Developer sells Westin
With the sale of the Westin Convention Center Hotel, Downtown, Cleveland developer Forest City Enterprises will be out of the hotel business altogether. Forest City sold the hotel and the accompanying Liberty Center office building to a subsidiary of Starwood Capital Group of Greenwich, Conn., for $135 million, with net cash proceeds of about $30 million. In a statement, David J. LaRue, Forest City president and CEO, said the 616-room Westin was the last hotel in the developer's portfolio. The hotel will continue to operate as a Westin under a long-term agreement with Starwood Hotels, which is separate from Starwood Capital. The 27-story Liberty Center complex will be managed by CBRE, which was the broker in the sale. Last month, Forest City sold the 399-room Sheraton Station Square to a joint venture led by Pyramid Hotel Group of Boston.
Nova reports income rise
Nova Chemicals reported second-quarter net income of $201 million and revenue of $1.37 billion, compared to $186 million net income on revenue of $1.42 billion for the second quarter of 2012. The increase was primarily due to lower finance costs. The producer of plastics, resins and chemicals, based in Calgary, Canada, has an executive operations center in Moon and a plant in Monaca. The company is owned by International Petroleum Investment Co. of the United Arab Emirates.
RBS chief on way out
Stephen Hester reported his last set of results for bailed-out Royal Bank of Scotland on Friday as he prepares to hand over the reins to New Zealander Ross McEwan. The state-controlled bank, parent of Citizens Bank, recorded a first-half profit of 535 million pounds ($811 million), compared with a loss of 2.03 billion pounds in the same period of last year. RBS on Friday named Mr. McEwan CEO effective Oct. 1.
Dell board OKs offer
A special committee of Dell's board has agreed to an increased offer from founder Michael Dell that would add a special dividend for shareholders. The struggling computer maker said Friday that a group led by its founder and investment firm Silver Lake Partners will tack a one-time shareholder payout of 13 cents per share to an offer they made last week to buy the company for $13.75 per share. The new offer also guarantees that the company's third-quarter dividend of 8 cents per share will be paid at or before the closing. Shareholders had been scheduled to vote Friday morning on a lower offer to buy the company for $13.65 per share. The meeting was called to order and quickly adjourned without a vote. Shareholders who own the stock as of Aug. 13 will now be eligible to vote at a Sept. 12 special meeting on the new deal.
Consumer spending up
Consumer spending rose 0.5 percent in June compared with May, the Commerce Department reported Friday. Income growth slowed to a 0.3 percent rise in June.
Factory orders increase
Factory orders rose 1.5 percent in June compared with May, the Commerce Department reported Friday. The gains pushed total orders to a record $496.7 billion. It was the second month that factory orders have been at an all-time high, surpassing the previous record set in June 2008.