Business Desk
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
AVIATION
JetBlue Cuts Back Plane Orders
Discount airline JetBlue Airways Inc. yesterday said it has cut back four years’ worth of orders of Embraer 190 jets and reduced its expectations for capacity growth next year. JetBlue scaled down its aircraft supply contracts for 2007 through 2010 to 10 E190 planes a year from an original order of 18 a year. The airline expects capacity growth of 14% to 17% next year, down from an earlier estimate of 18% to 20%. The airline industry measures capacity in available seat miles.
— Associated Press
Delta, PBGC Reach Pilots’ Pension Settlement
ATLANTA — Delta Air Lines Inc. and the Pension Benefit Guaranty Corp. have reached a settlement over some key issues related to the carrier’s request to terminate its pilots’ pension plan. Under the agreement, the government’s pension insurer would get an unsecured claim of $2.2 billion against the nation’s third biggest carrier. That would put it in line with other unsecured creditors for compensation after Delta emerges from bankruptcy. But unsecured creditors typically recover only a fraction of what they are owed.
— Associated Press
ONLINE SERVICES
Yahoo Finance Adds Fox News Video Reports
Yahoo! Inc. signed a deal with News Corp.’s Fox News unit, adding Fox News video business coverage to its offerings on Yahoo Finance. The Santa Monica, Calif.-based Yahoo said Fox will provide nine two-minute market reports each weekday between 9 a.m. and 5 p.m., in addition other business news and financial programs. Yahoo’s shares recently traded up 40 cents, or 1.5%, to $26.89. News Corp.’s shares recently traded up 47 cents, or 2.2%, to $21.90.
— Dow Jones Newswires
REAL ESTATE
Icahn Makes New Bid For Reckson
Billionaire investor Carl Icahn made a $4.3 billion cash and stock offer for Reckson Associates Realty Corp., replacing an all-cash bid for the real estate investment trust after his two partners withdrew over the weekend. Mr. Icahn bid $49 a share consisting of $1 billion in cash and $3.3 billion in preferred stock of American Real Estate Partners LP, the New York-based company said yesterday in a statement. The proposal is worth a total $6.6 billion, including Reckson debt. Reckson shares fell as much as 6.3% when Mr. Icahn dropped his cash bid after developer Harry Macklowe and Mack-Cali Realty Corp. pulled out.
— Bloomberg News
CASINOS
Station Casinos Gets $4.7B Takeover Bid
Station Casinos Inc. received an offer from an investment group led by Chairman and Chief Executive Frank Fertitta valuing the company at $4.69 billion, the latest acquisition proposal in the casino industry, which has drawn increasing interest from investors. The $82-a-share offer represents a 19% premium to the Las Vegas casino-hotel and entertainment company’s Friday closing price of $69.10. The company’s 52-week trading high is $81.46, set April 5. The value of Station’s bonds sank, but its shares recently were up 20.6%.
— Dow Jones Newswires