The Akron Beacon Journal du lieu suivant : Akron, Ohio • Page 12

The Beacon Journal www.Ohio.com Page C8, Wednesday, June 30, 1999 immmmm Purchase of AltaVista means work for CMGI Investors applaud $2.5 billion deal, but product will need heavy advertising Another big gain for stock market 1 A art i I 1 It. 'J CarParts.com, Furniture.com and Raging Bull, a financial investment forum. AltaVista, in addition to its widely used search engine, offers news, stock quotes and shopping services and took in about $40 million in revenue last year. But it ranked only No. 15 among networks of Web sites last month, with 9.5 million visitors, according to the Media Me-trix research firm.

the most popular, drew 31.1 million visitors. Analysts say a key reason is that Compaq, since it acquired AltaVista as part of its $9 billion purchase of Digital Equipment Corp. last year, failed to spend enough money to advertise the site as more than just a search tool for finding other sites on the Internet The vast majority of visitors to AltaVista are just using it to search elsewhere, said Mark Mooradian, an industry analyst with the Jupiter Communications By David E. Kaijsh Associated Press New York: Internet investment company CMGI Inc. intends to create a Web powerhouse to rival the likes of Yahoo! and Excite with its $2.5 billion purchase of Compaq Computer AltaVista Web destinatioa But CMGI has its work cut out for it By agreeing yesterday to buy a controlling stake in AltaVista, the Andover, company aims to attract far more visitors to the site, a persistent laggard in popularity, in part by creating links to its own array of Web sites.

While known as an aggressive manager of promising Web businesses, many of CMGI's Web ventures themselves are relatively obscure. Some analysts wondered whether the new backers would sustain a higher level of advertising for the AltaVista brand, which is less well-known than archrivals that are ingrained in the public consciousness. "They're playing catch-up," said Barry Jaruzelski, a partner with the Booz Allen Hamilton management consulting firm. "It's not like everyone is going to sit idly by and let them take market share from them." Even so, investors applauded the deal, particularly given CMGI's plans to sell AltaVista stock to the public and exploit the investment community's powerful appetite for Internet-related businesses. CMGI's stock shot up 13 percent or 12 a share to 1107,6 on the Nasdaq Stock Market, pushing the value of the deal up from its original $2.3 billion.

On the New York Stock Exchange, shares of Compaq rose 5 percent, CMGI, which is buying a controlling 83 percent stake in AltaVista from Compaq, plans to use it as a hub to lead surfers to other corners of its online empire, including stakes in lesser-known properties such as Ancestry.com, Saturn to launch midsize car line Si Automaker begins airing ads for L-series sedan, station wagon Associated Press Detroit: You can't call Saturn the small-car company of General Motors Corp. anymore. Television ads for the first midsize Saturn began airing Monday as part of Saturn's biggest ad campaign. Prices of the new L-series sedan and station wagon will range from $15,450 to $21,800. The L-series (L stands for is the first new model for Saturn since it began selling its S-series subcompacts in 1990.

The new models are to go on sale in late July. The ads are intended to pique Associated Press The new L-series station wagon and sedan will be Saturn's first midsize cars. The new models, which will compete with the American-built Toyota Camry and Honda Accord, are to go on sale in late July. To do so, the L-series will have to take on the American-built Toyota Camry and Honda Accord, the nation's best-selling cars, in the industry's largest and most competitive segment Saturn is betting the L-series' competitive prices and Saturn's Associated Press file photo CMGI chairman is David Wetherell. His company is buying a controlling stake in Compaq Computer AltaVista.

research firm. That means Web visitors don't spend a lot of time checking out AltaVista's other services and, importantly from a revenue standpoint, paid advertisements. To help popularize the site, CMGI and Compaq plan to each contribute $50 million to promote it. Analysts said that was an important first step, considering that Compaq spent only about $1 million last year for AltaVista ads. An advertising campaign broke on Monday as Compaq unveiled new services for AltaVista.

