Business news in brief

 In this Aug. 15, 2018 file photo, Jesse Shapins, director of public realm with Google affiliate Sidewalk Labs, takes questions at a public forum about a proposed development on Toronto's waterfront in Toronto, Canada. Ontario's provincial government on Friday, Dec. 7, 2018, has fired three board members from a government organization working with the Google-affiliated company to create the smart-city development in Toronto. The move raises doubt about the development's future. (AP Photo/Rob Gillies)
In this Aug. 15, 2018 file photo, Jesse Shapins, director of public realm with Google affiliate Sidewalk Labs, takes questions at a public forum about a proposed development on Toronto's waterfront in Toronto, Canada. Ontario's provincial government on Friday, Dec. 7, 2018, has fired three board members from a government organization working with the Google-affiliated company to create the smart-city development in Toronto. The move raises doubt about the development's future. (AP Photo/Rob Gillies)

Sonic's sale to Arby's parent gets OK

OKLAHOMA CITY -- Shareholders have approved the sale of Oklahoma-based drive-in burger chain Sonic to the parent company of Arby's in a $2.3 billion merger.

The Journal Record reported that Sonic shareholders approved the pending agreement with Inspire Brands Inc. on Thursday.

The company's investors voted on two proposals. The first was to authorize the merger and the other was to compensate Sonic's executive officers in connection with the merger.

Shareholders will be paid $43.50 per share in cash for the sale. Sonic will no longer be traded publicly.

Sonic CEO Cliff Hudson said getting approached for the deal was unanticipated but that he was proud of building a profitable company.

Hudson says he plans to serve as a senior consultant until March 2019 while the business shifts into new ownership.

-- The Associated Press

U.S. consumer borrowing rises 7.73%

WASHINGTON -- Americans boosted their borrowing by 7.73 percent in October from a year ago, the largest increase in nearly a year as consumer spending has helped fuel U.S. economic growth.

The Federal Reserve said consumer borrowing rose by a seasonally adjusted $25.3 billion in October to a total of $3.96 trillion. The October increase was more than double the gain in September.

Much of the increase was due a 10.75 percent jump in revolving credit, a category that includes credit cards. Nonrevolving credit -- which includes auto loans and student debt -- rose 6.67 percent.

Economists and investors monitor consumer borrowing to judge the willingness of people to take on debt to finance their purchases.

-- The Associated Press

Fuel thefts costly, Mexico's leader says

MEXICO CITY -- Mexican President Andres Manuel Lopez Obrador said the country loses $2.5 billion to $3.5 billion annually to fuel thieves who drill illegal taps into government pipelines.

Lopez Obrador said Friday that "there still isn't an exact figure" on the losses. The state-owned Petroleos Mexicanos company hasn't given out new figures on pipeline taps since September. The last report indicated that 11,240 taps were found in the first nine months of 2018, or about 41 per day.

The fuel-theft activity involves drilling taps, bribing or threatening oil company employees, stealing tank trucks to carry the fuel and turf battles between rival gangs.

That has caused a surge in the number of homicides in states like Guanajuato, where fuel theft is rampant.

Lopez Obrador has promised stiffer punishments for the crime.

-- The Associated Press

Ontario fires 3 people over Google deal

TORONTO -- Ontario's provincial government has fired three board members from a government organization working with a Google-affiliated company to create a smart-city development in Toronto. The move raises doubt about the development's future.

Monte McNaughton, Ontario's minister of infrastructure, said in a statement Friday that he informed the three provincial appointees he was bringing new leadership to the Waterfront Toronto board.

Waterfront Toronto Chairman Helen Burstyn confirmed late Thursday that she, Michael Nobrega and Meric Gertler have been removed from the board.

A unit of Google's parent company Alphabet is proposing to turn a rundown part of the city's waterfront into what may be the most wired community in history.

Sidewalk Labs has partnered with Waterfront Toronto on plans to erect midrise apartments, offices, shops and a school on a 12-acre site -- a first step toward what it hopes will eventually be an 800-acre development.

An audit by Ontario's auditor general said this week the deal was rushed. It also said there were cost overruns at the government agency on other projects.

Burstyn said she has no regrets about the partnership with the Google affiliate which still requires final approval by the board, which has four representatives each from the city, province and federal governments

"We did everything right. There were lots of claims about things being too rushed. Where we saw things as being too rushed, we slowed things down," she said.

But McNaughton said he was "shocked to learn the board was given one weekend to examine the most important transaction in its history before being asked to approve it."

He also said the board failed to properly consult with the province and the city on the project, which was heavily promoted by federal officials. He said he wouldn't "speculate on what will happen in the future" with the development.

"I can tell you that our actions will be guided by three principles: respect for taxpayer dollars, strong oversight and the protection of people's privacy," he said.

-- The Associated Press

Brazil court blocks Boeing-Embraer deal

RIO DE JANEIRO -- A Brazilian federal court has at least temporarily blocked a $4.75 billion joint venture between Boeing and Embraer until the incoming government takes office.

The two aerospace companies announced their intentions in July to create a merger to run Embraer's commercial aviation business. The deal would result in Boeing holding 80 percent of the resulting company and Embraer the remaining 20 percent.

The left-leaning Workers' Party said Friday that Judge Victorio Giuzio Neto ruled this week to block the merger after a petition by of the party's congressmen. The lawmakers contend the deal will cost Brazil jobs and expertise.

Boeing declined to comment. Embraer sent a statement to The Associated Press saying it will appeal.

President-elect Jair Bolsonaro takes power Jan. 1.

-- The Associated Press

Foie gras off Amazon's California menu

LOS ANGELES -- California prosecutors say Amazon has agreed not to sell foie gras in the state from birds that have been force-fed.

State lawmakers banned that form of the fatty duck and goose liver delicacy nearly 15 years ago.

Los Angeles County District Attorney Jackie Lacey said Friday that a state judge approved a settlement between the online retailer, her office and district attorneys in Monterey and Santa Clara counties.

A spokesman for Amazon said the company was not commenting.

The prosecutors accused Amazon in a lawsuit of illegally selling foie gras in California on its website.

Animal-welfare activists say the process is painful and cruel. A U.S. appeals court upheld the law in 2017.

-- The Associated Press

Business on 12/08/2018

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