Business digest 04/01/06

Delphi Corp. unveils restructuring plan

DETROIT -- Auto parts supplier Delphi Corp. unveiled a broad restructuring plan on Friday that would cut 8,500 salaried jobs, shut or sell a third of its plants worldwide and asks a bankruptcy court judge to void its labor agreements in a move that sent a shudder through the auto industry. The United Auto Workers warned "it will be impossible to avoid a long strike" if the judge agrees to void the contracts and Delphi imposes its most recent wage proposal. A strike could put General Motors Corp., Delphi's former parent and largest customer, perilously close to bankruptcy and hurt other automakers and smaller suppliers as well.

Appeals court: Vioxx lawsuit can go forward

NEW YORK -- Merck & Co. suffered a significant legal setback Friday when an appeals court ruled a nationwide class-action lawsuit can go forward that allows health insurers and others to sue to recover the billions of dollars they spent on Vioxx. Merck attorney Ted Mayer called the ruling "deeply flawed" and said the company would appeal the unanimous decision by the three New Jersey Appellate Division judges to the state Supreme Court. If the case goes forward, Merck faces substantial financial risk because under New Jersey's Consumer Fraud Act the company would have to pay triple damages to the plans. The plaintiffs allege Merck deliberately misrepresented Vioxx's safety.

Administration lodges trade complaints

WASHINGTON -- The Bush administration on Friday accused 60 countries and three trading blocs of erecting unfair barriers to American exports. The administration used an annual report to intensify pressure on China to deal with such long-simmering trade disputes as the piracy of copyrighted music, movies and computer software, which American companies contend costs them billions of dollars a year in lost sales. The administration is required by Congress to issue the "National Trade Estimate Report on Foreign Trade Barriers" as a way of shining a spotlight on the practices of America's trading partners that are deemed most harmful to sales of U.S. goods.

Spending rises less than expected

WASHINGTON -- Consumer spending slowed to the weakest pace in six months in February. The Commerce Department said Friday that personal consumption spending rose by a weaker-than-expected 0.1 percent following the huge 0.8 percent increase in January, which had been aided by a mild winter. Analysts discounted much of the slowdown in spending as a payback after the weather-related January increase.

Whirlpool finishes takeover of Maytag

DES MOINES, Iowa -- Whirlpool Corp. completed its acquisition of Maytag Corp. on Friday and said it will immediately begin integrating the two appliance companies. Maytag stockholders will get about $848 million in cash and about 9.6 million shares of Whirlpool common stock, under the previously signed agreement. Whirlpool management said in a statement Friday that details about its Maytag plans will be released in about 60 days.

-- From wire reports