Business Today
By wire services
Published January 13, 2005
SYNIVERSE TALKS OF IPO: Syniverse Holdings Inc., the parent of Syniverse Technologies of Tampa, said Wednesday that it expects to price its upcoming initial public offering at $20 to $22 a share. In an amended registration statement, the Tampa telecommunications services company said it plans to sell about 17.6-million shares of common stock in the IPO to raise up to $445.8-million. The IPO's underwriters, who are being led by Lehman Brothers, Goldman Sachs and Bear Stearns, will be granted a 30-day option to buy up to 2.6-million additional shares of common stock.
TECO COMPLETES SALE OF UNIT: TECO Energy Inc. said it has completed the sale of its BCH Mechanical Inc. subsidiary to BCH executive Daryl Blume and business partner Dan Allen, a former vice president at Chicago mechanical contractor Phillips Getschow Co. Blume, a former BCH vice president, is now president of the Largo company. TECO and BCH did not disclose the terms of the deal. BCH was founded by Blume's brother Stephen Blume in 1976 and was acquired by TECO in September 2000. BCH has about 500 employees and provides air conditioning, plumbing, piping and sheet metal and engineering services.
OTC LINE BEING SOLD: Bristol-Myers Squibb Co., the pharmaceutical giant, announced Wednesday that is putting up for sale its U.S. and Canadian consumer over-the-counter drug line, which includes pain relievers Excedrin and Bufferin, cold medicine Comtrex and Keri lotions. The company plans to retain its consumer medicines business in other parts of the world including Japan and Europe because it remains an important part of its pharmaceutical business in such regions. Bristol-Myers said that sales of its consumer medicines in the United States and Canada totaled about $240-million in 2003.
MYLAN MAY DROP KING BID: The drug maker Mylan Laboratories Inc. appeared to back away Wednesday from a contentious $4-billion takeover bid for rival King Pharmaceuticals Inc. King shares fell more than 6 percent on the news. King said last month that it would have to restate earnings for 2002, 2003 and the first six months of 2004, which gave Mylan a way out of the deal.
OFFICEMAX CFO RESIGNS: After just two months on the job, Brian Anderson, the chief financial officer of OfficeMax, resigned Wednesday, less than a month after the company announced that it had uncovered improprieties in the way it accounted for rebates from a large supplier. Analysts said the resignation was voluntary. OfficeMax of Itasca, Ill., also said Wednesday that it will delay the release of its fourth-quarter earnings, scheduled for Jan. 20, and that it expects to complete an internal inquiry into its accounting by the third week of February. The company has also said it would delay a planned buyback of about $800-million of its stock.
U.S. BACKS GIFT CARD CURBS: Federal regulators say three New England states should be allowed to enforce state restrictions on fees and expiration dates for retail gift cards issued through national banks. A letter from the U.S. Office of the Comptroller of the Currency backs a key element in the legal battle by the attorneys general of Massachusetts, Connecticut and New Hampshire to protect the rights of consumers who buy the cards. Cards that are issued by national banks rather than a retailer or mall owner, such as the Simon Visa Giftcard, can be used in more locations than traditional gift cards, but they often carry tougher restrictions and higher fees if they're not quickly redeemed.
DELTA TICKET SALES: Delta Air Lines Inc. said Wednesday that it saw record sales on its Web site the day after it announced it was cutting its most expensive fares by up to half, but the struggling carrier did not reveal the effect of the move on overall revenues and earnings. In the first five days after the launch, ticket sales on the Web site increased 60 percent over the same period a year ago.
COORS-MOLSON MERGER: The brewing giant SABMiller PLC of London indicated Wednesday that it is interested in bidding for Molson Inc. should the Canadian brewer's pending merger with Adolph Coors Co. fall apart. The London brewer's statement came a week before Molson and Coors shareholders are scheduled to vote on the planned combination of Canada's biggest brewer and the third-biggest U.S. beer company.
UNITED PROPOSES PAY CUTS: A tentative new labor contract between United Airlines and its flight attendants calls for a 9.5 percent cut in base pay and other concessions. The agreement, made available to members of the Association of Flight Attendants this week, doesn't include provisions related to the termination of pension benefits, which remains central to the airline's bankruptcy case.
$500,000 AWARDED IN HOME DEPOT CASE: The family of a boy who sustained brain damage at a Home Depot store when a steel-and-glass door fell on him was awarded $500,000 by a Durham, N.C., jury Wednesday. The plaintiffs had sought $20-million for medical bills, physical pain and mental anguish. Jurors deliberated more than four days before deciding on the award for James and Martha Baker, parents of Will Baker. Will was 8 years old when the 154-pound, 8-foot-tall door fell on him in March 2001. Evidence showed that Will had been playing with door displays in the store.
TASERS URGED: A Miami-Dade grand jury strongly recommended expanded use of Taser stun guns by police in crises involving mentally ill people. The recommendation came amid the Securities and Exchange Commission's investigation into the safety claims of the manufacturer, Taser International Inc. The Scottsdale, Ariz., company's finances are also under scrutiny.
EARNINGSApple Computer Inc.: The Cupertino, Calif., computermaker dramatically exceeded Wall Street expectations because of strong holiday sales of laptops and iPod music players.