Thanksgiving air travel likely to fall
WASHINGTON -- An airline industry trade group predicts that passenger traffic over the Thanksgiving holiday will drop 4 percent from last year. The Air Transport Association made the forecast Monday despite deep discounting by airlines over the past several months.
James C. May, the group's president, said the unemployment rate jumping above 10 percent last month has affected consumer buying decisions.
U.S. airlines have struggled this year with declining traffic during the recession. They cut fares for the peak summer vacation season and have eliminated many unprofitable flights to save money.
With fewer flights, planes are likely to be full over Thanksgiving, the trade group said.
Kraft turns hostile in bid for Cadbury
NEW YORK -- Kraft Foods has gone hostile in its bid to buy Cadbury but didn't sweeten its first bid, drawing a rejection from the British candy maker in what is likely to be a lengthy takeover struggle.
Taking the same offer directly to Cadbury shareholders likely means that Kraft is betting no competing bids will emerge. The early gambit also leaves the company room to take the bid higher.
Kraft made the $16.4 billion offer just hours before a Monday deadline imposed by British law that required the company to make a formal offer or back off for six months. Kraft has 28 days to file a prospectus, which will trigger more deadlines that could last months.
Fannie Mae might require more aid
WASHINGTON -- Fannie Mae said Monday that it might have to ask the government for more financial assistance because the company cannot sell $5.2 billion in tax credits.
The Treasury Department last week blocked Fannie Mae from selling $2.6 billion in low-income housing tax credits to investors. Treasury said the sale would result in a loss of tax revenue greater than the savings to the government.
Fannie Mae requested $15 billion in financial aid last week after reporting a $19.8 billion quarterly loss, bringing the taxpayers' bill for the company's rescue to $60 billion.
Buffett to unload stock in 2 railroads
OMAHA, Neb. -- Warren Buffett's company will sell its stakes in Union Pacific and Norfolk Southern railroads before it completes its $26.3 billion buyout of Burlington Northern Santa Fe Corp. railroad.
Berkshire Hathaway Inc.'s plan to sell those stocks was revealed in documents filed Monday with the Securities and Exchange Commission.
Berkshire owns 22.6 percent of BNSF's stock, and last Tuesday, it announced a plan to acquire the rest for $100 per share.
Report: Reynolds eyes Swedish firm
WINSTON-SALEM, N.C. -- Reynolds American Inc., maker of Camel cigarettes, is in talks to buy a Swedish company that helps people quit smoking, according to a report by the Wall Street Journal.
The Journal said Monday that the second-largest U.S. tobacco company is eyeing Niconovum AB, which sells nicotine-replacement products.
Sweanor and Niconovum did not immediately return calls seeking comment.