Isaac leads airlines to cancel flights

Isaac leads airlines to cancel flights

NEW YORK

Several airlines are canceling all of their New Orleans flights in anticipation of hurricane winds and rain from Isaac.

American Airlines, Southwest and United all are suspending operations in the city. The move comes after large cancellations in Southern Florida on Sunday due to Tropical Storm Isaac.

The storm is over the Gulf of Mexico. It is expected to grow into a Category 1 hurricane and hit land late tonight. A Category 1 hurricane has winds ranging from 74 mph to 95 mph.

Southwest canceled 80 flights today to and from New Orleans. Three additional flights were added Monday night to help accommodate passengers on the canceled flights.

Each Southwest plane on that route holds 137 passengers.

United Airlines, part of United Continental Holdings Inc., has canceled all of its flights for today and Wednesday. It has 40 flights a day in and out of the airport, according to spokesman Joe Micucci.

American Airlines, part of AMR Corp., has canceled all of its flights until Thursday morning. But the airline was frustrated with New Orleans airport executives, who it said shut the facility prematurely.

Hertz to buy Dollar Thrifty for $2.3B

PARK RIDGE, N.J.

After years of trying to get the deal done, Hertz Global Holdings Inc. has acquired competitor Dollar Thrifty Automotive Group Inc. for $2.3 billion, the companies announced late Sunday.

Hertz will be paying $87.50 per share of Dollar Thrifty stock, about an 8 percent premium on Friday’s share price of $81.

The Hertz and Dollar Thrifty boards have unanimously approved the transaction, which is expected to create $160 million in annual cost savings.

Hertz has been pursuing Tulsa, Okla.-based Dollar Thrifty for several years and made an offer two years ago. Hertz’s current offer is about twice what it was two years ago.

Best Buy founder to pursue buyout

NEW YORK

Best Buy Co. Inc. and its founder and former chairman Richard Schulze say they have an agreement that will allow Schulze to pursue his plan to try to buy the nation’s largest consumer- electronics chain.

The news sent Best Buy shares up 3.2 percent to close at $17.87 Monday.

Best Buy said the agreement will allow Schulze to get access to confidential financial statements and allow him to form an investment group with private-equity sponsors to make the bid. He already owns 20 percent of the company’s stock.

The agreement is the first step toward Schulze’s making an official bid for the company, as Best Buy tries to turn around results and adjust to a new CEO. Earlier this month, Schulze suggested he could pay $24 to $26 per share for the chain. Best Buy had said it was considering the overture. The talks stalled a week ago, with the two going back and forth in public exchanges.

From wire reports