Star Tribune from Minneapolis, Minnesota • Page 37

INDEX GROCERY CUTS Supervalu is closing 30 out-of-state grocery stores and cutting 2,250 jobs as part of its restructuring. Turn to D3 Telecommunications: prepares for spinoff D4 Everybody's Business .02 Stocks D4, D5 Business Briefing D3 Mutual funds D6 www.startribune.combusiness StarTribune Wednesday, May 30, 2001 Section SOFTWARE MARKETS Dow Industrials Tj CLOSE 11,039.14 up 33.77 it em rj NASDAQ Cream of Wheat was born In the mid-1890s at a mill in Grand Forks, N.D. Production shifted to Minneapolis In 1897. Around the turn of the century the company began Its famous ad campaign, a painting from which Is shown here. CLOSE: 2,175.54 down 75.49 VOLUME: 1.6 billion I I I Steven Snyder will remain as the company's chairman.

Don Peterson was named president and CEO of Net Perceptions. NYSE CLOSE: 645.12 down 2.01 VOLUME: 1.0 billion 509 CLOSE: 1,267.93 down 9.96 Russell 2000 CLOSE: 502.37 down 6.25 Software irm taps Bloomberg-Star Tribune 100 CLOSE: 119.34 down 0.99 Gold CLOSE: 275.75 down 0.50 COMEX futures Oil 3 A a. CLOSE: 28.68 up 0.72 West Texas crude Key rates 3mo.T4 10-yr. T-bond Prime rate 3.70 3.69 5.52 5.86 7.00 i Star Tribune Dhoto bv Jeff Wheeler new CEO Peterson to head Net Perceptions By Sherri Cruz Star Tribune Staff Writer Net Perceptions Inc. named Don Peterson as its president and chief executive officer Tuesday.

He replaces Steven Snyder, one of the company founders, who will remain chairman. The company had announced the search for a successor in February. As Peterson takes the reins of the financially troubled company, he will be doing what he does best and what the company needs most. "I like to build businesses," Peterson said. One of Peterson's distinguishing attributes is his age, 39.

a little bit younger than other appointments," said Per Ostlund, an analyst with Miller Steichen Johnson Kinnard. But the Edina-based company was looking for a marketing and selling whiz, someone who would have a lot of energy and hit the ground running, Ostlund said. So in this case, youth may be an asset. NET continues on D3: Builder, seller of firms. Ron Keil, left, Al Warzecha and Ed Bradley will lose their Jobs when the Minneapolis Cream of Wheat plant, background, closes.

The plant will be sold and production will be transrerrea to pianxs in Hrnansas aim ununu. Amid worries about their own future, workers prepare to close the Cream of Wheat plant in northeast Minneapolis. Most of a century The Cream of Wheat plant in northeast Minneapolis has produced the cereal for 74 years. I 18th Av. NE.

immm, I i35w) jf Broadway Cream of 6 Cream of held each other's kids." Kraft Foods North America which became the plant's owner in December, announced this month that it will close the landmark northeast Minneapolis facility in February. The plant, the world's sole producer of Cream of Wheat cereal, employs 120 workers. Many are well along in their careers, earning wages in the range of $18 an hour plus benefits at the unionized plant. "There is a lot of concern, especially among those in their 50s," Bradley said. "You wouldn't want to be me." CREAM OF WHEAT continues on D2: Moving production.

By Ann Merrill Star Tribune Staff Writer Ed Bradley walked into the Cream of Wheat plant in February 1972 sporting the short haircut of a young man fresh out of the Navy. Next February, hell walk out of the plant for the last time, grayer, wiser and more than a little sad. "After 30 years, there are a lot of memories of the people here," said Bradley, 50, who takes containers to the line and keeps track of production at the plant. "We've gone to the track and golfed, fished and hunted together. We've partied together and 7 S.

ra Intel, HP launch Itanium processor After nearly a decade of development and two years of delays, Intel Corp. and Hewlett-Packard Co. on Tuesday launched the first in a new generation of microprocessors they hope will dominate the next era of computing. The Itanium processor, developed by both companies, is designed for workstations and servers machines that power Web sites, sift through data and run scientific applications. As prices in its core PC business slide, Intel hopes Itanium will capture a slice of the high-end server and workstation market dominated by Sun Microsystems Inc.

and International Business Machines Corp. In a launch subdued in comparison to desktop processor introductions, Intel and Hewlett-Packard officials unveiled HP's first broadly available Itanium machines Tuesday. Prices start at $7,000. Dell, Compaq, IBM, Silicon Graphics Inc. also announced their first Itanium-based systems.

