Dish offers to buy Sprint to help secure its future
Dish Network is trying to snag wireless carrier Sprint Nextel away from a Japanese suitor, the latest sign that satellite dishes are losing their relevance in the age of cellphones that play everything from YouTube videos to live TV.
Dish offered $25.5 billion in cash and stock on Monday for Sprint, which Dish says beats an offer from Japan’s Softbank Corp.
If the Dish deal goes through, it would create a unique combination of pay-TV and wireless operator. Dish’s hope is that it would lure customers with the promise of a TV service that they can take with them on their phones. It has already broken ranks with the pay-TV industry by providing a set-top box that can send recorded shows to iPads.
Airline’s reorganization to be eased by merger
US Airways says American Airlines is about to spell out its plan for emerging from bankruptcy protection after the two companies merge.
US Airways, whose CEO will run the combined company, said American would file its reorganization plan Monday in federal bankruptcy court in New York.
The court has already signaled approval for the merger, creating the world’s largest airline.
The deal faces only a few more hurdles, including approval from the U.S. Justice Department and US Airways shareholders.
Penney laying out cash to prepare for key periods
J.C. Penney Co. announced Monday that it will draw $850 million from its $1.85 billion revolving credit line to pay for replenishing inventory particularly for its overhauled home area.
Some analysts say the move shows that the Plano, Texas-based company is burning through cash faster than expected. Penney is also looking for alternative sources of funding.
Penney is wrapping up back-to-school orders and starting to order goods for the critical holiday shopping season at the end of the year.
Normally retailers order goods in advance but don’t pay until about 30 to 60 days after goods are shipped. If vendors start demanding to be paid in advance, stores face a cash crunch.
Cruise ship operator to repay rescue costs
Carnival Corp. said Monday it will repay the U.S. government an unspecified amount for the costs to taxpayers of responses to disabling accidents on its Triumph and Splendor cruise ships, both of which left thousands of passengers stranded at sea for days.
The world’s largest cruise line company said the payments were being made voluntarily to the U.S. Treasury Department and that no government agency had requested reimbursement for either accident.
Greece set to get funds after ‘troika’ gives OK
Greece cleared an important hurdle in its drive to receive its next batch of bailout loans from its international creditors Monday. However, the economic reforms agreed to involve firing thousands of civil service workers.
The review by delegates from the International Monetary Fund, European Commission and European Central Bank — known collectively as the troika — is part of a regular process under which Greece receives installments of its multibillion-euro bailout.
Greece has been dependent on some 270 billion euros in bailout loans and other rescue packages since 2010, the lion’s share of which comes from the 17 European Union countries that use the euro.
In return, successive Greek governments have pledged to overhaul the economy and imposed stringent spending cuts and tax hikes. The country is mired in a six-year recession and unemployment is at around 27 percent.
— From news services