Advertisement - Click to support our sponsors.

Business Briefs

Reported by Star-Bulletin staff & wire

Friday, February 16, 2001

TWA pilots sign off on American Air deal

ST. LOUIS -- Trans World Airlines pilots are officially behind the proposed sale of most TWA assets to the parent of American Airlines, AMR Corp. The pilots, represented by the Air Line Pilots Association, today submitted their official support to the U.S. Senate Committee on Commerce, Science & Transportation.

The pilots union said the American buyout provides job security and protects medical and retirement benefits for pilots and other TWA employees. ALPA represents 2,300 TWA pilots.

The St. Louis-based airline filed for bankruptcy on Jan. 10 in Delaware. That same day, American and TWA said American had agreed to buy most TWA assets for $500 million in cash and assume about $3 billion in leases. An Arizona group, Jet Acquisitions Group Inc., also plans to offer to buy TWA for $1 billion.

Nortel forecast rattles stock

BRAMPTON, Ontario -- Nortel Networks Corp. shares fell 32.7 percent today after the biggest maker of fiber-optic equipment forecast a loss this quarter and said it will more than double job cuts because of slowing U.S. sales. The stock fell $9.75 to close at $20 after hitting $19 earlier, which would be the biggest-one day percentage decline for Brampton, Ontario-based Nortel in at least 20 years. The Toronto Stock Exchange 300 index, which includes Nortel, fell 6.4 percent. Several analysts cut their ratings on Nortel.

Amazon CEO sold stock before report

SEATTLE -- Amazon.com Inc. Chief Executive Jeff Bezos sold 800,000 shares of the Internet retailer just days before a Lehman Brothers Inc. analyst issued a report saying the firm may face a cash crunch this year.

Bezos, who founded Amazon.com in 1994, sold stock on Feb. 2 and Feb. 5, spokesman Bill Curry said. The firm received a copy of the report "several days" before the Feb. 6 release to Lehman clients, he said.

The report, by convertible-debt analyst Ravi Suria, said Amazon.com would run out of working capital by year-end because debts and other expenses are rising faster than assets. Bezos' stock sale may be construed as unfair to other investors, attorney Robert Weiss said.