Aetna Life & Casualty will eliminate 2,600 jobs and undergo a massive restructuring in a move the company said would save hundreds of millions of dollars. The insurer also reported a 51 percent drop in third-quarter earnings due to a one-time charge of $60 million for costs associated with the reorganization.
The Treasury sold $10.13 billion in 52-week bills at an average discount rate of 7.01 percent, down from 7.25 percent at the last auction on Sept. 20 and the lowest interest rate in more than two years. The Treasury also rescheduled for Tuesday a $12 billion auction of two-year notes, contingent upon enactment of a new federal budget package that would raise the debt limit.
Mortgage rates fell this week. Fixed-rate mortgages averaged 10.17 percent, down from 10.24 percent last week, while one-year adjustable-rate mortgages averaged an initial rate of 8.17 percent, down from 8.19 percent.
The UAW, frustrated by what it said was slow progress at the bargaining table, served official notice that it will let its contract with Chrysler expire at midnight Monday. The union said it may decide to work without a contract, as it did for two days during recent bargaining at General Motors Corp.
A Los Angeles County judge ordered the release of nearly 4,500 pages of grand jury testimony that led to the state securities fraud indictment of former thrift executive Charles H. Keating Jr. and three co-defendants.
Polaroid asked the U.S. District Court for a $173 million increase in the $909 million award it won in a patent infringement suit against Eastman Kodak.
Citicorp's dividend rate on a $100 million issue of remarketed preferred stock was reset at 12 percent, down only slightly from the 12.5 percent rate it had to pay at a similar auction earlier this week.
Murdoch Magazines has suspended publication of Men's Life magazine after one issue due to the poor economic environment.
Unisys's long-term debt and preferred stock ratings were downgraded by Moody's Investor Service, which cited the computer maker's continued financial problems.
American Airlines Chairman Robert Crandall said the airline was prepared to pay "in excess of $500 million" for the London routes that Pan American World Airways had earlier agreed to sell United Airlines for $400 million.
R.H. Macy & Co. is considering the sale of a significant equity stake to help reduce debt, the retailer disclosed in a letter to stockholders. Macy already has sold small stakes to finance buybacks of some of its bonds.
B.F. Goodrich said it has reached an agreement to buy various businesses from Hercules Inc.'s Aircraft and Electronics Group for $176 million.