South Florida Sun Sentinel from Fort Lauderdale, Florida • Page 39

fc- t-utf Sun-Sentinel, Friday, July 1, 1994 3D i 'i i ii inn mil in hi i hi i linn i nm in mm i BUSINESS BUSINESS WIRE Staff and wire reports East Coast gkEte rtag in deal. Bell Atlantic, NYNEX Corp. merge cellular phone services Washington's plan to auction off more airwaves and deals struck by long distance carriers and MCI to get into cellular, make national franchises likely. Ray Smith, chairman of Bell Atlantic, predicted "only a handful of companies will be in the market" in five or 10 years, each providing the whole gamut of landline and wireless communications, long distance, local and video. Smith also said he did not want Bell Atlantic to disappear in the shakeout.

NYNEX and Bell Atlantic said they have established a management operations committee to determine how to integrate their operations. The companies expect to close the transaction in the second quarter of 1995. worth $13 billion, based on the total value of Bell Atlantic and NYNEX's cellular operations. The companies said they are also in talks with other regional cellular operators and national carriers. They acknowledged they are talking to Sprint Corp.

about joining the venture. Sprint would give them a nationwide long distance operation as well as more cellular properties. Bell Atlantic will own 62.35 percent of the joint venture and NYNEX will have a 37.65 percent stake, the companies said in a joint statement. The venture will be controlled equally by both companies. The two partners said the new venture will develop a "an aggressive strategy" for acquiring and eventually operating personal communications services under licenses that are expected to be auctioned by the Federal Communications Commission later this year.

It will also coordinate existing cellular operations with newly acquired licenses to hasten the introduction of coast-to-coast personal communications services, the statement said. "This new company will focus on the development and deployment of 'any-time-anywhere' capabilities across a broad market area, with great expertise and superior customer and network support systems," said Bell Atlantic Chairman and Chief Executive Officer Raymond Smith. The cellular industry to date has been a checkerboard of discrete franchises, 1,500 nationwide. But recent events, particularly Reuters NEW YORK Bell Atlantic Corp. and NYNEX two East Coast giants in the communications business, said on Thursday they will merge their cellular phone services, creating a $13 billion company to compete in the fast-growing wireless market.

For 10 years, NYNEX and Bell Atlantic have operated cellular systems in the New York metropolitan area, which, with a population of 15 million people, is the largest cellular phone market in the country. The new company will serve seven of the top 20 cellular markets in the United States, covering a population of 55 million people. NYNEX's Chief Financial Officer Fred Salerno estimated the deal was 1 Railroad networks to merge Service will span Canada to Mexico I k. 11. urn it fc jr "V' FLORIDA Southeast trustee paid Federal regulators said on Thursday that they have agreed to pay $151.9 million to the trustee of Southeast Banking Corp.

to cover debts owed to the defunct bank holding company, Bloomberg Business News reported. The Federal Deposit Insurance Corp. is the receiver for Southeast's two Florida banks, which owed the money to their Miami-based parent company. Court-appointed trustee William Brandt, who manages the assets of the parent, asked a federal judge in Miami two weeks ago for a ruling on his 1993 claim against the federal agency. 'Babe Ruth' licensed The owners of Wilt Chamberlain's Restaurant in Boca Raton said they have licensed the name of the late slugger Babe Ruth to develop a series of restaurants.

The Boca Raton company, called Celebrity Restaurants, held a public offering in February 1993, but refunded money to investors after a public stock sale flopped. The company said it is looking for investors and joint venture partners. Chase buys 3 branches Chase Federal Bank of Miami said on Thursday it had completed the purchase of three Essex Savings Bank branches in Palm Beach and Martin counties. Terms of the purchase were not released. The offices have $100 million in deposits, and the eight Essex employees have been offered jobs with Chase.

With two other acquisitions since August, Chase has grown to more than $2 billion in assets. CFO for Ivax chosen Michael Fipps, vice president and treasurer of the Bergen Brunswig pharmaceutical distribution company, was selected chief financial officer of Ivax Corp. Shopping centers sold Atlanta-based IRT Property a publicly traded shopping center real estate investment trust, announced it had completed the acquisition of two shopping centers, Westgate Square in Sunrise and Countryside Shops in Cooper City, for $25 million. Comic kiosks to open Big Entertainment, based in Boca Raton, said it has signed agreements to open kiosks to sell comic books in malls, including Miami International Mall in Miami. The company said it has signed agreements with DeBartolo Properties Management and Simon Property Group.

