From wire reports

Automakers give up Calif. emission fight

SACRAMENTO, Calif. - The nation's toughest auto emissions regulation may finally become a reality after three automakers said Tuesday they would drop lawsuits that have threatened a California clean-car rule.

General Motors Corp., DaimlerChrysler and Isuzu Motors said the latest incarnation of a policy that's been 13 years in the making convinced them to settle litigation with state air regulators, who agreed to drop appeals.

Canadian outfit to supply Iams line

Menu Foods Income Fund, a Canadian pet-food producer, agreed to become the exclusive supplier of Procter & Gamble Co.'s Iams brand canned wet pet food in the United States and Canada and acquire a plant in South Dakota. The transaction will boost the income fund's monthly distributions a year after it has been integrated into the company's operations, Mississauga, Ontario-based Menu Foods said in a statement.

Coca-Cola to pay Burger King in flap

The Burger King Corp. said Tuesday that the Coca-Cola Co. had agreed to pay up to $21.1 million for rigging a marketing test at its restaurants.

Coke and Burger King declined to provide specific information on the terms of the deal, saying only that Burger King would remain a Coke client. Their relationship frayed when Coke officials said in June that they had manipulated results of a promotion for Frozen Coke, a slushy drink sold at Burger King.

Southwest leads in passenger load

Southwest Airlines Co., the largest low-fare carrier, flew more U.S. passengers than its competitors in May, the first time a discount airline has led the industry, the U.S. Department of Transportation said.

Southwest carried 6.5 million passengers in the month, compared with 6.3 million by Delta Air Lines Inc. and 6.2 million by American Airlines.