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Delta-Northwest Deal Grounded
2008-03-19 03:12:00
The pilots' unions of the two commercial airlines cannot agree on how to create a seniority list for a combined venture After years of speculation and rumor about airline mergers, it appeared that the long-awaited era of consolidation of the nation's commercial carriers was finally at hand: Delta Air Lines (DAL) was negotiating to merge with Northwest Airlines (NWA), a marriage that was certain to force other major carriers to find partners of their own. But, as in the past, the prospect of megamergers in the airline industry turned out to be one more mirage?with the pilots of Delta and Northwest torpedoing the latest wave of deals. On Mar. 17 the head of Delta's pilots' union told members in a letter that he and his counterparts at Northwest had been unable to reach an agreement on how to create a seniority list for the combined airline. And with Delta and Northwest executives having effectively made that a precondition of the broader merger, the deal was dead?with only recri...
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Delta to eliminate 2,000 jobs, trim domestic routes
2008-03-19 03:09:00
Hammered by record fuel costs and the weakening national economy, Delta Air Lines Inc. says it plans to cut up to 2,000 jobs through voluntary payouts offered to half of its workforce. Orlando International Airport's third busiest carrier says it will reduce domestic flights while adding more international routes and it will stay open to merging with another airline. Delta President and Chief Financial Officer Edward H. Bastian delivered the news Tuesday at the 2008 JPMorgan Aviation and Transportation Conference in New York. Delta also filed with the SEC the heart of Bastian's remarks in a memo he and CEO Richard Anderson sent to employees today. Bastian noted that in the past three months, fuel prices have jumped nearly 20 percent and the airline's 2008 fuel bill is now expected to increase by nearly $900 million more than it projected for the year and $2 billion more than 2007. Oil hit $112 a barrel Monday. In April, Delta (NYSE: DAL) will offer two buyouts to U.S., no...
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Credit Suisse Spent $1.8M Lobbying
2008-03-19 03:08:00
Credit Suisse Spent $1.8M Lobbying in 2007 on Financial Market Regulation, Mortgage Caps WASHINGTON (AP) -- Credit Suisse Securities, a unit of Swiss financial services company Credit Suisse Group, spent $1.8 million last year to lobby on financial market regulation and other issues. The company lobbied on issues related to hedge fund supervision, securities regulation, reform of Fannie Mae and Freddie Mac, executive compensation and rules for reviewing foreign investment in the United States, according to a disclosure form posted online Feb. 13 by the Senate's public records office. Credit Suisse and many other large banks have lobbied to increase the size of the mortgages that can be purchased by the Fannie and Freddie, the two U.S. mortgage finance agencies, from $417,000 to $729,750. That cap was temporarily raised for mortgages in high-cost areas in the economic stimulus package signed by President Bush last month. The company spent $880,000 in the second half of last yea...
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Nokia Lobbied on Patent, Visa Reforms
2008-03-19 03:05:00
Nokia Rings Up $540,000 in 2007 to Lobby Government on Patent , Immigration Reforms and Trade WASHINGTON (AP) -- Nokia Corp. spent $540,000 in 2007 to lobby on patent and immigration reform legislation among other numerous issues. The the world's largest mobile phone maker spent $430,000 lobbying on its own behalf in the second half of 2007, according to a disclosure form posted online Feb. 13 by the Senate's public records office. The Finnish company also lobbied on data security, intellectual property, tax credits for research and development, recycling programs, and Internet- and trade-related matters. The technology industry, facing increasing global competition, has lobbied intensely for more visas for highly skilled foreign professionals, more funding for U.S. math and science education programs and a permanent extension of tax credits for research and development. Nokia lobbied Congress, the Federal Trade Commission, the Federal Communications Commission, the White Hous...
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GlaxoSmithKline Spent $8.2M on Lobbying
2008-03-19 03:04:00
GlaxoSmithKline Spent $8.2 Million Last Year Lobbying on Drug-Related Issues WASHINGTON (AP) -- British pharmaceutical maker GlaxoSmithKline PLC spent more than $8.2 million last year lobbying the federal government on pharmaceutical issues. Glaxo advocated against patent-reform legislation that could weaken legal protections on drug patents. Technology companies supported efforts aimed at improving the U.S. patent system, but drug makers argued it could weaken patent protections by reducing infringement penalties. The patent-reform bill passed the House last year, but is pending in the Senate. ADVERTISEMENT The company also lobbied for increased funding for the Food and Drug Administration. Glaxo opposed a proposal by House Democrats that would have allowed the government to negotiate drug prices for seniors in Medicare. Currently private health insurers serve as the go-between drug companies and seniors. The measure, aimed at wringing lower prices from drug companies, sta...

