The Indianapolis Star from Indianapolis, Indiana • Page 21

A 13 7.33 Dow Jones industrials 9,188.15 A 10.48 Nasdaq composite 1,708.50 A 11.59 500 993.32 A 1.38 Bloomberg Indiana 384.70 Saturday, July 19, 2003 Section InfoUne: 624-INFO (4636) The Indianapolis Star (J lndyStar.combusiness CHAIN NARROWS ITS FOCUS a coVlMGlON I IW I WJffi.w.,:. i fa- 'far 4 trim IT' I. 1 III Vfr. I i 1 Federal subpoena indicates agency is looking at records of James C. Clark.

By Chris O'Malley chris.omalleyindystar.com The Internal Revenue Service has seized the records of an Indianapolis retirement planner whose commercials became a fixture of late-night television during the 1990s and whose investors say they are owed more than $7 million. James C. Clark, whose Progressive Alliance Inc. has yet to file a reorganization plan since filing for Chapter 11 bankruptcy in 2001, also remains under investigation by state regulators for allegedly selling unregistered securities. "We provided them (IRS) with what I believe were 120 bankers' boxes of records," said Larry Whitlock, an associate of Clark.

He said about 20 more boxes were turned over two weeks later. An agent in the IRS criminal investigation division would not confirm or deny whether Clark is being investigated. But a copy of a federal sub- '1- David Dupray Associated Press Clothes make the retailerP A shopper peruses Covington clothes a Sears clothing brand in Chicago. Sears' sale of its credit-card unit puts added pressure on the retailer to win over customers with its clothing lines and reinforce its leadership in appliances. ankin is Sears Chris O'Malley Still in business: A luxury van bearing Jim Clark's name is parked outside the offices at 11590 N.

Meridian home of Jim Clark Associates. poena obtained by The Star shows requests for records from 1996 to 2002. The records involved eight of Clark's companies, including Progressive Alliance, Progressive Retirement See Probe, Page C6 on a retail resurgence ill Lr Oracle loses another round to PeopleSoft I John Champion, vice president at Kurt Salmon Associates, a retail consulting company. "And they have competitors left and right, snapping at their heels." Analysts, however, offer kudos to Chief Executive Officer Alan Lacy, who is spearheading a makeover of Sears merchandise and its stores. The company said it is seeing positive results from last year's acquisition of Lands' End, with overall apparel sales reported two to four percentage points higher in stores that have the line than in those without it.

Lands' End is in 433 stores so far and will be rolled out to the other 400 or so by falL Meanwhile, Covington Sears' new store brand that combined eight different labels in hopes of generating $500 million in sales still is "grossly under-marketed," according to Burt Flickinger, managing partner at the consulting firm Strategic Resource Group. To court Hispanic customers, Sears plans to unveil Lucy Pereda, a line of dressy women's Analysts say it has no choice but to succeed with fashions By Anne D'lnnocenzio Associated Press Angela Powell walked out of the main Sears, Roebuck and Co. store in suburban Atlanta, where she had been looking for clothes and a television. Not finding anything she wanted, she headed for the auto center. "Hardware and auto service," she said.

"That's what I think of when I think of Sears." In Columbus, Ohio, Mo Por-ven had much the same assessment at her local Sears: "I trust them No. 1 for appliances." That may be Sears' biggest problem as it plans a future solely as a retailer, beset by mounting competition from discounters and other stores. The nation's fifth-largest retailer has to OFor business updates throughout the day, go to lndyStar.combusiness change its image before it can resurrect its business. On Tuesday, Sears announced that it will shed the last of its non-retail operations by selling its credit-card business. Two days later, it warned that earnings for the year will be weaker than anticipated because of sagging sales at its stores.

"The real problem is that consumers haven't given Sears permission to sell them fashion," said Harry Bernard, partner at Colton Bernard, an apparel consulting company. He added that Sears "has made attempts in the fashion business, but never stayed with it." What will it take to reverse 22 consecutive months of sales declines during Sears' restructuring? Acquiring more labels? Snappier advertising? Will a new clothing line lure Hispanics? "Sears is still trying to figure out what it wants to be," said M. Spencer araen Associated Press Donning new labels: Sears' purchase of Lands' End and development of Hispanic line Lucy Pereda shows it is serious in becoming a fashion player. clothing bearing the name of the Cuban-born television personality, in 200 stores this fall. But while it tries to become more of a fashion player, Sears faces new challenges in appliances.

While it is the leader in that area, the company's market share has eroded recently because of competitors like Home Depot and Lowe's. In May, Sears announced a See Sears, Page C6 Redwood Shores, Oracle remains determined to buy PeopleSoft, even though that objective now will require taking on something that it didn't originally want Denver-based J.D. Edwards. "We believe time is on our side," Oracle spokesman Jim Finn said. Oracle has extended its offer through Aug.

15. As of July 11, about 14 percent of PeopleSoft's stock had been tendered to Oracle. If it hopes to prevail, Oracle has to hope things go better than they have in the past three weeks. First, the Department of Justice raised doubts about Oracle's takeover hopes by demanding more information about how a PeopleSoft combination would affect competition in the $20 billion market for business applications software. Then PeopleSoft surprised everybody by overcoming the customer uncertainties caused See Oracle, Page C5 Hostile takeover bid is further set back as rival completes deal for J.D.

