Business News short takes
Posted on Tuesday, August 7, 2007
URL: http://www.nwanews.com/adg/Business/197928/
Auction sees short-term T-bill rates fall
WASHINGTON — Interest rates on short-term Treasury bills fell in Monday’s auction to the lowest levels since June.
The Treasury Department auctioned $ 21 billion in three-month bills at a discount rate of 4. 770 percent, down from 4. 825 percent last week. An additional $ 18 billion in six-month bills were auctioned at a discount rate of 4. 730 percent, down from 4. 800 percent last week.
The three-month rate was the lowest since three-month bills averaged 4. 685 percent on June 25. The six-month rate was the lowest since 4. 715 percent on June 18.
The discount rates reflect that the bills sell for less than face value. For a $ 10, 000 bill, the three-month price was $ 9, 879. 43 while a six-month bill sold for $ 9, 760. 87.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 4. 83 percent last week, down from 4. 91 percent the previous week. Delphi lines up contracts with 4 unions
DETROIT — Delphi Corp. said Monday that it tentatively agreed to contracts with four unions.
With the agreements, the auto-parts maker continues to make progress on its emergence from bankruptcy protection. Delphi remains in talks with one more union, the United Steelworkers, about a deal.
“This series of tentative labor agreements demonstrates Delphi’s continued commitment to achieving a consensual resolution with all parties in its Chapter 11 cases,” John Sheehan, Delphi’s chief restructuring officer, said in a statement.
“We believe these agreements, if ratified, provide additional traction towards our emergence.”
Delphi and the International Union of Electronic Workers-Communications Workers of America reached a four-year contract about 10 p. m. Sunday, the union said in a news release Sunday.
The Communications Workers’ industrial branch said its members will hold a ratification vote by mail. The union represents about 2, 000 Delphi employees.
“We have provided significant and meaningful options for our members as they strive to survive this difficult period,” said Jim Clark, president of the Communications Workers. “Our local leaders who make up the National Bargaining Committee made the best out of what was a deplorable situation.”
Delphi also said Monday that it reached pacts with the International Association of Machinists, the International Brotherhood of Electrical Workers and the International Union of Operating Engineers.
The other three unions and the United Steelworkers represent about 1, 000 Delphi employees. Talks were to continue this week with the United Steelworkers, Delphi spokesman Lindsey Williams said Monday.
Troy-based Delphi is the former parts division of General Motors Corp., which spun it off in 1999. Delphi struggled on its own and entered bankruptcy protection in October 2005. Topps now open to Upper Deck’s bid
Topps Co., the maker of baseball cards and Bazooka bubble gum, said Upper Deck Co. is free to begin a $ 425 million bid for Topps after an antitrust waiting period ended. The shares rose as much as 7. 8 percent, the most since Michael Eisner made a lower offer in March.
Topps continues to negotiate with Upper Deck, the New Yorkbased bubble gum maker said Monday in a statement. Topps said its board still supports the $ 384. 5 million offer from a group led by Eisner, the former Walt Disney Co. chief executive officer.
Upper Deck, a sports-memorabilia maker, offered $ 10. 75 a share for Topps in May, about two months after the company had agreed to be acquired for $ 9. 75 a share by Eisner’s Tornante Co. and buyout firm Madison Dearborn Partners LLC. Topps directors recommended shareholders vote against the Upper Deck offer because of concerns that it might not win antitrust approval.
A vote on the bid from Eisner’s group is set for Aug. 30.
Shares of Topps rose 67 cents to close Monday at $ 10. 18 after rising as high as $ 10. 25 earlier in the day. Before Monday, they had risen 15 percent in the past year. Upper deck, based in Carlsbad, Calif., is closely held. Publix stores to offer 7 antibiotics free
CAPE CORAL, Fla. — Seven antibiotics, among the most widely prescribed, will be available at no cost from Publix supermarkets for people with prescriptions, the company said.
Fourteen-day supplies of the seven drugs will be available at all 684 of the chain’s pharmacies in Alabama, Georgia, Florida, South Carolina and Tennessee. There are no Publix stores in Arkansas. Publix said there is no limit on the number of prescriptions that customers may fill for free.
The prescription antibiotics available under the program include amoxicillin, cephalexin, sulfamethoxazole / trimethoprim, ciprofloxacin, penicillin VK, ampicillin and erythromycin.
Publix Super Markets Inc. officials claim the company is the first large regional chain to offer certain drugs at no cost.
Wal-Mart Stores Inc. is selling a number of generic prescription drugs for $ 4 in hopes that it can draw more shoppers into its stores who may come for prescriptions and then stay to buy in other departments.
“With health-care and prescription costs on the rise, our free prescription drug program will reinforce our commitment to the total health and wellness of our customers and their families,” Publix spokesman Dwaine Stevens said. Steps by Medicare profit UnitedHealth
MINNETONKA, Minn. — UnitedHealth Group said on Monday that Medicare adjustments from last year added $ 31 million to its second-quarter earnings.
UnitedHealth, the nation’s second-largest health insurer, said the change would add 2 cents per share, bringing its second-quarter earnings to $ 1. 23 billion, or 89 cents per share. On July 19 it had reported earnings of almost $ 1. 2 billion, or 87 cents per share.
UnitedHealth said the Centers for Medicare and Medicaid Services, which decides government payments under the two federal health programs, told it on July 27 of favorable adjustments to its 2006 Medicare business.
The extra money prompted UnitedHealth to increase its full year earnings expectation to a range of $ 3. 45 to $ 3. 50 per share, not counting 8 cents per share for charges related to its stock options. Analysts surveyed by Thomson Financial were expecting $ 3. 46 per share. McDonald’s has Boston Market buyer
CHICAGO — McDonald’s Corp. said Monday that it agreed to sell its meat-and-potatoes Boston Market restaurant chain to private equity firm Sun Capital Partners for an undisclosed sum.
Richard Hurwitz, a spokesman for Boca Raton, Fla.-based Sun Capital, declined to comment. McDonald’s spokesman Walt Riker would not discuss details of the sale.
The transaction was first announced in a regulatory filing made by the world’s largest restaurant company on Monday. In that filing, McDonald’s said it had signed a definitive agreement to sell Golden, Colo.-based Boston Market in “early August.”
Boston Market, originally called Boston Chicken, was acquired in 2000 for $ 173. 5 million. The chain has 630 restaurants in 28 states.
Since then, McDonald’s has sold Chipotle Mexican Grill Inc., Donato’s Pizza and its stake in Fazoli’s Italian fast-food restaurants.