Westar reaches deal to sell Protection One

Westar Energy Inc. announced a deal Tuesday to sell its ownership interest in the Protection One Inc. security alarm firm to two New York funds, one of which specializes in handling distressed debt.

Westar said it expected to reduce its own corporate debt by about $500 million because of the transaction, but most of that would be from the transfer of $305 million in Protection One debt off Westar’s books.

Westar, the largest electric company in Kansas, expects to receive up to $159.2 million in cash for Protection One and a tax benefit.

The buyers are Quadrangle Capital Partners, a private fund that specializes in the media and communications industries, and Quadrangle Master Funding, which specializes in handling distressed debt.

Westar said the deal should close during the first quarter of next year.

Aviation

Delta Air Lines cancels bonuses for executives

Delta Air Lines is canceling executive bonuses for this year and reconsidering its entire compensation program for high-ranking officials as it works to allay lingering employee resentment over lavish pay and perks for top executives.

Delta’s board has decided not to award 2003 annual incentive compensation to Delta officers, even if it was earned by meeting the performance goals. Last year, Delta paid about $17 million in bonuses to 60 executives.

Manufacturing

American Greetings’ earnings drop 1 percent

American Greetings Corp. said Tuesday weak early holiday sales contributed to a 1 percent drop in third quarter earnings, prompting the company to lower its year-end earnings forecast.

American Greetings, the nation’s biggest publicly held maker of greeting cards, earned $46.4 million in the third quarter, or 60 cents per share, in the three months that ended Nov. 30. That compares with earnings of $47 million, or 62 cents a share, in the same period of 2002.

Wall Street

Markets to close early

The stock market and the Chicago Board of Trade will close at midday today in observance of Christmas Eve. All markets will be closed on Thursday and will reopen Friday for a half day of trading.