Pacific Northwest Talks between Boeing and the second-largest union at its Wichita facility over the sale of the plant broke down after...

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Pacific Northwest

Boeing


Talks between Boeing and the second-largest union at its Wichita facility over the sale of the plant broke down after less than 30 minutes yesterday.

However, Bob Brewer, Midwest director of the Society of Professional Engineering Employees in Aerospace (SPEEA), said union officials will resume talks later with Boeing. He did not say exactly when.

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Negotiators reached the impasse after Boeing informed SPEEA that employees younger than 55 years old who take jobs with Canadian investment firm Onex, which plans to buy Boeing’s commercial operations in Wichita, will receive no early-retiree medical benefits.

SPEEA has about 30 other issues to talk to Boeing about that will impact employees during the sale, Brewer said, adding that the “bottom line” is that early-retiree medical benefits must be part of that deal.

Boeing would not immediately comment.

Boise Cascade

Terms set for IPO worth $400 million

Boise Cascade Holdings, the Boise, Idaho-based paper and forest-products company, plans to sell 16 million shares at $24 to $26 each in its initial public offering, according to a regulatory filing yesterday.

On Feb. 11, Boise Cascade filed a plan to sell up to $575 million in common stock in an IPO but didn’t detail terms of the offering. The filing puts the total value of the offering at around $400 million.

According to the latest filing with the Securities and Exchange Commission, the company will be converted to a corporation named Boise Cascade before the IPO.

Proceeds from the offering will be paid to existing shareholders OfficeMax and Forest Products Holdings, which is controlled by private equity-investment firm Madison Dearborn Partners. Boise Cascade bought OfficeMax in 2003 and took that name. It then sold off the Boise Cascade part of the business to Madison Dearborn, which is now taking it back to the public market.

Nation / World

AIG

Insurer to make equity adjustment

American International Group (AIG), one of the world’s largest insurance companies, announced that it will again delay filing its 2004 annual report and make accounting adjustments that will cut its value by some $2.7 billion — $1 billion more than an earlier estimate.

Shareholders, apparently relieved that AIG is dealing with problems that have drawn regulatory scrutiny, bid the company’s shares up yesterday. AIG shares rose $2.59 to close at $53.44. But Moody’s Investors Service and Fitch Ratings both lowered their ratings on AIG’s debt.

Compiled from The Associated Press and Dow Jones Newswires