Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, January 8, 1993 TAG: 9301080303
SECTION: BUSINESS PAGE: A3 EDITION: METRO
SOURCE: Associated Press
DATELINE: LENGTH: Medium
IN BUSINESS
Government OKs Continental buyoutWASHINGTON - The Transportation Department approved a $450 million buyout Thursday of Continental Airlines by Air Canada and other investors, hoping to help the U.S. airline emerge from bankruptcy protection.
The deal, which has been sought by Continental's management, still must be approved by the U.S. Bankruptcy Court.
Under the proposal, Air Canada would invest $235 million for 27.5 percent of the Houston-based airline's equity, while a group of Texas investors, Air Partners, would pay an additional $215 million for an identical share. Air Canada would hold 24 percent of Continental's voting stock and Air Partners 41 percent.
Continental, the country's fifth-largest airline with 42,000 employees and 420 aircraft, had sought outside investors to help it emerge from reorganization under bankruptcy proceedings. The carrier, saddled by large debt, lost nearly $500 million during 1991 and the first three quarters of 1992. - Associated Press
\ UPS to guarantee delivery in 3 days
WASHINGTON - United Parcel Service said Thursday it will begin offering guaranteed, three-day deliveries anywhere in the continental United States next month.
The new service, to start Feb. 15, coincides with a broad array of domestic rate increases imposed Thursday by the nation's largest transportation company.
That date also will mark the launch of the company's $150 million electronic tracking system, which for the first time will give its customers immediate status reports on the progress of their shipments. UPS' lack of such a system has put it at a competitive disadvantage with companies such as Federal Express.
On Feb. 15, UPS rates will rise an average of 3.8 percent for commercial surface traffic and 7.4 percent for residential shipments. Rates also will rise 4.9 percent on next-day air deliveries and 5.9 percent on second-day service. Rates on next-day and second-day air letter traffic will rise 50 cents to $10.50 and $5.50, respectively. - Journal of Commerce
\ Benchmark to buy 3 Tidewater stations
BALTIMORE - Three Tidewater radio stations will be bought by Benchmark Communications under a new federal rule allowing multiple station ownership in the same market, the company announced Thursday.
The purchase prices for the stations - WTAR-AM, WLTY-FM and WKOC-FM - were not disclosed. The sales agreements require Federal Communications Commission approval.
WTAR and WLTY are owned by Landmark Communications Inc. and operate from the same location in downtown Norfolk. Landmark is parent of Times-World Corp., publisher of the Roanoke Times & World-News. WKOC is owned by Edge Broadcasting Co. and has studios in Virginia Beach.
Benchmark owns radio properties in Richmond; Winchester; Augusta, Ga.; and Dover, Del. The company said it is seeking other stations in the mid-Atlantic region.