Business today

By Times staff, wires

© St. Petersburg Times, published June 1, 2000

Business in brief

CALVIN KLEIN SUES MANUFACTURER: Calvin Klein Inc. is suing Warnaco Group Inc., alleging that the maker of its underwear and jeans lines violated the designer's trademarks and improperly sold merchandise. The lawsuit, filed Tuesday in U.S. District Court in New York, seeks to end all agreements between the two companies. It also seeks to recoup Warnaco's profit from improper sales and asked for unspecified compensatory damages. Calvin Klein alleges that Warnaco sold goods that were never approved by the design house. The lawsuit comes just weeks after it was reported that Warnaco was interested in buying Calvin Klein, which put itself up for sale in October but decided in April to remain independent.

LINCARE SHARES HURT BY MEDICARE WORRIES: Shares of Lincare Holdings Inc. fell as much as 17 percent on fears that Medicare will cut reimbursement for a drug administered by the Clearwater home oxygen service. One government study found Medicare allowances for albuterol sulfate, a common drug for lung disease, were three times what suppliers paid for them. Lincare reported that 62 percent of its 1999 revenues of $582-million came from Medicare and Medicaid, the state program for the poor. On May 1, Florida cut its Medicaid reimbursement on albuterol by 66 percent. Lincare closed at $29, down $5.44, or nearly 16 percent.

AETNA CONFIRMS TALKS OF UNITS' SALE: Aetna Inc. is in talks on the sale of its financial services and international businesses to Dutch insurer ING Group, the companies said. Neither company provided any details. The talks come more than two months after Aetna broke off discussions to sell the entire company to ING and Wellpoint Health Networks Inc. for $10-billion.

HCA TO SELL DADE CITY HOSPITAL: HCA -- The Healthcare Company, formerly Columbia/HCA Healthcare Corp., has signed an agreement to sell Pasco Community Hospital in Dade City to Health Management Associates of Naples. No price was disclosed. William Buck, chief executive of the 120-bed hospital, said he couldn't comment on the deal but said the hospital would remain open. HMA owns hospitals in Brooksville and Spring Hill. After the sale, Nashville, Tenn.-based HCA, the nation's largest hospital chain, will have nine hospitals in the bay area.

LUCENT ACQUIRES FIBER-OPTIC COMPANY: Lucent Technologies Inc. agreed to buy Chromatis Networks, a closely held maker of fiber-optic equipment, for about $4.5-billion in stock. Lucent said it will pay 78-million of its shares for Chromatis, excluding the 7 percent stake it already owns.

HANNAFORD TO SELL GROCERIES: Hannaford Bros. Co. agreed to sell 38 supermarkets in Virginia and North Carolina to win regulatory approval for the company's planned $3.6-billion purchase by Delhaize America Inc. Kroger Co. plans to purchase 20 Hannaford stores in Virginia. In North Carolina, Lowe's Foods will buy 13 stores and Sylvester/Floyd Group five. Prices weren't disclosed. Delhaize America operates the Food Lion and Tampa-based Kash n' Karry grocery chains.

AT&T TO OFFER ADULT NETWORK: AT&T Corp. will offer some of its cable TV subscribers access to the Hot Network, a pornography channel passed up by some cable providers as being too explicit. An AT&T spokesman said the service will be available in the next few months but only in the 2-million homes with AT&T's upgraded digital cable service, which has greater parental controls over accessing adult channels. Time Warner Cable, the No. 2 cable provider behind AT&T, has declined to carry the network.

Correction

Sen. Jim Hargrett of Tampa is a Democrat. A story Wednesday gave an incorrect party affiliation.

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