BUSINESS BRIEFS
Delta-Northwest merger finalized
Associated Press
NEW YORK — Delta Air Lines has completed its $2.8 billion deal to acquire Northwest Airlines, creating the world's biggest carrier.
The announcement late yesterday marked a swift conclusion to the deal. Earlier in the day, the Justice Department granted antitrust approval, and a lawyer for 28 air travelers who had sued to block the deal said the parties had settled the case.
The new Delta will be headquartered in Atlanta, and Delta chief Richard Anderson will head the combined carrier, which will integrate over the next 18 months.
PLAN CONSIDERED TO HELP HOMEOWNERS
WASHINGTON — The government is considering a plan that would help around 3 million homeowners avoid foreclosure, sources briefed on the matter said.
A final deal had not been reached as of yesterday afternoon and negotiations could still fall apart, but government agencies were contemplating using around $50 billion from the recently passed bailout of the financial industry to guarantee about $500 billion in mortgages.
The plan could include loan modifications that would lower interest rates for a five-year period, according to two people briefed on the plan, who asked not to be identified because details were still being worked out and the plan was not yet public.
CONGRESS: NO PAY BOOST FROM FUNDS
WASHINGTON — Congressional leaders made clear yesterday they do not want money from the financial industry bailout to boost executives' pay.
The top House Republican and the Democratic leaders of the House and Senate sent letters to Treasury Secretary Henry Paulson after reports about how the $700 billion plan might be used.
"Funds made available under the economic rescue package should not be used to pay for bank acquisitions, raises and executive bonuses," wrote House Republican leader John Boehner of Ohio.
House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Harry Reid, D-Nev., wrote "to express concern about the level of compensation" for top executives at banks set to receive bailout dollars.
3RD-QUARTER GM SALES FALL 11 PERCENT
NEW YORK — General Motors Corp. said yesterday that reduced demand in the U.S. and Western Europe pushed the company's third-quarter worldwide sales down 11 percent, as GM fell further behind Toyota Motor Corp. for this year's No. 1 global sales spot.
GM sold 2.11 million vehicles in the third quarter, while Toyota's sales for the period fell 4 percent to 2.24 million. The results bring GM's total sales for January-September to 6.66 million vehicles compared with Toyota's 7.05 million.
GM said sales declines in the United States and Western Europe offset strong demand from emerging markets. Sales outside the U.S. grew by 164,000 vehicles in the first nine months of the year.
BIG-TICKET ORDERS INCREASED IN SEPT.
WASHINGTON — Orders to U.S. factories for big-ticket manufactured goods posted an unexpectedly strong showing in September — the largest gain in three months — government data showed yesterday.
The Commerce Department reported yesterday that orders for durable goods rose by 0.8 percent, surprising economists who had expected a decline. Orders had fallen by 5.5 percent in August, which was the biggest setback in nearly two years.
