BUSINESS BRIEFS
Business Briefs: Friday, June 27, 2008

Published: June 27, 2008

HOUSTON — Victims of a deadly explosion at a BP PLC plant near Houston are asking the U.S. Supreme Court to help stop a settlement over criminal conduct in the case.

Attorneys for blast victims filed a petition with the court Thursday asking for a 60-day delay of a lower court's decision to send the case back to a Houston judge so she can decide whether to give final approval to the plea agreement.

Victims' attorneys say the delay will give them time to prepare a detailed appeal to the Supreme Court.

The plea deal calls for a $50 million fine and sentences the oil giant to three years' probation for its role in the blast, which killed 15 people and injured more than 170. The victims don't think the fine is big enough.

WASHINGTON — Fears of bird flu are receding and sales of the anti-flu drug Tamiflu have slumped. Now its maker is offering a deal to U.S. employers: Pay an annual fee and reserve enough to protect every worker if a new super-flu strikes.

The plan announced Thursday comes as the federal government also begins an effort to encourage many businesses to stockpile anti-flu drugs in case of a pandemic. Those private stockpiles would supplement a national stockpile which can only treat part of the population.

SAN FRANCISCO — Yahoo Inc. is setting up a new chain of command in hopes of restoring order after it snubbed Microsoft Corp.'s $47.5 billion takeover bid.

Under the Internet pioneer's reorganization, announced Thursday, Yahoo executive vice presidents Ash Patel and Hilary Schneider are being promoted to oversee most of the Sunnyvale-based company's products.

Co-founder Jerry Yang, who is under fire for his handling of the Microsoft bid, will remain as chief executive.

This is the third time in 19 months that the company has redrawn its management chart as it tries to snap out of a financial malaise.

DALLAS — American Airlines officials have told employees that the carrier expects to cut about 8 percent of management and support jobs at the nation's biggest airline as it copes with record high jet fuel prices.

The cuts will apply to "all levels of management” and probably be based on how critical the person's job is, Faye Wright, the managing director of flight services, said.

In a letter this week to employees, Jeffrey Brundage, the airline's senior vice president of human resources, said the job cuts would be completed in September.

ST. LOUIS — Anheuser-Busch Cos. will quit selling caffeinated alcoholic drinks as part of a legal settlement with several state attorneys general.

Anheuser-Busch did not immediately respond to a request for comment. The company has long been dogged by accusations that its marketing for the caffeinated alcoholic drinks targets those under the legal drinking age, thereby encouraging illegal sales. The St. Louis-based company has steadfastly denied the charges.

CHARLOTTE, N.C. — Bank of America said Thursday it will cut about 7,500 jobs after it closes its acquisition of mortgage lender Countrywide Financial Corp.

The job cuts amount to about 12.5 percent of the combined companies' mortgage, home equity and insurance businesses, after the purchase is completed next week.

The Charlotte-based bank said the cuts will take place over the next two years across the country "in instances where the two companies have significant overlap.”

Bank of America expects to close the deal July 1.

WASHINGTON — Rates on 30-year mortgages rose again this week, climbing to the highest level in more than nine months, reflecting more concerns about how the Federal Reserve will respond to higher inflation pressures.

Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.45 percent this week. That was up from 6.42 percent last week.

Rates on 15-year fixed-rate mortgages rose to 6.04 percent, up from 6.02 percent last week.

The five-year adjustable-rate mortgage rose to 5.99 percent, up from 5.89 percent last week. The rate on a one-year adjustable-rate mortgage rose to 5.27 percent, compared to 5.19 percent last week.

The Associated Press

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