held US Xchange, which provides local and long-distance telephone service to about 17,000 business and residential customers in four Midwestern states.</br></br>EMC, the largest maker of computer data-storage systems, canceled a year-old plan to buy $3 billion worth of hard drives from IBM, amid worries at IBM that a delay in introducing new drives will cut into second-quarter revenue. EMC cited production delays and said it worked out a new purchase agreement that doesn't include a specific amount. The agreement is part of an effort by the two companies to settle all patent suits against each other.