Yahoo sees growth up, argues for higher Microsoft bid
2008-03-19 03:03:00
NEW YORK (Reuters) - Yahoo Inc (YHOO.O) said on Tuesday it is on track to meet its 2008 earnings forecast and gave a rosy revenue view for the next two years as it makes a case for a higher takeover price from Microsoft Corp (MSFT.O). The remarks allayed concerns about Yahoo's financial performance this quarter, since it would have less room to negotiate with Microsoft if those numbers fell short, analysts said. Yahoo, whose shares rose as much as 7 percent, will take its case to investors in meetings this week. "They're putting this out to say we're not falling apart," said Martin Pyykkonen of Global Crown Capital. "They're putting very general, pie-in-the sky comments out there that, while not impossible ... look kind of aggressive." Microsoft has not yet sweetened its $42 billion bid, and a recent Reuters poll showed many analysts expect the software maker to prevail in the Yahoo takeover without doing so. But Yahoo, which reaffirmed its financial forecasts for the first...
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Equity LifeStyle Properties Stock Rises
2008-03-19 03:01:00
Equity LifeStyle Properties Shares Rise As Analyst Forecasts Above-Average Profit Growth NEW YORK (AP) -- Shares of Equity LifeStyle Properties Inc. are rising after an analyst initiated started covering the stock and rated it "Outperform." In a note to clients Tuesday, Keefe, Bruyette & Woods analyst Bill Carrier said the real estate investment trust is positioned for above-average earnings growth. Shares jumped $3.55, or 7.6 percent, to close at $50.22 Tuesday. Shares have traded between $39.70 and $57.35 in the past 12 months. Carrier said the Chicago-based company represents an attractive investment because it owns high-quality properties in good locales, with more than half of its sites in retirement hotspots such as Florida, Arizona and California. "Even during this period of slow new home sales, in our view, Equity LifeStyle Properties is well positioned to grow earnings at an above-average pace with below-average risk," Carrier said. Carrier forecasts 2008 earnings of...
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Fed delivers 3/4 point cut
2008-03-19 03:00:00
WASHINGTON/NEW YORK (Reuters) - The Federal Reserve slashed U.S. interest rates on Tuesday, boosting Wall Street, which was already higher on stronger-than-expected investment bank earnings. Tuesday's three-quarters of a percentage point rate cut was less than the full percentage point many in the market had expected, but the Fed left the door open to an additional reduction. However, it noted its future action would take inflation concerns into consideration. ADVERTISEMENT "A lot of people were hoping for a full percentage point, so a lot of people are probably disappointed," said Robert MacIntosh, chief economist at Eaton Vance Management, in Boston. "I don't think they should be. Inflation is an issue." Global stock markets were up early in the day in anticipation of the Fed's move and on stronger-than-expected earnings news from Goldman Sachs Group Inc (NYSE:GS - News) and Lehman Brothers Holdings Inc (NYSE:LEH - News). By the end of U.S. trading, the Dow Jones industri...
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Millennium Pharmaceuticals Shares Rise
2008-03-19 02:59:00
Millennium Pharmaceuticals Shares Rise ; Cowen Analyst Expects Upbeat 1st-Quarter Velcade Sales NEW YORK (AP) -- Shares of Millennium Pharmaceuticals rose, while Cowen and Co. analyst Rachel McMinn expects sales of the company's key drug to rise. The stock rose 84 cents, or 6.3 percent, to close at $14.25 Tuesday. Shares have traded between $9.49 and $17.19 over the past 52 weeks. McMinn, in a note to investors, said sales of the blood-cancer treatment Velcade are likely tracking ahead of Wall Street expectations and she expects first-quarter sales of $77.4 million. Meanwhile, the company presented updates to its development pipeline during Cowen's annual health care conference, she noted. On Monday, the company said it plans to initiate a midstage brain-tumor treatment study on its MLNM0518 drug candidate in combination with Genentech during the second half of 2008. Also, it plans to move its cancer treatment candidate MLN8237 into a larger midstage study.