Edwards. By Michael Liedtke Associated Press SAN FRANCISCO -Business software maker People-Soft Inc. took control of J.D. Edwards Co. on Friday, adding to a recent barrage of blows delivered to Oracle hostile takeover bid.

If corporate battles were scored like boxing matches, Pleasanton, People-Soft clearly would be ahead on points at this stage of its high-stakes scuffle with Oracle. "PeopleSoft has really risen to the occasion," said Eric Upin of Wells Fargo Securities. "They have rallied the troops and handled everything very well." "This is huge for us. We're all walking on air," PeopleSoft CEO Craig Conway said. Does Sears have what it takes to survive in the retail market? "Hardware and auto service.

That's what I think of when I think of Sears." "The real problem is that consumers havent given Sears permission to sell them fashion." "Sears is still trying to figure out what it wants to be." Angela Powell, customer Harry Bernard, partner at Colton Bernard, apparel consulting firm in San Francisco John Champion, vice president at Kurt Salmon Associates Anthem to offer TAA insurance Releases slow Conseco case How to determine eligibility Unemployed workers forced out of their jobs by foreign competition may be eligible for federally subsidized health insurance. Some details: To determine if you're eligible, call the Health Coverage Tax Credit program at 1-866-628-4282. Hoosiers deemed eligible may call Anthem at 1-888-482-6847 to set up the insurance. More information is available online at www.irs-.gov. Search for "HCTC." and the customers will pay the remaining 35 percent.

The government will pay its share on a monthly basis. The Anthem policies will cover such costs as non-brand-name prescription drugs, emergency room care, home health care services, and organ and tissue transplant services. Available for individuals and families, it may be extended at the time of application to cover maternity care. It will pay a maximum of $1 million in a lifetime. People with this Anthem Blue Access Trade Adjustment Assistance will have the same access to top doctors and hospitals as people with other insurance, said Rick Cockrum, Anthem's vice president of government relations.

"One of the concepts behind this is to strongly encourage people to get into the insured system and stay in," he said. McCarty said she expects many of those eligible to buy the insurance because the federal government will pay so much of the premiums. Call Star reporter April Marciszewski at 1-317-444-6424. Federally subsidized program is for those who have lost their jobs because of foreign competition. By April Marciszewski april.marciszewskiindystar.com Anthem will become the first Indiana insurer to offer federally subsidized health insurance to people who have lost their jobs because of foreign competition.

Some people with inadequate pension payments also qualify for the plans that start Aug. 1 and last through 2007. About 12,000 Hoosiers including many steel workers are expected to be eligible, according to Anthem. That's about 1.6 percent of all unemployed Hoosiers, who number more than 700,000. Anthem is the only Indiana company currently offering this TAA insurance, confirmed Sally McCarty, Indiana Department of Insurance commissioner.

The federal government will pay 65 percent of the insurance premiums, Opponents to Conseco's plan, most notably owners of more than $2 billion in trust-preferred debt, or TOPrS, disagree, saying Conseco is trying to forward a "doomsday" scenario. The resolicitation of votes to approve the fourth amendment of Conseco Finance's bankruptcy plan came as a surprise move late Friday by Conseco attorneys, marking yet another twist in the third-biggest bankruptcy filing in U.S. history. It came after the U.S. Trustee's Office and counsel for Conseco Finance's unsecured creditors raised disclosure concerns regarding the broad legal releases in Conseco Finance's plan that mirror those for the parent company.

Conseco Finance reached deals with major creditor Leh- See Conseco, Page C5 the plan. Opponents warned such a move could have a ripple effect through the U.S. legal system. "This could all be moot if I don't approve the releases," Doyle warned. "This could all be for nothing." Any delay in Conseco's emergence from bankruptcy puts the company's insurance units at increased peril Company officials warned earlier this year that if Conseco does not escape Chapter 11 by year's end, the fate of those businesses cannot be certain.

"If this doesn't happen, the company could go out of business, although I don't want to stand here and say it's at that level now," James Sprayregen, lead bankruptcy counsel for Conseco and Conseco Finance, told Doyle. "It's taken us almost a year to get here. If we have to start over, I don't think we'll get back in a week." By Bill Hornaday bill.hornadayindystar.com CHICAGO The fate of Conseco's bankruptcy plan and possibly the company's future now rests with a federal judge, whose expected ruling in two weeks should coincide with the conclusion of an unexpected second vote on a similar plan for its former finance subsidiary. Even if creditors approve the Minnesota-based unit's plan again, there's no guarantee the plan for Carmel-based Conseco will pass muster with U.S. Bankruptcy Judge Carol A.

Doyle. She heard closing arguments Friday in its case. Conseco attorneys spent much of the afternoon trying to convince Doyle why broad legal releases protecting Conseco officers, directors, employees and other representatives should stay in (MWO.IhJfr ifciiiljl.