BUSINESS BRIEFS
Economy stalled at end of last year
Advertiser Staff and News Services
WASHINGTON — The economy nearly sputtered out at the end of the year and is probably faring even worse now amid continuing housing, credit and financial crises.
The Commerce Department reported yesterday that gross domestic product increased at a feeble 0.6 percent annual rate in the October-to-December quarter. The reading — unchanged from a previous estimate a month ago — provided stark evidence of just how much the economy has weakened. In the prior quarter, the economy clocked in at a sizzling 4.9 percent growth rate.
AIRBUS WINS ORDER FOR BRITISH TANKERS
LONDON — Airbus parent EADS landed its second big government order in as many months yesterday when Britain signed a $26.36 billion contract to replace the Royal Air Force's aging fleet of in-flight refueling tankers.
Airbus will provide the Royal Air Force with 14 new A330-200 passenger aircraft converted for military use under a 27-year contract between the EADS-led consortium AirTanker Ltd. and the Defence Ministry.
European Aeronautic Defence & Space NV was the junior partner in a consortium headed by U.S. defense company Northrop Grumman Corp. that was chosen over Boeing to supply the U.S. Air Force with 179 refueling aircraft for $35 billion.
SINGULAIR-SUICIDE LINK INVESTIGATED
WASHINGTON — The Food and Drug Administration said yesterday it is investigating a possible link between Merck's best-selling Singulair and suicide.
FDA said it is reviewing a handful of reports involving mood changes, suicidal behavior and suicide in patients who have taken the popular allergy and asthma drug.
Merck has updated the drug's labeling four times in the past year to include information on a range of reported side effects: tremors, anxiousness, depression and suicidal behavior.
BANKS PUT ON HOLD IN CLEAR CHANNEL
SAN ANTONIO — A Texas judge issued a restraining order that effectively bars the banks that promised to finance the $19.5 billion buyout of Clear Channel Communications Inc. from backing out yet.
Bexar County Judge John D. Gabriel issued a temporary restraining order just four hours after Clear Channel and the private equity buyers, led by Bain Capital and Thomas H. Lee Partners LLC, filed suit Wednesday in Texas and New York.
BEAR STEARNS CHAIRMAN SELLS OUT
NEW YORK — Bear Stearns Cos. Chairman James Cayne yesterday sold his holdings in the embattled investment bank ahead of its expected acquisition by JPMorgan Chase & Co.
Cayne sold 5.66 million shares for $10.84 a share for $61.3 million. However, it was not known if those shares were dumped into the open market or if Cayne sold them to another party.
CONAGRA SELLING TRADING GROUP
OMAHA, Neb. — ConAgra Foods Inc. is selling its commodities trading group for $2.1 billion even as it reported the division was a big reason why its third-quarter profit climbed 60 percent, beating Wall Street estimates.
The owner of brands such as Healthy Choice and Chef Boyardee also increased its earnings outlook for the full year yesterday, and saw its shares climb more than 7 percent.
