Sprint, bleeding subscribers, cuts more jobs

Sprint Nextel Corp. on Monday said it will cut 2,000 to 2,500 jobs, most before the end of the year, as it keeps losing subscribers. The wireless carrier, based in Overland Park, Kan., said it wants to cut labor costs by at least $350 million per year. The company started the year with about 56,000 employees. It then cut 8,000 jobs in the first half of the year. It is also transferring 6,000 employees to LM Ericsson AB, a Swedish contractor taking over management of Sprint's network. In the quarter that ended in September, Sprint lost a net 545,000 subscribers, and revenue slipped 9 percent from a year ago.

Kraft took its $16.3 billion bid for Cadbury, the British chocolate and chewing gum maker, directly to shareholders on Monday after the Cadbury board rejected the offer as too low. But Kraft did not raise its offer, sticking with its original proposal from September. Kraft, which makes Ritz crackers and Oreo cookies, offered 3 pounds, or $4.90, in cash and 0.2589 new Kraft shares for every Cadbury share. The offer values each Cadbury share at 7.17 pounds, a 26 percent premium to the price before Kraft's original bid. Analysts had expected Kraft to sweeten its original proposal. But it again asserted that its latest pitch was fairly priced.

Oil prices shot above $80 a barrel Monday as a weakened U.S. dollar created more turbulence in energy markets than a storm heading into the Gulf of Mexico. Ida had helped push crude prices higher all morning. Normally, the storm's demotion from hurricane to a tropical storm would depress crude prices. But the dollar is the real driver of energy markets at the moment. So, when the euro pushed passed the $1.50 level for the first time this month, oil prices rose even further. Benchmark crude for December delivery on Monday rose $2 to settle at $79.43 a barrel on the New York Mercantile Exchange.

Google Inc. is buying mobile advertising network AdMob for $750 million, underscoring the Internet search leader's determination to ensure its marketing machine reaches the growing number of people surfing the Web on phones. The all-stock deal announced Monday also represents the latest sign that Google's leaders are feeling better about the economy's direction, encouraging them to spend more freely after clamping down through much of this year.

McDonald's Corp., the world's largest fast-food chain, said Monday that monthly sales growth edged down in October in the U.S., only the third time the monthly figures haven't climbed in 6 1/2 years. That was offset by stronger growth globally and the U.S. sales comparison matched McDonald's forecast. McDonald's has experienced strong sales in the United States during the recession as consumers traded down to cheaper food options. However, sales in stores open at least 13 months edged down 0.1 percent in the the United States in October.

As its packaged video games business lags, Electronic Arts Inc. has snapped up Playfish Inc., the creator of popular social networking games such as "Who Has the Biggest Brain" and "Pet Society," for $275 million in cash. With the acquisition, EA is diving further into the world of social online games, which tens of millions of people play on Facebook, MySpace, the iPhone and other platforms. The purchase will help Redwood City, Calif.-based EA move into gaming in online communities at a time when declining consumer confidence is cutting into traditional packaged video game sales.

Warren Buffett's company will sell its stakes in Union Pacific and Norfolk Southern railroads before it completes its $26.3 billion acquisition of the Burlington Northern Santa Fe Corp. Berkshire Hathaway's plan to sell those stocks was revealed in documents filed with the Securities and Exchange Commission Monday. According to a transcript of a conference call, BNSF's CEO Matt Rose told his employees that Berkshire plans to sell its 9.6 million shares of Union Pacific Corp. and 1.9 million shares of Norfolk Southern Corp.

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