The Palm Beach Post from West Palm Beach, Florida • Page 15

VEDNESDAY, JULY 17, 1996 The Palm Beach Post a PAGE 5B Codes for 24-hour financial updates PAGE 6B SUB Sprint picks Boca as wireless venture headquarters Money attracts bioney: A strategy or redevelopment This week's best leveraged investments were ot made on Wall Street. They were made on West itlantic Avenue in Delray Beach. And on the shores Lake Okeechobee. They were not made by daring speculators out to eat the odds in a market turned shaky, either. They fere made by Palm Beach County commissioners as art of a calculated economic development strategy tiat is being methodically followed.

A leveraged investment is one by which you eek to buy a maximum bang of a return with a The company contacted the development board in April after deciding on Florida for the headquarters site in the 10-state region. "Actually we thought Broward would have the advantage because Sprint's sales office was there," said Gary Hines, senior vice president of the business development board. Sprint Spectrum holds the right to provide personal communications services to more than two-thirds of the country, a population of 182 million. Please see SPRINT 1 0B By STEPHEN POUNDS Palm Beach Post Staff Writer BOCA RATON Sprint and a consortium of cable companies are basing the Southeastern U.S. regional headquarters of their new wireless communications venture in Boca Raton, bringing 75-100 new jobs to the area.

The company, called Sprint Spectrum L.P., includes the long-distance phone company as well as Comcast Tele-Communications Inc. and Cox Communications, an arm of Cox Enterprises, the company that owns The Palm Beach Post. The announcement was made Tuesday at the Boca Raton Chamber of Commerce. Sprint Spectrum began moving in this week. The new division could create as many as 150 jobs in southern Florida after it opens sales offices.

The actual number depends on which distribution channels the company ultimately chooses for its personal communications services. Personal communicators are wireless phones that have more features, cutting-edge technology and clearer reception than the cellular phones now in use. They have a beeper built in with the capability of receiving voice-mail and short data and messages. They also use a scrambled signal, so they can't be captured by cellular thieves. Sprint Spectrum must create at least 72 new jobs and agree to stay in the area for two years in order to hold up its end of a job-growth, grant program of the Palm Beach County Business Development Board.

The company will receive the $100,000 grant after one year of operation here. Fortune's Top Global Companies (with 1995 revenues) 1. Mitsubishi (Japan) $184.4 billion 2. Mitsui (Japan) $181.5 billion minimum outlay of bucks. Commissioners made an exemplary one on Tuesday.

They agreed to put $275,000 in eight projects in areas targeted for redevelopment. It's an investment that has helped generate a commitment of $5.9 million in additional investment. The move is part of a leveraging strategy that dates back to 1993. That's when the county identified six regions where income and the number of women- and 3. Itochu (Japan) $169.2 billion 4.

General Motors (U.S.) $168.8 billion lOBERT OUGLAS USINESS EDITOR 5. Sumitomo (Japan) $167.5 billion 6. Marubeni (Japan) $161.1 pillion 7. Ford Motor (U.S.) $137.1 billion mm a A Jt A Jt Sit 1.. 1 1 1 8.

loyota motor (japanj $111.1 Dimon 9. Exxon (U.S.) $110 billion 10. Royal Dutch-Shell Group (Britain-Netherlands) $109.8 billion Source: Fortune magazine ROB BARGEStaff Artist Paxson weighs sale or swap of Channel 25 By JULIE WARESH Palm Beach Post Staff Writer WEST PALM BEACH Just 2 months after buying WPBF-Channel 25, Paxson Communications Corp. is looking to unload the ABC affiliate. The company said Tuesday that it has hired the Baltimore-based investment banking firm Alex Brown Sons to advise it on the possible sale or swap of WPBF.

The study also will include the long-term agreement under which Paxson operates another Palm Beach County television station, WTVX-Channel 34. The move reflects Paxson's strategy of concentrating on its core businesses, which include its IN TV infomercial network and its Florida radio group, Director of Finance Seth Grossman said. "It's basically a third business," Grossman said. "It didn't allow us to focus our resources on the other businesses." Paxson (Amex: PXN: $10.88) bought WPBF for $32 million in early 1994, with plans to bring the station out of the ratings doldrums. But its newscasts continue to trail the NBC and CBS affiliates.

Paxson has invested more than $4 million in the station, much of it for new equipment and a new set at the Palm Beach Gardens studio. "We are looking to unlock that value that we've created and apply it to the other businesses," Grossman said. Paxson's IN TV network has 36 stations reaching an estimated 46.2 million U.S. households. Paxson also owns 35 Florida radio stations, six radio networks and 332 billboards in Tampa and Orlando.

John Reidy, an analyst with Smith Barney in New York, said he expects Paxson to get "well over $100 million" for WPBF. "The market is very strong for television, as evidenced by the furious bidding on another station in your area," Reidy said. Reidy referred to the bidding war nearly a year ago for CBS affiliate WPEC-Chanilel 12. The station sold for about $160 million. WPEC General Manager Bill Peterson said he expects the same big-name broadcasters and publishers to show interest in WPBF.

