Boeing Co. shares slid Friday after an aerospace analyst suggested the company won’t meet deadlines for its new 787 Dreamliner jet. The aerospace company is supposed to deliver the first 787 next May despite pushing back by several months the Dreamliner’s first flight. In light of the challenges the 787 faces, it would be more appropriate for Boeing to say the program could slip by four to six months, the analyst said. Boeing’s shares dipped $2.25 to close at $102.25.
Bank takeover looks assured
A consortium led by Royal Bank of Scotland PLC is all but certain to acquire ABN Amro Holding NV in the largest takeover in the history of the financial industry, signaling the likely end for one of Europe’s largest banks. An $88.1 billion cash-and-share offer from rival Barclays PLC was withdrawn Friday in a widely expected concession after the British bank garnered only a fraction of the Dutch bank’s shares. The RBS-led group is expected to cut up the 183-year-old ABN Amro in a $99.9 billion deal.
Mortgage crunch whacks WaMu
Washington Mutual Inc. said Friday that the weak housing market and the recent mortgage crunch will lead to a 75 percent drop in its third-quarter net income, making it the latest financial institution to warn investors it took a major hit over the summer. WaMu, the nation’s largest savings bank, reported net income of $748 million in the third quarter of 2006, meaning third-quarter 2007 net income is likely to be somewhere around $187 million.
“Halo” developer goes independent
Bungie Studios, the “Halo” video game developer acquired by Microsoft Corp. in 2000, is once again operating as an independent company, Microsoft said Friday. The software maker will maintain close ties with privately held Bungie LLC and own a minority stake in it, the companies said. Bungie will develop games exclusively for Microsoft’s Xbox 360 and Windows PC platforms “for the foreseeable future,” said Harold Ryan, Bungie’s president and studio head. He assured continued work on the “Halo” series.
Warren Buffet buys more BNSF shares
Warren Buffett’s Berkshire Hathaway has bought 7.8 million more shares of Burlington Northern Santa Fe stock, giving it control of 17.2 percent of the nation’s second-largest railroad. Berkshire had already owned about 15 percent of Burlington Northern before this latest purchase, which was revealed in a Friday filing with the Securities and Exchange Commission. Berkshire now owns 60.8 million shares of BNSF.
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