Business Today

CORNERSTONE ADDING BRANCH: Cornerstone Community Bank is taking over the Largo branch of Madison BancShares and its related $14-million in deposits. Terms were not disclosed. The transfer of deposits is expected in January, pending approval by the Federal Deposit Insurance Corp. Cornerstone plans to continue operating the office at 12975 Walsingham Road until a permanent freestanding office is available. The Largo office will be Cornerstone's fourth location. A third branch is opening next month in Seminole. Chief executive Robert McGivney said Madison is focusing on its primary service areas of northern Pinellas and Pasco counties.

HEALTHSOUTH PLANS JOB CUTS: HealthSouth Corp., the nation's largest provider of outpatient rehab and surgery services, said it will cut up to 2 percent of its work force of 51,000 employees because of reduced Medicare reimbursements. The Birmingham, Ala., company said administrative and non-clinical positions will be eliminated; it did not specify which facilities will be affected. HealthSouth operates 1,800 locations including a rehab hospital, a surgery center and 19 outpatient rehab centers in the Tampa Bay area.

TECH DATA SHARES PLUNGE: Tech Data Corp. shares fell 10 percent after the Clearwater computer distributor said fourth-quarter profit, excluding some costs, will miss analyst forecasts. The stock fell $3.27 to $30 and has declined 31 percent this year. Chief executive Steve Raymund said sales have slowed in recent weeks.

MCDONALD'S TO TAKE CREDIT, DEBIT CARDS: McDonald's Corp. will allow U.S. customers to pay with credit and debit cards next year in an effort to speed service and increase sales. No minimum purchase will be required to use the cards. Credit and debit cards are already accepted in McDonald's restaurants in France, parts of Latin America, Asia and Australia.

EX-ENRON EXEC PLEADS GUILTY: A former Enron executive who helped structure transactions with off-the-books partnerships pleaded guilty to tax violations and agreed to cooperate with the criminal inquiry into the company's collapse. Finance executive Lawrence Lawyer admitted to filing false tax returns by failing to disclose what prosecutors described as kickbacks for his work on a partnership that was involved in an Enron wind-farm project. He is the fourth person to plead guilty in the Enron investigation.

ZANY BRAINY TO DROP VIDEO GAMES: Upscale toy retailer Zany Brainy will stop selling video games in its 170 stores, saying the industry is focusing on themes too violent for the company's young customers. Zany Brainy had stocked only E-rated video games that have content suitable for all ages. It decided to drop the games after deciding against offering T-rated titles geared toward teens, which make up an increasingly large part of the market. The company said it expected to see game companies develop more titles for young children, but it never happened. Video games make up only about 3 percent of Zany Brainy's sales.

SUNBEAM REORGANIZATION PLAN APPROVED: A federal bankruptcy judge approved Sunbeam Corp.'s reorganization plan, giving nearly all of the company's shares to lenders. The lenders, led by Morgan Stanley, Wachovia Corp. and Bank of America, will receive shares worth one-third of the $1.6-billion in loans Sunbeam owes. Bondholders get 1.5 percent of the stock in the new company while current shareholders get nothing. Sunbeam filed for Chapter 11 reorganization in February 2001 after the company reported losses stemming from $2-billion in debt.

BUFFETT URGED NOT TO BUY BURGER KING: Millionaire cholesterol fighter Phil Sokolof is asking billionaire investor Warren Buffett not to buy the Burger King chain. Sokolof, an Omaha businessman who has spent millions of dollars urging Americans to stay away from fatty food, ran an open-letter ad in the Omaha World-Herald addressing Buffett, also of Omaha. Sokolof wrote: "Buying a mammoth business whose incredibly high-calorie, horribly high-fat foods lead to obesity, diabetes and heart disease would be unconscionable for a man of your stature." Buffett's company, Berkshire Hathaway, has been mentioned as a possible bidder for Burger King.

RESTRAINING ORDER LIFTED: A federal judge in Tampa lifted a restraining order freezing the personal assets of Lance Poulsen, founder of National Century Financial Enterprises, and his wife, Barbara. The restraining order had been signed by U.S. District Judge Susan C. Bucklew Nov. 12 as a result of a breach of contract lawsuit filed by three health care companies against the Poulsens. Poulsen left as chairman and CEO of National Century shortly after the FBI raided his health care financing company's headquarters outside Columbus, Ohio. National Century has since filed for bankruptcy protection, as have at least six health care companies with which it was associated. Poulsen and his wife own a waterfront home in Port Charlotte.

VIVENDI LOSSES WIDEN: Vivendi Universal's losses widened in the third quarter, even as the French media conglomerate said it was making progress in reducing its massive debt. The company also said it had obtained more than $2-billion in new and extended loans and credit, and was finalizing $1.3-billion in debt financing to acquire the part of Cegetel it doesn't already own. Vivendi said it lost $1.23-billion, or $1.13 per share in the three months ended Sept. 30, compared with a loss of $960-million, or 92 cents per share, a year earlier. Revenues for the conglomerate's music and publishing businesses were hard hit, but the damage was limited by a strong performance from Cegetel.

TREASURY AUCTION: The interest rate on the U.S. Treasury's four-week bills rose at the government's weekly auction. The Treasury sold $22-billion of the bills at a discount rate of 1.25 percent, up from 1.195 percent a week earlier. The government received bids equal to 1.90 times the amount sold, down from 2.55 at the last auction. Treasury bills, which represent short-term government borrowing, are sold at a discount from maturity value.

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