PRESS DIGEST - New York Times business news - Oct 8

Oct 8 (Reuters) - The following were the top stories in the New York Times business pages on Thursday. Reuters has not verified these stories and does not vouch for their accuracy.

* The Justice Department has started a preliminary investigation into whether International Business Machines Corp (IBM.N) has abused its monopoly position in the market for mainframe computers, which remain vital to many of the world's largest businesses.

* European antitrust regulators said Wednesday that they had tentatively accepted Microsoft Corp's (MSFT.O) concessions to settle two antitrust cases, which the company said left both organizations free to focus on the next generation of technology giants, including Google Inc (GOOG.O).

* The parties to a Google Inc (GOOG.O) book settlement that would allow the creation of a vast digital library outlined on Wednesday an aggressive timeline for modifying the agreement to satisfy objections from the Justice Department and others.

* In what it is calling Operation Phish Phry, the FBI began arresting 53 people on Wednesday on charges of conducting a vast financial fraud based on phishing - the act of tricking Internet users into revealing their passwords and other information.

* The chief executive of General Motors [GM.UL], Fritz Henderson, said on Wednesday that the automaker had made "major changes" in its corporate culture since emerging from bankruptcy 90 days ago, and announced the departure of its top sales executive in the United States.

* Banco Santander's (SAN.MC) Brazilian unit raised raised 14.1 billion reais, or $8.05 billion in a record initial public offering in Brazil and the largest I.P.O. on a U.S. exchange in 18 months.

* ING Groep (ING.AS) said Wednesday that it had agreed to sell its Swiss private banking unit to the wealth manager Julius Baer BAER1.VX for 520 million Swiss francs, or $505 million, as the Dutch bank and insurer disposes of assets after receiving a 10 billion euro government bailout a year ago.

* Citigroup Inc's <C.N. board met on Tuesday to discuss the findings of a government-ordered review of the bank's leadership, a move that could lead to yet another management shake-up at the company, according to a person briefed on the meeting.

* The economy of the euro zone shrank more than expected in the second quarter of this year because private demand and trade were lower than previously estimated, data released Wednesday showed.

* Alcoa Inc (AA.N) posted a surprise profit Wednesday through cost-cutting and higher aluminum prices after three consecutive quarterly losses.

* Costco Wholesale Corp (COST.O) said Wednesday that its fourth-quarter profit fell 6 percent, partly because of the stronger dollar and increased employee benefit costs, but results beat analysts' estimates.

* Ciena Corp (CIEN.O), a maker of fiber optic gear for phone companies, offered to buy the optical networking business of Nortel Networks (NRTLQ.PK) for about $521 million to expand internationally.

* Gianni Versace will close its Japanese stores and review its entire business strategy, as demand for luxury goods declines in Japan, which has the world's second-largest economy.

* Monsanto Co (MON.N), the world's biggest seed maker, said Wednesday its fourth-quarter loss widened to $233 million in the fourth quarter on lower revenue, led by a drop in sales of its Roundup herbicide which is facing on onslaught of generic competition.