NATIONAL

Private-label maker will become No. 3 in cereal market

Kraft Foods Inc. agreed Thursday to sell its two dozen Post cereals to Ralcorp Holdings Inc., a private-label food maker, in a nearly $1.7 billion stock deal.

The acquisition, expected to be completed in mid-2008, catapults the maker of store-brand cereal into the No. 3 position behind Kellogg Co. and General Mills Inc.

STARBUCKS PROFIT JUMPS Starbucks Corp. said Thursday its fiscal fourth-quarter profit jumped 35 percent, despite a slowdown in store openings and a drop in U.S. traffic.

For the 13 weeks ended Sept. 30, the world's largest chain of coffeehouses posted net earnings of $158.5 million, or 21 cents a share, compared with $117.3 million, or 15 cents, a year earlier. Quarterly revenue was $2.44 billion, up from $2 billion last year. Analysts surveyed by Thomson Financial were projecting 21 cents a share on $2.43 billion in revenue.

NEW TERMS OFFERED Cerberus has offered to negotiate new terms with United Rentals Inc., according to regulatory documents filed by the private-equity firm, after abandoning a $4 billion buyout this week.

Cerberus said it offered "either to arrange for the payment of the negotiated $100 million termination fee, or to engage United Rentals in a constructive dialogue to negotiate a transaction on revised terms," according to documents filed Wednesday.

MORTGAGE RATES HOLD Rates on 30-year mortgages were unchanged this week after posting three consecutive declines.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages remained at 6.24 percent, the same as last week. That is the lowest level since rates were at 6.21 percent in mid-May.

NEWS STAFF CUTUSA Today, the highest circulation newspaper in the country and the flagship of industry leader Gannett Co., announced plans Thursday to eliminate about 45 newsroom jobs, or a cut of almost 9 percent, to a staff of about 500.

MORE PAY FOR APPLE CHIEF? Apple Inc. Chief Executive Officer Steve Jobs, who has earned an annual salary of $1 since he retook the reins of the company a decade ago, may receive additional compensation.

"Because Mr. Jobs' continued leadership is critical to Apple, the compensation committee is considering additional compensation arrangements for him," the Cupertino, Calif.- based company said in a filing with the U.S. Securities and Exchange Commission.

LOCAL

Louisville company gets debt financing

Louisville-based Zayo Bandwidth, which has acquired four regional fiber networks in the Northeast, South and Midwest, has secured $85 million of debt financing.

Zayo said the funding, coupled with $225 million of equity financing this year, provides sufficient capital to support its business.

MEDICAL STUDY TO GO ON The Colorado Board of Medical Examiners on Thursday decided to further study its proposal to increase physician oversight at clinics that perform treatments such as laser hair removal and Botox shots.

More than 100 people showed up at the three-hour meeting, said Chris Lines, a spokesman for the Department of Regulatory Affairs.

"There was a lot of new information and testimony, and the medical board felt they couldn't rule today," Lines said.

The next meeting of the medical board is scheduled for February.