It said it hopes to open six kiosks by the end of this year. Partnership announced North Miami Beach-based GameTek Inc. and Take 2 Interactive Software on Thursday announced a partnership agreement under which GameTek will become the exclusive distributor worldwide of five new CD-ROM games published by Take 2. Health seminar offered A seminar for owners of small businesses to discuss health care coverage through community health purchasing alliances CHPAs will be conducted from 8 a.m. until noon on July 22.

The event, sponsored by the Broward alliance and the Greater Fort Lauderdale Chamber of Commerce, will be held at the Broward County Convention Center. Tickets are $20 and available through the chamber. For more information, or to register for the seminar, phone Lynne Jenkins at 462-6000, ext. 8788. l.rA II AP photoGENERAL MOTORS CORP.

A dummy with a tummy General Motors is testing a 'pregnant' crash dummy to find better ways to protect pregnant women and their fetuses during crashes. Early results reinforce what safety groups have said before: Preg- nant women should wear the lap portion of safety belts as low as possible, under the abdomen's bulge. The shoulder portion should be worn' between the breasts and to the side. The Associated Press DALLAS Burlington Northern Inc. and Santa Fe Pacific Corp.

said on Thursday they have agreed to a merger intended to create the nation's largest rail network and give themselves reach from Canada to Mexico. The proposed $2.7 billion stock swap must be approved by the Interstate Commerce Commission and by shareholders of both companies. If complete, the union would forge a network with 33,000 miles of track in the Midwest, West and Southeast. Burlington Northern Chairman Gerald Grinstein and Santa Fe Chairman Robert Krebs said the North American Free Trade Agreement helped prompt the agreement. "We don't get to Mexico and the Santa Fe does.

The Santa Fe doesn't get to Canada and we do. So it gives us that opportunity," Grinstein said. The combined railroad also will offer shippers from the Far East the chance to deal with one company when delivering to ports in the Pacific Northwest and in Southern California, the companies said. "When you look at the map, you'll see that it is essentially an end-to-end merger and there is very little overlap," Grinstein said. Under terms of the deal, Santa Fe shareholders would receive 0.27 share of Burlington Northern common stock for each Santa Fe share they own.

Santa Fe said it also will distribute shares of the spun-off Santa Fe Pacific Gold Corp. to stockholders on Sept. 30, independent of the merger. Santa Fe stock closed up at 20.87 a share. Burlington Northern was unchanged at 53 'A.

Thursday's merger would create a company with about $7 billion in Royal Viking's luxury cruise line comes to conclusion of its voyage Cunard agreed as part of the $170 million purchase price of the Royal Viking Sun to acquire some trademarks. Some executives, including Royal Viking President Spencer Frazier, will move to Royal Cruise Line. Kloster said the cruise line hopes to keep layoffs to a minimum in Coral Gables, where Royal Viking employed about 100 people, by shifting workers to Royal and Norwegian Cruise Line payrolls. Kloster President Adam Aron said the money from the deal will be used to shore up its debt-laden balance sheet. Kloster said lenders have agreed to restructure its debt as a result of the sale.

Separately, Carnival Cruise Lines reported record results on Thursday for its second quarter. Profits rose 8.2 percent to $77.9 million, while revenues increased 19.6 percent to $409.4 million. The 212-passenger Royal Viking Queen will continue to sail its schedule until January, when it will join Royal Cruise Line as the Queen Odyssey. The sale of the 740-passenger Royal Viking Sun is effective immediately. By TOM STIEGHORST Business Writer Royal Viking Line, the first luxury cruise line of the modern era, is being disbanded.

The line has its United States headquarters in Coral Gables, along with its parent company, Kloster Cruise Ltd. On Thursday, Kloster said it had sold one ship to Cunard Line and plans to transfer the other to its Royal Cruise Line subsidiary at year's end. With no more ships, Royal Viking seems destined for Valhalla, although FINDING THE LOWEST-PRICED HOTELS Gambling opponent, backers discuss options Room rates in Sanibcl lead the state BUSINESS MEMO The Commerce Department said Americans' personal income rose 0.6 percent in May as it did in April boosted by job growth, a longer average work week and higher hourly earnings. Thirty-year, fixed-rate mortgages averaged 8.57 percent this week, up from 8.46 percent last week, according to a national survey released on Thursday by the Federal Home Loan Mortgage Corp. EARNINGS Data in thousands except per share To save money on room rates, AAA Clubs of Florida recommend: Calling far in advance.

