THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, September 6, 1996 TAG: 9609060495
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
TYPE: Business Briefs
LENGTH: 86 lines
Trigon policyholders
vote on company change
Policyholders of Trigon Blue Cross Blue Shield are scheduled to vote today on whether the state's largest health insurer should be converted to an investor-owned company with publicly traded stock. Trigon, which is owned by its policyholders, has said it must expand to prosper in the face of increasing competition from other insurers and health-care providers. But expansion will require access to capital in the stock market, Trigon told policyholders. The proposed conversion requires approval by more than two-thirds of policyholder votes. It also must be approved by the State Corporation Commission. (Staff)
McDonnell Douglas wins
$550 million order
McDonnell Douglas Corp. said it won a $550 million order from Deutsche Lufthansa Cargo, a unit of German airline Lufthansa AG, for five of its MD-11 cargo aircraft. The order is a victory for McDonnell Douglas, which has been struggling to remain competitive with market leader Boeing Co. and second-place contender Airbus Industrie of Europe. Lufthansa will take delivery of the planes in 1998. The German airline also took options on seven more MD-11s, McDonnell Douglas' largest commercial aircraft, potentially boosting the order's value to $1.3 billion. (Bloomberg) BAB Holdings buys Chesapeake Bagel
BAB Holdings Inc. said Thursday it will pay $29 million in cash and stock for Chesapeake Bagel Bakery, a chain of stores based in McLean. The combination will give Chicago-based BAB Holdings, which operates Big Apple Bagels, about 285 stores across the nation. Store banners will remain the same. Chesapeake Bagel Bakery moved into the South Hampton Roads two years ago and now has three local stores. Company officials said BAB plans to expand both bagel chains by adding more franchises and company-owned stores. (Staff)
Viacom stock to be sold
to chairman and affiliate
Viacom Inc. Chairman Sumner Redstone and his National Amusements Inc. plan to buy as much as $500 million of Viacom's stock, which has fallen more than 30 percent in the past year amid concerns about its Blockbuster unit. Redstone and National Amusements said they plan to use working capital to buy the stock. The share repurchase comes as investors await the handsome return Redstone promised them on the $17 billion that Viacom paid for Blockbuster Entertainment and Paramount Pictures in 1994. (Bloomberg)
[appears on p. D2]
Wilson Sporting Goods
fires 85 at golf division
Wilson Sporting Goods Co. fired 85 employees to help turn around its golf division, which has lagged the company's more profitable team sports and racket-sports units. The closely held sporting goods maker said it's searching for a new general manager for the golf division. The dismissed employees include managers and plant workers. Chicago-based Wilson also said it will discontinue unprofitable products. It won't make any changes in its line of golf clubs, balls, bags and accessories. Severance pay and job placement services will be offered to the fired workers, including 15 employees at a golf-ball plant in Humboldt, Tenn. (Bloomberg) [appears on D2] Newspaper ad revenue rose 5.3% in first half<
Newspaper advertising revenue grew 5.3 percent in the year's first half to $17.7 billion, with the biggest improvement coming from classified ads, the Newspaper Association of America said. ``The strength of newspaper advertising is local,'' John Sturm, president and chief executive of the trade group, said in a statement. Classified ads tend to reflect local economic conditions. Classified ad revenue rose 10.7 percent to $6.8 billion in the first half, national advertising was up 7.2 percent to $2.4 billion and retail ad revenue advanced 0.9 percent to $8.5 billion. (AP) [appears on p.D2]
James River Corp. buys
remaining stake in Jamont
James River Corp. of Richmond said Thursday it acquired the remaining stake in Jamont NV, a consumer products company, from EuroPaper for $201.4 million. James River, the maker of Dixie cups and Brawny towels, said the stake amounted to a 13.6 percent interest. It said it now owns 100 percent of Jamont. Jamont, based in Brussels, Belgium, has annual sales of $1.7 billion. James River has annual sales of about $5.5 billion. (Dow Jones News) by CNB