Smallcaps Can Test Investors' Patience
2008-03-19 02:59:00
Investing in Small-Cap Stocks During Downturn Can Require Patience , Strong Stomach NEW YORK (AP) -- Investors who managed to remain calm during Wall Street's latest tempest could find they have what it takes to invest in small-cap stocks. While they often outperform many of their larger rivals, small-capitalization stocks tend to show more volatility. And it often requires the hand of a deft investor to pluck the sound picks from amid the shaky ones. ADVERTISEMENT This year hasn't been easy for small-cap investors. The concerns about bad mortgage debt, tightness in credit and the overall economy that have battered that rest of Wall Street have leaned somewhat harder on small-cap stocks. The Russell 2000 index of smaller companies is down 11 percent for the year, while the Standard & Poor's 500 index, which tracks large-cap companies, is off about 9.4 percent. Mark Crennan, who works as a markets analyst, said he doesn't worry about the size of the companies he invests i...
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Morgan Stanley CEO Pay Package Is $1.5M
2008-02-16 19:26:00
Morgan Stanley CEO John Mack Receives Compensation Valued at $1.5 Million for Fiscal 2007 NEW YORK (AP) -- Morgan Stanley on Friday said Chief Executive John Mack received compensation valued at about $1.5 million in fiscal 2007, a year when the investment bank's profit plunged 57 percent. Mack did not receive a bonus in 2007 because of the company's losses due to the subprime crisis. Morgan Stanley lost $3.59 billion during the fourth-quarter because of risky bets on mortgage-backed securities. None of the executive committee members at Bear Stearns Cos., the fifth-biggest securities firm, are taking bonuses after a $1.9 billion write-down during the fourth quarter. Meanwhile, Merrill Lynch & Co. CEO Stan O'Neal was ousted from his job and didn't receive any 2007 bonus. However, Mack did receive an $800,000 salary and $399,153 of other compensation, according to a filing with the Securities and Exchange Commission on Friday. Among the perks was $355,000 spent on his pe...
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Free Business Book Is Web Sensation
2008-02-16 19:25:00
Oprah Plug Makes Free Internet Download of Business Book , 'Women & Money' Web Sensation NEW YORK (AP) -- The Oprah touch doesn't just work for traditional books. More than 1 million copies of Suze Orman's "Women & Money" have been downloaded since the announcement last week on Winfrey's television show that the e-book edition would be available for free on her Web site, http://www.oprah.com. "I believe `Women & Money' is the most important book I've ever written," Orman said in a statement released Saturday by Winfrey. "So this was not about getting people to buy the book, but getting them to read it, and that was the intention behind this offer." According to Saturday's statement, more than 1.1 million copies of Orman's financial advice book were downloaded in English, and another 19,000 in Spanish. The demand compares to such free online sensations as "The 9-11 Commission Report," which the federal government made available for downloads, and Stephen King's e-nov...

Uranium Mining Advocates Seek Risk Study
2008-02-16 19:24:00
Advocates of Virginia Uranium Mining Aim for Risk Study ; Deposit Possibly Worth $10 Billion CHATHAM, Va. (AP) -- You couldn't say Walter Coles Sr. is sitting on a pot of gold. Close, though. The hundreds of acres of rolling Virginia farmland in his family for five generations contain the largest unmined uranium deposit in the nation, worth an estimated $10 billion. The existence of the deposit has been known since the 1980s, but a spike in the price of uranium has renewed interest in mining it. That is cause for hope by advocates in a region with an economy crippled by the loss of the textile and tobacco industries and angst among residents who fear radiation contamination. Coles and his partners have formed Virginia Uranium Inc., but can't pull ore out of the ground right now. Virginia has a moratorium on uranium mining that was imposed in 1983, when a now-defunct company called Marline Uranium considered extracting the ore in this corner of Pittsylvania County. If Coles'...
