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Airlines to slow growth, cut costs

By Times Wires
Published December 5, 2007

Dallas

Several major airlines outlined plans Tuesday to slow their growth and cut costs to deal with higher fuel prices and the prospect of an economic slowdown that could hurt air travel. Executives for some carriers also said they are actively planning for airline mergers, although they were careful not to discuss specific combinations. After heavy losses from 2001 through 2005, U.S. airlines have returned to profitability.

Tampa

Syniverse U.K.deal approved

Tampa-based Syniverse Holdings Inc. said Tuesday that it got the nod from the European Commission to acquire the wireless business of U.K.-based Billing Services Group Ltd. Syniverse, a technology services provider to wireless telecommunications companies, is buying the business for $290-million. The deal is expected to close about Dec. 19.

KANSAS CITY, Mo.

H&R Block salefalls through

H&R Block Inc. said Tuesday that a deal to sell its troubled mortgage lending arm has fallen through, forcing it to scrap most of the $1-billion business. The Kansas City-based tax preparer and Cerberus Capital Management LP said that they have terminated their agreement, announced in April, for a Cerberus subsidiary to buy Option One Mortgage Corp. H&R Block is accepting no new mortgage applications and will lay off about 620 employees.

ORLANDO

Darden to sell Smokey Bones

Darden Restaurants Inc. has agreed to sell its Smokey Bones Barbeque & Grill chain for about $80-million to an affiliate of Sun Capital Partners Inc. - Barbeque Integrated Inc. Additional financial terms weren't disclosed and the company said the sale is expected to close within 45 days. Smokey Bones company officials said the restaurant will keep its name and there are no plans for closures.

WASHINGTON

Fannie Mae willsell $7B in stock

Mortgage finance giant Fannie Mae on Tuesday announced it was cutting its dividend 30 percent and selling $7-billion in special stock to raise additional capital to cushion against losses in lower-quality mortgages. The government-sponsored company, which finances or guarantees one of every five home loans in the United States, last month reported a third-quarter loss of $1.4-billion.

[Last modified December 5, 2007, 01:07:44]