reputation for friendly, no-hassle shopping will help it do that Toyota and Honda also no longer make wagon versions of the Camry and Accord, a fact that Saturn plans to exploit as wagons show signs of staging a comeback. rection," he said. Mark Scally, chairman of McGladrey, said he was less interested in competing for the business of large, global companies than in serving, for example, a manufacturer with sales of $100 million. "What we're together going to build is the leading national firm focused on the midsized market" he said. "Our feeling is that this is going to be a very unique firm." Shares of Block fell SI9 to 49V on the New York Stock Exchange.

and another 80 broken bones, the agency said. The injury rate declined significantly in the 1990s as McDonald's prodded franchise holders to remove the jungle gyms and replace them with safer models, the commission said. Shares of McDonald's rose lVw to close at 417n "Compare Us To Your Rodger Riney, President 200 9 5009 10009 ME Airlines Hopkins service to London begins Continental Airlines begins service from Cleveland Hopkins International Airport to London's Gatwick Airport today. This will mark Cleveland's first non-stop trans-Atlantic service. It is Continental's 18th trans-Atlantic route.

Continental will provide service from its Cleveland hub to London using a specially equipped Boeing 757. In addition to 16 business class seats, the aircraft can carry 157 coach passengers. The flight from Cleveland will depart daily at 5:20 p.m., arriving in London at 5:55 am. the next day. The departure from London will be at 11 am, arriving in Cleveland at 2:50 p.m.

Media CNN names anchors for 'Moneyline' show Moving quickly to fill a vacuum in its most profitable program, CNN appointed Stuart Varney and Willow Bay as co-anchors of the nightly Moneyline business wrap-up show. They will replace veteran financial anchor Lou Dobbs, who left earlier this month to join an Internet startup firm. Varney, 50, worked at CNN for 18 years before leaving last year to lecture. Bay has been host of CNN financial and entertainment newsmagazines and has filled in for Dobbs since he left. Transportation Car, light truck sales rise 4 percent in June U.S.

car and light truck sales rose an estimated 4 percent in June as consumer confidence hit its highest level in more than three decades. June sales at General Motors Corp. are predicted to rise 0.6 percent, based on the average of four analysts' forecasts. DaimlerChrysler AG's sales will rise about 0.1 percent from June 1998, which was one of its best months. Ford Motor sales are forecast to rise 2.1 percent.

Food General Mills earns 27 more in year General Mills Inc. credited strong sales in Cheerios, Total and brands fortified with calcium with helping to boost earnings 14 percent in its fourth quarter and 27 percent in its fiscal year. In the quarter ended May 30, General Mills earned $104.8 million, or 67 cents a share, compared with $91.8 million, or 57 cents a share, in the same period of last year. Retail Wal-Mart is trying to acquire Okla. Wal-Mart Stores the world's biggest retailer, is seeking permission from federal regulators to buy a savings banks so it can offer financial services to its customers.

Wal-Mart, based in Bentonville, applied to buy Federal BankCentre of Broken Arrow, the U.S. Office of Thrift Supervision said yesterday. Lawsuits Settlement is upheld against B.F. Goodrich A jury properly awarded a northwestern Wisconsin company nearly $3 million in damages from B.F. Goodrich Co.

over a production contract that was later dropped, a state appeals court said yesterday. The 3rd District Court of Appeals denied Goodrich's request for a new trial. Douglas-Hanson of Hammond, invested in new equipment to do work on an adhesive for Goodrich, but Goodrich later dropped the project A St. Croix County, jury determined the adhesive was never satisfactorily developed to the point where it could be marketed. Tidbits Firms agree to back buyout of Big Flower.

Investment firms headed by Thomas IL Lee and former U.S. Deputy Treasury Secretary Roger Altaian agreed to back a $1.9 billion management-led buyout of Big Flower Holdings Inc, the largest U.S. printer of advertising inserts. Microsoft Corp. is offering new subscribers who sign up for its MSN Internet access service a $400 gift certificate to buy a personal computer at Staples or MicroCenter stores.

The Cleveland Clinic Foundation appointed Dr. Robert Kay as chief of staff, effective July 15. Kay will succeed Dr. Ralph A. Straffon, who is retiring after 40 years of service.

