Business news in brief

Metro US, the free daily newspaper chain, announced Wednesday it has purchased Philadelphia's City Paper, a weekly alternative newspaper, from businessman-philanthropist Milton Rock and his family. Financial terms were not disclosed. The two publications jointly reach 840,000 local readers a week. The acquisition is part of a Metro US expansion in U.S. metropolitan markets.

- Erin Arvedlund

Philadelphia-based Axalta Coating Systems, the former auto-paint unit of DuPont Co., is working with Citigroup Inc. and Goldman Sachs Group Inc. on an initial public offering in the U.S., according to sources familiar with the matter who asked not to be identified. Axalta, backed by private-equity firm Carlyle Group L.P., may raise about $1 billion in the offering, whose timing has not yet been set. Carlyle bought Axalta in February 2013 for $4.9 billion. Matthew Winokur, a spokesman for Axalta, declined to comment on the company's plans for an IPO, as did Chris Ullman, a spokesman for Carlyle. - Bloomberg News

Merck & Co. Inc., which is based in Whitehouse Station, N.J., and has major operations in the Philadelphia region, won Food and Drug Administration approval for a new sleeping pill designed to help people with insomnia stay asleep. The tablet, Belsomra, works by temporarily blocking chemicals known as orexins that control the sleep cycle and can keep people awake. - AP

New Jersey consumer-affairs officials have sued Fairfield-based Telebrands, known for its "As Seen on TV" products, saying the company used high-pressure sales tactics to sell to customers, then made it difficult for them to get refunds. The five-count civil suit seeks restitution for customers and other penalties, claiming the firm scammed consumers by aggressively pushing more expensive products, shipping and billing for products not ordered, and using misleading advertising. It also alleges that the company violated the terms of a 2001 agreement that required it to comply with New Jersey's Consumer Fraud Act. - AP

Norfolk Southern Railway Co. has sued Charles E. Heilig of Freedom, Pa., the engineer of a train that either missed or ignored a signal to slow down July 2 and slammed into the back of a second train in Sewickley, Pa. In the suit, filed Wednesday, the railroad seeks damages for derailed and fire-damaged locomotives and railcars, the track and the right-of-way, as well as resulting diesel-fuel cleanup costs. Two people were reported injured in the accident. - Pittsburgh Tribune-Review

Virgin America Inc. flight attendants voted Wednesday to establish the first union at the airline partly owned by U.K. billionaire Richard Branson, ending its status as the largest U.S. carrier without organized labor. Collective bargaining with the Transport Workers Union raises the prospect of higher operating costs for the airline, which filed July 28 for an initial public offering. The carrier reported second-quarter net income of $37 million Tuesday after posting its first annual profit in 2013. - Bloomberg News

Target Corp., looking to fix its Canadian operations after a money-losing expansion into that country, is revamping the product lineup, improving supplies, and teaming up with celebrity designer Sarah Richardson. The move follows a review of Canadian business this year, the Minneapolis-based company said Wednesday. It said it would begin matching rivals' prices in Canada and improve the supply chain in a bid to change the impression that its prices were higher and its merchandise sparse. - Bloomberg News

Burger King is getting rid of its lower-calorie, pricier French fries at most restaurants after less than a year. The Miami-based chain said in a statement that it gave its franchisees the option to continue selling the fries earlier this week. Only about 2,500 of the approximately 7,400 locations in the United States and Canada opted to continue keep them as a permanent item. "Satisfries" were a big bet for Burger King when they were announced in September. But they were not well received, mocked as "Saddest Fries" by one website. - AP

Shares of SeaWorld Entertainment Inc. dropped to a record low Wednesday after reporting earnings that missed analysts' estimates and saying controversy over the treatment of captive whales in its theme-park shows hurt attendance. Before Wednesday, SeaWorld stock had retreated 23 percent in a year following the release of Blackfish, a critical documentary about its performing killer whales.

- Bloomberg News