Business memo 12/02/02

United Airlines sees heavy stock sell-off

CHICAGO -- The increased likelihood of a bankruptcy filing by United Airlines prompted a heavy sell-off of its stock Friday, even as management made a last-ditch effort to rescue an urgent cost-cutting plan.

Wall Street analysts said it appears all but certain United will soon be forced to restructure under bankruptcy-court protection as its cash reserves dwindle. The grim outlook became drastically worse after the carrier's mechanics late Wednesday rejected a key component of its financial recovery plan.

The plan is considered vital to the airline's application for a $1.8 billion loan guarantee from the federal government.

Seven states drop out of lawsuit against Microsoft

WASHINGTON -- Seven states dropped out of the antitrust lawsuit against Microsoft Corp., leaving only Massachusetts and possibly West Virginia to appeal a landmark settlement between the computer software giant and the federal government.

Massachusetts on Friday appealed a U.S. judge's decision accepting the settlement, which its attorney general criticized as a "loophole-filled deal" that won't affect the software maker's aggressive practices.

Seven other states plus the District of Columbia plan no court action, said Iowa's attorney general, Tom Miller, who has been coordinating the antitrust fight since the Bush administration negotiated the settlement last year.

Enron may sell its most valuable assets

HOUSTON -- A year after careening into what in 2001 was the largest bankruptcy in history, Enron Corp. could be on the verge of selling off its 12 most valuable assets and disappearing from the corporate landscape.

That is, if creditors agree liquidation is their best shot at recouping as much as possible from the company, whose failure was a precursor to a string of business scandals in 2002.

Enron is currently taking bids on the nonbankrupt assets that have generated most of its income for the past year, including Portland General Electric, the Portland, Ore. utility acquired in 1997 that serves 740,000 customers in the Pacific Northwest, and Enron's whole or part ownership in three pipelines.

Florida's tourism industry could be affected by war

ORLANDO, Fla. -- The health of Florida's $50 billion tourism industry is going to be determined as much by Saddam Hussein and al-Qaida as by Mickey Mouse or Shamu in the coming months.

The threat of war with Iraq, further terrorist attacks, and plunging consumer confidence have created an uncertainty in Orlando, the heart of the state's tourism industry, not seen in a decade, experts say.

There are signs, though, that the worst is over from the free fall that the tourism industry experienced after the Sept. 11 attacks.

Comcast moving up in broadband world

PHILADELPHIA -- Its purchase of AT&T Broadband completed, Comcast Corp. now finds itself with unprecedented power to shape the future of Internet access in the United States.

The $29.2 billion acquisition gives Comcast more than 22 million cable TV customers in 17 of the 20 largest cities.

Opportunity is ripe for company executives to push potentially lucrative services such as digital cable, video on demand and high-speed Internet access.

Chief executive Brian Roberts contends customers' entertainment and information options will only increase.

-- From wire reports