JOBLESS FILINGS CLIMB: New claims for unemployment benefits increased last week after three weeks of declines, the Labor Department said Thursday. New applications filed for unemployment insurance rose to 353,000, up 14,000 for the week ending Jan. 3. That compared to 339,000 new applications the week before, when claims were at their lowest level since President Bush's inauguration, Jan. 20, 2001. The government reports today on the overall civilian unemployment rate for December. The rate currently stands at 5.9 percent.
KRAFT TRIES NEW RECIPE: Kraft Foods Inc. outlined a corporate overhaul Thursday to try to snap out of a protracted slump in sales and new products, reorganizing its business units and shifting to a more global focus. The shakeup was announced by chief executive Roger Deromedi three weeks after he was given sole control of the company. Deromedi delayed detailing the costs and job cuts associated with the realignment. Ex-CEO Betsy Holden was put in charge of global marketing and new product development. All Kraft units based in Rye Brook, N.Y., will move to new locations this year. Kraft's parent company, Altria Group, put the building up for sale Thursday.
VERIZON ANNOUNCES OVERHAUL: Two months after AT&T Wireless launched the nation's fastest wireless Internet service, Verizon Wireless said it would spend $1-billion to reclaim the lead with an even speedier technology that just months ago the company insisted was not an urgent need. The technology being used by Verizon, which can provide wireless downloads between five and 10 times quicker than a dial-up connection, will be rolled out nationally over the course of two years. Also, parent company Verizon Communications announced a $2-billion investment to accelerate the upgrade of its traditional telephone network with Internet Protocol technology.
AIRNET COMPLETES MERGER: AirNet Wireless Inc. of Tampa said Thursday it completed a reverse merger with American & International Phone Inc. and Quality Communication Products Inc., both of Lakeland. The merged company will be named AIT Wireless Inc. AirNet, which develops wireless pay phones, said it issued 39.57-million shares of common stock valued at $18-million to shareholders of the two acquired companies, giving them a 51 percent stake in AIT. American & International general manager Frank Estill will become AIT president, while AirNet president James McAlinden will be CFO. AirNet is not affiliated with AirNet Wireless Inc. of Naples.
WHISTLEBLOWERS SHARE $8.1-MILLION: The Rev. John Corapi, 56, and his colleague Joseph Zerga, 61, have been awarded $8.1-million based on their whistleblower complaint about unnecessary heart surgeries performed at Redding Medical Center. The priest and Zerga will be paid out of a record $54-million settlement Redding's owner, Tenet Healthcare Inc., reached last year to settle charges against the hospital, U.S. Attorney McGregor W. Scott said. The award represents 15 percent of the settlement, as set by the federal False Claims Act.
GM DRIVES UP INCENTIVES: General Motors Corp. added sport utility vehicles and pickup trucks Thursday to those vehicles eligible for interest-free loans for up to five years. GM's latest program, which runs through March 31, features zero-percent financing for 60 months on most new 2004 cars and trucks. The enhancements come five days after GM announced plans to give away 1,000 cars, trucks and SUVs in 56 days as part of a $50-million promotion to generate showroom traffic and build awareness of its nine U.S. brands.
U-HAUL BANS FORD EXPLORER: U-Haul said Thursday that it will no longer rent trailers to customers driving Ford Explorers, citing excessive costs in defending liability lawsuits related to the popular sports utility vehicle. U-Haul International, North America's largest trailer rental company with more than 17,000 outlets, said the decision was not based on safety concerns. "U-Haul has chosen not to rent behind this tow vehicle based on our history of excessive costs in defending lawsuits involving Ford Explorer towing combinations," read a statement from the Phoenix company.
U.S. OIL BUYING DECRIED: The U.S. airline industry accused the Bush administration Thursday of recklessly driving up the cost of oil by purchasing unnecessarily large amounts of petroleum for the nation's strategic reserves at a time when prices are already high. "The government is out buying fuel, it appears, without much regard for the impact that it is having on prices," said James C. May, the chief executive of the Air Transport Association, the industry's main lobbying group. He said oil purchases by the Energy Department were driving up the price of oil by more than $6 per barrel.
BOOKSELLER BUYS BACK DOT-COM: Barnes & Noble Inc. agreed to buy its unprofitable Internet unit for about $150-million in cash, raising its previous offer by $35-million after shareholders balked at the lower bid. Shareholders of Barnes & Noble.com will receive $3.05 for each share they own. Barnes & Noble had offered $2.50 a share in November for the 25 percent of the Web retailer it doesn't own. The transaction won't reduce earnings in fiscal 2004, the company said. Barnes & Noble.com will become a wholly owned subsidiary of Barnes & Noble once the transaction closes, which is expected in the first quarter. The unit was spun off during the tech bubble in May 1999.
Note to readers
The New York Stock Exchange introduced three new indexes Thursday and eliminated four others. The new indexes are energy, financial and healthcare. The industrial, financial, transportation and utilities indexes have been eliminated.