Those included The New York Times Media General Meredith Corp. and Hearst. "My guess is they'll be lined up pretty deep," he said. Profits up 15 for globe's biggest firms, but employment sluggish $323.3 billion, up 14.7 percent from 1994. But the number of workers they employed rose only 1.8 percent to 35.12 million, and some companies slashed jobs.

For example, British-Dutch petroleum giant Royal Dutch-Shell Group was the most profitable corporation for the second straight year with earnings of $6.9 billion, up 10.7 percent from 1994. But the company intends to cut its headquarter staff by 25 percent. The rise in profits among the Global 500 last year was small compared with the 62 percent increase in 1994. It was derived from a relatively slow global economy, which grew 2.4 percent last year due partly to near recessions in Japan and much of Europe. The United States remained home to the largest number of companies on the list with 153, followed by Japan with 141, France with 42, Germany with 40, Britain 32, Switzerland 16, South Korea 12, Netherlands eight and Spain and Canada with six each.

General Motors climbs to fourth place among the 10 largest. The Associated Press NEW YORK The biggest companies on the planet fattened their profits by nearly 15 percent in 1995 and did it with roughly the same number of workers they had in 1994, Fortune magazine reports. The twice-monthly business glossy also reports in its annual Global 500 ranking that Japan's dominance among the top 10 faltered somewhat. Although Mitsubishi, Mitsui and Itochu remain the three biggest, General Motors Corp. bumped Sumitomo for fourth place.

The most profitable industries included airlines, brokerages enriched from booming stock markets, and paper companies that commanded premium prices for their products. The ranking appears in Fortune's Aug. 7 issue. The collective profits of the 500 totaled mwmmmm minority-owned firms are low, ut where unemployment and crime are high. After oncluding that a lack of economic growth in these 3gions is a drag on the entire county, officials began wking for ways to promote more activity in them.

Last November, commissioners appropriated 1 million for a Development Regions Grant Togram. It earmarked $100,000 for projects in each the six regions, which include parts of Delray ieach, Boynton Beach, Lake Worth, West Palm leach, Riviera Beach and the rural Glades. The 'maining $400,000 was put up for competition from fojects in any of the regions. In May, the county 34 projects. And on Tuesday, grant intracts were approved for the first eight.

The rest fe expected to be approved later this summer. To qualify, recipients must line up additional liblic and private financing, j. And, of course, before they can collect their fants, they must show some results, But just having them authorized is a milestone in ie long and arduous process of grassroots development of areas in decline. not a handout, it's an investment It lets a community know the county is serious iout supporting that process, says Tony McCray, kecutive director of the Glades Community evelopment Corp. It's working on four projects in pile Glade, Pahokee and South Bay that qualify to Jare $100,000 in grant money.

Public subsidies help jump-start the economic pgine in blighted areas where small businesses bn't have access to capital, says Chris Brown, jcecutive director of the Delray Beach Community edevelopment Agency, or CRA. It's involved in lur projects along West Atlantic Avenue and Isewhere in the city that are in line for $175,000. I Projects that include Parker's Kitchen, which xemplifies the dynamics of leveraging and joperation the program seeks to foster. The county is committing $70,000 toward the evelopment of a restaurant serving soul food and Duthern cuisine. But that's contingent on other arts of a financial package worth more than 400,000.

The CRA is providing land for the jstaurant and parking. The Black Business ivestment Corp. is guaranteeing a bank loan from jrst Union. And the Technology, Enterprise (evelopment Center, a county-backed incubator, as helped develop a business plan for the owner, fho is putting up money of his own. If the project lives up to its promise, it will create to 10 jobs.

If all eight projects approved Tuesday ve up to their promise, they will create 194 jobs. They may fall short, of course. In economic evelopment as in the stock market, the higher the btential return, the greater the risk. But it's hard not to be bullish on an effort that kmises to enrich the whole community by generating its most neglected corners. FPL busy with layoffs in restructuring nuclear division didn't know how many people are employed in the nuclear division.

"I don't know how many have been issued or how many will be between now and August. After this is completed, we will address the size of the nuclear work force." In April, FPL announced a plan to transfer 60 positions from the Juno Beach headquarters to nuclear plant sites at Turkey Point and St. Lucie. It also said it would eliminate another 120 jobs at headquarters. Shaw now says those layoffs will be Those packages are in addition to 30 handed out at the company's Juno Beach headquarters Monday, the employees said.

