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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Oil company acquisition may save over $1 billion

Suncor Energy Inc. will acquire Petro-Canada for $15.5 billion, uniting two of Canada’s biggest oil companies as the nation’s energy industry retrenches.

If the deal announced Monday is approved, it would create the largest oil company in Canada with a market capitalization of about $38 billion, a scale comparable to that of global heavyweights.

The companies said they could save $244 million in operating costs and $812 million in capital efficiencies each year.

NEW YORK

Walgreen shares rise despite drop in profits

Drugstore operator Walgreen Co.’s profit fell 7 percent in the fiscal second quarter because of restructuring costs as cash-strapped shoppers cut discretionary purchases even as retail prescriptions grew.

The stronger-than-expected report Monday sent Walgreen shares climbing $2.29, or 9.4 percent, to $26.58 in Monday trading.

The Deerfield, Ill., company says it earned $640 million, or 65 cents per share. That compares with $686 million, or 69 cents per share, a year ago.

Jewelry giant Tiffany reports profit hiccup

Shoppers who were cautious about splurging on high-priced jewelry led Tiffany & Co. to report Monday that fourth-quarter profit tumbled more than 75 percent.

Enough people bought lower-priced items, though, that its earnings beat analysts’ forecasts. Its shares rose 12 percent.

Tiffany said it believes its sales were hurt by the discounts offered by other jewelers and high-end competitors. Although competition among jewelers remains intense, Tiffany still plans to maintain its prices to protect its cachet – symbolized by its famous blue box.

JPMorgan folds jet plan until federal debt repaid

JPMorgan Chase & Co. said Monday it has no plans to purchase new jets or renovate an aircraft hangar until after it has paid off money it received as part of the government’s bank investment program last fall.

JPMorgan disclosed the plans amid published reports that it was moving ahead with plans to buy new jets and renovate a hangar where it houses its fleet.

JPMorgan was one of hundreds of banks that received money last fall as part of the government’s plan to bolster bank’s balance sheets. The New York-based bank received $25 billion as part of the program.

Associated Press