Friday morning headlines

Countrywide president scores: This is not likely to score Bank of America many PR points, but it's offering David Sambol $28 million in cash and stock as an incentive to stay on after the mortgage giant is taken over later this year. Sambol, who had been No. 2 to Countrywide's Angelo Mozillo, will run the Bank of America's consumer-mortgage business. Meanwhile, the Federal Reserve announced plans for public hearings on the acquisition: April 22 in Chicago and April 28 and 29 in Los Angeles. (WSJ)

Wrapping up airplane checks: By next week, you won't have to worry about cancelled flights due to maintenance inspections. The major carriers are finishing up their look-throughs that have sidelined hundreds of planes (local operations have not been impacted very much). All this comes after the FAA assessed a $10.2-million fine against Southwest for not keeping up with maintenance records. (LAT)

Pollution rules slashed: California's Air Resources Board voted to cut by 70 percent the number of emission-free vehicles that carmakers must sell in the state. The board did set new rules that require automakers to build tens of thousands of plug-in hybrid cars. From the LAT:

Under the new standards, passed unanimously, the board will require the largest companies selling cars in the state to produce 7,500 electric and hydrogen fuel-cell vehicles for sale, lease or loan in California from 2012 to 2014 -- down from the 25,000 required in the period under the previous rules. In addition, carmakers will be called upon to make about 58,000 plug-in hybrid electric vehicles in the same period. The previous regulation, passed in 2003, made no provisions for plug-in hybrids because they were not considered viable at the time. "Clearly advocates would like to have more of these technologies available," said air board member Daniel Sperling, who introduced the proposal that ultimately passed. "But it's my view that both plug-in hybrids and [emission-free vehicles] are tremendous stretches for the industry."

Gas inches downward: The Auto Club's weekly survey shows that the average price of self-serve regular gasoline in L.A. is $3.603, which is 1.2 cents lower than last week and 43 cents above last year. The safe money would be on higher prices, what with oil still over $100 a barrel.

Redstone, Cruise break bread: After the Hollywood mogul blasted the Hollywood mega-star for being, well, strange, the two haven't had much to say. But Redstone and Cruise got together for lunch at the Beverly Hills Hotel, where Redstone said they "agreed the past is the past and we would put it behind us and renew our relationship." Redstone wouldn't offer details to the WSJ's Merissa Marr, but it's believed that Cruise wants to renew the "Mission: Impossible" series, which Paramount has the rights to. Cruise is spending most of his time trying to resurrect MGM's United Artist label.

Mr. Redstone says Mr. Cruise "was happy I agreed to have lunch with him" and brought out pictures of his wife and daughter. Mr. Cruise thanked Mr. Redstone for a note he sent wishing him luck on his new venture just over a year ago, the Viacom chairman said. They agreed to get together for dinner at a later date, Mr. Redstone said.

Judge dismisses Burkle suit: The L.A. billionaire had accused former super-agent Michael Ovitz of breaking a business agreement. But Superior Court Judge Soussan Bruguera ruled that the men had more of a friendship than a business relationship, and that terms of their oral agreement were too vague to enforce. "Clearly this friendship soured," Bruguera said. Burkle's attorney said he will appeal. From AP:

Burkle, the founder of private equity firm Yucaipa Cos., sued Ovitz in February 2005, claiming the two made a verbal agreement in the 1990s to combine "their skill, money and knowledge" on investments. Each would be allowed to acquire 50 percent of any Internet-related or online technology projects that Ovitz or Burkle considered, the suit contends. Each also would have a chance to acquire 10 percent of any other business ventures being contemplated. According to the lawsuit, Ovitz and his company, CKE, never put "even one cent" into two Internet companies in which Burkle invested in 1998 and 1999.

What meltdown?: An 80-acre ranch in Santa Barbara County has sold for $21 million, more than 10 times what the sellers paid in 1993. The property includes a 1983 house with ocean views, a pool and a tennis court. The sellers are local landowners Ellen Knill and her husband, Harry. (WSJ)

Indian ties: There's talk about direct flights from LAX to India, beginning next year. And local business folks apparently are in discussions with an Indian hotel chain about adding an L.A. location. (Daily News)