Block to buy accounting firm Dow jumps 160 points before Fed rate decision By Eileen Glanton Associated Press NEW YORK: Blue-chip stocks rallied for a second straight session yesterday, surprising Wall Street with their momentum a day ahead of the Federal Reserve's interest rate announcement The Dow Jones industrial average gained 160.20 to close at 10,815.35, extending Monday's 102.59-point gain. Volume was relatively light throughout the session, magnifying price swings and suggesting that the rally, while broad-based, lacked conviction. Other market indicators also rose, although their gains lagged the Dew's. The Standard Poor's 500 index rose 20.10 to 1,351.45, and the Nasdaq composite gained 39.67 to 2,642.11. The Nasdaq, dominated by technology stocks, is now just 10 points below its April 26 record high.

"There was no overwhelming moonshot," said Larry Wachtel, market analyst for Prudential Securities. "But some buyers are back, ready to be adventurous." Traders continued to tread lightly while they waited to see if the Fed's Open Market Committee, which was meeting yesterday and will meet today, would raise a key short-term interest rate by an expected 0.25 percentage point or if the policy makers would take a more aggressive approach to contain the economy and inflation. Official word from the Fed was expected at 2:15 p.m. today, and market watchers were prepared to analyze every word of the announcement "The main concern will be whether the FOMC retains a tightening bias," said Scott J. Brown, chief economist at Raymond James Associates in St.

Petersburg, Fla. That would indicate the Fed is inclined to increase the key short-term rate again if it determines that higher interest rates would stave off inflation. Rising interest rates pose several problems for stocks: They lower corporate profits, and they make bonds a more attractive investment Most major stock market indexes have slumped since May 18, when the Fed first signaled that it might boost rates. An improvement yesterday in the bond market where the yield on the Treasury's 30-year bond fell to 6.06 percent from late Monday's 6.09 percent also lent support to stock prices. Volume was thin, however, as traders there also awaited the Fed's move.

Wall Street traders were responding to news On individual stocks. After Morgan Stanley Dean Witter raised its rating on Pepsi, the soft-drink maker's stock rose P16to38. Philip Morris fell to after telling analysts Monday that its earnings would be lower than expected. Drug stocks, which have tumbled in recent months, shot higher as President Clinton offered de tails of his Medicare prescription benefit plan. While the drug companies initially worried that it would set the stage for price controls, analysts said the plan has little chance of passing.

Pfizer rose 3 to 104, and Eli Lilly rose 2 to 68. Chevron was the biggest contributor to the Dows gains, rising 4316to 93 after Donaldson Lufkin Jenrette raised its rating on the stock. a service of the Beacon Journal Your Connection to Wall Street Log on to www.Obio.com for the latest Business and Financial news and much more. Services Include: Financial News and Information Office and Personal Technology Store The Associated Press Business Wire Search The Ohio Directory for Corporate Websites Oet A Mock iuote Courtesy of smr Scottsdale iW Stock Quote and Obio.com Financial News Sponsored by Scottsdale Securities Discount Stock Brokers http:www.discountbrokers.com Purchase of McGladrey Pullen puts closer to becoming financial services firm for midsize clients interest in the new model Each "teaser" ad inserts the sedan's name, "LS," among familiar clothing sizes: "S-M-LS-XL." The TV, print and billboard versions do not show the car, but promise that "the next big thing from Saturn" is coming soon. Sixty- and 90-second TV ads showing the car will debut in August and will keep with the down-home feeling of Saturn's previous campaigns.

Those ads featured Saturn's Spring Hill, plant as a harmonious place where happy workers build solid cars. The world's largest automaker has high hopes for the L-series, which will be assembled in Wilmington, DeL GM officials expect the line to double Saturn's annual sales to around 500,000 within a few years. est accounting firm in terms of revenue. It's the latest purchase by the Kansas City-based company, which, along with rivals Century Business Services Inc. and American Express has been on a buying spree for private accounting firms.

