Boeing awarded $1.7B contract for FAA system
Advertiser News Services
NEW YORK — Boeing Co. said yesterday its subcontracting team won a U.S. research and development support contract worth up to $1.7 billion for upgrading the nation's air-traffic management system.
Altogether the Federal Aviation Administration has handed out about $4.4 billion in contracts to install a satellite-based traffic management system over the next decade. Two more contracts are expected to be awarded under the "NextGen" program, which has a $7 billion ceiling, making it the largest set of awards in FAA history.
NextGen uses the Global Positioning System, or GPS, digital communications and data networking. The new system should allow aircraft to fly together more closely and on more direct routes, reducing delays, fuel burn and emissions.
MCDONALD'S RECALLS 12M 'SHREK' GLASSES
LOS ANGELES — McDonald's is recalling 12 million drinking glasses it is selling to promote the new "Shrek" movie because painted designs on the cheap collectibles contain the toxic metal cadmium.
The burger giant said early today that it wants customers to stop using the 16-ounce glasses, which have been sold for about $2 each and were available in four designs depicting the main characters from the hit animated franchise.
Cadmium is a known carcinogen that research shows can cause bone softening and severe kidney problems.
HEDGE FUND BUYS 9.9% HARRAH'S STAKE
LAS VEGAS — The New York-based hedge fund run by billionaire John Paulson has agreed to buy a 9.9 percent stake in Harrah's Entertainment Inc. in exchange for $710 million in debt from the world's largest casino operator.
Harrah's Entertainment said yesterday that the exchange is part of a $1.12 billion transaction that also gives an additional 5.7 percent equity interest to Apollo Global Management LLC and TPG Capital LP, for $408 million in debt. Apollo and TPG took Harrah's private in January 2008.
Paulson & Co. Inc., Apollo and TPG agreed to buy $835 million worth of notes due from 2015 to 2017 for $557 million as part of the exchange, Harrah's said.
Harrah's said the deal would raise $557 million in cash for the company, which it planned to use to help its balance sheet, make strategic investments and for corporate purposes.