U.S. opposes purchase by Gillette
The Justice Department said yesterday that it would file an antitrust suit to block Gillette Co.'s proposed purchase of Parker Pen Holdings Ltd. unless both companies abandon the transaction.
The combination of two of the world's largest manufacturers of writing instruments would substantially lessen competition in the manufacture and sale of premium fountain pens in the United States, the Justice Department said.
Perdue to drop suit against Empire
Perdue Farms Inc. agreed yesterday to drop a lawsuit it filed this month against Empire Kosher Poultry Inc. in which Perdue asserted that Empire's ads were confusingly similar to Perdue's.
Empire's ads, with a picture of Moses and the headline, "It Takes an Even Tougher Man to Make a Kosher Chicken," played on Perdue's ads, which insist "It Takes a Tough Man to Make a Tender Chicken," referring to owner Frank Perdue.
More cost-cutting at United Airlines
The struggling United Airlines has said it will cancel or delay delivery of 29 Boeing aircraft and is considering further cost-cutting moves, such as turning over some routes to other airlines.
Marriott case spurs new SEC rule
Marriott Corp.'s restructuring proposal has led the Securities and Exchange Commission to establish a new, informal disclosure requirement for companies that plan to sell debt securities, several officials said.
Companies are now asked to clearly state whether their debt securities protect investors from potential losses if the issuer plans, as Marriott does, to divide its operations between several companies and assign most of its debt to one of the financially weaker units.
USAir plans new flight to Bermuda
A new USAir daily flight to Bermuda will originate from Baltimore-Washington International Airport beginning April 4. The flights will operate once a day and will depart at 9:15 a.m.
USAir flight attendants ratify pact
USAir's flight attendants ratified a new contract with the airline yesterday that cuts their pay and increases the hours they work but gives them raises next spring and promises no layoffs. The company said the concessions would produce $10 million in savings within 12 months and $18 million in productivity improvements.