Alaska Air Group Inc. and Virgin America Inc. pleaded their case for their $2.6 billion merger to top Justice Department officials last week, according to people familiar with the matter, an indication that negotiations are in their final stages over whether the government allows the deal to proceed.
The airlines met with antitrust division chief Renata Hesse and other officials conducting the review to address government concerns that the combination could hurt competition, said one of the people. Such top-level meetings usually signal that the antitrust division has worries about a merger that could lead to a lawsuit to block it.
Time is running short for the government to act. The airlines have agreed not to close until Sept. 30, effectively setting a deadline for the Justice Department to give a nod to the deal or seek to block it.
The spread between the offer price for Virgin America and its share price rose to $3.80, the highest level since the deal was announced, showing that Wednesday investors became more worried about the deal’s prospects.
Virgin America fell the most in seven months Thursday, the biggest decline since before the carrier agreed to be acquired by Alaska. Shares dropped 4.4 percent to $53.20 at the close of trading in New York.
Inventory shortage curbs U.S. home sales
WASHINGTON >> Americans retreated from home-buying in August, as a worsening inventory shortage appears to be hurting sales and pushing prices higher.
Housing has been a bright spot amid weak economic growth for much of this year. Sales totals continue to recover from the Great Recession, and buyers increasingly have pristine credit. But the primary weakness in housing has been a lack of properties for sale.
Sales of existing homes slipped 0.9 percent last month to a seasonally adjusted annual rate of 5.33 million, the second straight monthly decline, the National Association of Realtors said Thursday.
Jobless aid claims are lowest since July
WASHINGTON >> The number of Americans applying for unemployment benefits fell last week to the lowest level since July, more evidence that U.S. workers are enjoying job security.
The Labor Department said Thursday that jobless claims slid by 8,000 to a seasonally adjusted 252,000. That matched the level in mid-July, which was the lowest since April. The less volatile four-week average fell by 2,250 to 258,500. Weekly claims have come in below 300,000 for 81 straight weeks, the longest such streak since 1970.
The number of people collecting unemployment benefits is 2.11 million, down nearly 6 percent from a year ago.
Wal-Mart to face suit over alleged bribery
NEW YORK >> A federal judge has granted class-action status to Wal-Mart Stores Inc. investors suing the retailer over allegations that it covered up a bribery scheme in Mexico to help its business there.
The allegations include that Wal-Mart’s Mexican unit paid millions of dollars in bribes to speed building permits and gain other favors.
“Judicial economy and the best interests of the class members favor class certification,” U.S. District Judge Susan Hickey wrote. Wal-Mart spokesman Randy Hargrove said the company is considering its options, including an appeal.
Wells Fargo CEO quits Fed advisory post
WASHINGTON >> Wells Fargo’s embattled CEO is resigning his position on the Federal Reserve’s advisory council amid a scandal over millions of accounts allegedly opened by the bank without customers’ permission.
The San Francisco Fed said Thursday that John Stumpf is giving up his position as representative from the central bank’s San Francisco region on the advisory council.
Wells Fargo spokeswoman Jennifer Dunn said the move was a personal decision by Stumpf, saying that his top priority is leading the San Francisco-based bank.
The announcement came two days after Stumpf faced bipartisan outrage from a Senate panel over the alleged misconduct, believed to have gone on at the second-largest U.S. bank for years. Some 5,300 employees were fired.
Wells Fargo was fined $185 million by U.S. and California regulators earlier this month.
ON THE MOVE
Hawaii State Federal Credit Union has promoted three branch managers:
>> Loren Nakaoka is the new vice president and senior branch manager of the credit union’s main branch. He was a branch manager for two credit unions in Hawaii before he joined Hawaii State FCU 10 years ago.
>> Roland Ogoshi is the new vice president and senior branch manager of the credit union’s Alii branch. In 1981, he joined Hawaii State FCU and helped open the Pearlridge and Alii branch.
>> Leilani Sumajit is the new vice president and senior branch manager for the credit union’s Pearlridge branch. She has 20 years of credit union experience, including helping the Kaimuki outlet become “Branch of the Year” for 2013 and 2014.
