December 24, 2013 in Business

In brief: Target says Justice Department investigating data breach

From Wire Reports
 

NEW YORK – Target Corp. said on Monday that the Department of Justice is investigating the credit and debit card security breach at the retailer that’s being called the second-largest incident in U.S. history.

The investigation comes after the discounter revealed last week that data connected to about 40 million credit and debit card accounts was stolen between Nov. 27 and Dec. 15. The theft is exceeded only by a scam that began in 2005 involving retailer TJX Cos. It affected at least 45.7 million card users.

The Department of Justice declined to comment on whether it’s investigating the breach at Target, the nation’s second-largest discounter. But Target said it is cooperating with the inquiry.

Alaska cancels flights due to sick employees

PORTLAND – Alaska Airlines canceled 24 flights on Sunday and Monday after flu-stricken pilots and flight attendants called in sick.

About 270 passengers were affected by canceled flights, Alaska spokeswoman Bobbie Egan said. Another 14 flights were canceled Sunday due to bad weather.

A “very unusual” cold and flu season hit the airline’s Pacific Northwest hub, and the entire region was affected, Egan said.

Pilots and flight attendants who were off-duty have volunteered to work while their colleagues are out sick, Egan said.

Hyundai, Kia to pay millions in settlement

Hyundai and sister company Kia said Monday that they will pay up to $395 million to consumers as part of a proposed settlement over overstated gas mileage.

The Environmental Protection Agency found inflated numbers on 13 Hyundai and Kia vehicles in November 2012.

Hyundai and Kia acknowledged the problem, changed the fuel economy numbers and blamed a procedural error. Since then, Hyundai and Kia have been compensating owners with payments of around $88 annually.

Hyundai Motor Co. and Kia Motors are also offering an option of a lump-sum payment. The companies put a figure to it Monday, saying Hyundai would pay up to $210 million and Kia up to $185 million.

The settlement still needs court approval, which the companies anticipate seeking in early 2014.

Jos. A. Bank rejects Men’s Wearhouse bid

LOS ANGELES – Jos. A. Bank announced Monday it has rejected a late November takeover bid from rival Men’s Wearhouse, saying the offer undervalued the company.

“Our board undertook a thorough review and determined that the per-share consideration in the proposal made to us by Men’s Wearhouse was simply not in the best interest of our shareholders,” said Robert N. Wildrick, Jos. A. Bank’s chairman.

The two retailers have in the past months been playing a game of cat-and-mouse as each company has tried to acquire the other.

In October, Jos. A. Bank Clothiers Inc. offered to buy Men’s Wearhouse for $2.3 billion, but the offer was rejected because Men’s Wearhouse executives believed the bid undervalued the company.

Then, in late November, Men’s Wearhouse turned the tables and offered to acquire Jos. A. Bank for $55 a share, for an estimated $1.2 billion. Men’s Wearhouse said Monday that represented a 45 percent premium over Jos. A. Bank’s unaffected enterprise value and 32 percent over the company’s closing share price on Oct. 8, the day before Jos. A. Bank bid for Men’s Wearhouse.

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