Star Tribune from Minneapolis, Minnesota • Page 35

WEDNESDAY, AUGUST 1 1 1999 TODAY'S BUSINESS BRIEFING STAR TRIBUNE PAGE D3 REGIONAL NEWS NATIONAL NEWS MCI glitch cripples many ATMs Simon Property Group in negotiations to boost its stake in Mall of America Company says deal worth $425 million Bloomberg News INDIANAPOLIS Simon Property Group Inc. is in talks to boost its stake in the Mall of America in Bloomington, the biggest shopping mall in the United States, in a transaction valued at as much as $425 million, a company official said. In the contemplated transaction, Indianapolis-based Simon Property, the largest mall developer in the United States, would buy half of Teachers Insurance Annuity Association-College Retirement Equity Fund's 50 percent stake in the mall. Under a complex arrangement, TIAA- park and an aquarium. It opened in 1992 for total development cost of more than $680 million.

TIAA-CREF contributed about $650 million to the project and has enjoyed dividends from the property. A Simon Property predecessor built the property, and the company is its manager. Last year, the Mall of America generated sales of $500 a square foot, almost double the industry average and a figure Simon called remarkable given the large size of the mall Simon Property is finalizing plans to expand the Mall of America even further with the addition of more retail space and entertainment-type tenants. Simon Property's shares fell 43 cents to $25.18. CREF's half stake entitles it to 100 percent control of the mall Though the talks are still at an early stage, Simon Property is proposing to finance the acquisition with $300 million to $310 million of securitized loans, an equity investment of $80 million to $85 million and the issuance to TIAA-CREF of about $30 million of preferred stock.

"We think this is the best center in the country," David Simon, chief executive, told analysts and investors on a conference call. TIAA put its stake in the 4.2 million-square-foot property up for sale last year to take advantage of the high prices being paid for top-of-the-line shopping centers. The complex includes more than 520 stores, an indoor theme Boston, Chicago, Los Angeles and San Francisco. As a result ATMs nationwide and in some cases outside the United States have had intermittent trouble dispensing money because the bank machines couldn't communicate with each other, making it impossible to determine the customer's balance. ATM networks have not been able to determine the number of machines affected because many of the disruptions are only short-term, said Kate Coleman, a spokeswoman for Chicago-based Cash Station, which operates ATMs mainly in the Midwest Chicago Board of Trade President Thomas Donovan issued a stinging rebuke of MCI after the disruption shut down electronic trading terminals.

The exchange was able to keep terminals inside the building running through a local network. MCI's stock fell to in trading Tuesday. Associated Press CHICAGO A glitch in MCI WorldCom Incorporated's data transmission network has partially disabled thousands of automated teller machines and restricted market trading of corn, soybeans and other financial futures. The problem at the No. 2 U.S.

long-distance carrier began late last week during a system upgrade and has disrupted highspeed data service for nearly 30 percent of MCI's global data network customers, spokeswoman Linda Laughlin said Tuesday. "Our technicians are still investigating what caused the problem and are working to identify all the service interruptions," Laughlin said, adding that she did not know when service would return to normaL MCI was upgrading network software from Lucent Technologies a former Corp. subsidiary, when the system began experiencing problems in large cities such as New York, Lutheran Brotherhood is sued again Lucent buying Internationa! Network MURRAY HILL, N.J. Lucent Technologies Inc. is expanding its presence in the growing field of designing and consulting on high-speed data networks by acquiring International Network Services Inc.

for about $3.6 billion in stock. Lucent, a leading maker of telecommunications equipment, plans to combine INS with its NetCare unit, which designs and sets up data networks, to create a division led by INS CEO and President John Drew. One of the nation's largest over promise Plaintiff says firm broke its promise ByDeeDePass Star Tribune Staff Writer Another lawsuit has been filed against Lutheran Brotherhood ac-cusing the fraternal financial services company of failing to live up to a life insurance agreement that promised premiums would "vanish" or terminate after a set number of years. The lawsuit, filed by Plymouth resident Allan Burton Smerud, says the premiums for his 1986 $300,000 insurance policy did not end after seven years as promised. After paying more than $25,600 in premiums over seven years, Smerud was told the policy was not paid up.

