Business & Finance
United Airlines' parent, UAL Corp., was expected to file its long-awaited reorganization plan with a federal bankruptcy court in Chicago Wednesday. But it will indicate that United will miss this fall's target for emerging from Chapter 11 protection, proposing instead to move the date forward to mid-January 2006, the Chicago Tribune reported. Under court supervision, United has cut pay, benefits, and other costs by $7 billion and has proposals in hand from would-be lenders for up to $3 billion in new working capital. But it also confronts potential claims of as much as $30 billion by various interested parties, plus $2.1 billion in unsettled claims related to the Sept. 11, 2001, terrorist attacks.
Endesa, the electric utility at the center of a $28.3 billion hostile takeover attempt Tuesday by Spain's Gas Natural, said its board of directors unanimously rejected the bid as "clearly insufficient" and not in compliance with European antitrust rules. Endesa "will adopt all available legal actions" to defend itself and the interests of its shareholders, a statement said.
Airbus landed its second major order for new passenger jets in two days: a deal worth $2.2 billion from Indian Airlines. The carrier is government-owned and flies mostly domestic routes. On Tuesday, China Southern Airlines agreed to buy $1.8 billion worth of planes from Airbus.
Ericsson, the telecommunications equipment giant, said it intends to invest $1 billion in manufacturing, research and development, and service functions in China over the next five years. The move was seen as an attempt to match rival Nokia, which opened a high-speed network research unit in China last week and has said the fast-growing communist nation may become its No. 1 market within three years.
Struggling retailer Daiei Inc. announced it will cut 1,000 jobs under a restructuring plan supervised by Japan's Industrial Revitalization Corp. Once the nation's largest operator of department stores and supermarkets, Daiei has fallen to No. 3 in sales volume.