Southwest sweetens its offer for Frontier
Southwest Airlines Co. offered more than $170 million to buy Frontier Airlines Holdings Inc., a 50 percent increase over its initial proposal, to hold off Republic Airways Holdings Inc. in a bankruptcy court auction.
The binding cash bid will be discussed with Frontier and its creditors on Wednesday, and an auction in New York will start the next day, Executive Vice President Ron Ricks said on a conference call. Dallas-based Southwest said Republic is the only other suitor.
Acquiring Denver-based Frontier would expand Southwest’s foothold in the Rocky Mountain region, enable it to fly outside the U.S. for the first time and eliminate a low-fare rival. Southwest, McCarran International Airport’s busiest carrier, made a $113.6 million preliminary offer on July 30.
Casino revenue falls in Atlantic City in July
Atlantic City’s casino revenue fell 13 percent in July, in line with previous months as the recession and competition from neighboring states kept gamblers away.
Gambling proceeds at the New Jersey resort, the second-biggest U.S. casino center, dropped to $383 million, the New Jersey Casino Control Commission said Monday in a statement.
Revenue from tables at the 11 casinos fell 13 percent to $116.2 million. Slot machines fell 12 percent to $266.8 million.
Through July of this year, revenue has fallen 15 percent to $2.3 billion, after falling 7.6 percent in 2008, the worst annual decline for the region.
Gambling revenue fell at 10 of the 11 casino properties last month. Only Trump Entertainment Resorts Inc.’s Trump Taj Mahal property saw winnings rise.
Dynegy plans to sell plants, posts loss
Power provider Dynegy will sell eight plants plus another under development for about $1 billion in cash and $500 million in stock as the company attempts to bolster its finances and reduce debt.
Houston-based Dynegy reported Monday that its second-quarter loss widened by 27 percent as it wrote down the value of some of the plants it will sell to former development partner LS Power Associates and because of falling energy prices.
Losses for the quarter ended June 30 totaled $345 million, or 41 cents per share, compared with $272 million, or 32 cents per share, a year earlier.
Revenue rose 53.1 percent, to $493 million from $322 million.
General Motors will offer cars on eBay
Willing to skip the test drive? Don’t like car salesmen?
General Motors has some cars it would like to show you.
The government-rescued automaker announced on Monday that it is starting a trial in which consumers can buy new cars through eBay, the online sales site, allowing buyers to buy Chevrolets, Buicks or GMCs before they set foot in a dealership.
The program will be initially limited to California, but the company hopes to extend it across the country.