UAL defers buyout decision
UAL Corp.'s board of directors delayed a vote on a proposal by the employees of United Airlines to take a majority stake in the airline in exchange for labor-cost concessions valued as high as $5 billion.
The board will meet Wednesday to reconsider the employee buyout offer. UAL's advisers, including CS First Boston Co. and Lazard Freres & Co., were asked to hold further negotiations with the unions to handle "outstanding issues." A UAL spokesman would not elaborate on what issues remain in the negotiations.
Toys 'R' Us pulls video game
A video game that challenges players to save scantily clad sorority sisters from a gang of hooded killers was pulled from the shelves of Toys 'R' Us stores.
A company spokeswoman said the toy retailer removed the Sega Genesis game "Night Trap" from its 581 stores last week after customer complaints about the game's violence. But the company will continue to sell "Mortal Kombat," a much more widely available game that has also provoked protests by parents over its violence and sexual content.
Court faults American Airlines
American Airlines breached a contract with frequent fliers by retroactively changing rules for redeeming mileage awards, the Illinois Supreme Court ruled.
The court ruling yesterday allows participants in American's frequent flier program to sue for damages, which industry analysts and lawyers said could dissuade other airlines from changing their programs.
Quik Tax president indicted
The president of Quik Tax, a firm that prepares income tax returns, was indicted yesterday on 110 counts of filing false claims in one of the nation's biggest-ever electronic tax fraud schemes.
Richard Hersch was arrested last Friday at his home in Philadelphia and will be arraigned next week on charges of filing false returns, conspiracy and money laundering, said the U.S. attorney in Boston who is prosecuting the case. Under the scheme, Mr. Hersch allegedly used Quik Tax to file 431 false tax returns from all over the United States, claim $1.13 million in refunds and then launder the money through various bank accounts.
824 take BG&E; retirement offer
The Baltimore Gas and Electric Co. announced yesterday that 824 workers have decided to take its offer of early retirement.
There were 1,400 employees eligible for the benefit, which is part of the utility's program to shrink its work force.