The suit says Chronimed Inc. (CHMD) Markets pharmaceuticals and educational materials to patients with chronic diseases. 4th quarter FY 1999, 72 of 'vanishing Smerud was told he could let the policy lapse or pay an additional $13,000 to make the policy "paid up." According to the suit, Smerud wanted to cancel his policy but developed bladder cancer, making him uninsurable elsewhere. He continues to pay the annual premium, which has increased to $4,059 a year. His attorney Earle Kyle IV, said Smerud has found himself between "a rock and a hard place on a life critical issue." The lawsuit charges fraud, breach of contract, breach of fiduciary duty, and negligence.

It is the fifth such lawsuit filed against the Minneapolis-based Lutheran Brotherhood in recent months. One lawsuit was dropped voluntarily but will be refiled in Minnesota soon, Kyle said. The lawsuits seek class-action Earnings Figures in millions except for earnings per snare. Lifecore Biomedical Inc. (LCBM) Makes medical and surgical devices.

4th quarter FY 1999, 630 1999 $81 1998 cling. $6.6 223 Revenue Bank of America touts mortgage plan premiums' status on behalf of hundreds of people who contend that they paid millions in premiums on policies that were supposed to be paid up. Other insurers, such as American Family Insurance, have been sued over similar complaints in recent years. This flurry of suits is new for Lutheran Brotherhood, which sells products only to Lutherans. In.

the complaint filed this week, Lutheran Brotherhood is also accused of churning policies, a term that means persuading policy holders to use the existing cash value of their policies toward the purchase of other, more expensive policies. Officials at Lutheran Brotherhood have denied the allegations. Wal-Mart posts healthy earnings BENTONVTLLE, Ark. Wal-Mart Stores the nation's largest retailer, reported a 21 percent increase in second-quarter earnings despite being hindered by a large court settlement Net income for the quarter was $1.25 billion, or 28 cents per share, compared with $1.03 billion, or 23 cents per share, in the same period a year ago. The quarter, 'which ended July 31, included a settlement charge of approximately 3 cents per share related to litigation with a Mexican grocery store chain.

Without the charge, Wal-Mart's profits would have increased 35 percent Revenue rose 15 percent to $38.47 billion from $33.52 billion. Associated Press Briefs Navarre New Hope, said its majority owned subsidiary, NetRadio will amend its initial public offering filing with the Securities and Exchange Commission to announce a new investment banking team, and report NetRadio's results for the quarter ended June 30. The IPO's timing is subject to market conditions, the company said. Medtronic Fridley, said it has been given clearance by the U.S. Food and Drug Administration for its Sigma family of pacemakers.

Inlet Medical Minneapolis, said it has been issued a patent for a method of using Inlet's needle-point suture passer. MLT Minnetonka, said it will establish a 600-per-son call and operation center in CEC Entertainment Irving, Texas, said it has acquired children's indoor entertainment centers in the Twin Cities currently operated under the name Circus Pizza. CEC plans to convert the centers in Edina, Blaine and West St. Paul into Chuck E. Cheese's restaurants.

Empl Shoreview, said it has scheduled a meeting of its shareholders for 10 a.m. Aug. 27 at company headquarters. Shareholders will vote on a planned merger with an affiliate of the Carlyle Group. Bank Plus Los Angeles, said its wholly owned subsidiary, Fidelity Federal Bank, has agreed to sell the deposits of its branch at Mall of America, which operates under the name iBank.

The deposits will be sold to a private California corporation. Astec Industries Chattanooga, said it has agreed to acquire Morris, Superior Industries of Morris for $17 million in cash. Superior makes conveyor systems and components for aggregate processing and mining. Instrumental St. Paul, said it has signed a partnering arrangement with SES Austin, Texas.

Inlru-mental will provide professional and consulting services for modeling and sim- ulation of information systems. Lamaur Minneapolis, said it has named Jo- seph Stiley III as chairman and acting CEO, effective immediately. Stiley has been a member of the Lamaur board since 1994. Insignia Systems Plymouth, said it has added King Soopers to its Point of Purchase Services network. King Soopers operates 79 stores in Colorado.

