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By Compiled from Times wires
© St. Petersburg Times, published August 25, 2000
DIGITAL LIGHTWAVE FOUNDER RESIGNS BOARD SEAT: Clearwater-based Digital Lightwave Inc. said company founder and majority stockholder Bryan Zwan resigned as a director. Zwan founded the maker of fiber-optic diagnostic equipment in 1990. He served as president, chief executive and chairman for most of the 1990s, and as a non-executive director from July 1999 to Aug. 22. After a successful public offering of Digital Lightwave, Zwan's stake in the company exceeds $1-billion even though he has sold off shares worth more than $200-million in the past year. Zwan, a member of the Church of Scientology, said he plans to spend more time pursuing other interests. He still faces a lawsuit that alleges financial fraud brought by the Securities and Exchange Commission. The SEC suit alleges Zwan was behind a scheme in 1997 to recognize revenue at Digital Lightwave based on fraudulent billings. Zwan is contesting the SEC lawsuit, while Digital Lightwave previously settled its own litigation with the SEC. Robert F. Hussey, an investment portfolio manager who formerly ran a cable TV company, will fill the vacancy created by Zwan's resignation.
GM CFO TO DEPART: General Motors Corp. said chief financial officer Michael Losh will leave Sept. 1, marking the first major change in new chief executive Rick Wagoner's management team. Losh, 54, leaves after 36 years at the company, the last six as CFO. John Finnegan, president of General Motors Acceptance Corp., will replace Losh on a temporary basis. Losh said he is considering opportunities inside and outside the auto industry. GM rose $3.94 to $72.88.
WAL-MART TESTS APPLIANCE MARKET: Wal-Mart Stores Inc. plans to sell major home appliances at about a dozen stores by the end of the year in a test with appliancemaker General Electric Co. Wal-Mart said it will sell GE-branded refrigerators, freezers, ranges, dishwashers, washing machines and dryers, as well as smaller appliances. Wal-Mart shares rose 13 cents at $49.25.
BAUSCH & LOMB PLUMMETS ON REPORT: Bausch & Lomb Inc. stock tumbled 36 percent after the contact-lens manufacturer fired president Carl Sassano and said profit through 2001 will be less than forecast. The shares plunged $20 to $35.75. Bausch & Lomb estimated 2000 profit before charges and gains at $2.69 to $2.72, short of the $3.15 estimate of analysts. It forecast earnings of $2.87 to $2.92 next year, below the $3.84 estimate. Bausch & Lomb operates facilities in Tampa and Clearwater.
TSIG COMPLETES ACQUISITION: TeleServices Internet Group Inc. of St. Petersburg has completed its deal to acquire GeneralSearch.com, an Internet portal and search engine company based in West Chicago, Ill. TSIG.com exchanged 38-million shares of its stock for 85 percent of GeneralSearch.com, with another 7-million shares to be offered for the remaining 15 percent. In June, TSIG.com signed letters of intent to acquire Reliant Interactive Media Corp. of Tampa, Affinity Group LLC of St. Petersburg and GeneralSearch.com. TSIG.com offers a variety of marketing services.
STATE TACKLES AREA CODE SHORTAGE: Public Service Commission staff have finished a plan that would split northeast Florida's 904 area code in two and add new area codes that would soon mean 10-digit dialing in most of South Florida, from Indian River County to Key West. The plan now goes to the commission for approval. Officials last year learned the 904, 561 and 954 area codes were projected to run out of numbers much sooner than expected.
FORMER EXECUTIVE ADMITS FRAUD: Another executive of Largo defense contractor Electromechanical Systems Inc. pleaded guilty to participating in a $9-million scheme to defraud the government. Edward Paul Beattie, former director of contracts and pricing, knew company officials were falsifying labor costs on a Navy contract and helped conceal the fraud until leaving the company in 1993, according to a plea agreement filed in U.S. District Court in Tampa. The offense carries a maximum sentence of three years in jail with a $250,000 fine. Beattie also agreed to cooperate in the criminal investigation. EMS is an affiliate of COMSAT Inc., an international satellite company.
HONEYWELL SEEKS BUYER FOR AUTO UNIT: Honeywell International Inc. said it plans to sell its consumer automotive products businesses, including Prestone antifreeze and Autolite spark plugs. Honeywell has hired Salomon Smith Barney Inc. to help it find a buyer for the businesses, which also include Fram oil and air filters and Holts car-care products. The businesses had $1.1-billion in sales last year and employ about 4,400. Honeywell said it plans to focus on sales of aerospace parts and automated controls.
MAYTAG RISES ON MERGER REPORT: Appliance company Maytag Corp.'s share rose sharply after a published report said it was discussing the possibility of being acquired for about $4-billion by Sweden's Electrolux. The New York Times cautioned, however, that a deal is not imminent and that several rivals have recently made informal overtures to Maytag about a possible combination. The companies would not comment. Maytag shares closed up $3.69 a share, or 10 percent, at $41.