The News and Observer from Raleigh, North Carolina • B4

CCI 1ST SECTION, ZONE: STATE 22:7:31 HOW TO REACH US Business Editor: 919-829-4755, mary.cornatzer@newsobserver.com Assistant Business editor: 919-829-4572, alan.wolf@newsobserver.com DOW 18.24 at 10,216.27 For the latest stock information, news and quotes, go to www.newsobserver.com, key word: stocks 10-YEAR NOTE YIELD Unchanged at 3.06% 500 0.79 at 1,078.75 NYSE 14.23 at 6,794.48 AMEX 1.51 at 1,846.87 NASDAQ 1.91 at 2,198.36 TUESDAY, JULY 13, 2010 THE NEWS OBSERVER A 4B PENCIL PUSHING The back-to-school sales have started. Keep up with the deals at takingstock.newsobserver.com Our blog, offers the in- side scoop on Triangle compa- nies, corporate personalities and deals. Here are highlights from recent posts. To read the latest news, visit us online at: http://blogs.newsobserver.com/biz By John Murawski STAFF WRITER A pair of Triangle technology com- panies figured among the biggest winners of federal stimulus grants announced Monday for advanced energy research. Cree, the Durham lighting compa- ny, and ABB, the Cary-based heavy electrical equipment maker, won $7.9 million in grants to develop miniature components and to advance energy- storage technology.

The awards were part of $92 million awarded by the U.S. Department of Energy for 43 research projects in 18 states. The grants announced Mon- day were the third and final round of stimulus grants totaling $349 million. Previous local recipients include N.C. State University and RTI Inter- national.

are all high-risk said Arun Majumdar, the energy director of advanced en- ergy research. a potential high rate of failure. You never know which one is going to succeed com- ABB will lead a $4.2 million re- search project to develop energy- storing magnets, and Cree will head up a $3.7 million project to shrink the size of electrical transformers. assignment: to develop mini- transistors that will replace massive, distribution transformers with suitcase-sized, 100-pound transformers. More nimble transformers will give greater flexibility to increase voltage and thereby increase efficiency in moving electricity over power lines.

U.S. grants go to Cree, ABB The Durham- and Cary-based companies win $7.9 million in federal stimulus grants. SEE GRANTS, PAGE 5B By Andrew Vanacore and Ashley Heher THE ASSOCIATED PRESS CHICAGO Hugh Hefner wants to buy out the portion of the Playboy empire he already own in a bet that the iconic brand can still bring in profits even if the ink-on-paper magazine is past its prime. Hefner, who founded Play- boy magazine more than a half-century ago, is appar- ently not alone in thinking Playboy can keep swinging into the digital age. A few hours after Playboy Enter- prises announced offer Monday, the corporate parent of rival Penthouse magazine said it will also make a bid.

But it does not appear that i a a a a 84-year-old who owns about 70 percent of the com- voting shares and 28 percent of the nonvoting stock will budge. Playboy said Hefner made it clear that he is not interested in a sale or merger. Hefner has instead proposed joining up with a private equity firm, Riz- vi Traverse Management, to take Playboy private. The offer comes as print advertising is in a tailspin a a a stretched its brand thin. Hefner is offering $5.50 per share in cash, a nearly 40 percent premium above Fri- closing stock price of $3.94.

Shares of the compa- ny gained 41 percent Mon- day. Based on the number of shares outstanding on April 30, Hefner proposal is worth $122.5 million and values the company at about $185 million. If the deal goes through, Hefner will have a major turnaround effort on his hands. The racy magazine that he launched in 1953 had its most popular years back in the 1970s. It has struggled to lure readers and advertis- ers as the Internet supplants print as the top purveyor of adult content.

Playboy magazine, which along with its websites gener- ated 44 percent of the compa- $240 million in revenue last year, sold 311 ad pages for its U.S. editions last year, down from 765 in 2000, ac- cording to the Publishers In- formation Bureau. Its average circulation is 2.02 million, down from more than 5.6 mil- lion in 1975. Diluting Playboy Most of the in- come now is from licensing the Playboy brand for prod- ucts such as under- wear, ingerie, watches and energy drinks. The stock price has tumbled since hitting a peak in 1999 of more than $32.

It traded between $2.30 and $5.22 over the past year before jumping $1.61 to close at $5.55 on the poten- tial buyout Monday. Looking ahead, strategy of relying on licens- ing for profits is a risky one, warned Laura Ries, presi- dent of the marketing strate- gy firm Ries Ries in Atlan- ta. She said Playboy has lent its brand too freely. like pouring water in- to she said. really dilutes what it is to be a play- Marc Bell, the CEO of Penthouse owner Friend- Finder, declined to give any specifics on his offer, which he said would come soon.

Bunny bid: Hefner offers to buy rest of Playboy Publisher Hugh Hefner, center, with Playboy Playmates Kristina Shannon, left, and Crystal Harris at the Hefner: Playboy, Activist and screening. JIM ROSS GETTY IMAGES Wants to take empire private By Jeannine Aversa THE ASSOCIATED PRESS WASHINGTON Big compa- nies are building up cash and are expected to report strong earnings starting this week. Not so for small businesses that get loans or hire freely until they do. The gap helps explain why the economic rebound stronger and could even stall. Federal Reserve Chairman Ben Bernanke stepped up pressure Monday on banks to break the logjam and lend more to smaller firms, which employ at least half of Ameri- can workers.

