By Compiled from Times wires
Published August 23, 2003
NEW BRIGHT HOUSE OFFICER: Kevin Hyman is the new president of Bright House Networks' Tampa Bay division following the retirement of Jeffrey McQuinn last month. Hyman had been vice president and general manager of Bright House's operations in Citrus, Hernando, Pasco and Polk counties for the past eight years. His new position gives him responsibility for the cable company's nearly 1-million customers in those four counties, as well as in Hillsborough, Manatee and Pinellas Counties.
HEDGE FUND WORKER PLEADS: A former hedge fund worker in Miami pleaded guilty Thursday for his role in a scheme to defraud investors by paying kickbacks to an undercover FBI agent to artificially inflate a company's stock prices. Bruce D. Cowen admitted to one count of conspiracy to commit securities fraud, wire fraud and mail fraud. He faces up to five years in prison, a fine of up to $250,000 and restitution. Cowen and others at the Lancer Group artificially inflated the market price of the stock of Lighthouse Fast Ferry Inc., the U.S. Attorney's Office in Miami said. That allowed Lancer to claim its holdings of Lighthouse stock were more valuable, prosecutors said.
LIQUIDMETAL CEO ALSO CHAIRMAN: LiquidMetal Technologies Inc. of Tampa will give president and chief executive John Kang the additional title of chairman in September, replacing his brother, James Kang, who will be developing new products for the company. Also, the company named R. Brian McDougall its chief operating officer. McDougall has been executive vice president and chief financial officer. LiquidMetal develops and manufactures products using its patented alloy; among its customers is the U.S. Army.
OFFICE SPACE FILLING: Pinellas County's office market is showing signs of a rebound, according to Advantis, commercial real estate division of the St. Joe Co. The county's overall vacancy rate in the second quarter of 2003 fell to 14.8 percent from 15.2 percent at the end of 2002. The direct vacancy rate, which doesn't include subleased space, fell from 13.4 percent to 11.9 percent. The average asking rent in the second quarter was $16.71 per square foot, up 32 cents from the end of 2002.
BOEING LAYS OFF 1,440: The Boeing Co. issued layoff notices to 1,440 workers Friday, the company said. Those workers will be laid off in 60 days. An additional 490 workers who received their layoff warnings in June worked their last day Friday at Boeing. Since December 2001, Boeing has laid off more than 35,000 workers. The company announced earlier this summer it will eliminate jobs for 5,000 more before the year ends because of reduced airliner orders.
DAIMLERCHRYSLER SETTLES: DaimlerChrysler AG said Friday it has agreed to pay $300-million to settle a class-action lawsuit filed by investors over the 1998 merger between Daimler-Benz and Chrysler Corp. The shareholders, including Florida's public pension fund, the State Board of Administration, had argued they were duped into approving the deal when executives portrayed it as a merger of equals. In a statement, the automaker said it believed the suit was groundless, but it agreed to the settlement "since a local jury could reach a different conclusion."
ABBOTT SPINS HOSPITAL PRODUCTS: Abbott Laboratories announced Friday it plans to spin off much of its hospital products business, creating a company with estimated worldwide sales of $2.5-billion. The products account for a little less than 10 percent of Abbott's income. The move will allow Abbott to concentrate on higher-growth segments of its medical products business, according to Abbott chairman and CEO Miles D. White. The spinoff will be in the form of a tax-free distribution to Abbott shareholders of a new publicly traded stock for the new company. The value of the shares have not been determined, White said. It is expected to be completed in the first half of 2004.
SCHERING-PLOUGH REORGANIZES: Schering-Plough stock slid $1.52 to close at $14.96 on the New York Stock Exchange after the drugmaker said earnings were likely to decline in 2004 and the company would slash its dividend by 68 percent under a restructuring plan. Schering-Plough also said earnings for the second half of 2003 would probably fall compared to the first six months of the year. The restructuring will trim 1,000 jobs through an early retirement program and eliminate bonuses for executives, the company said. Further job cuts were also likely, said chairman and chief executive Fred Hassan.
INTEL PREDICTS INCREASE: In a sign that demand for personal computers is gaining strength, Intel Corp. unexpectedly raised its third-quarter sales forecast Friday, saying its processor business is performing much better than expected. The semiconductor giant said it now expects sales of between $7.3-billion and $7.8-billion, compared with its earlier forecast of $6.9-billion and $7.5-billion. The midpoint of the new range would be an 11 percent improvement over last year's third-quarter sales of $6.5-billion.
LUCENT INVESTIGATED: Telecommunications gear maker Lucent Technologies is being investigated by two federal agencies for possible violations of U.S. bribery laws in its operations in Saudi Arabia. In a brief document filed Friday with the Securities and Exchange Commission, the company said it had been informed by the SEC and the Department of Justice that they are investigating whether it violated the Foreign Corrupt Practices Act. Lucent has been accused of bribing a Saudi official with cash and gifts worth $15-million in an effort to gain business from the Saudi Telecommunications Co., the country's monopoly wireless provider.
VALDEZ DAMAGES RESURFACE: A federal appeals court has again ordered a court in Alaska to reconsider a multibillion-dollar punitive damages award against Exxon Mobil Corp. for the Exxon Valdez oil spill. Exxon Mobil, the world's largest publicly traded oil company, said Friday it should pay no more than $25-million in damages - a fraction of the original $5-billion award. A jury in Alaska approved a $5-billion award to punish the company for spilling 11-million gallons of crude oil into Prince William Sound in 1989.
PROGRESS IN VERIZON TALKS: Verizon Communications Inc. and the International Brotherhood of Electrical Workers, which represents about 20,000 of the company's employees, have made "significant progress" in the past two days in contract negotiations, Paul Feeney, a spokesman for the union said. Verizon held talks with union representatives in Washington and New York state Friday as it tries to reach an agreement on contracts that expired Aug. 3 and cover a total of 80,000 workers. "There's still no deal, and there's work left to do," Feeney said.
US AIRWAYS READIES ISSUE: US Airways, which in filing for bankruptcy protection Aug. 11, 2002, essentially eliminated some 68-million shares of stock that had been worth more than $1-billion a year earlier, has filed documents with the Securities and Exchange Commission in preparation for issuing new stock. A spokesman said it is seeking a listing on a stock exchange but apparently cannot requalify for the New York Stock Exchange. While airline officials won't comment specifically, experts expect it to be listed on Nasdaq by year end.
WENDY'S TOUTS LOW-FAT: Wendy's International Inc., the nation's third-largest fast-food chain, is running test-market promotions of various meal combinations that highlight low-fat items that have been on the company's menu for years. The ads are running in New York City, Miami, Philadelphia, Columbus and Seattle. The company said Friday it is promoting four meal combinations with less than 10 grams of fat. The meal combinations include grilled chicken sandwiches, junior hamburgers and chili, along with salad, fat-free dressing and soft drinks.
