Qwest urges feds to restrict 4 other telecoms’ mergers
Qwest officials pressed their case Wednesday for the government to impose restrictions on two telecommunications mergers, reiterating their contention that the pending deals could hurt competition and raise prices.
As proposed, the unions of SBC Communications Inc. with AT&T and Verizon Communications Inc. with MCI Inc. would dwarf competitors and control much of the domestic market, Qwest senior vice president Steve Davis told reporters at a Washington briefing.
Qwest, the Denver-based local-phone-service provider in 14 mostly Western states, has urged the Justice Department and the Federal Communications Commission to set several conditions for merger approval, including a requirement that the companies sell overlapping assets and maintain competitive prices.
“The government must preserve existing competition,” Davis said.
Verizon and SBC representatives denied Qwest’s claims and said they believed the mergers would create companies that will compete globally.
“People can see through Qwest’s scheme of trying to acquire potential divested assets and customers at bargain-basement prices,” SBC spokesman Joe Izbrand said in an e-mailed statement.
Verizon spokesman Eric Brand said Qwest is interested in any MCI facilities that may be sold but that Verizon officials do not believe divestiture is justified.
GREENWOOD VILLAGE
First Data joins plan to aid Mexican towns
First Data Corp., a Greenwood Village-based provider of electronic commerce and payment services, announced Wednesday that it is joining a pioneering initiative, the 4×1 Program, to help fund development projects in Mexican communities that experience high levels of migration and poverty.
First Data will contribute $1.25 million to the program, joining “hometown associations” of Mexican migrants living in the U.S., as well jurisdictions of the Mexican government, to improve economic opportunity and the quality of life in communities throughout Mexico.
DOUGLAS COUNTY
Retainer to double for EchoStar directors
Nonemployee members sitting on EchoStar Communication Corp.’s board of directors will see their annual retainer double from $20,000 to $40,000, according to a Securities and Exchange Commission filing Wednesday. The raise and other changes to the compensation plan were approved last week at the satellite TV provider’s annual meeting.
The filing also expands the class of employees eligible to receive awards under the company’s 1999 Plan Stock incentive plan.
NEW YORK
Creditors seek details of Adelphia plan
Creditors of Adelphia Communications Corp., the fifth-largest U.S. cable operator, said the company shouldn’t be allowed to go forward with a plan to exit bankruptcy until it provides some detail on how much creditors will be paid under the accord.
Greenwood Village-based Adelphia plans to ask the U.S. Bankruptcy Court in New York next week for permission to have its creditors vote on a plan to end its bankruptcy case and repay creditors with the proceeds of a proposed $17.6 billion sale of its assets to Time Warner Inc. and Comcast Corp.
DENVER
Blue Cross Blue Shield to lay off 45
Anthem Blue Cross Blue Shield of Colorado will lay off 45 employees, company officials said Wednesday.
Anthem is outsourcing its document management to Dallas-based SourceCorp Inc. and will eliminate internal positions that had provided that service.
DENVER
August was DIA’s third-busiest month
More than 4.1 million people used Denver International Airport in August, the third-busiest month behind July 2005 and July 2004. It hosted 2.8 percent more passengers than August 2004.
For the year through August, 29.5 million people used DIA, up 2.3 percent from the same period a year ago. DIA released the numbers Wednesday after revising incorrect information provided by United Airlines.
CHICAGO
Partial deal approved in United stock suit
A $5.25 million partial settlement was approved in court Wednesday in a class-action suit in which United Airlines employees and retirees sought to recover $500 million after the failure of an employee stock-ownership plan.
The lawsuit claimed the company’s employee stock-ownership plan and its trustees failed to protect the interests of employee stock owners, costing them billions of dollars. The partial settlement was for an amount recovered from the insurer.
OAK BROOK, Ill.
McDonald’s profits to exceed projections
McDonald’s Corp. said Wednesday it expects third- quarter profit to surpass Wall Street projections, backed by higher breakfast business and sales of chicken sandwiches.
The fast-food giant projects earnings of 58 cents per share, which includes 2 cents per share of income primarily related to the completion of the transfer of its ownership interest in an international market to a developmental licensee.
NASHVILLE, Tenn.
Tiremaker to pay Ford $240 million
Bridgestone Firestone North American Tire has agreed to pay $240 million to Ford Motor Co. to settle claims related to the tiremaker’s 2000 recall of defective tires, Bridgestone Firestone said Wednesday.
Bridgestone Firestone, the North American unit of Japan’s Bridgestone Corp., and Ford reached a settlement that will help cover the costs of the automaker’s 2001 tire-replacement program.
DETROIT
Kerkorian raises stake in GM to 10 percent
Billionaire investor Kirk Kerkorian has increased his stake in General Motors Corp. to nearly 10 percent, according to a filing released Wednesday.
Kerkorian acquired 2.1 million shares of GM common stock on the open market Tuesday, the filing with the Securities and Exchange Commission said.
NEW YORK
Former Refco CEO charged with fraud
Phillip R. Bennett, the former chief executive of commodities brokerage Refco Inc. was charged with securities fraud Wednesday for hiding up to $545 million in bad debts from federal regulators and investors, a federal prosecutor said.
