Goodyear, union reach tentative pact
The Goodyear Tire & Rubber Co. and United Steelworkers have reached a tentative agreement on workers at six plants, avoiding a strike just two hours before a deadline.
Both sides sent out statements after reaching a compromise on a new, four-year labor contract about 10 p.m. Saturday. They have been negotiating in Cincinnati since April. A strike was similarly avoided during the last round of negotiations in 2009, when an agreement was reached three hours before the previous contract expired.
About 600 union members on an overnight shift in Fayetteville were prepared to walk out at midnight, said Terry Brewington, vice president of the local union chapter.
Most of the plant’s 2,500 workers are union members.
Neither Goodyear nor the union provided details of the deal. A majority of union members still must ratify the agreement.
The union says it would cover about 8,500 employees at six plants. Others are in Buffalo, N.Y.; Topeka, Kan.; Danville, Va.; Gadsden, Ala.; and Akron.
Average gas price in Ohio is $3.44
Gas prices in Ohio are again lower to start the work week — and Ohio motorists are still paying less than the national average.
The state average for a gallon of regular gas was $3.44 in Monday’s survey from auto club AAA, the Oil Price Information Service and Wright Express. That’s 11 cents lower than last week — and it’s a drop of 20 cents in the past two weeks.
The Ohio price is 19 cents below the national average of $3.63, which is down 4 cents from the national average a week ago.
Analysts still are expecting price increases this summer as greater demand and other factors push up the price of crude oil and gasoline.
Perrigo to buy Elan
U.S. drugmaker Perrigo agreed Monday to buy Ireland’s Elan for $8.6 billion in a deal that should allow the rapidly growing company to reduce its tax bill and boost its royalty stream.
Perrigo Co. said it would pay Elan Corp.’s investors $6.25 per share in cash and $10.25 in Perrigo stock, an 11 percent premium over Elan’s closing price Friday. Elan shares in Dublin surged 13 percent higher to $16.71, above Perrigo’s offer price, after news of the takeover.
After spending four months defeating a series of hostile, lower-priced takeover bids by Royal Pharma, Elan earlier in July said it was open to better offers. Several potential U.S. suitors sought to acquire Elan’s flow of royalties from drugs it helped develop, particularly the multiple sclerosis fighter Tysabri.
Perrigo, which has been based in the small western Michigan town of Allegan since 1887, said it would move its tax residence to Ireland and hopes to cut its tax liabilities nearly in half as it grows non-U.S. sales.
Perrigo is the largest maker of generic drugs for major retail chains in the United States, including Walgreens and Wal-Mart. It has expanded overseas since 2005 with acquisitions in Israel, Britain, Mexico and Australia.