Pentair Roseville, said it has completed the acquisition of Essef Char-don, Ohio, for $310 million and the assumption of about $120 million in debt FieldWorks Eden Prairie, said it has been awarded supplier contracts by the Bloomington, Eden Prairie, Richfield, Eagan and Rose-mount police departments to standardize their squad car fleets with the new FieldWorks 2000 Mobile Data Server. Computer Network Technology Corp. said it has canceled an offering of convertible subordinated notes. Dynegy Northern States Power Co. and Salt River Project said they plan to build a power plant southeast of Phoenix.

The natural gas-fired plant will generate 500 to 750 megawatts of power, enough to light at least 500,000 homes. Each company will own one-third of the plant, which is to be completed by mid-2002. Grow Biz International Golden Valley, said it completed a master franchise agreement with Dus-kin Company Ltd. for the Once Upon A Child concept, granting Duskin the exclusive right to open corporate andor franchise stores and sell products under the Once Upon A Child business format in Japan. BOSTON Bank of America announced Tuesday it will fund an unprecedented $3 billion mortgage program for low- to moderate-income borrowers that promises no down payment, no application fee and no closing costs.

The national program will be overseen by Boston-based Neighborhood Assistance Corp. of America, led by self-described "urban terrorist" Bruce Marks, who has a track record of getting loan commitments from banks after accusing them of discrimi 1999 1998 cling. Revenue $553 $405 36.4 Income -03 15 Earnshare -OJ02 015 12 months Revenue $19a4 $140.7 411 Income 41 72 -423 Earnshare 034 059 Aluminum companies in merger talks independent network consulting providers, INS earned $25.4 million in the fiscal year ended June 30 on sales of $315 million. Its customers include more than 50 of the Fortune 100 companies. The Lucent deal will affect rival Cisco Systems, a leading maker of networking equipment, which owns 7 to 8 percent of INS, and has an executive on INS' board.

Cisco Vice President Charles Giancarlo will remain on the board until it ceases to exist when the deal closes, INS spokesman Jeff Kaplan said. Associated Press natory lending practices. Both Marks and Bank of America say the bank voluntarily decided to make the mortgage commitment because it's good business. Bank of America's home mortgage product will be available immediately in Atlanta; Baltimore; Buffalo, N.Y.; Charlotte, N.C; Jacksonville, Los Angeles; Memphis; Washington, D.C.; Dallas-Fort Worth, Houston; Oakland, Sacramento, San Antonio, and Tampa, Fla. Associated Press Alcoa, which had $15.3 billion in revenue in 1998.

Any agreement likely will face regulatory hurdles, but analysts said they don't believe the company would be able to control the aluminum market If the merger goes through, the three companies would have a combined work force of more than 100,000. The combined company also would have a large packaging business. Associated Press Javelinx solutions for e-business allow your company to connect so you're smarter, more nimble and powerfully competitive. Quick start-up time, low monthly fee and proven leading-edge, enterprise-level software solutions we're making it easier for businesses to gain an edge in this aggressive business environment figures in mSons except for earnings per share. 4th quarter 1999 includes one-time expenses of about $800,000 related to seeking strategic alternatives.

TechneCorp. (TECH) Makes hematology controls and biotechnology products for research institutions. 4th quarter FY 1999, 630 Income 11 05 1275 Earnshare 009 004 1250 12 months Revenue $273 $25.6 63 Income 15 0.2 576.4 Earnshare 013 002 5500 Fgures in mBons except for earnings per share. are. Integlnc.

(NTEG) Develops a painless and bloodless handheld glucose monitoring product 2nd quarter FY 1999, 630 1999 1998chng. Revenue $000 $000 Income -32817 Earnshare -028 -035 6 months Revenue $000 $0O0 Income Earnshare 1999 1998chng. Revenue $243 $185 303 Income 50 43 50 Earnshare 024 024 0 12 months Revenue $903 $673 351 Income 16.7 152 9.7 Earnshare 031 0.77 52 Land O'Lakes forms joint venture with Iowa-based farm cooperative NEW E-BUSINESS BREAKTHROUGH SOFTWARE RENTAL ZURICH, Switzerland Three aluminum companies with combined 1998 sales of $25 billion are in merger talks that could create the world's biggest aluminum concern. Zurich-based Alusuisse-Lonza, Pechiney of France and Alcan Aluminium of Canada all said they were in "advanced discussions" over a possible combination. The resulting company would be the world's largest-, leapfrogging Pittsburgh-based SIMPLE.

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