Business news for Thu, 27 Dec 2007 & with words deal+francisco. 3 news.

SAN FRANCISCO (MarketWatch) -- Midwest Air Group Inc.'s Midwest Airlines said Thursday it extended a codeshare pact with Northwest Airlines Corp. to include Northwest's nonstop routes from Indianapolis to seven cities. Financial terms of the deal weren't disclosed. Midwest, a Milwaukee-based airline holding company, said the new agreement will add 250 city pairs and 1,000 new flight options. Customers can engage in single ticket transactions using both airlines under the deal, and choose to earn mileage on on either company's frequent flyer program. The first phase of the agreement began Nov. 17, the company said.

SAN FRANCISCO (MarketWatch) - Two of the biggest rivals in the market for digital downloads of music and videos went at each other Thursday as Amazon.com Inc. added to to its online music arsenal and reports surfaced about a new video-renting deal involving Apple Inc.

STMICROELECTRONICS NV and Intel Corp delayed a merger of unprofitable memory units and said banks will commit less start-up financing to the venture than previously announced as credit conditions tighten. The transaction, which also includes an investment from buyout fund Francisco Partners LP, now probably will be completed by March 28, Geneva-based STMicroelectronics said in a statement yesterday, according to Bloomberg News. The original deadline had been year-end. Credit markets have deteriorated since STMicroelectronics, Europe's largest maker of semiconductors, and Intel, the world's biggest, started planning the combination. The merger would create the biggest maker of flash memory chips that store software in mobile devices, helping the company combat a slump in prices and take sales from rivals. "The three parties continue to work to satisfy the conditions to closing for the transaction," the statement said. The companies have bank commitments for financing