United Airlines has agreed to buy Continental in a $3 billion-plus deal that would create the world’s largest carrier with a commanding position in several top U.S. cities. The new United would surpass Delta Air Lines in size, which should help it attract more high-fare business travelers. It will fly to 370 destinations in 59 countries. The companies insisted the deal is a merger of equals. But United shareholders will hold a majority stake, the airline will be based in United’s hometown of Chicago and it will be called United. It would be run by current Continental CEO Jeffery Smisek, however.
Avis offers bid for Dollar Thrifty
Avis Budget Group Inc. plans to trump a rival’s bid for Dollar Thrifty Automotive Group Inc., saying the rental car company agreed to sell itself too cheaply. In a letter to two top executives at Dollar Thrifty, Avis’ chairman and CEO said he wants Dollar Thrifty to open its books before his company makes a “substantially higher” counter to the $1.17 billion offer from Hertz Global Holdings Inc. That sent shares of Dollar Thrifty, to a three-year high.
Pedal probe on for Dodge Calibers
The National Highway Traffic Safety Administration is investigating a problem with sticky gas pedals in 2007 Dodge Caliber small sport utility vehicles. The company said Monday there have been only five complaints, and it is unaware of any crashes, injuries or property damage linked to the problem. No recall has been issued. Chrysler and NHTSA said the pedals were made by CTS Corp. of Elkhart, Indiana, the same company that manufactured pedals involved in a Toyota recall this year.
T-bill rates rise in Monday auction
The Treasury Department auctioned three-month bills at a discount rate of 0.165 percent, up from 0.15 percent last week. Six-month bills were auctioned at a discount rate of 0.245 percent, up from 0.24 percent last week. The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,995,83, while a six-month bill sold for $9,987.61. Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for adjustable rate mortgages, fell to 0.43 percent last week.
iPad sales top a million in a month
Apple Inc. said Monday that is has sold 1 million of its new iPad tablet computers in the month after its launch, meaning it’s been selling more than twice as fast as the iPhone did when it was new. Apple said it reached the milestone on Friday, when the new 3G model of the iPad was delivered to its first buyers. That model can access AT&T’s cellular broadband network. The first models had only Wi-Fi access. “One million iPads in 28 days — that’s less than half of the 74 days it took to achieve this milestone with iPhone,” said CEO Steve Jobs. He said demand is topping supply.
From Herald news services
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