BUSINESS BRIEFS
Aborted Longs bid lowers rating for Walgreen Co.
Advertiser Staff and News Services
CHICAGO — Moody's Investors Services said yesterday that it has lowered its rating on Walgreen Co.'s senior unsecured debt from A1 to A2.
The Deerfield, Ill., drugstore chain's recently aborted unsolicited buyout bid for rival Longs Drug Stores "reflects a clearly more aggressive financial policy," the rating concern said, and indicates that "the likelihood of Walgreen's making debt-financed acquisitions has increased." Longs' board of directors is supporting a $2.7 billion takeover offer by CVS Caremark Corp.
Walgreen CEO Jeffrey Rein unexpectedly stepped down from the top job Friday, two days after Walgreen threw in the towel on its unsuccessful $2.8 billion effort to acquire Longs. Walgreen is now conducting a search for his successor.
2 NAMED TO HELP OVERSEE BAILOUT
WASHINGTON — An international investment banker who headed a federal agency and a financial officer with experience in several agencies are among the five people named to high-level positions in the Treasury Department's effort to carry out the financial rescue plan.
Thomas Bloom, the chief financial officer at the Office of the Comptroller of the Currency — the agency that oversees national banks — has been named interim CFO of the new Office of Financial Stability. Reuben Jeffery III, an undersecretary for economic affairs at the State Department, is the office's new interim chief investment officer.
The office will administer the $700 billion financial bailout plan the Bush administration is shaping in a bid to get desperately needed credit flowing and the global economy back on track.
Bloom has been CFO at the comptroller's office since December 2003 and is co-chair of its investment review board.
BOEING STRIKE STILL ON AFTER TALKS FAIL
SEATTLE — Negotiations aimed at resolving a five-week walkout by Boeing Co. commercial jet production workers broke down late yesterday.
Boeing framed the crucial issue as "long-term competitiveness." A union leader said the machinists were being asked to "bargain away our members' jobs."
Talks between the two sides resumed Sunday for the first time since 27,000 machinists in Washington, Oregon and Kansas went on strike Sept. 6 over issues that include job security, pay, retirement benefits and healthcare.
Doug Kight, the company's chief negotiator, said the company was disappointed in the breakdown. Yesterday was the 38th day of the walkout.
"We want to resolve this strike so employees can return to work, but we cannot sacrifice our ability to continuously improve productivity and our long-term competitiveness for an agreement," Kight said in a statement.
GM TO SHUTTER 3 TRUCK FACTORIES
DETROIT — General Motors Corp. yesterday announced that it will close its Grand Rapids, Mich., stamping plant in December 2009 and accelerate the closing of its Janesville, Wis., assembly plant by more than a year to Dec. 23 of this year.
The plant closing announcements come just a little more than a week after the automaker said it would advance the closure of its Moraine, Ohio, assembly plant.
All three plants make parts for or assemble large and midsized trucks, which have seen particularly large drop-offs in sales this year with the worsening economy and high gas prices.
Yesterday's announcements are part of GM's plans to accelerate plant actions to save money in the face of the worst auto market in more than a decade.
GM has not said whether it will close other plants early or announce new closure actions.
