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Business News Briefs: 10/6/00
Friday, October 06, 2000
St. Francis cuts deeper
St. Francis Health System yesterday confirmed that it had eliminated another 17 jobs this week, primarily from its finance department. The cuts follow a top management shakeout that began last month after St. Francis hired a turnaround expert to help it overcome financial problems. The cuts involved middle managers and support staff. Separately, Jack Smedley was named executive director of St. Francis Hospital in Cranberry. The appointment follows St. Francis' decision earlier this year to operate the Cranberry unit jointly for five years with UPMC Health System. Smedley currently serves as chief executive of UPMC Beaver Valley Hospital.
Interstate rebuffs takeover bid
Green Tree-based Interstate Hotels Corp., which operates about 160 hotels in the United States and elsewhere, has rejected an unsolicited $25 million takeover proposal from an unidentified party. Interstate's board determined it was not in the best interest of shareholders to pursue the cash offer of $4.13 a share. The company recommended shareholders approve a previously announced transaction that calls for a group led by Lehman Brothers to invest $30 million in equity and convertible debt. Shareholders are slated to vote on the Lehman deal Oct. 16. Shares of Interstate closed down 3 cents at $2.03.
RedZone agrees to sell building
RedZone Robotics Inc. has signed an agreement to sell its Strip District building to National Development Corp., an Oakland-based real estate company. The block-long building is the place where George Westinghouse manufactured the world's first air brakes for railroad cars. RedZone purchased it for $450,000 in 1990. Its asking price was $1.5 million. Todd Simonds, chairman of RedZone, said the company expects to move to The Waterfront, the new mixed-use development in Homestead.
Transtar holder cashing out
Monroeville-based Transtar Inc. yesterday said a voting shareholder will trade all of its Transtar shares for ownership of four Transtar subsidiaries. Transtar Holdings L.P. will trade its shares for ownership of the Bessemer and Lake Erie Railroad Co.; the Duluth, Missabe and Iron Range Railway Co.; the Pittsburgh & Conneaut Dock Co.; and USS Great Lakes Fleet Inc. As a result, USX Corp., Transtar's other voting shareholder, will become sole owner of Transtar.
Also in business ...
US Airways has filed with the Securities and Exchange Commission to sell as much as $812.4 million in securities to finance aircraft purchases or leases ... PNC Financial Services Group Inc. will boost its quarterly dividend to 48 cents a share from 45 cents. It will distributed Oct. 24 to shareholders of record Oct. 13 ... American Eagle Outfitters Inc. has signed a definitive agreement with Canadian-based Dylex Limited to buy its Thriftys, Braemar and National Logistics Services divisions. The $73.5 million deal for the stores and the distribution operation was originally announced in late August ... FreeMarkets Inc. opened an office in Washington, D.C., to serve public sector clients, including the United States Postal Service, the Navy and the Defense Logistics Agency ... Universal Stainless & Alloy Products is instituting a surcharge to reflect its rising costs for natural gas. The Bridgeville specialty steel producer said the surcharge takes effect Oct. 15. ... Imports of stainless steel increased 31 percent in the first seven months of the year vs. a 16 percent increase in U.S. demand, the Specialty Steel Industry of North America reported.
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