A U.S. arbitrator has awarded Kraft Foods Inc. $2.76 billion in its breach-of-contract dispute with Starbucks Corp. over packaged coffee. In 1998, Kraft struck a deal with Starbucks to become its exclusive distributor of packaged coffee sold in grocery stores. Starbucks alleged that Kraft was doing “lasting damage to Starbucks’ brand” and offered to buy out Kraft’s interest for $750 million. Kraft refused the offer, arguing that the amount was much less than the fair market value of the business.
AIRLINE MERGER OK’D
Less than two weeks before trial, the Justice Department announced a proposed settlement on Nov. 12 with American Airlines and US Airways, allowing their $11 billion merger to go forward in exchange for major divestitures. The airlines will give up gate slots at seven major airports, including Washington Reagan National, where the combined airlines would have controlled 69 percent of the flights. Those slots would be sold to low-cost carriers such as JetBlue and Southwest.
