Business & Finance
US Airways, the nation's sixth-largest carrier, warned of a possible bankruptcy filing if by June 28 it is not guaranteed a sizable chunk of the federal government's $15 billion rescue plan for the industry. Analysts told the Financial Times that such a loan likely would be in the area of $750 million. US Airways reported a $2 billion loss last year and another sizable deficit is expected for this year's first quarter. The airline industry bailout was approved by Congress in the wake of the Sept. 11 terrorist attacks.
United Airlines unionized ground workers OK'd a tentative contract for a 29 percent pay increase over four years. It is not clear how much they'll actually get, however, since the move clears the way for the nation's second-biggest carrier to begin talks on company-wide wage concessions. United's parent, UAL Corp., lost a record $2.1 billion last year and another $510 million in the first quarter of 2002.
The chairman of E*Trade Group agreed to accept no salary for the next two years, after shareholders became angry at his $80 million package for 2001. Christos Cotsakos was the brokerage industry's best-paid executive at a time when several rivals cut salaries and bonuses because of market turbulence. Cotsakos still will receive a bonus, based on E*Trade's performance.
Despite winning the necessary two-thirds majority last week, toolmaking giant Stanley Works will put its proposed reincorporation in Bermuda to a new vote by shareholders, the company said. The decision came after Connecticut's attorney general filed a challenge on grounds that Stanley had sent "confusing and misleading" advisories to voters. Stanley said the company believed the vote was fair but that "even the appearance of impropriety is unacceptable." Reincorporating in Bermuda would reduce the New Britain-based company's tax liability.
The world's largest security-services provider, Securitas, has offered $2.5 billion for British rival Chubb, the Financial Times reported. Each would bring unique strengths to an eventual deal: Chubb is known for its electronic systems; Securitas for its human guards and cash-transportation services. Securitas is based in Stockholm.