Business News - part 4
BUSINESS October 27, 2014 | 1:09 PM
- CVS, Rite Aid the latest retailers to reject Apple Pay
- Retailers favoring the development of rival program
- Retailers tiring of credit-card processing fees
Apple Pay debuted October 20 but it’s already encountering problems. Numerous retailers are opting not to enable Apple Pay in their stores.
Among the retailers reject the mobile wallet are CVS, Rite Aid, 7-Eleven, Target, Best Buy, Kmart, Gap and Wal-Mart. Prior to October 26, Apple Pay was enabled in CVS and Rite-Aid stores.Read more »
BUSINESS October 23, 2014 | 12:41 PM
- Center the second in Europe, 11th in world
- Company is responding to customer demand
- Customers concerned about storing data in foreign countries
Amazon Web Services opened a data center in Frankfort, Germany, in the hopes of attracting more German business and accommodating European growth.
The new data center is AWS’s second in Europe and the 11th globally. The company did not reveal the cost of the center, but it is estimated at $1.1 billion.Read more »
BUSINESS October 22, 2014 | 1:52 PM
- IPO probably won’t be available until 2016
- HIV business is GSK’s fastest-growing unit
- Company had disappointing third quarter
British pharmaceutical company GlaxoSmithKline PLC is considering an IPO of its HIV drug business, ViiV Healthcare, as it implements cost-cutting measures.
GSK owns 78% of ViiV. Pfizer Inc. and Shionogi & Co. hold the remaining 22%.Read more »
BUSINESS October 21, 2014 | 12:21 PM
- Restructuring plan to cut costs
- Healthcare business to be spun off
- Third-quarter revenue rose 3.4%
Personal-care products maker Kimberly-Clark has begun a restructuring plan aimed at cutting overhead costs from spinning off its healthcare unit by eliminating 1,100-1,300 jobs.
The majority of the job cuts will be salaried employees and will be completed in 2016. The cuts are expected to save the company $120 million- $140 million, but $130-$160 million in pretax charges are expected this quarter.Read more »
BUSINESS October 20, 2014 | 12:16 PM
- Merger would have faced regulatory scrutiny
- There are few major railroads left
- Railroads struggle to keep up with demand
Canadian Pacific Railway Ltd., the second largest Canadian railroad operator, has ended exploratory merger talks with CSX Corp., the third largest U.S. railroad operator. No additional negotiations are planned.
Canadian Pacific had proposed a transcontinental railroad which, the company said, would have alleviated congestion, promoted competition, generated significant shareholder value and improved customer service.Read more »
BUSINESS October 16, 2014 | 11:54 AM
- Sale will help relieve Chesapeake’s debt
- Southwestern will expand its position in the area
- Production to increase in 2015
Chesapeake Energy Corp. , the second-largest U.S. producer of natural gas, is selling its assets in the Marcellus and Utica shale formations to rival Southwestern Energy Co. for $5.38 billion to help pay down the company’s $12 billion debt.
The sale includes 435 wells on 413,000 acres in Pennsylvania and West Virginia. The area produces crude oil, natural gas and natural-gas liquids. Some of the wells are not yet connected to pipelines.Read more »
BUSINESS October 15, 2014 | 12:50 PM
- Majority of vehicles recalled in Asia
- Recall is for three separate issues
- Automakers facing increased scrutiny over recalls
Toyota Motor Corp., the world’s largest automaker, is recalling 1.75 million vehicles globally for three separate defects.
This is the automaker’s fourth global recall this year, bringing the number of vehicles recalled to 5.3 million in the United States alone. The global number of recalled vehicles is unknown, Toyota said.Read more »
BUSINESS October 14, 2014 | 12:20 PM
- Bid is second rejected by T-Mobile
- T-Mobile fastest-growing mobile carrier
- T-Mobile owner feels company better alone
Iliad SA, France’s smallest mobile carrier, saw its shares rise 13% after it abandoned a bid for the fourth-largest U.S. wireless-service provider, T-Mobile US Inc.
The carrier first expressed interest in T-Mobile in July.Read more »
BUSINESS October 13, 2014 | 11:22 AM
- Breach affected unknown number of customers
- Malware affected retailer’s systems for a month
- Other major retailers have suffered security breaches
Discount chain Kmart, owned by Sears Holding Corp., is offering customers free credit monitoring services after its payment systems were affected by malware. Anyone who used a credit or debit card at one of Kmart’s 1,200 stores between Sept. 1 and Oct. 9 are eligible.
The security breach occurred in early September but wasn’t discovered until Oct. 9. The type of malware used by the hackers was not detectable by anti-virus programs, the company said.Read more »
BUSINESS October 9, 2014 | 12:42 PM
- September sales were lower than expected
- Sales still higher than 2012
- New sales strategy to focus on three areas
Read more »