IN BRIEF

NEW YORK

Lending rates continue to ease between banks

Bank-to-bank lending rates eased further Friday and demand for Treasury bills let up slightly, but there are still signs the companies that need credit most might not be able to get it.

The London interbank offered rate, or Libor, for three-month dollar loans fell to 4.41 percent from 4.50 percent on Thursday. The overnight Libor for dollar loans has decreased substantially, dropping to 1.67 percent from 1.94 percent and nearing the U.S. Federal Reserve's target fed funds rate of 1.5 percent.

Libor, which affects consumer loan rates ranging from adjustable rate mortgages to credit cards, is a market lending rate between banks determined by the institutions; the fed funds rate is the rate at which banks lend their funds held at the Federal Reserve to one another, and is therefore controlled to a certain extent by the Fed.

WASHINGTON

Honeywell earnings increase by 16 percent

Honeywell International Inc. said Friday third-quarter earnings rose 16 percent on higher sales in its building controls division but trimmed its 2008 forecast as it prepares for a likely recession and slow growth in foreign markets.

Honeywell reported net income of $719 million, or 97 cents per share, up from $618 million, or 81 cents per share, a year earlier.

Revenue grew 6 percent to $9.3 billion.

NEW YORK

Mervyn's to start liquidation sales

Ailing department store chain Mervyns LLC, which had been operating for almost five decades, has become the latest merchant headed for extinction.

The retailer, which filed for Chapter 11 bankruptcy protection in July, said Friday that it plans to begin liquidation sales at its remaining 149 stores and wind down its business. The Hayward, Calif.-based chain said liquidation sales during the holiday season were the best way to maximize value for the company's creditors after exhausting all its options, including the sale of the company.

Mervyns said it plans to pursue the liquidation under the Chapter 11 bankruptcy code, a move that typically allows companies to retain more control over the selling off of assets. In a Chapter 7 filing, the court would immediately appoint a trustee to take over the case.

The company's Web site lists three stores in Southern Nevada, two in Las Vegas and one in Henderson.

TRENTON, N.J.

Pfizer to settle lawsuits with $894 million deal

Drug giant Pfizer Inc. has reached an $894 million deal to settle the bulk of the lawsuits over its withdrawn pain reliever Bextra, following the lead of rival Merck & Co., which is spending five times as much to settle Vioxx suits.

The Pfizer agreement also would end lawsuits over its popular Celebrex, the only one of the three -- all in the same class of anti-inflammatory drugs and all linked to elevated risk of heart attacks and strokes -- still on the market.

The world's biggest drugmaker said Friday it has agreements in principle to end up to 92 percent of personal injury lawsuits brought by people claiming Bextra and Celebrex caused heart attacks, strokes or other harm.

The settlement includes roughly 7,000 personal injury cases, mainly plaintiffs who took Bextra, plaintiff attorney Perry Weitz said. He represents nearly 2,000 claimants, about 10 percent of them relatives of people who died.

LIVONIA, Mich.

Union chief concerned over GM-Chrysler deal

As negotiations for General Motors Corp. to acquire Chrysler LLC appear to be gaining momentum, United Auto Workers President Ron Gettelfinger said Friday he is concerned that the deal may happen, with many workers losing their jobs.

Gettelfinger said in an interview that he knows the companies have been talking for a long time and said there probably are steps the union could take to try to halt any merger. But he said that would be speculation now.

"Let's say we're concerned that it's coming because of the impact that it would have on our work force," Gettelfinger said at a union hall rally for Democratic presidential candidate Barack Obama.

Neither Chrysler nor GM has contacted the union about the acquisition talks, he said, but he cited reports about the merger that say GM would look to take costs out if it were to acquire Chrysler.

"That's going to mean a reduction of workers," he said. "I don't know just exactly how that would work out, but yes, we are very concerned about that."

General Motors Corp. shares rose 3 cents, or 0.47 percent, Friday to close at $6.43 on the New York Stock Exchange. Chrysler is privately held.

NEW YORK

United Parcel Service rates to rise 5.9 percent

United Parcel Service Inc. on Friday announced a general rate increase of 5.9 percent for 2009.

UPS, the world's largest package delivery company will raise ground shipment rates by an average of 5.9 percent and increase rates on air express and international shipments bound from the U.S. by an average of 4.9 percent.

The rate increases take effect Jan. 5.

Sirius reveals exec pay, asks for stock-split OK

The chief executive of Sirius XM Radio Inc. received $5.27 million in compensation for 2007, according to a Friday regulatory filing in which the company asked shareholders to approve a reverse stock split to boost the share price so it won't violate stock listing requirements.

Mel Karmazin, whose 5-year employment contract with the satellite radio company expires next year, received a salary of $1.25 million, a cash bonus of $4 million and retirement benefits worth $18,743.

Sirius, which closed its merger with rival XM in July, also said it plans to enact a reverse stock split before the end of 2009. The company said the split, to boost the stock price by reducing the number of outstanding shares, would range from 1-for-10 to 1-for-50.

Ten-year Treasury prices rise on homes report

Ten-year Treasury prices rose Friday after a report showed a larger-than-expected dip in September new-home construction.

The 10-year note rose 0.25 points to 100.22 and yielded 3.93 percent, down from 3.97 percent.

The 30-year bond fell 1.53 to 102.72 and yielded 4.34 percent, up from 4.26 percent.