Business today

Compiled from Times wires

© St. Petersburg Times, published November 23, 2000

NASDAQ DROP CONTINUES: The Nasdaq Composite Index tumbled to its lowest point in more than a year as concerns about corporate earnings mingled with the persisting deadlock in the presidential election. Investors again picked on tech stocks, with Intuit and Nortel among the losers. The Nasdaq closed at 2,755.34, down 116.11. The Dow Jones Industrial Average fell 95.18 to close at 10,399.32.

CB RICHARD ELLIS WEIGHS OFFER: CB Richard Ellis Services Inc. said it hired Morgan Stanley Dean Witter as financial adviser and McDermott, Will & Emery as legal counsel to evaluate a $740-million buyout offer from its largest shareholders and company management. The proposed purchase price includes about $400-million in debt that would be refinanced or assumed. The group, led by Blum Capital Partners LP, includes CB Richard chief executive Ray Wirta. CB Richard, which has an office in Tampa, is the nation's largest commercial property broker.

DRUGS CITED IN EXECUTIVE'S ABSENCE: The son of Citigroup Inc. chairman Sanford Weill left his position overseeing the company's $113-billion investment portfolio after erratic behavior at business functions and amid a battle with cocaine addiction, the Wall Street Journal reported. Marc Weill, 44, earned more than $2-million annually managing the vast holdings in stocks, bonds and other investments. He also was on the 19-member management committee, which sets policy for the banking, insurance and brokerage powerhouse. Marc Weill's ex-wife, E.D. Donahey, told the paper that "Marc is in treatment for drug addition." An internal Citigroup memo said Marc Weill "had requested a one-to-three month leave of absence."

INTERMEDIA SHAREHOLDER FILES SUIT: Intermedia Communications was sued by a shareholder who wants a judge to block the Tampa company's acquisition by WorldCom Inc. Joan Monteforte's suit in Hillsborough Circuit Court alleges that Intermedia executives improperly turned down a $7.6-billion offer to buy Digex Inc., its fast-growing subsidiary that manages Web sites for Fortune 1,000 companies. Instead, executives insisted that suitors buy all of Intermedia, the suit states. Intermedia's board accepted an offer from WorldCom Inc. in September of $3-billion in cash and the assumption of $3-billion in Intermedia debt and preferred shares. The lawsuit seeks class status.

BROWN & BROWN ADDS INSURER: Brown & Brown Inc. has expanded into marine insurance with the purchase of the Flagship Group of Norfolk, Va. Terms were not disclosed. Flagship, an independent insurance agency, focuses on marine operations and fishing vessels. Its subsidiaries, which are included in the deal, provide benefits and claims adjustment services. Brown, which has dual headquarters in Tampa and Daytona Beach, said it intends to keep the company's management and staff in Norfolk.

WINN-DIXIE FILES TO SELL SHARES: Winn-Dixie Stores Inc. filed with the Securities and Exchange Commission to sell $1-billion in debt securities and warrants. The filing allows Winn-Dixie to register the securities in advance and sell them when market conditions are favorable or when financing needs arise. The Jacksonville grocery chain said it will use the net proceeds from the securities sale for repayment of debt, capital expenditures and working capital. Last month, Winn-Dixie said it agreed to buy 106 stores from Jitney-Jungle Stores of America Inc. for about $85-million.

WEEKLY JOBLESS CLAIMS RISE: New claims for state unemployment benefits rose by 7,000 last week to a seasonally adjusted 336,000, the Labor Department said. The more stable four-week moving average of jobless claims, which smoothes out week-to-week volatility, rose to 330,500, the highest point since Jan. 16, 1999, when claims were at 342,000.

CHRYSLER IDLES THREE PLANTS: DaimlerChrysler AG plans to idle three North American plants for a week, new signs of the inventory troubles that have led to a management shake-up at the German company's money-losing Chrysler operation. The temporary closings mark the first major moves by Chrysler under Dieter Zetsche, the newly appointed German executive who took over as president of the unit. The closings will affect 13,600 workers, who under union contracts will get as much as 95 percent of their normal pay during the shutdown.

BANKERS INSURANCE TO BUY IMSG SHARES: Bankers Insurance Co. said it will buy up to 250,000 outstanding shares of its troubled spinoff, Insurance Management Solutions Group Inc. Bankers already holds a majority interest in IMSG and is a principal customer of the company, which provides insurance outsourcing. Bankers did not elaborate on reasons for the share program but said purchases would occur gradually based on market conditions. Since going public at $11 a share in early 1999, IMSG stock steadily dropped before settling below $1 a share. Shares closed unchanged at 69 cents.

COKE PULLOUT HURTS QUAKER SHARES: Quaker Oats Co.'s shares slid $7.44, or nearly 8 percent, a day after Coca-Cola Co. opted not to bid on the maker of Gatorade sports drinks. Quaker closed at $87, while Coke's shares jumped $4.31, or 7.8 percent, to $59.56. Separately, French company Danone SA, which produces Evian water and Dannon yogurt, confirmed its "possible interest" in Quaker.

UNIVERSAL GIVES BREAK TO GUESTS: Universal Orlando is giving guests at its on-site hotels immediate access to almost every ride and attraction in Universal Studios or Islands of Adventure. Customers at the Portofino Bay Hotel are eligible to go the head of the line of their choice. The program will include guests of the Hard Rock Hotel when it opens in January.

© 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