A 10 percent pay cut and other concessions to United Airlines were OK'd by the executive council of its pilots' union. The measures, which still require approval by a vote of 9,000 rank-and-file members of the Air Line Pilots Association, reportedly would be in return for stock options, a series of raises beginning next year, and a say in any proposed merger with another carrier. United's management has made the pay cut a part of its recovery plan, which includes applying for an estimated $2 billion in loan guarantees under the federal government's post-Sept. 11 aid program for troubled airlines.
Burger King's parent company declined to comment on reports that it will sell the fast-food chain for $2.3 billion as soon as next month. The reports said the likely buyer is Fort Worth-based Texas Pacific Group, although rival Blackstone Group of New York also has bid. Burger King is owned by British beverage giant Diageo PLC, best known for its Guinness beer and Smirnoff vodka brands.
FleetBoston Financial Corp. confirmed that it is discussing a buyout of its money-losing Robertson Stephens investment bank subsidiary with the latter's senior managers, The Boston Globe reported. But in another take on the situation, the Financial Times characterized any ultimate transaction as a giveaway. The Financial Times said it had learned that handing over San Francisco-based Robertson Stephens to the managers would be cheaper than closing it and making good on guaranteed pay and bonus agreements.
In layoff news:
Dynegy Inc., the troubled Houston energy trader, said it will cut 340 jobs as part of a restructuring effort aimed at saving $35 million a year. The company also announced the resignation of its chief financial officer, the second senior executive to leave in less than a month.
Reuters, the news and information group, cut another 650 jobs mostly in its senior and midlevel management ranks on top of 1,800 layoffs announced earlier.
Sycamore Networks Inc., a leading maker of telecommunications equipment, said it will lay off one-third of its workforce, or about 320 people, and will pull out of the transport systems business. Sycamore is based in Chelmsford, Mass.