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Houston-based life insurer American General Corp. said it plans to add another insurance company to its fold by acquiring Western National Corp., also of Houston, in a $1.2-billion deal. American General, which already owns 45% of Western National, said it would buy the remaining 55% for $29.75 a share. . . . Boeing Co. sued US Airways Group Inc. over the airline’s decision to cancel its order for 737 and 757 aircraft. The lawsuit filed in Washington state court claims that US Airways breached its contract with Boeing when the Arlington, Va.-based carrier refused to make a payment for the 757 aircraft in November 1996 and said that it wouldn’t accept delivery of eight 757s and 40 737s it had ordered. At the time, US Airways said it intended to reconfigure its fleet with jetliners from Airbus Industrie. US Airways said it intends to “vigorously defend against the lawsuit.” A spokesman had no further comment on the case. . . . Savannah Foods & Industries Inc. of Savannah, Ga., agreed to be acquired by Sugar Land, Texas-based Imperial Holly Corp. in a $530-million deal that would create the largest sugar-refining company in the U.S. The announcement ended a monthlong takeover battle for Savannah Foods, which had also been pursued by Flo-Sun Inc.

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