Small-busi- ness owners are relying on a credit cards or raiding re- tirement ac- stay af loat the Fed chair- man said. Bernanke and other regulators have urged banks for months to lend more to smaller compa- nies. Lawmakers have com- plained that small businesses that want loans are having trouble getting them. Banks have countered by saying de- mand remains weak. The Fed does have authori- ty to create programs to in- crease lending, such as provid- ing low-cost loans to banks.

But economic conditions would probably have to weak- en considerably before the Fed would propose such a move. One such program set up during the 2008 financial crisis was recently closed. The Fed latest com- ments came as legislative ef- forts to spur small-business lending have languished, and as the recovery has lost mo- mentum. Bernanke spoke at a Fed conference held to ex- plore ways to loosen lending to small companies. credit accessible to sound small businesses is crucial to our economic recov- Bernanke said.

must be Some small-business lead- ers say they would hire more if only they had easier access to loans. One of them is Marilyn Landis of Basic Business Con- cepts of Pittsburgh, which compiles financial documents for other small businesses. Landis says she would like to hire one or two more people for her 10-person firm. Yet even though she says never missed a payment, Lan- dis says her line of credit was cut about 18 months ago. She relies on credit cards to pay for things such as supplies and payrolls.

Without addi- Small crave credit Say they hire without it SEE CREDIT, PAGE 5B Bernanke calls for lending. By John Murawski STAFF WRITER Raleigh is preparing for the arrival of plug-in electric cars by making it easier for homeowners to get a city permit for rechargers. A city permit would have required at least three days, so the city has created a streamlined procedure that will take just one hour, said Frank Olafson, per- mits office administrator for Raleigh. Recharging an electric car puts a hea- vy demand on a electrical wir- ing and could require modifications and upgrades to accommodate a 220-volt outlet. The Wall Street Journal reported Monday that Nissan, which is introduc- ing the all-electric Leaf automobile this year, lobbied Raleigh officials to make the change.

goal is to become the first mass-marketer of electric cars, but that goal depends on hassle-free permits for recharging stations. Using a 220-volt outlet as opposed to a standard 120-volt outlet reduces re- charging time from 20 hours to 8 hours. But outfitting garages with more power- ful outlets the kind used by electric dryers and other heavy-duty appliances raises safety concerns for building in- spectors and code enforcement officers. Raleigh will require the outlets to be placed at least four feet off the ground, to prevent a car from sideswiping the mechanism and exposing lethal wiring. For ground-mounted charging units, Raleigh will require a protective barrier.

Olafson said older homes may need upgrades to the electrical service panel to handle the amount of power needed to recharge from a 220-volt outlet. Raleigh has been upgrading its per- mitting process for the past six months. The effort was prompted by a request from Nissan. question was asked: Is there a way to make it simpler and Olafson said. are a lot of differ- ent codes Nissan officials could not be reached for comment Monday.

The Journal re- ported that the automaker had urged officials in more than 20 local govern- ments to ease the permitting process. Olafson said that residents of small towns and rural areas, where code en- forcement officials are unfamiliar with electric recharging stations, may spend days getting the dock approved. Nissan estimates that it will cost $2,200 to install a recharging station, according to the Journal. The cost of the dock, and the car itself, can be par- tially offset with federal tax credits. An electrical permit in Raleigh costs $74.

Fewer than a dozen have been is- sued in Raleigh for electric vehicle re- charging stations. john.murawski@newsobserver.com or 919-829-8932 Raleigh eases way for electric cars The city cuts the time needed to get permits for recharging outlets The N.C. Global TransPark in Kinston disclosed Monday the name of a Spirit Aero- Systems supplier that has lo- cated in the park. DB Schenker, a New York company that provides logis- tics support for raw materials needs, has operated out of a Global TransPark warehouse since April. The company is leasing 19,000 square feet and expects to eventually provide 40 full- time jobs.

DB Schenker signed a five- year lease to provide logistics support for Spirit, which is making fuselage sections and other components for a new Airbus plane scheduled to hit the market in 2013. Spirit offi- i a i plant in the Global TransPark this month. The company chose to lo- cate in the park after receiving the promise of incentives worth more than $180 mil- lion. Global TransPark support- ers say only a matter of time before more Spirit sup- pliers locate in the park. While Global TransPark supporters have hailed arrival as a turning point for the park, critics say it will nev- er produce enough economic benefits to offset all the public money that has been spent on it.

The park has received near- ly $250 million in state, feder- al and local money since 1991. Staff writer David Bracken Global TransPark gets DB Schenker From February to May, busi- nesses hired about 4.5 million new workers who had been unemployed for eight weeks or longer, enticed by billions in tax credits, according to a report released Monday by the U.S. Treasury Depart- ment. Those employers are eligi- ble for tax exemptions and credits worth up to $8.5 bil- lion under the Hiring Incen- tives to Restore Employment Act, which President Barack Obama signed in March. Treasury chief economist Alan B.

Krueger released the report in Sanford, where he visited a yarn factory that Parkdale Mills recently re- opened. The Gastonia-based company bought the factory from Hanesbrands last year and shut it down. But increasing demand led Parkdale to reopen the facility. The company has hired about 30 workers at the plant so far and expects to add more. new tax credit provid- ed a powerful incentive to grow our business and was a major factor in our decision to reopen the plant in said Parkdale CEO Andy War- lick, in a prepared statement.

The Treasury report is part of a marketing blitz by the Obama administration to tout relatively meager private-sec- tor hiring as signs that the jobs market is beginning to improve. Staff writer Alan M. Wolf Tax credit cited in new Sanford jobs.