Business briefs


Published: Tuesday, January 7, 2003 at 6:01 a.m.
Last Modified: Monday, January 6, 2003 at 10:45 p.m.

Anticipation of tax cut reignites Wall Street

NEW YORK - Investors' anticipation of a tax cut reignited the new year's rally on Wall Street Monday, sending stocks barreling higher and lifting the Dow Jones industrials more than 170 points.

Wall Street expected President Bush, who's announcing an economic stimulus package today, to propose a cut in taxes on dividends to encourage more investment and give consumers more cash to spend.

The Dow closed up 171.88, or 2 percent, at 8,773.57. The Dow claimed its second triple-digit win in three sessions, having surged 265.89 Thursday on an unexpected jump in the manufacturing sector.

ISG offers $1.5 billion for Bethlehem Steel

PHILADELPHIA - International Steel Group offered to buy Bethlehem Steel's steel mills and related assets Monday and bring the once-mighty industrial giant out of bankruptcy.

ISG valued the offer at $1.5 billion and said it expects negotiations for the purchase to be completed within 10 days. The offer would then have to be approved by the Bethlehem Steel board, which will consider it later in January, and the U.S. Bankruptcy Court.

Robert S. Miller Jr., Bethlehem Steel's chairman and chief executive officer, said it could take several weeks to review the proposal but hoped for an agreement.

AT&T says it will slash 3,500 jobs to cover loss

NEW YORK - AT&T Corp. said Monday it will slash 3,500 jobs in its business services division and take $1.5 billion in fourth-quarter charges, mainly to reflect losses on investments in its Latin America subsidiary.

AT&T had disclosed last month that it would be cutting jobs in the business division but had not revealed the number, which represents nearly 5 percent of the phone company's work force.

AT&T will take a charge of $240 million, or 20 cents per share, in the fourth quarter to cover the costs associated with the cuts.

Martha Stewart's new magazine hits stores

NEW YORK - Martha Stewart's new magazine all about food - and only a little about her - debuted at grocery stores and newsstands Monday.

Everyday Food enters a crowded field of food publications and a tough business climate, but many advertisers and industry analysts think that, despite her troubles of last year, she may once again succeed.

The magazine, which features recipes with easily available ingredients that can be made in about 30 minutes, is a significant departure from Stewart's previous magazines.

Carnival seeks OK from EU for revised P&O bid

BRUSSELS, Belgium - Carnival Corp. plans to submit its sweetened $5.4 billion takeover offer for P&O Princess Cruises PLC to European Union regulators, six months after winning approval for its original bid, the EU said Monday.

EU spokeswoman Amelia Torres said the companies had ''been in touch'' with the European Commission about whether they had to file the revised agreement, which was accepted by P&O Princess' board last October.

Because of the unique situation, they informed the Commission on Monday that they had decided to seek clearance ''to obtain legal certainty,'' she said. ''We are expecting the filing to be made very soon,'' Torres told reporters.

- Compiled from

The Associated Press

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