Business & Finance
Collins & Aikman Corp. said it plans to buy Textron Inc.'s automobile trim business for over $1 billion. The deal will catapult Collins, which makes floor and acoustic products for vehicles, into the top rankings of the world's manufacturers of automobile interior components. Textron will receive $1 billion in cash and assumed debt, $245 million in preferred shares of Collins & Aikman, and 18 million common shares.
In layoff news:
Sabena SA, Belgium's troubled national airline, said it will cut about 2,000 jobs and drop flights to Washington and Tokyo as part of a restructuring plan. Staff reductions will be achieved over four years through voluntary departures, early retirements, and dismissals, the company said. Sabena also plans to sell off some of its holdings, including two hotels in Brussels.
German chemicals giant BASF AG said it will cut 1,200 more jobs over the next two years, bringing its total recent staff reductions to 4,000, or 4 percent of its global workforce. Ludwigshafen-based BASF said layoffs will help the company trim costs amid a global economic slowdown. BASF, which posted a 97 percent plunge in second-quarter profits, also said the rising costs of raw materials have eroded profits.
