PRESS DIGEST-New York Times business news - Aug 17

Aug 17 (Reuters) - The following were the top stories on the New York Times business pages on Friday. Reuters has not verified these stories and does not vouch for their accuracy.

* The Facebook Inc slide on Wall Street continued on Thursday amid fears that early investors eligible to sell their shares would create a surplus on the market. Shares fell more than 6 percent, closing at $19.87 - its lowest close since the initial public offering in May.

* The United States Justice Department approved a deal struck by Verizon Wireless to purchase spectrum from the country's largest cable operators, but officials also required that the agreement be altered to protect against higher prices for consumers.

* The founder of Best Buy Co Inc, Richard Schulze, pressed his case for a takeover of the electronics retailer, again trying to prod the company into considering his offer.

* Gary Friedman, the chairman and co-chief executive of Restoration Hardware Holdings Inc, has stepped down from his positions after an internal inquiry into an intimate relationship he had with a 26-year-old female employee, according to people involved in the matter.

* On Thursday, Instagram rolled out the third version of its application. The update makes several improvements, including refreshing the look of profiles, smoothing out performance bugs and allowing users to mark comments as spam.

* A123 Systems Inc, a government-backed maker of batteries for electric vehicles, said it had reached a final agreement with the Wanxiang Group, one of China's biggest auto suppliers, that will provide emergency capital and eventually acquire a controlling stake.

* Former partners at Dewey & LeBoeuf agreed to return more than $60 million of their compensation to help pay the failed law firm's creditors.

* Federal regulators have accused Jim Donnan, a head coach of Marshall University and the University of Georgia during the 1990s, of running a Ponzi scheme that defrauded fellow coaches and his former players.