Business in brief
U.S. ports deal clears last hurdle
Six major U.S. port operations will come under U.S. ownership after Dubai Ports World cleared a $50 million hurdle Friday to end a yearlong political conflict over security at the nation’s cargo terminals.
DP World, based in United Arab Emirates, agreed in December to sell its U.S. ports operations to AIG Global Investment Group, following months of criticism that the UAE firm could not be trusted running the security-sensitive shipping apparatus.
That deal suddenly foundered this week when the Port Authority of New York and New Jersey, which must consent to the sale, asked the two companies for tens of millions of dollars in cash and future infrastructure work at the Port Newark Container Terminal.
The business brinksmanship led two U.S. senators on Thursday to dub the Port Authority’s demands greedy and to threaten political payback if the agency didn’t back down.
Late Friday, officials said they had struck a deal to resolve the impasse, with AIG agreeing to make more than $40 million worth of infrastructure improvements, as well as a direct payment of $10 million to the Port Authority.
Boeing Co. faces two lawsuits
Boeing Co. said Friday that its satellite unit faces two new lawsuits collectively seeking $610 million in damages for alleged satellite malfunctions.
Telesat Canada and its insurers are seeking more than $385 million in damages and $10 million in lost profits related to alleged malfunctions in its model 702 satellite made by Boeing’s Satellite International Inc., according to a filing with the Securities and Exchange Commission.
Several early model 702 satellites, including Telesat’s Anik F1, allegedly faltered in orbit in 2004 after having problems with their solar panel cells.
Telesat Canada, the satellite unit of Canadian telecommunications company BCE Inc., filed an arbitration order against Chicago-based Boeing in November and an action in a Canadian superior court in December.
York, Pa.
Harley, union may have deal
Motorcycle maker Harley-Davidson Inc. said Friday it reached a tentative labor agreement with union workers at its largest manufacturing plant, a breakthrough in the two-week-old strike by nearly 2,800 employees.
The company issued a two-paragraph statement saying a vote by the union rank-and-file was expected next week. It did not disclose terms of the deal or say when production at the factory in York., Pa., might resume.
Harley’s stock jumped $1.05 to $69.09 in after-hours trading, regaining all the ground lost during Friday’s regular session on the New York Stock Exchange.
The nearly 2,800 workers have been on strike since Feb. 2. The union membership had voted to reject a company contract proposal that provided 4 percent annual raises but reduced pay for new hires and lowered health insurance and pension benefits.