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Business Today

Outback downgraded over gas worries

By wire services
Published September 2, 2005

Raymond James & Associates of St. Petersburg downgraded 10 restaurant stocks Thursday because of the potential for hurricane-related gas shortages.

Analyst Bryan Elliott said consumers fearing shortages or rationing may save their cars for essential trips and curtail their restaurant visits. Among the 10 restaurant chains mentioned was Outback Steakhouse Inc. of Tampa, whose stock was downgraded to underperform (sell) from market perform (hold).

First Advantage Corp., a St. Petersburg company that offers employee screening and other investigative services, said Thursday that it has acquired Jenark Business Systems Inc. for an undisclosed sum. The Gaithersburg, Md., company provides property management software for the real estate industry.

Teco Energy Inc., owner of the electric utility in Tampa, said its dry-bulk terminal on the Mississippi River south of New Orleans remained shut as a result of Hurricane Katrina. The terminal, which handles coal, grains and other bulk commodities, is flooded and lacks power.

Seven-Eleven Japan Co. said Thursday that it will launch a $1.2-billion cash tender offer for the 27.3 percent stake it doesn't own in its U.S. affiliate 7-Eleven Inc., in a move to take the world's largest convenience store chain private. Seven-Eleven Japan, which is Japan's largest convenience store operator with more than 10,000 locations, is 51 percent owned by Japanese retailer and Denny's franchisee Ito-Yokado.

Federal prosecutors said Thursday that they will not prosecute MCI, the post-bankruptcy version of WorldCom, for the $11-billion fraud carried out at the telecommunications firm. Manhattan U.S. Attorney David Kelley said MCI has fired virtually every employee who "played even a tangential role" in the fraud, which surfaced three years ago. Bernard Ebbers, the former CEO of WorldCom, was sentenced to 25 years in prison for orchestrating the fraud. Scott Sullivan, the company's former finance chief, was sentenced to five years in prison after testifying against Ebbers.

A group including buyout specialist Infinity Associates LLC has bought clothier Haggar Corp. for $212-million, or $29 per share, a 25 percent premium over Haggar's closing stock price Wednesday. Infinity was joined in the deal by Perseus LLC, a bank and private equity fund manager in Washington and New York, and Hong Kong-based manufacturer Symphony Holdings Ltd.

[Last modified September 2, 2005, 02:15:35]