Asking for special rates, discounts and packages. Asking for the lowest rate. Some properties won't offer it unless they are asked. Shopping several accommodations and let each know their rates are being compared with other establishments. Considering hotels and motels that are just outside major metro areas or that are slightly removed from the attraction or beach you want to visit.

Working with a travel agent. They track prices, special packages and other deals SOURCE: AAA Clubs of Florida Carnival Corp. 2nd Qtr Year Ago Revenue Net income Per share $409,400 $77,900 $0.55 $378,200 $65,100 $0.46 Dean Foods 4th Qtr Year Ago $671,549 $24,279 $0.61 $592,222 $19,848 $0.50 Revenue Net income Per share Stride Rite Corp. 2nd Qtr Year Ago for tourists once Cuba becomes free of Fidel Castro. "This is probably the one area of the state where we can be assured of winning votes," said Randy Lewis of Proposition for Limited Casinos.

"Central Florida I think is emerging as the battleground" over the casino issue, he said. Smith's group has taken the lead with more than 700,000 signatures to get its proposal on the November ballot. Most of those still must be certified by local elections offices. Limited Casinos has gotten the support of the state's parimu-tuel industry and some casino companies. Three of the four groups represented receive financial support from the casino industry.

Safe Bet for Florida Committee, which backs riverboat gaming, is supported by a national hotel franchising company. "I am very concerned for people who want to raise families and run a clean business here. In my personal opinion, I have serious reservations about allowing gambling in Florida," said Philip C. Modder, chairman of Southern Security Bank Corp. in Deerf ield Beach, who was chairman of the chamber's gambling panel.

According to statewide polls, public support for casinos has eroded over the past four months. Confusion over the casino proposals may be behind that decline, said Michael Levine of Proposition for County Choice Gaming. By TRACY KOLODY Business Writer Take your pick: Casino gambling will add jobs to South Florida and help the area's tourism industry compete with Caribbean destinations. Casino gambling will hurt existing tourism-related businesses by diverting visitor dollars from restaurants and attractions. A panel of casino proponents and a sole gambling opponent appeared before the Greater Boca Raton Chamber of Commerce on Thursday to present their positions to a group of south Palm Beach County businesspeople.

The chamber took no position on the casino issue. But casino supporters said they view heavily-populated South Florida as a strong support base in their quest to place a gambling proposition on the state ballot in November. "This is where gambling probably would do the most," said Bernard J. Murphy, a vice president with casino giant Bally Entertainment Corp. He is promoting the Florida Locally Approved Gaming proposition, which would permit gambling on riverboats or at hotels with more than 1,000 rooms in counties with populations of more than half a million people.

Murphy also said South Florida more than any other region of the state needs to be prepared to compete with Havana By TRACY KOLODY Business Writer The tony town of Palm Beach ranks fifth among Florida's priciest hotel markets, while the state's most expensive accommodations are found in Sanibel, a small resort town along Florida's West Coast. And visitors to Palm Beach better have their credit cards available: The town has the highest average meal cost in the state at $17.79. These are among the findings contained in the second annual hotel rate survey by the American Automobile Association's Florida chapter. The average hotel room rate in Sanibel is $176.82, while Palm Beach's average rate is $150.38. The survey's conclusion: The farther south you travel in the state, the more you pay on average for a hotel room.

The town of Palm Beach contains several well-known properties, such as The Breakers and the Brazilian Court hotel, but it is hardly representative of the area, said Jennifer Hazelton, spokeswoman for the Palm Beach County Convention and Visitors Bureau. "We certainly offer a wide range of properties in Palm Beach County, from large resorts to small mom-and-pop hotels," she said. $161,720 $7,680 $0.15 $164,524 $19,356 $0.38 Sales i Net income Per share SOURCE LINE The survey was done using information contained in the AAA Florida TourBook in an attempt to help travelers track down the best hotel rates in the state, said Tom Schroder, manager of public and government relations for AAA Clubs of Florida in Orlando. Florida's lowest average room rate was found in Pensacola at $38.34. Average room rates in South Florida tended toward the high end of the survey's range, with Boca Raton at $105.24 and Fort Lauderdale at $93.25.

Average meal costs in South Florida are Boca Raton at $14.77 and Fort Lauderdale at $13.97. Is there a story in today's Business section that you want to know more about? You can tell us what story and what you want to know by calling between 9 a.m. and noon, Call the Sun- Sentinel Souroe Line at 523-5463 in Broward and 930-5463 in Palm Beach and Dade counties, and enter category 5200. The call is free. a.

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