COMPANY NEWS IN BRIEF

Google ties more work tools into Gmail

Alphabet Inc's Google said on Wednesday its corporate Gmail customers would now be able to edit documents and other files without leaving the email service, as it aims to lure clients from rivals by making its tools more integrated.

The announcement was made at Google's cloud unit's annual customer and partner conference, which has been turned into a virtual gathering over several weeks because of the novel coronavirus pandemic.

Google has been trying for more than a decade to catch up with Microsoft Corp's Office, which dominates the global market for corporate email and document-editing tools.

Both companies have been adding video-calling features and other collaboration tools to attract new business from companies operating from home during the pandemic.

Google contends it has found an edge with potential customers by promoting Gmail as a single hub for workers to access text chats, video calls and now documents. Microsoft has limited tie-ins between its email and chat tools, Outlook and Teams. -Nampa/Reuters

American Airlines sending furlough notices

American Airlines said on Wednesday it is sending 25 000 notices of potential furloughs to frontline workers and warned that demand for air travel is slowing again as Covid-19 cases increase and states re-establish quarantine restrictions.

The Worker Adjustment and Retraining Notification Act requires companies to provide 60 days' notice of potential layoffs or furloughs.

In a memo to employees released on Wednesday, American said the notices are tied to the overstaffing it expects in October when US government payroll assistance expires.

American, with more than 130 000 employees in 2019, had already warned that furloughs would be hard to avoid as pandemic-hit revenue remains more sluggish than the airline had hoped.

Overall, American expects to be overstaffed by about 20 000 in the fall, but hopes to reduce the actual number of furloughs through enhanced leave and early-departure programs it has rolled out alongside unions, chief executive Doug Parker and President Robert Isom said in the memo. -Nampa/Reuters

Dell considering spinning off VMware stake

Dell Technologies Inc is considering spinning off its 81% stake in cloud computing software maker VMware, the PC maker said on Wednesday, adding that such a move would not occur before September next year.

The company said the evaluation was in an early stage and it was looking at options including keeping its current ownership. VMware said a spinoff could result in a simpler capital structure and it has formed a special committee for talks with the corporate computing giant.

In case of a spinoff, Dell said it would negotiate payment of a special cash dividend by VMware to all its shareholders and would try to formalize commercial arrangements similar to those in place, including intellectual property agreements.

Shares of Dell jumped 8%, while VMware rose 5% in aftermarket trading. VMware is currently Dell's best performing unit as it benefits from companies looking to cut costs move to the cloud, a shift that is being speeded up by the coronavirus pandemic.

It had last year bought two providers of cloud security and developer services in deals that together valued at about US$5 billion. The unit's revenue increased 12% in the latest reported quarter, even as Dell's total revenue growth dipped. – Nampa/Reuters

Carnival to raise US$1.26 billion in debt

Carnival Corp is planning to raise about US$1.26 billion in a bond offering, the beleaguered cruise operator said Wednesday as it struggles to stay afloat after the Covid-19 pandemic impacted its business.

The bond offering is split into a US$775 million tranche paying an annual coupon of 10.5%, and 425 million euro-tranche (US$484.93 million) paying 10.125%. The senior secured notes are due 2026, with the offering expected to close on July 20, Carnival said.

Carnival said the notes will be secured by a second-priority lien, a lower priority of repayment in case of bankruptcy or liquidation of assets.

The cruise business is one of the worst hit from the pandemic and many cruise operators have been forced to raise billions through various means, even by pledging ships and private islands.

Carnival has raised over US$10 billion through a series of financing transactions since its voyages were paused, enough to withstand another full year in a zero-revenue scenario, chief executive officer Arnold Donald had said earlier this month. - Nampa/Reuters

Fiat Chrysler, PSA to emerge as Stellantis

The combined company resulting from the merger of Italian-American carmaker Fiat Chrysler Automobiles and France's Peugeot owner PSA will be called Stellantis, the automakers said on Wednesday.

Stellantis is derived from the Latin verb "stello", which means "to brighten with stars," the companies said. The names and the logos of the group's constituent brands will remain unchanged after the deal's projected close in the first quarter of 2021.

In December, Fiat Chrysler and PSA agreed to combine in a US$50 billion all-share deal to create the world's fourth-biggest carmaker, and unite brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel and DS.

The process of identifying the new name for the merged company was supported by Publicis Group, the companies said. – Nampa/Reuters