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GM passes goal in buyout acceptance

By TIMES WIRES
Published May 25, 2006

More than 20,000 U.S. factory workers at General Motors Corp. have accepted buyout offers, surpassing the automaker's internal target with a month to go before the deadline, according to people familiar with the situation.

The response means GM is well on its way to reaching and eventually exceeding its goal of eliminating 30,000 U.S. hourly jobs by the end of 2008 - a central piece of its North American restructuring plan.

The automaker, which made the offers to all 113,000 of its U.S. hourly workers in one of the biggest buyout programs in corporate history, had expected 20,000 employees to come forward by the June 23 deadline, the sources said.

Though it has surpassed the goal, GM will continue to offer buyouts to workers who sign up by the deadline. Under an agreement with the United Auto Workers, there is no maximum number of buyouts that GM can accept. Sources say the automaker plans to take as many as it can get.

Vonage shares plunge in first day on market

Shares of Vonage Holdings Corp., the Internet telephone pioneer, dropped sharply in their trading debut Wednesday, dismaying customers who had been given a chance to participate in the initial public offering.

Shares that were priced at $17 on Tuesday evening shed $2.10 to close at $14.85 on the New York Stock Exchange.

That put Vonage on track for the worst first-day performance of an IPO this year.

The stock opened close to its IPO price, then quickly dipped, which panicked some investors, said James DeStefano, an IPO analyst at Renaissance Capital.

"I think you've seen a lot people get spooked by how it's trading," DeStefano said.

Vonage's 1.6-million subscribers plug their phones into adapters that connect to their broadband Internet connections. Under one of its plans, it charges $25 a month for unlimited calling to the United States, Canada and parts of Europe.

United Airlines will fly to Kuwait starting in fall

United Airlines will launch service to Kuwait this fall, becoming the only U.S. carrier to serve the Middle Eastern country.

United plans three departures a week from Dulles International Airport, outside Washington, D.C., to Kuwait City. United plans to begin service in October, pending approval from the Kuwaiti government.

"It's obviously a very important region of the world, a growing region of the world," said Kevin Knight, United's vice president of resource planning. "If you're going to be a global airline, you're going to have to serve those important parts of the world."

There are few options for direct commercial flights between the United States and Kuwait. Kuwaiti Airways currently flies three times a week from New York's John F. Kennedy International Airport. The only Middle Eastern city with regular passenger service from U.S. carriers is Tel Aviv, which is served by Delta Air Lines and Continental Airlines.

Microsoft expects further delay for Windows Vista

Microsoft Corp. chief executive Steve Ballmer indicated Windows Vista could face further delays beyond a planned January retail release as the company gets feedback from a test version released Tuesday.

The release date could be moved by "a few weeks," Ballmer said at a news conference in Tokyo. "We are on track for shipping early in the year."

Ballmer's comments come amid concerns Microsoft may have to delay Vista again, further crimping its own sales and those of personal computer makers.

[Last modified May 25, 2006, 05:59:15]