All are expected to be available in June. In all, 25 computer makers are expected to offer more than 35 models this year. The chips, which range in price from $1,177 to $4,227, are available at speeds of 733 MHz and 800 MHz. Associated Press THE ECONOMY Consumer confidence up in May Consumer confidence From a monthly survey of 5,000 U.S. households (1985100) 160 oo I I "way-! i about jobs and the economy, also came after April's confidence numbers dipped from a reading of 116.9 in March.

But the May index is still weak in comparison to where it has been in the past five years, Cooper said. Last May, the reading reached 144.7. The Conference Board index, based on a monthly survey of some 5,000 U.S. households, is considered a key indicator because consumer spending accounts for about two-thirds of the nation's economic activity. The index compares results to its base year, 1985, when it stood at 100.

REPORTS continues on D4: Index shows no signs of decreasing consumer spending. Associated Press NEW YORK A string of interest rate cuts, stronger financial markets and the prospect of lower taxes all helped lift consumers' confidence this month, analysts said. The New York-based Conference Board said Tuesday its Consumer Confidence Index rose to a greater-than-expected 115.5 in May, up from a revised 109.9 in April, despite continuing layoffs and surging energy prices. "This is surprising," said Sherry Cooper, global economic strategist at Harris Bank. "I guess you just can't keep the American consumer down." Analysts had expected a reading of 112.0 in May.

The sharp rise, which reflects growing consumer optimism 140 120 100 JASON FMAM Source: Conference Board TELECOMMUNICATIONS Lucent-Alcatel merger is off Sources: Disputes on Iww to share control ended deal Associated Press NEW YORK Merger talks between French telecommunications giant Alcatel SA and Lucent Technologies Inc. were called off Tuesday after intense negotiations in Paris over the long holiday weekend failed to yield an agreement. In a statement, both companies said that the negotiations had failed, but didn't disclose why they ended the talks. Sources said disagreements about how to share control of the combined company were the main roadblocks preventing what would have been one of the largest takeovers of a U.S. company by a foreign business.

Lucent officials apparently balked because Alcatel refused to treat the deal as a merger of equals. "Lucent was negotiating a merger, not an acquisition, and when it became clear that was not the way things were going the company decided to pursue its own path," said a source, who spoke on condition of anonymity. Another source said Lucent wanted equal representation among the combined company's senior managers and on its board, but Alcatel wouldn't agree to those terms. Analysts had said the new company would have a work force of more than 200,000 but would probably have had to cut 20,000 to 30,000 jobs to trim costs. This year, financially plagued Lucent has announced plans to cut up to 16,000 jobs as it streamlines operations and sells some factories.

MERGER continues on D3: Lucent's stock at a fraction of 1999 high. SECURITIES COMMENTS Nominee Pitt has long history with SEC change Commission, gave Harvey Pitt For questions about stock listings, call 612-673-7926 or e-mail pkennedystartribune For inquiries or complaints about stories, call our reader's representative at 612-673-4450 or e-mail readerrep startribune.com. For other comments about this section, call Business Editor Greg Stricharchuk at 612-673-4951 or e-mail gstricharchuk startribune.com. Associated Press WASHINGTON, D.C. When the government wanted a Wall Street big fish to jump-start a major insider trading crackdown, securities lawyer Harvey Pitt delivered a whale: investment banker Dennis Levine, dubbed "Moby Dick" by prosecutors.

Pitt, now President Bush's nominee to head the Securities and Ex up Levine to the bhL. 1986 to shield his client a Swiss bank with a Bahamas branch that Levine had used. That an investigative chain reaction that rocked Wall Street and toppled billionaire junk-bond financier Michael Milken, convicted of securities fraud in 1990. PITT continues on D3: World-class workaholic. Position: Chairman-nominee, Securities and Exchange Commission Education: B.A, City University of New York; J.D., St John's University Experience: Managing partner, Fried, Frank, Harris, Shriver Jacobson, Washington, D.C, 1978 to present; SEC general counsel, 1975-78; executive assistant to SEC chairman, 1973-75; chief counsel, SEC market regulation division, 1972-73 Harvey Pitt turned In banker Dennis Levine, who In turn helped to topple Michael Milken.

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