THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, September 5, 1996 TAG: 9609050350
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
LENGTH: 47 lines
Flight attendants raise complaint about ValuJet
The flight attendants' union asked Wednesday for an investigation into the government's approval of ValuJet to return to service. The transportation department issued a tentative approval last week and the Federal Aviation Administration returned the carrier's license that had been surrendered in June, grounding the Atlanta-based carrier. The airline was grounded because of questions about its maintenance practices. The Association of Flight Attendants sent a letter to the transportation department's office of inspector general on Wednesday.(Associated Press)
MCI gets contract for military service
MCI Communications Corp. said it won a contract worth up to $400 million over the next nine years to provide telecommunications services to the Department of Defense. The contract, MCI's largest with the department, calls for it to provide switches that route voice and data traffic to the department. MCI also will manage an operating center in Cary, N.C., for the department's Defense Information Systems Network. MCI wrested the contract from AT&T Corp. (Bloomberg Business News)
Dean Witter advice: cut stock, bond holdings
Dean Witter Reynolds recommended clients lower the amount of U.S. stocks and bonds and raise their cash holdings in its model portfolio, amid signs the Federal Reserve will boost interest rates. Dean Witter, the brokerage unit of Dean Witter Discover & Co., said investors should ideally keep 55 percent of their investments in stocks, down from 60 percent. Bond investments should account for 20 percent of funds, as opposed to 25 percent. Investors should place 25 percent of their assets, up from 15 percent, in money market accounts. (Bloomberg)
Rubbermaid will buy children's products firm
Rubbermaid Inc. agreed to buy privately held Graco Children's Products Inc. for $320 million cash even though it expects its own earnings will be flat this quarter. Rubbermaid said it expects that by the end of October it will close the deal for Elverson Pa.-based Graco, which is owned by AEA Investors and management. Graco makes infant strollers, portable play yards, swings, activity centers, high chairs and other infant products. Rubbermaid, which makes Little Tikes toys, said it was sticking with its strategy of expanding. (AP) by CNB