IN BRIEF
DALLAS
AMR investor suggests flier program spinoff
A major shareholder in AMR Corp. wants the owner of American Airlines to boost its stock price by spinning off the frequent-flier program and other businesses.
FL Group, an investment fund based in Iceland, said the AAdvantage frequent-flier program is worth at least $6 billion, and that a sale could produce a net gain of $4 billion for AMR.
The stock market values all of AMR at about $5.5 billion.
The fund’s chief executive, Hannes Smarason, wrote to AMR directors Tuesday to suggest the spinoff. Smarason told The Associated Press on Thursday that FL Group has recently increased its stake in AMR, owner of the biggest U.S. air carrier, to 9.14 percent.
AMR said it valued ideas from shareholders but doesn’t comment on those discussions.
WASHINGTON
Senators don’t object to buy of DoubleClick
Senators expressed no outright opposition to Google’s $3.1 billion purchase of online advertising firm DoubleClick at a hearing focused on the deal’s potential threats to competition and consumer privacy.
Sen. Herb Kohl, D-Wis., chairman of an antitrust subcommittee, said at the outset of Thursday’s hearing that the transaction "warrants close examination" by federal regulators. But afterward, he said there was "no clear winner" among the deal’s supporters and opponents — most notably Microsoft Corp.
While senators can’t block the deal, they can express their concerns to antitrust regulators about combinations they oppose.
LOS ANGELES
Housing slump saddles KB Home with loss
KB Home, one of the nation’s largest homebuilders, swung to a loss Thursday, citing a deep deterioration in the housing market and warning the sales slump will likely extend into next year.
Los Angeles-based KB Home, which builds homes throughout Southern Nevada, reported a loss of $35.6 million, or 46 cents per share, for the quarter ended Aug. 31, reversing a profit of $153.2 million, or $1.90 per share, a year earlier.
KB’s losses were partially offset by a gain of $438.1 million from the sale of its stake in its French subsidiary.
Excluding the French operations, the company reported a loss of $478.6 million, or $6.19 per share, from continuing operations.
Analysts polled by Thomson Financial expected a loss of 72 cents per share.
Revenue fell 32.4 percent to $1.54 billion from $2.28 billion.
CHARLOTTE, N.C.
FCC chief says deal won’t affect ads
Broadcasters nationwide need not worry about local advertising revenue disappearing if the proposed takeover of XM Satellite Radio Holdings by Sirius Satellite Radio goes through, the FCC’s chairman said Thursday.
The National Association of Broadcasters opposes the estimated $4.7 billion acquisition on the grounds that combining the nation’s only two satellite radio companies would create a monopoly.
Speaking before hundreds of broadcast executives during a broadcast association conference, Federal Communications Commission Chairman Kevin Martin said there is a "higher burden" to examine the transaction carefully.
"I would be concerned if they were trying to become a local broadcaster," Martin said, however.
NEW YORK
Dollar sinks to another low point against euro
The U.S. dollar dropped to a record low against the euro for a sixth consecutive session Thursday, sagging under expectations of a U.S. Federal Reserve rate cut next month.
The dollar has skidded to new lows against the European currency since the Fed last week cut interest rates by a larger-than-expected half percentage point.
The euro rose as high as $1.4189 Thursday, breaking its previous record of $1.4162 from early Wednesday. It later retreated to $1.4160 in late New York trading, up from $1.4136 late Wednesday.
WASHINGTON
Mortgage rates rise for second week
Rates on 30-year mortgages rose for a second straight week, a sharp rebound after hitting a four-month low.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.42 percent this week, up from 6.34 percent last week.
Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, averaged 6.09 percent this week, up from 5.98 percent last week.
A year ago, 30-year mortgages stood at 6.31 percent and 15-year mortgages were at 5.98 percent.
KANSAS CITY, Mo.
Mobile phone service to stop at Disney
Mufasa the Lion King is dead, and soon his cell phone service will be gone, too.
Disney Mobile, a Walt Disney Co. unit that sold its own brand of cell phones running on the network of Sprint Nextel Corp., alerted customers Thursday that the service would end as of Dec. 31.
The calling plans, designed to help families stay in touch and manage usage of wireless phones, struggled to sign steadily larger numbers of subscribers. The service worked well, but Disney could not match the distribution advantages of the nation’s four major cell phone carriers that had their own stores and the most prominent spots in big-box retailers.
NEW YORK
Home-sales report boosts Treasury prices
Long-term Treasury prices ended higher Thursday after the government reported a sharp drop in new home sales, rekindling investor nervousness about the housing market.
Treasurys, which carry a government guarantee, often perform well when data indicates the economy is weakening and investors should buy low-risk assets.
The benchmark 10-year Treasury note rose 0.38 points to 101.38 with a yield of 4.57 percent, down from 4.62 percent at Wednesday’s close. Prices and yields move in opposite directions.
The 30-year long bond rose 0.91 points to 102.56 with a yield of 4.84 percent, down from 4.89 percent at its close on Wednesday.
