IN BRIEF
ROME
Italy works to develop rescue plan for Alitalia
Italy's government held emergency talks with unions and investors Sunday over a plan to save Alitalia, as the bankrupt airline risks having to ground flights for lack of fuel.
The rescue plan would have investors buying profitable assets and investing $1.4 billion. But the plan also envisages wage cuts and layoffs opposed by the unions.
The government began mediating when direct talks broke down Friday after the investors failed to win the unions' crucial support. The investors said, however, that their offer remained on the table.
The labor and transport ministers met Sunday with representatives of flight attendants and pilots, who have been the most critical of the rescue plan.
Among the sticking points in the talks are new contracts, salary cuts and layoffs that might run to 5,000, out of the airline's 20,000-strong work force.
NEW YORK
Longs urging investors to OK Walgreen offer
Longs Drug Stores Corp., the California retailer that received a $75-a-share offer from Walgreen Co., said it recommends shareholders accept CVS Caremark Corp.'s month-old, $71.50-a-share offer.
Walnut Creek, Calif.-based Longs confirmed the $3 billion Walgreen offer and said Sunday it will consider the bid.
Walgreen of Deerfield, Ill., the largest U.S. pharmacy chain, offered to buy Longs on Sept. 12, one month after CVS disclosed its offer.
The tender by Walgreen puts pressure on CVS to either increase its price or risk losing a chance to add drugstores in two of the fastest-growing U.S. states, Nevada and Arizona.