The three have acquired about 80 privately held firms since 1997 as they attempt to expand their business services, which range from tax preparation to consulting. Product Safety Commission," said Russ Rader, a spokesman for the commissioa The CPSC said most Big Mac Climbers, metal platforms resembling hamburgers, were removed by 1995 and all were gone by 1997. McDonald's said it will pay the fine to end the dispute over whether the company failed to properly report the injuries to regulators. "This closes the book on issues that go back to the 1970s," said Walt Riker, a spokesman for McDonald's in Oak Brook, 111. "This was an old piece of equipment that was headed for extinction before all this came up." It's the second time in four years McDonald's has paid a large sum to settle complaints over playground equipment The first violation also involved numerous injuries, including broken bones suffered by children who By Jason Strait Associated Press Kansas City, Block Inc.

has agreed to buy the nation's seventh-largest accounting firm in a deal analysts say pushes the company best known for tax preparation closer to becoming an elite national financial services firm for midsize business clients. The $240 million deal for McGladrey Pullen LLP of Minneapolis, announced yesterday, makes Block the sixth-larg McDonald's to pay settlement The gap between the three rivals and the Big 5 accounting firms, however, remains considerable, said analyst Alexander Paris Jr. of Barrington Research in Chicago. Paris said Block, with annual revenue of $1.6 billion, cannot match the strength of multi-billion-dollar firms such as Andersen Worldwide and Price Waterhouse Coopers, which had more than $10 billion in revenue in 1998 but that's not the point "What they want to do is build a broad-based financial consulting company with these acquisitions, and this is a big step in that di played on defective Tug-N-turn merry-go-rounds installed at restaurants between 1982 and 1987. The Consumer Product Safety Commission alleged then that McDonald's knew of numerous injuries to children who played on the merry-go-rounds, which have since been dismantled.

Children were injured after shoelaces and other clothing got caught in the ride's base, the agency said. In 1995, McDonald's settled that case by agreeing to fund a $5 million safety campaign and to report other dangerous playground equipment to the CPSC. "They were required in the 1995 settlement to report all injuries related to their equipment and they did not do that" Rader said. McDonald's was aware of more than 400 children injured mostly due to falls from the jungle gym, the commission said. Nearly 20 suffered concussions Haverfield was the parent company of Home Bank, which merged into Charter One in September 1997.

The 179 Haverfield employees who participated in the stock ownership plan will split the $70,000 settlement. Charter One and Shimrak did not admit any Government says chain failed to report injuries 400 children suffered on playground equipment By Pierre Marcoux Bloomberg News Washington: McDonald's Corp. agreed to pay $4 million to settle claims it failed to inform the government of playground injuries at some of its restaurants, a fine described by a U.S. agency as the largest of its kind. The settlement between the world's largest fast food chain and the Consumer Product Safety Commission stemmed from more than 400 injuries to children on the company's Big Mac Climber jungle gyms at franchised restaurants in the 1970s and 1980s.

"This is the largest monetary penalty ever against a company in the history of the Consumer Charter One Bank Associated I'ress Cleveland: Charter One Bank and the former chairman of a bank holding company acquired nearly two years ago have agreed to a $70,000 settlement of a lawsuit regarding a stock purchase. The U.S. Department of Labor sued on May 29 on behalf of participants of the defunct Haverfield Corp. employees' stock ownership 'Scottsdale $36 $50 $72 Schwab 110 118 166 Quick Rcilly 84 90 128 Fidelity 92 128 138 Olde 60 100 125 Waterhouse 53 70 138 Lynch 201 265 483 settles lawsuit over stock purchase Comrntsstons shown are far verbal orders and are not dependent on account sue or activity. 1 JH) Mmmum.

Services may vary by firm. Survey IIV197. Scottsdale Securities, Inc. Call for a Free Copy of "YOUR GUIDE TO COMMISSION SAVINGS" Touchlone Internet Trading I www.ScoTTrade.com i 1653 Merriman 101 (Bally' Building) 330-865-1930 1-800-619-SAVE (24-hours) plan, Labor Department spokesman Gloria Delia said yesterday. She said the settlement was approved in U.S.

District Court on June 21. The government alleged Peter Shimrak, former Haverfield chairman, and a Haverfield director in 1991, improperly bought Haverfield stock at inflated prices for the employee stock ownership plan..