Business Digest

© St. Petersburg Times,
published November 13, 2001

CHIQUITA TO DECLARE BANKRUPTCY: Chiquita Brands International said it will file for Chapter 11 bankruptcy protection. The biggest banana producer said it has negotiated a plan with creditors to repay about $861-million in debt. Chiquita blamed part of its problems on past European Union trade restrictions that caused its share of the 15-nation market to fall to 20 percent from 40 percent. Chiquita said the restrictions, which were lifted in April, cost it about $200-million a year in sales since 1993.

HP PREPARES FOR PROXY FIGHT: Hewlett-Packard Co. has hired a proxy-solicitation adviser in preparation for a battle over plans to buy Compaq Computer Corp. Innisfree M&A Inc. will help promote the purchase, currently valued at $20.9-billion. The acquisition faces opposition from Walter B. Hewlett, a board member and son of co-founder William Hewlett, who Friday hired his own proxy solicitor as he considers how strongly to oppose the purchase. Shares of Hewlett-Packard rose 31 cents to $19.30. They've fallen 50 percent in the past year. Compaq fell 7 cents to $7.66, and is trading about 37 percent below the value of Hewlett-Packard's per-share offer.

GM EXTENDS FINANCE OFFER: General Motors has for a second time extended no-interest loans on car and truck purchases. However the offer, which runs through Jan. 2, excludes Cadillacs, Corvettes and two Saturn models. And the rates on four- and five-year loans are higher than under previous programs. General Motors began the no-interest offer when sales plunged after Sept. 11, and rivals followed. Industry sales rose 24 percent in October for the strongest month ever.

AOL, SONY FORM VENTURE: Media titans AOL Time Warner Inc. and Sony Corp. will jointly develop a home networking environment to deliver online entertainment over high-speed Internet connections. The collaboration is aimed at developing easier ways of linking televisions, stereos, game consoles and other devices to always-on broadband networks that are now primarily used by personal computers. AOL and Sony also plan to design an Internet browser specifically for consumer electronic devices. Shares of AOL fell 67 cents to $36.43, while while Sony rose 15 cents to $39.95.

NEWSPRINT PRODUCTION CUTS: Bowater Inc. plans to close four of its Quebec sawmills to cut lumber production by 10 percent. The Greenville, S.C., newsprint and lumber products company said three of the plants will close Friday, with the fourth closing Nov. 30. The mills may be reopened if conditions improve. Lumber prices have declined more than 30 percent since May because of a glut of supply and lower demand from builders as the U.S. economy slows.

CIENA RISES ON OUTLOOK: Shares of Ciena Corp. rose more than 10 percent after the optical network equipment company said it would meet analysts' fourth-quarter earnings expectations and would cut 10 percent of its work force to help cut costs. Earnings will be 4 to 6 cents per share in the fourth quarter, slightly higher than the 4 cents per share estimated by analysts. Ciena's job cuts come to about 380 positions.

JAPAN AIRLINE DEAL: Japan Airlines and Japan Air System, the country's largest and third-largest airlines, said they would set up a holding company next year, a first step toward merging. It comes weeks after the collapse of several airlines around the globe, including Swissair, Sabena of Belgium and Ansett Australia.

May Department Stores Co.

The St. Louis parent of Lord & Taylor said earnings for the fiscal quarter ended Nov. 3 dropped 39 percent, but results before one-time charges were in line with Wall Street's expectations.

DrugMax Inc.

The Largo drug distributor reported positive earnings for the fiscal quarter ended Sept. 30 due in part to a change in accounting rules and a deferred tax asset.

© 2006 • All Rights Reserved • Tampa Bay Times
490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111

Contact the Times | Privacy Policy
Standard of Accuracy | Terms, Conditions & Copyright