DETROIT, May 17 (UPI) -- The United Auto Workers and American Axle were optimistic Saturday they have struck a deal to end a nearly 12-week walkout at the Detroit manufacturer.

Union and the company officials confirmed late Friday they had reached a tentative agreement on a new labor contract. The Detroit Free Press said the walkout was one of the longest in recent automotive history.

Our members at American Axle have displayed extraordinary solidarity during this strike, UAW President Ron Gettelfinger said in a statement. The bargaining committee worked extremely hard to achieve this tentative agreement, and they have voted to recommend it to the membership.

The newspaper said American Axle, a maker of automotive drivetrains and chassis, confirmed the deal but declined to comment further. The union members were scheduled to learn details of the proposal at a Sunday morning meeting.

Buyouts of $140,000 and buy-downs of $90,000 in exchange for lower wages were expected to be part of the deal, the Free Press said, with wages expected to be about $14 an hour for non-production workers, and from $17 to $18 an hour for production workers.

CUPERTINO, Calif., May 17 (UPI) -- Apple Inc. says the popularity of its iPhone is gaining international ground, with new distribution deals in place Saturday for Europe and elsewhere.

The Cupertino, Calif., computer and IPod maker has reached an agreement with France's Orange to distribute the iPhone in parts of Europe, the Middle East and Africa. The San Francisco Chronicle reports that the device is so popular it has sold out all stocks available for online sales in the United States and United Kingdom. Only a few iPhones remain at Apple's retail outlets and a major upgrade to a 3G iPhone is expected.

In a company statement, Orange said it intends to sell the iPhone in Austria, Belgium, the Dominican Republic, Egypt, Jordan, Poland, Portugal, Romania, Slovakia, Switzerland and various African markets later this year.

The deal comes on the heels of an agreement between Apple and Telecom Italia earlier this month to distribute the iPhone for the first time in Italy. Other recent international distribution agreements include a deal with Vodafone for Europe, India, Australia and elsewhere, and with Mexico's America Movil, which says it will offer the iPhone to its Latin American customers.

CHICAGO, May 17 (UPI) -- FAO Schwarz and Macy's department stores plan to implement a new agreement in which the toy retailer will open outlets in 700 Macy's stores.

The first 75 full-sized FAO Schwarz stores will open in Macy's in the fall, along with another 200 smaller toy shops, The Chicago Tribune said. The newspaper said the first trial run of the Macy's-FAO Schwarz combination was conducted at the department store's State Street location in Chicago.

This is an outstanding partnership that will bring toys back to Macy's in an exciting and unique way, Terry Lundgren, president and CEO of Macy's, told the Tribune.

FAO Schwarz also will market its private-label collections its new Macy's locations.

CHICAGO, May 17 (UPI) -- Some of the food industry's biggest players say they have reduced their participation at Saturday's National Restaurant Association trade show in Chicago.

In what could be seen as a sign of tough times in the industry, two of the nation's biggest chicken producers, Perdue Farms Co. and Tyson Foods Inc., have cut back on their activities at the annual trade show. French fry maker McCain Foods Ltd., abruptly pulled out of the gathering, The Chicago Tribune reported.

The newspaper says restaurant show organizers have been able fill McCain's floor space at Chicago's McCormick Place convention center, and that the event is bigger, selling out for the third straight year. But because of a slump in the restaurant industry, keeping exhibitors has become a challenge.

Because of the challenging economic climate we do have to sell the benefits of the show to exhibitors and attendees, Greg Kirrish, the restaurant show's vice president of sales and marketing, told the Tribune.

In an effort to contain costs, Perdue Farms canceled a party Saturday at a Chicago Williams-Sonoma store.