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Business Today

By wire services
Published February 3, 2005

COLONIAL BUYS TWO TAMPA BUILDINGS: Colonial Properties Trust of Birmingham, Ala., continued its push into the Tampa Bay area with the acquisition of two office buildings totaling 370,000 square feet in the Westshore business district. The buildings, known as Westshore Place I and II, were bought from Miami-based America's Capital Partners, Colonial said Wednesday. The price was not disclosed. ACP bought Westshore Place from Cornerstone Realty Advisers for $41-million in 2003. ACP also has reportedly finalized the purchase this week of the 31-story 400 N Ashley Plaza tower from Colonnade Properties LLC of New York for about $35-million, but ACP executives could not be reached for comment.

GULF POWER WANTS TO RAISE RATES: Gulf Power wants to boost the average residential customer's bill by $2.71 a month for two years to pay for damage caused by Hurricane Ivan last year. The company, which has 395,000 residential customers in the western Panhandle, will ask the Public Service Commission for permission to pass on part of $141-million in costs starting this spring, likely in April, Gulf spokesman John Hutchinson said Wednesday.

GRASSO HAD TOO MUCH CONTROL, NYSE SAYS: Richard Grasso had too much control in setting his controversial $187.5-million compensation as chairman of the New York Stock Exchange and took advantage of personal connections with board members to push it through, the NYSE claimed in a previously confidential report released Wednesday. The result, according to the report, was "excessive" and "unreasonable" compensation for Grasso, 58, who headed the world's largest stock market for eight years before resigning under fire a month after signing a new contract in 2003. The report claims up to $156.7-million of the pay package for Grasso was excessive.

PBGC TAKES OVER US AIRWAYS PENSIONS: The federal Pension Benefit Guaranty Corp. on Wednesday formally assumed responsibility for three pension plans terminated by bankrupt US Airways that provide benefits to more than 51,000 workers and retirees. The PBGC estimates the cost of administering the canceled plans will be $2.3-billion. That is in addition to a $726-million claim in 2003 when US Airways terminated the pension plan for its pilots. The PBGC estimates that the pension plans are only 40 percent funded, with $1.7-billion in assets to cover $4.2-billion in liabilities.

BLOCKBUSTER RAISES HOLLYWOOD BID: Blockbuster Inc. has raised its bid for rival movie-rental chain Hollywood Entertainment Corp., launching a hostile cash and stock offer valued at $1.3-billion that it hopes will derail Hollywood's pending sale to Movie Gallery Inc. Blockbuster, the nation's largest movie-rental chain, said it would offer $14.50 per share for No. 2 Hollywood beginning Friday - more than the $13.25 per share that Movie Gallery offered.

TOWER FILES FOR BANKRUPTCY PROTECTION: Auto parts supplier Tower Automotive Inc., facing lower auto production volume and high steel prices, filed for bankruptcy protection from its creditors Wednesday as part of a debt restructuring effort, the company said. Tower, which makes auto body structures and suspension components for every major automaker and is a major supplier to Ford Motor Co., said the filing would help it reorganize its debt while continuing normal business operations. In documents filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York, Tower reported $787.9-million in assets and $1.3-billion in debts.

Coast Financial Holdings Inc.: Coast Financial Holdings, parent company of Coast Bank of Florida, reported a 54 percent increase in net interest for the year compared to year before.

Allstate Corp.: The nation's second-largest property and casualty insurer said fourth-quarter earnings rose 50 percent despite an increased estimate of its steep payout obligations from last year's Florida hurricanes.

Amazon.com Inc.: The world's No. 1 Internet retailer said fourth-quarter earnings more than fourfold, but the company was helped by a big one-time tax benefit and missed Wall Street expectations.

Boeing Co.: The aerospace giant's fourth-quarter profits plunged 84 percent, weighed down by charges for shutting down production of its 717 jet and losing out on an aerial tanker contract with the Pentagon.

Anheuser-Busch Cos. Inc.: The nation's biggest brewer's profits rose 13 percent in the fourth quarter, as a decline in domestic beer volume was more than offset by a huge increase in international volume and a domestic price increase.

[Last modified February 3, 2005, 01:15:06]