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Tuesday P.M. Report

Minneapolis Fed president predicts slow recovery, 3M gives U of M royalty-bearing patents, Capella beats Q4 estimates, and Simon Group makes $10B bid for General Growth.

Minneapolis Fed president predicts slow recovery: A “nascent” economic recovery has started, but there are still major factors holding the economy back, the president of the Federal Reserve Bank of Minneapolis said today in his first public speech in his position. Narayana Kocherlakota, who became the Minneapolis Fed’s president in October, predicted that U.S. gross domestic product will grow 3 percent a year over the next two years. That’s less than the overall predictions of Fed officials nationwide, who are predicting 3 percent growth in 2010 and 4 percent growth in 2011. Read full story

3M gives U of M royalty-bearing patents: Maplewood-based 3M Co. has donated some of its royalty-bearing patents to the University of Minnesota’s law school and Office for Technology Commercialization. The patents have an estimated value of $760,500 and are expected to generate revenue of about $2 million, to be divided between the law school and the OTC over the next five years. Read full story

Capella beats Q4 estimates and forecasts strong Q1: Capella Education Co.’s profit for the fourth quarter of 2009 beat analyst estimates, driven by revenue growth of nearly 25 percent. The Minneapolis-based parent company of Capella University reported net income of $15 million, or 88 cents per diluted share, for the three months ended Dec. 31. That compares with earnings of $11.2 million, or 66 per share, in the year-ago period. Read full story

Simon makes $10B bid for General Growth: Simon Property Group said today that it has offered to acquire General Growth Properties in a deal worth more than $10 billion, including about $9 billion in cash. If the companies were to combine, it would create a heavyweight mall operator in Minnesota. Read full story