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* The American Automobile Assn. has accused Travelocity .com, the largest U.S. online travel service, and Sabre Inc., the largest travel-reservation company, of using its trademark ratings for hotels and restaurants without permission. The Auto Club, a 44-million member association based in Heathrow, Fla., asks for a jury trial, an order blocking use of its trademarks and copyrights and destruction of all infringing items in its suit filed in U.S. District Court in Wilmington, Del. Sabre parent Sabre Holdings Corp. owns a controlling interest in Travelocity.

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* Insurance giant American International Group Inc. said it will cut 1,500 jobs as it merges operations with recently acquired American General Corp. The job reductions, which represent slightly less than 2% of the merged company’s work force, will be made through a combination of layoffs and attrition over the next 12 to 18 months, New York-based AIG said.

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* Hercules Inc., a top producer of paper-making chemicals, said it will fire at least 300 workers, or 3% of its work force. The company, which is exploring a sale, said most of the cuts will be in the U.S.

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