Business Watch -- WSJ

AstroTurf

Patent Loss Spurs Bankruptcy Filing

AstroTurf LLC has filed for bankruptcy protection after a $30 million loss in a patent fight with France's Tarkett, which makes the rival FieldTurf synthetic-grass product.

The bankruptcy filing is meant to preserve AstroTurf's ability to challenge the judgment while allowing it to sell its business in a deal that promises a return to creditors. Private equity-owned Sportfield Deutschland Holding GmbH has offered $92.5 million.

Court papers indicate AstroTurf will receive only about $16 million of the purchase price if the deal clears bankruptcy court. Other sellers, including AstroTurf owner Textile Management Associates Inc., would collect the rest of the money under the proposed transaction. Court papers say Textile Management controls AstroTurf's intellectual property and the deal won't work without it.

AstroTurf's lawyers said the sale will allow "substantial distributions to creditors, whereas continued operation of the debtor's business under a cloud of litigation would likely result in a decrease in value."

--Peg Brickley

Wal-Mart Stores

Two-Day Shipping Program Is Expanded

Wal-Mart Stores Inc. is stepping up its battle with Amazon.com Inc., expanding a free two-day shipping program and seeking to list even more items on its website.

On Wednesday the retailer said it would open its free two-day shipping program to any U.S. customer, an expansion of the $49-per-year service designed to grab shoppers from Amazon's popular $99-a-year Prime program. Until now Wal-Mart allowed only a limited and undisclosed number of shoppers to sign up.

The move shows Wal-Mart believes the steps it has taken to improve its fulfillment capabilities have prepared it to compete head on with Amazon Prime for the growing slice of online retail sales. Wal-Mart, which has been struggling with sluggish U.S. sales growth, has made bolstering its e-commerce operation a priority and is investing $2 billion in that business.

A Wal-Mart spokesman said that ShippingPass is still a "pilot" that could change, and that only products sold directly by Wal-Mart are currently eligible for free shipping under the service.

--Sarah Nassauer and Loretta Chao

Apollo Global

Deal Reached to Buy Diamond Resorts

Apollo Global Management LLC agreed to buy Diamond Resorts International Inc. for about $2.2 billion, the timeshare resort company said Wednesday.

Diamond, based in Las Vegas, announced in February that it was working with investment bank Centerview Partners on strategic alternatives. The company has a network of more than 420 vacation destinations in 35 countries, according to its website.

Apollo will pay $30.25 a share for Diamond, a 26% premium over Diamond Resorts' closing share price Tuesday.

The deal is expected to close in the next few months and is subject to regulatory approvals and customary closing conditions.

Barclays PLC and Royal Bank of Canada advised Apollo.

--Matt Jarzemsky and Dana Mattioli

(END) Dow Jones Newswires

June 30, 2016 02:50 ET (06:50 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.