Machinists balk at UAL buyoutThe long-running effort by...


March 17, 1994

Machinists balk at UAL buyout

The long-running effort by United Airlines' pilots and Machinists unions to create the nation's largest employee-owned company suffered another setback yesterday when Machinists union members balked at signing the final paperwork for the $5 billion deal.

Leaders of the International Association of Machinists apparently have concerns that resulted in the parties missing a self-imposed deadline to complete the final contract, which in turn was to be filed with the Securities and Exchange Commission.

A statement yesterday from UAL Corp., United's parent, said "there can be no assurance that the transaction . . . will be completed."

U.S. Bancorp to cut 1,400 jobs

In a move that its chief executive said was being taken in hopes of averting a takeover, U.S. Bancorp, the largest banking company based in the Northwest, said yesterday that it would cut 10 percent of its work force, or 1,400 jobs, in six months, despite record profits.

Gerry Cameron, chief executive of the banking company, said he hoped the cuts would convince Wall Street to raise the value of the company's stock enough to dissuade any hostile takeover efforts. Shares of U.S. Bancorp closed unchanged yesterday, at $25.75.

Merry-Go-Round hires Belsky

Merry-Go-Round Enterprises said yesterday that it had hired Hank J. Belsky as executive vice president, another step in the specialty store retailer's efforts to turn around its business.

Mr. Belsky, who was executive vice president of the Americo Group, an apparel manufacturer that caters primarily to mass merchandisers, will be responsible for changing merchandising at the company's DeJaiz and Chess King chains.

U.S. Surgical still shrinking

U.S. Surgical Corp. said yesterday that its continuing reorganization will prompt 900 additional job cuts and the departures of nine executives by the end of the month.

The job eliminations are nearly twice as many as earlier estimated. Among those leaving the financially strapped surgical tool company, based in Norwalk, Conn., is its chief operating officer.

Delegates vote more tourism funds

The Maryland House of Delegates voted 115-21 yesterday in favor of a bill to boost the state's spending on tourism promotion and advertising by $3 million in each of the next three fiscal years.

The bill is intended to bring Maryland in closer competition with Virginia and Pennsylvania, which each spend more than $10 million a year on tourism. Maryland this year spent $5 million on its tourism department, but less than $1 million directly on promotion and advertising. A companion Senate bill is in committee.

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