Another 30 are expected to be handed out there. FPL spokeswoman Stacey Shaw said the company would not discuss employment figures until after the restructuring is completed. All severance packages should be handed out by Aug. 1. "We're not going to get into a day-to-day discussion of how we're handling staffing," said Shaw, adding she By DE'ANN WEIMER Palm Beach Post Staff Writer Florida Power Light Co.

distributed layoff packages at the struggling St. Lucie Nuclear Power Plant Tuesday as part of a restructuring of its nuclear division that is expected to result in 100 layoffs. About 30 St. Lucie employees were given severance packages, as were six employees at the company's Turkey Point plant, said three FPL employees who spoke on condition of anonymity. Others opted for demotions, they said.

division-wide and not limited to headquarters. The transfers were made several weeks ago although some of those transferred could lose their posts in this round of restructuring, she said. Nuclear Division President Tom Plunkett, who took over in March, said he wanted to "decentralize operations." At the end of 1995, there were about 2,000 employees in the nuclear division, with 800 assigned to each nuclear plant. In Brief PALM BEACH POST STAFF AND WIRE REPORTS 7.20! 1 1 1 1 I 715 A 1.0 1 7Q5 y- 6 85 VLf-f 6.80 VyW- -J 6.75 VI- 6.70 1 'i i 1 'i I I I 4-17 5-1 5-15 5-29 6-12 6-26 7-10 Trading Ylds: Auction Dates 7.02 Not scheduled 5.73 Thursday 5.48 Monday 5.25 Monday 30-Year: 1-Year: 6-Month: I 3 -Month: Icahn group eyes ArvidaJMB units BOCA RATON Boreas Partners L.P., an affiliate of corporate raider Carl C. Icahn, on Tuesday made an offer to buy up to 185,000 of the outstanding limited partnership interests of ArvidaJMB Partners L.P.

for $460 a unit, or $85.1 million, directly from holders. Earlier in the day, Raleigh Capital Associates L.P. extended its recent offer to buy a similar stake for $435 a unit. In addition, Walton Street Capital Acquisition Co. Ill, offered $420 a unit.

An ArvidaJMB spokeswoman said a special committee of the real-estate developer's board has recommended investors retain their interests unless they need the capital. Monday, Arvida urged its investors to reject an improved tender offer by a group of investors led by financier Leon Black's affiliate, Raleigh Capital. Another team, made up of Chicago real estate investor and Arvida director Neil Bluhm and Goldman, Sachs has offered to buy 185,840 units for $420 each, or about $78.1 million. ArvidaJMB's financial adviser, Lehman Brothers has said the true value of the partnership is from $565 a unit to $610 a unit. Eastman Kodak, up $3 at $70: The Boca Research ships new modems BOCA RATON Boca Research Inc.

(Nasdaq: BOCI: $14) announced Tuesday that it began shipping its new Boca Prol6 Corporate Modem and Prol6 Rack System at the end of June. This new family of modems, devices used by computers to talk to each other through phone lines, is aimed specifically at large corporate market. Now Boca Research makes products aimed at the consumer market. Earnings up for First Palm Beach WEST PALM BEACH First Palm Beach Bancorp (Nasdaq: FFPB: $19.94) Tuesday reported third-quarter profits rose 57.5 percent to $2.7 million, or 53-cents a share. That compares with $1.7 million, or 34-cents per share, a year ago.

Net interest income rose 37 percent to $11.3 million from $8.2 million a year earlier, due mostly to loan growth. First Federal has $1.4 billion in assets and 32 offices in Palm Beach, Martin, Broward, and Dade counties. Fidelity Federal profits up WEST PALM BEACH Fidelity Federal Savings Bank of Florida (Nasdaq: FFFL: $12.44) Tuesday said profits rose 32 percent to $1.4 million, or 21 cents per share, from $1.04 million, or 17 cents per share, a year ago. Fidelity Federal has assets of $816.9 million and 20 branches in Palm Beach and Martin counties. BellSouth, at a stalemate ATLANTA BellSouth and its former parent company, are at an impasse on how to link their local and long-distance telephone systems in a competitive environment.

A mediation judge in Alabama put a stop to talks there even before they began, saying won't agree to standard mediation terms. Negotiations are expected to continue in Florida. InterZine announces more financing InterZine Productions, a privately held company that produces sports-related content for America Online, announced a second round of financing Tuesday for its operations and development worth more than $7.5 million. The company's new investment partners include TCI Interactive and Prudential Securities' Roman Arch Fund. All current partners also participated: America Online, Massey Burch, TransNational Ventures, and Draper Fisher Associates, InterZine Chief Executive Brian Henley said.

Publix sales up 12 percent LAKELAND Publix Super Markets said Tuesday its first-quarter 1996 sales totaled $2.7 billion a 12 percent increase over the same period last year. It also said its stock, which is privately held through an employee stock ownership plan, jumped more than 10 percent in its most recent valuation, to $18.50 per share. mmnanv's second-auarter Drofit lumped 17 percent to $440 million, boosted by robust sales of film, cameras and photofmishing services. CompuServe, down $3 at $12.50: CompuServe said it expected to lose money in the quarter ending July 31 because of flat suoscriDer growth and greater spending. The on-line service said it was experiencing a higher level of I data speeds and experimenting with Internet-only tqonnections.

General Motors, unchanged at $47: The automaker's profit fell 17 percent in the second quarter, ueuciuie ui uie uusia ji oytn un no Electronic Data Systems subsidiary, but the result beat analyst estimates. GM earned $1.89 billion, pr $2.63 a share, with revenues increasing 6 percent to $44.7 billion compared with the sarr period last year..