THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, March 29, 1996 TAG: 9603290455
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
LENGTH: Long : 135 lines
Leggett Stores Inc. may be considering a buyout offer from yet another major retailer. Retail industry analysts have added Belk to the list of possible suitors, which, they speculate, already includes Proffitt's and Dillard. Knoxville, Tenn.-based Proffitt's has four Hampton Roads locations; Dillard, of Little Rock, Ark., has no Hampton Roads locations yet, but plans to open one in the MacArthur Center, a proposed downtown Norfolk mall; Belk, a chain of independent, family-owned stores, has no area locations, but several family members hold a minority stake in Leggett. (Knight-Ridder/Tribune Business News) Sprint, MCI pursue wireless networks
Sprint Corp. and MCI Communications Corp. both see great opportunities in wireless communications, but they're taking very different paths to get there. Sprint, the third largest U.S. long-distance company, wants to own a national wireless network, and is committed to spending some serious money to build it - more than $3 billion over the next five years. MCI, the No. 2 long-distance company, would rather rent. It's content to let others make the capital investment in wireless networks, buying their airtime at a discount and reselling it to business and household customers. (Bloomberg Business News) Dollar General Corp. to build Virginia center
Dollar General Corp., the Nashville, Tenn.-based discount chain, said Thursday it plans to build a $30 million distribution center in Halifax County. Company officials said the 750,000-square-foot center near South Boston will employ about 500 workers when fully operational in 1997. Dollar General already operates distribution centers in Kentucky, Georgia and Oklahoma. It has about 2,400 stores in 24 states. (Staff) James River Bank buys assets from First Union
James River Bank, which changed its name earlier this month from Bank of Waverly, has purchased the fixed assets and $34 million of deposits at two First Union National Bank branches in Franklin and Courtland. The Waverly bank, a unit of Suffolk-based bank holding company James River Bankshares Inc., has kept the branches' 13 employees and expects to shift some part-time employees to full-time status, Glenn T. McCall, the bank's president, said. James River Bank also will expand its board by naming new directors from Franklin and Courtland, he said. (Staff) Businesses plan only small investment increase
American businesses plan to boost investments in plants and equipment by 1.5 percent this year, the fifth straight increase but well below the 8.1 percent rise in 1995. The Commerce Department said that businesses plan to spend $603.4 billion, up from $594.5 billion in 1995. Investment had shot up by 12.3 percent in 1994. While business investments have been a major driving force during the nation's economic expansion, many analysts predicted the pace will slow this year. Capital spending last declined in 1991, when the last recession was ending. (AP) New seafood eatery worries IPO analysis
Shells Seafood Restaurants Inc., the Tampa-based restaurant chain, is getting ready to go public. The company hopes to use some of the proceeds from the initial public offering to open more locations. ``I was disappointed when I saw the registration statement,'' said Irv DeGraw, research director at IPO Insider, a newsletter in Sarasota. ``But I was very disappointed when I saw the business side of Shells because it's hurting.'' Last year, Shells' revenues were up 29 percent to $28.6 million, but the company lost $403,000. Now, the company is asking the Securities and Exchange Commission to let it offer 1.4 million shares of common stock for $5 each and 700,000 redeemable warrants at 10 cents each. (Knight-Ridder/Tribune Business News) FDA reviews Zeneca's first asthma drug
Zeneca Pharmaceuticals' Accolate, the first in a new class of asthma drugs, is under review by a Food and Drug Administration advisory panel. The drug may offer several advantages over existing asthma treatments, although full information on its benefits and risks will be unveiled for the first time at the Pulmonary-Allergy Drugs Advisory Committee meeting. Clinical trials have proved Accolate is a safe and effective treatment for asthma, the company claims. The advisory committee will examine the data generated to support that claim and decide whether to back use of the drug. The FDA typically follows the recommendations of its advisory panels. The current method of controlling asthma, mainly using bronchodilators and cortocosteroids, ``is pretty much a heavy handed, sledge hammer approach to this disease,'' said Edmund Debler, an analyst at Mehta & Isaly. ``Only now are we getting to a finer approach, treating the underlying inflammation of asthma.'' (Bloomberg) Boeing plans to sell cargo-handling subsidiary
Boeing Co. said it plans to sell its subsidiary in Macon, Ga., that makes cargo-handling equipment for airplanes. Boeing said it has focused on one potential buyer from a number of companies that have expressed interest in the operation. Boeing didn't disclose the name of the potential buyer or a potential purchase price. The subsidiary employs about 700 people. The aircraft maker said it is selling the unit to focus on its core operations. (AP) Lassiter Bus Service to settle DOT violations
The U.S. Department of Transportation's Federal Highway Administration reported that Lassiter Bus Service Inc. of Suffolk has agreed to pay $760 in settlement of a civil claim brought against it for violations of the Federal Motor Carrier Safety Regulations, The safety violation involved failing to implement a controlled substances testing program. (Staff) Recalled cigarettes not out of the ordinary
There was nothing wrong with the 8 billion cigarettes recalled last year by Philip Morris that isn't wrong with all cigarettes, government health investigators said Thursday. The Centers for Disease Control and Prevention investigated more than 70 complaints from people in 27 states who said they became ill after smoking the cigarettes. They complained of coughing, wheezing, watery eyes and nose and throat irritation. The cigarettes contained nothing out of the ordinary, said Michael Ericksen, director of the CDC's Office on Smoking and Health. (AP) Chrysler chairman paid $4.2 million last year
Chrysler Corp.'s chairman received $4.2 million in salary, stock options and other compensation in 1995, nearly a third less than Robert Eaton was paid a year earlier, the company reported. Most of the decline occurred because Eaton exercised no stock options last year, while in 1994 the chairman of the No. 3 automaker cashed in shares worth nearly $1.9 million. Eaton received a total pay package of $6.2 million in 1994, Chrysler's most profitable year ever. In 1995, Eaton was paid a $1.2 million salary, a bonus of nearly $2.4 million, an additional performance-based payout of $434,981 and other compensation of about $163,000. He also was given options on 225,000 shares worth $3 million, according to a company proxy statement filed with the Securities and Exchange Commission. His salary was up from $1.1 million in 1994, while his performance bonuses were down from $3.1 million the year earlier. (AP) by CNB