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Retail in Focus This Week on Wall Street
2008-02-10 21:28:00
With Retail Sales Report Due This Week , American Consumer Is Under Wall Street 's Microscope NEW YORK (AP) -- Americans are paying more attention to how much they spend on each box of cereal, tank of gasoline and pair of pants -- and Wall Street is, too. This week's data on the U.S. consumer, particularly the Commerce Department's Wednesday report on January retail sales, are going to be monitored closely by investors for clues to how sunken home prices, high energy costs and job cuts are affecting spending. "Retail sales are a big indicator at this point of the mindset of the consumer," said Kim Caughey, equity research analyst at Fort Pitt Capital Group. Government data and company executives alike have suggested that U.S. consumers are having to pare back their discretionary spending to buy necessities. After the generally dismal sales figures reported by individual retailers last week, economists polled by Thomson Financial/IFR last Friday predicted that the government w...

Yahoo Board to Spurn $44B Microsoft Bid
2008-02-10 21:26:00
Yahoo Board Intends to Turn Down Microsoft 's Unsolicited $44.6 Billion Takeover Bid SAN FRANCISCO (AP) -- Yahoo Inc.'s board will reject Microsoft Corp.'s $44.6 billion takeover bid after concluding the unsolicited offer undervalues the slumping Internet pioneer, a person familiar with the situation said Saturday. The decision could provoke a showdown between two of the world's most prominent technology companies with Internet search leader Google Inc. looming in the background. Leery of Microsoft expanding its turf on the Internet, Google already has offered to help Yahoo avert a takeover and urged antitrust regulators to take a hard look at the proposed deal. If the world's largest software maker wants Yahoo badly enough, Microsoft could try to override Yahoo's board by taking its offer -- originally valued at $31 per share -- directly to the shareholders. Pursuing that risky route probably will require Microsoft to attempt to oust Yahoo's current 10-member board. ...
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Delta, Northwest Inching Closer to Deal
2008-02-07 04:33:00
Person Close to Delta , Northwest Combination Talks Says Airlines Inching Closer to Deal . ATLANTA (AP) -- Delta Air Lines and Northwest Airlines are inching closer to a combination that would create the nation's largest carrier, and if a deal is reached it could be announced next week, a person briefed on the discussions told The Associated Press on Wednesday. Delta's board of directors is expected to meet over the next several days, the person said without elaborating on the topic of the meeting. The person, who was not authorized to talk as the negotiations entered a sensitive stage and asked not to be named, said one point of contention has been what Northwest Chief Executive Doug Steenland's role would be at the combined company. Delta has a growing presence across the Atlantic and a strong hub in Atlanta, home to the world's busiest airport. Northwest has strong routes across the Pacific and its main hub is in Minneapolis. It wasn't clear if other issues like the comb...

Stocks Extend Tuesday's Drop
2008-02-07 04:17:00
Wall Street Gives Up Early Gains After Fed Official Says Inflation Remains a Worry NEW YORK (AP) -- Wall Street pulled back for the third straight day Wednesday as investors still uneasy about the economy sold off after a Federal Reserve official suggested rising inflation could prevent the central bank from making further interest rate cuts. Although the economic slowdown is a big concern, "we must not lose sight of the other part of the Fed's dual mandate -- which is price stability," Federal Reserve Bank of Philadelphia President Charles Plosser said, according to Dow Jones Newswires. The economy has been weakening but costs remain high, leading some economists to believe that the United States is headed for a troubling predicament known as stagflation. Plosser's comments were not surprising, particularly since he is known for being more apt to argue against a rate cut than other Fed members. Nonetheless, the speech -- along with a dismal sales report from Macy's -- cut...
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Stocks Slip As Investors Mull Economy
2008-02-04 17:04:00
Monday February 4, Stocks Fall After Week of Big Gains; Investors Shrug Off Stronger-Than-Expected Factory Report NEW YORK (AP) -- Wall Street fell Monday as investors, showing their cautious side after the market's best week in four years, cashed in profits while they debated their next move. The session's move lower continued even after a Commerce Department report showed that orders at U.S. factories rose by 2.3 percent in December -- the biggest increase since July. Analysts had been expecting a 2 percent increase after a 1.7 percent gain in November. While stocks showed little reaction to the factory orders report, Wall Street remains eager for any clues about the nation's economic health. Investors are awaiting quarterly earnings results late Monday from names such as media company News Corp. and fast-food chain operator Yum Brands Inc. The readings could help indicate whether Wall Street last week carved the beginnings of a sustainable recovery. Last week, the Do...
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