Business Briefs for Nov. 10

VIRGINIA

Paper mill's closure is certain; impact is big

FRANKLIN -- International Paper's chief executive says there will be no reconsideration of the decision to close its Franklin mill.

CEO John Faraci responded to a letter from five members of Congress by saying he doesn't want to create false hopes for any of the plant's 1,100 workers. It is set to shut down in the spring.

Separately, a Virginia Economic Development Partnership analysis estimated that regionally, $19.2 million in state tax revenue and $13.5 million in local tax revenue could be lost by the paper mill's closure.

Berlin Wall talk with Time editor is today

The World Affairs Council of Greater Richmond is sponsoring a talk today by Romesh Ratnesar, Time magazine's world editor and deputy managing director, on the "20th Anniversary of the Fall of the Berlin Wall."

The program at the Jefferson Hotel begins with registration at 5 p.m. Ratnesar's presentation is at 6, and dinner is at 7. Ratnesar will sign his new book, "Tear Down This Wall," at 6:45 p.m.

The event is open to the public at a cost of $10 for members of the council and $20 for nonmembers. Students are admitted free.

Registration is at www. richmondworldaffairs.org.

THE NATION

Banks expect tighter terms on credit cards

Banks expect to tighten terms on credit cards in response to a new law that aims to protect consumers from sudden rate increases, the Federal Reserve said yesterday.

A quarterly survey by the Fed found that many banks expect to increase rates, reduce credit limits and raise annual fees for both prime borrowers -- those with sound credit histories -- as well as more risky nonprime borrowers who have tarnished credit. Banks also expected to raise minimum credit scores for nonprime borrowers, the Fed said.

Banks already have been pushing through rate increases in anticipation of the new rules. Because of that, the House recently approved legislation to speed up the law's effective date and have the provisions take effect immediately, although prospects for Senate passage are dim.

Reynolds may seek to buy Swedish company

Reynolds American Inc., maker of Camel cigarettes and Grizzly smokeless tobacco, is in talks to buy a Swedish company that helps people stop smoking, a tobacco expert who said he was briefed by people close to the talks told The Associated Press yesterday.

The second-largest U.S. tobacco company is eyeing Niconovum AB, which sells cigarette-replacement products in gum, pouch and spray form outside the U.S., according to David Sweanor, a Canadian law professor and tobacco expert.

The deal, which could be worth $44.5 million, could be imminent, he said.

Sweanor said Reynolds' interest in Niconovum may be focused on offering smoking alternatives rather than products meant to help people stop using nicotine and tobacco.

Rates on short-term T-bills are mixed

WASHINGTON -- Interest rates on short-term Treasury bills were mixed in yesterday's auction. Rates on three-month bills rose, and rates on six-month bills fell to the lowest level in a month.

The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.065 percent, up from 0.06 percent last week. An additional $31 billion in six-month bills was auctioned at a discount rate of 0.165 percent, down from 0.17 percent last week.

Separately, the Federal Reserve said yesterday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, fell to 0.36 percent last week from 0.39 percent the previous week.

Elsewhere

• The nation's airlines are offering fewer flights, but at least they're more likely to arrive on time now. The Transportation Department said yesterday that 86.2 percent of flights operated in September arrived on time, the best mark since October 2003.

• Warren Buffett's Berkshire Hathaway Inc. will sell its stakes in Union Pacific and Norfolk Southern railroads before it completes its $26.3 billion acquisition of Burlington Northern Santa Fe Corp. railroad.

• The Federal Reserve said yesterday that GMAC is the only one of 19 stress-tested banks that needs more capital to withstand losses if the economy softens. GMAC, a crucial player in the U.S. auto industry, has been unable to raise the $11.5 billion regulators said it needed after stress test results were announced in May.

• Sprint Nextel Corp. on yesterday said it will cut 2,000 to 2,500 jobs, mostly before the end of the year, as it keeps losing subscribers.

-- Staff and Wire Reports