• Continental Airlines Inc. (CAL) became the latest airline to announce reduced flight service and jobs cuts yesterday (Thursday). Continental will eliminate 3,000 jobs and 16% of its flight capacity, The New York Times reported. The cost cutting efforts follow similar moves from UAL Corp.’s (UAUA) United Airlines, Northwest Airlines Corp. (NWA) and Delta Air Lines Inc. (DAL).

• France Telecom SA (ADR: FTE) announced yesterday (Thursday) that it was pursuing a $42 billion bid for Sweden’s TeliaSonera AB (PINK: TLSNF), The Associated Press reported. TeliaSonera dismissed the initial offer as too low, but France Telecom reported it has the backing of the French government and could up its bid.

• The Mortgage Bankers Association (MBA) announced yesterday (Thursday) that both the percentage of loans in foreclosures, as well as the number of foreclosure starts, climbed to levels not seen since 1979, MarketWatch reported. For one- to four-unit properties, 2.47% of all mortgages outstanding were in foreclosure, up from 2.04% in the fourth quarter, according to the MBA’s latest National Delinquency Survey. At the end of first quarter 2007, only 1.28% of such homes were in foreclosure.

• The number of U.S. citizens filing first time unemployment claims fell last week, the Department of Labor said yesterday (Thursday). Initial jobless claims decreased by 18,000 to 357,000 in the week that ended May 31, the lowest level in more than a month, due in part to the Memorial Day holiday, Bloomberg News reported.

• Stocks in China fell to a six-week low Thursday (yesterday) on speculation that the government would tighten prices to curb inflation. The move that would shave profits from the country’s commodity titans. The CSI 300 Index, which tracks 300 stocks traded in Shanghai and Shenzhen, fell 1 percent to close at 3,512.14, the lowest since April 23, Bloomberg reported.

• The U.S. government announced yesterday (Thursday), via the Department of Justice, that it is suing Honeywell International Inc. (HON) for selling material used in bulletproof vests that it alleges was defective, The Associated Press reported. According to the DOJ, Honeywell had scientific data that showed the ballistic material, known as Zylon, “degraded quickly over time, especially in hot and humid conditions,” leaving the vests unfit for use. The department also alleges that Honeywell failed to notify the government or the vest manufacturer, Armor Holdings Inc., of the defect.

• E.I. Du Pont De Nemours & Co. (DD), commonly known as DuPont, said yesterday (Thursday) that it is targeting a 40% increase in soybean and corn yields over the next 10 years through its Pioneer Hi-Bred unit, according to Thomson Financial. The company expects DuPont Agriculture & Nutrition segment sales to grow by 6% to 8% and earnings by more than 15% on average between 2007 and 2010.

• Swiss pharmaceutical maker Novartis AG (ADR: NVS) spent nearly $1.3 million lobbying the U.S. government in the first quarter on drug and health care issues, according to a recent disclosure form, The Associated Press reported. Novartis lobbied on bills designed to ensure the government has a sufficient stockpile of influenza vaccine in case of an outbreak.

Source: Global Investing Roundups: Friday, June 6th, 2008

Verizon Wireless is 55% owned by Verizon Communications Inc. (VZ) and 45% owned by Britian’s Vodaphone Group PLC (ADR:VOD).

The deal values Alltel – the fifth-largest wireless carrier in the United States – at more than eight times its earnings before interest, tax, depreciation and amortization (EBITDA). Or about $22 billion, which includes Alltel’s debts.

In November, Alltel’s $27.5 billion sale to private equity firms TPG Capital and GS Capital Partners LP, an arm of Goldman Sachs Group, Inc. (GS) was nine times EBITDA.

Alltel has 13 million customers and spans rural markets and smaller cities in 34 states, comprising a 5% share of the market. It also handles calls for Verizon and AT&T in areas where they don’t have coverage.

The purchase will allow Verizon to offer service in 57 rural markets. Synergies are expected to generate incremental savings of $1 billion in the second year after the deal closes, Verizon Wireless said a statement.

“This move will create an enhanced platform of network coverage, spectrum and customer care to better serve the growing needs of both Alltel and Verizon Wireless customers for reliable basic and advanced broadband wireless services,” Lowell McAdam, Verizon Wireless president and chief executive officer, said in the statement.

An Alltel acquisition would not only shoot Verizon Wireless past AT&T as the top U.S. wireless service provider, but it will also put additional downward pressure on the T-Mobile USA Inc. and troubled Sprint Nextel Corp. (S).

Telecom Titans Getting Bigger Around the World

The high profile merger of telecom titans has quickly developed into a strong global trend.

In Europe, France Telecom SA’s (FTE) $41.9 billion offer for Finnish fixed-line provider TeliaSonera AB (PINK:TLSNF) was rejected Thursday. But that doesn’t mean the deal is over.

“The question is how much can they raise the offer,” Thomas Romig, a fund manager at Cominvest Asset Management in Frankfurt, told Bloomberg Television.

Earlier this week, Telkom South Africa Ltd. (ADR:TKG) said it received a takeover offer from Mvelaphanda Resources Ltd. and Vodaphone.

And in China, the telecom market is undergoing a massive government-ordered restructuring – with the top six companies being melded into three – as the country ramps up efforts to adopt third-generation wireless technology.

Domestically, the industry trends only makes expansion more difficult for large – but not large enough – wireless providers such United States Cellular Corp. (USM), Rural Cellular Corp. (RCCC) and Shenandoah Telecommunications Co. (SHEN) to compete.

Unfortunately, that’s their problem to deal with because the mobile industry is expanding by leaps and bounds as customers increasingly ditch fixed-line service to wireless.

And the leaders of wireless service and technology are the ones that will thrive.

Source: Verizon to Buy Alltel for $28 Billion, Vaults Past AT&T as No. 1 U.S. Mobile Provider