Bill gives Boeing hope about tanker program

Boeing Co. said Friday it was “very optimistic” about completing a stalled $23.5 billion plan to supply refueling aircraft to the U.S. Air Force despite new doubts about the deal raised by a Pentagon advisory panel.

Much of the work for the tankers would be done at Boeing’s Wichita plant.

Boeing was buoyed by a measure in the 2005 Defense Authorization bill, passed by the House of Representatives Armed Services Committee late Wednesday, earmarking $95 million to speed the lease of 20 tankers and the purchase of 80 more.

It also would set up a panel of outside experts to make sure it made sense for taxpayers — a tacit acknowledgment of Pentagon Inspector General Joseph Schmitz’s finding that the current plan might cost $4.5 billion more than necessary.

Agriculture

EU lifts biotech ban

The European Union’s head office said Friday it would approve a type of genetically-modified corn for human consumption, ending a six-year biotech moratorium that the United States has challenged at the World Trade Organization.

European farmers still will be prohibited from growing the Bt11 insect-resistant corn, however. And companies trying to import such foods face an uphill battle in convincing European shoppers that the products are safe.

A U.S. official, speaking on condition of anonymity in Brussels, called the commission’s announcement sign of progress but said Washington would press ahead in seeking to have the EU declared in violation of international trade rules.

Retail

J.C. Penney doesn’t plan to buy Dockers brand

J.C. Penney Co. Inc., which expects to net $3.5 billion by selling its Eckerd drugstores, says it is not interested in buying the Dockers clothing label from Levi Strauss.

Penney officials indicated Friday that they were happy being a major retailer of the Dockers brand, but they expressed sticker shock at estimates of the $1 billion price that Levi Strauss Co. may ask for the line of men’s khakis and casual clothing.

Chairman and chief executive Allen Questrom, above, said the company wouldn’t make big acquisitions. It might use some of its Eckerd proceeds on real estate for new department stores, but the company mostly plans to pay down debt and buy back shares of Penney stock, he said.

Penney officials made the comments to reporters after a brief annual shareholders meeting at its company headquarters in Plano, Texas.

Telecommunications

SBC president resigns

SBC Communications Inc. said on Friday that President William Daley had resigned, effective immediately.

Daley, former U.S. commerce secretary in the Clinton administration, was hired by SBC in November 2001 to oversee regulatory issues. The company said Forrest Miller, group president for corporate planning, would take over Daley’s duties.

SBC did not specify why Daley resigned. An SBC spokesman forwarded questions to Daley.