The Buffalo News from Buffalo, New York • 6

C3 Wednesday August 9 1995 SOUTH EDITION THE BUALO NEWS Business Key Indicators DOW Tuesday close Unchanged 469332 DOLLAR London May 9157 GOLD London today 20 cents $38450 BONDS36 02 690 Business Today US act before Windows 95 launch Detroit ree Press threatens to replace striking journalists DETROIT (AP) The Detroit ree Press gave striking newsroom employees an ultimatum Tuesday: return to work in two days or be replaced for good The word came in a letter to members of The Newspaper Guild of Detroit on the 26th day of the walkout against the ree Press and The Detroit News A Newspaper Guild spokesman Joe Swickard noted that the ree Press editorialized last year in support of federal legislation to ban the use of replacement workers in strikes The Detroit News has already hired some replacement journalists but they are temporary or permanent is a legal said Tim Kelleher labor relations chief for Detroit Newspapers which operates production and business functions for both publications DIC cuts bank insurance fees Decision lifts cloud Reuters WASHINGTON The Justice De partment Tuesday lifted a cloud hang ing over Microsoft Corp saying it ex pected no antitrust action against the software giant before Aug 24 the day its Windows 95 operating system goes on sale The department said it was continu ing to investigate the Microsoft Net work which has drawn complaints be cause software for the online service is embedded in Windows 95 Analysts said Microsoft had clearly won a battle in its ongoing war with the Justice Department and they said relief was likely to be felt broadly with in the personal computer industry over Microsoft as Department of Justice had the ootential of basically trying to derail an entire PC industry food said David Readerman of Montgomery Se curities think they did the right Investors and industry executives had been nervous that the Justice Depart ment would seek a court order blocking the sale of the Windows 95 system which is expected to trigger a huge wave of hardware and software pur chases throughout the industry Last week executives of several soft ware companies and computer retailers wrote letters to assistant attorney gen eral Anne Bingaman asking the Justice Department not to block Windows 95 is pleased that the uncer it sets low fees for tainty within the industry has been said a Microsoft spokeswoman full steam ahead for the Aug 24 Analysts predicted that technology stocks could rally on the news Rival online services have com plained that dominance of the computer operating system market could give it a huge advantage as it en ters the burgeoning online service sec tor Earlier Tuesday Microsoft an nounced an aggressive pricing strategy aimed at attracting new users as well as users of existing services who may want to the Microsoft product Microsoft set a monthly basic rate of $495 including three hours of access online service with each additional hour set at $250 half the basic rate of rivals America Online CompuServe and Prodigy which each charge $995 a month but include five hours of access Microsoft also announced a full year basic rate of $4995 and set a frequent user rate of $1995 a month for up to 20 hours comparable to or better than existing rates goal with the $495 price point is to provide a very low very competi tive monthly charge for people who want to get connected to the online said George Meng group prod uct manager of the Microsoft Network Executives of rival services said they were not surprised by ag gressive pricing WASHINGTON (AP) The healthy banks could save up to $44 billion annually in premiums for deposit insurance under a drastically reduced rate structure ap proved Tuesday The ederal Deposit Insurance Corp man ages the fund that insures deposits in member banks for up to $100000 per account in the event the bank fails The fund is healthy enough that the DIC said it can cut the pre miums for healthy banks from 23 cents per $100 of deposits to 4 cents per $100 of de posits About 92 percent of the banks will pay the lower rate The weakest banks will continue to pay 31 cents per $100 of deposits buying Tim Hortons DUBLIN Ohio (Reuters) In temational Inc said Tuesday it will acquire Tim Hortons largest chain of cotfee and doughnut shops for more than $400 mil lion The combined company will have more than 1186 restaurants in Canada Worldwide its network will expand to more than 5500 outlets with annual sales of more than $5 bil lion Analysts said that breakfast of ferings nicely complement focus on lunch and dinner will issue 162 million common shares and assume $125 million of debt in exchange for all of the outstanding shares of Canadian parent company Cooper director returns profits WASHINGTON (Reuters) A former director of Cooper Cos Tuesday settled fraud charges involving the so called of junk bonds and other federal securities law violations the Securities and Exchange Com mission said In the settlement Steven Singer and five other defendants agreed without admitting or denying guilt to return $256 million in illegal gains including prejudgment interest Singer agreed to pay a $200000 civil fine The amount to be returned represent prof its Singer and the others made through the use of insider tips from a former bond analyst at Keystone Custodian unds Inc Saturn names new president TROY Mich (Reuters) General Mo tors Saturn subsidiary Tuesday named Donald Hudler as its new president effective immediately Hudler previously vice president of sales and marketing replaces Orchard Park native Richard Leauve who saw the automaker through its first years of operation Leauve who is a GM vice president and group execu tive Small Car Group was named Saturn chairman Three year note yields fall WASHINGTON (AP) Yields on three year Treasury notes fell Tuesday to the lowest level in 18 months as the government began its quarterly refinancing The average yield was 5997 percent down from 6165 percent at the last auction May 9 The notes will carry a coupon interest rate of 5 percent with each $10000 in face value selling for $996700 In other business news General Motors Corp in a bid to keep its customers satisfied today said it will be come the first automaker to cover tires under its new car and light truck warranties for the 1996 model year PepsiCo announced it will invest at least another $12 billion in Mexico to expand its soft drink and fast food business in the coun try over the next five to seven years Enron Corp said it will seek more than $300 million in compensation for the cancella tion of a $28 billion power project in western MIKE GROLLButfalo News 4 fa UMI If 7 77 rrjg 7 Lt tt "7:1 T' 4 7 7 yr A 7 4 Sft 4 i 1 1 JA ft' 1H 't I P' fcA' 7 yy 7 ft a (7 I 1 With two Ellicott Mall towers completely refurbished and townhouses under construction developers are now seeking tenants for a small retail plaza on the site Tenants sought for plaza at Ellicott Mall By SHARON LINSTEDT News Business Reporter Now that the transformation of the former Ellicott Mall public housing project is well under way develop ers are seeking retail tenants to serve the reborn neighborhood The Ellicott Mall Partnership has contracted with Berlow Real Estate to fill a 25000 square foot shopping plaza that will be located on the North west corner of the 14 acre site along Michigan Ave nue Richard Higgins a spokesman for the partner ship said the retail component is a key piece in the $60 million housing effort envision a small but vital retail component that serves not only those who live in the area but also the steady stream of people who travel the corridor on their way to work or for sporting Higgins said The centerpiece of the small plaza should be a food retailer according to the developer Wilson arms would be he said also like to see a branch bank and a sit down restaurant come eelers have gone out to Tops Markets Inc parent of Wilson arms as well as several other potential tenants attempting to sell them on the new retail ven ture Those who have exhibited at least lukewarm inter est include a national clothing store drug stores and video store chains But both the partnership and the real estate firm admit have to change some minds about doing business on the near East Side before they have a stack of signed leases in their hands Leasing agent Robert Biniszkiewicz said the first step is to convince retailers Ellicott days of be ing a crime ridden deteriorating public housing cam pus are long gone still fighting the public housing image but starting to get people to take a second look at the Biniszkiewicz said this project is completed what find is a safe attractive residen tial neighborhood that offers the bonus of a heavily traveled Michigan Avenue At the midway point in its redesign the reborn El licott Mall which stretches along Michigan between Eagle and South Division streets features two fully oc cupied totally remodeled residential towers flanked by See Ellicott Mall Page C6 May Penney win bidding war for retail chains By RACHEL BECK Associated Press NEW YORK May Department Stores Inc won the war of the outbidding ederated Department Stores Inc Tuesday in its quest for the Woodward Lothrop and John Wana maker chains two of the oldest names in retailing May and its bidding partner JC Penney Co will pay about $589 million for control of 27 department stores and warehouses currently held by Wood ward and its Wanamaker subsidiary In all counting bids from others for the assets not purchased by May and JC Penney the total gross from the auc tion was estimated at $7269 million The properties are considered prime retailing space in the mtd At lantic region is an important step for May because it allows them to get into Phil adelphia and keeps the competition out of Baltimore and said Stephen Latz a retailing analyst at AG Edwards in St Louis During a federal Bankruptcy Court auction held Tuesday in New York May and JC Penney offered creditors $460 million about $20 million more than $4391 million bid for the retailing chain The difference between the amount creditors get and the purchase price re flects costs after the deal That would include legal fees real estate expenses payments for the goods now on store shelves and reimbursements to Wood ward for money owed it by customers who bought on credit according to a spokeswoman for Woodward The ederated group declined to raise its offer further and the May bid was accepted and Penny had deeper pockets than ederated and could afford to raise their said Walter Loeb pres ident of Loeb Associates in New York is an important acquisition for May and they knew Woodward known as Woodies and Wanamaker have long been staples in the mid Atlantic region with 29 depart ment stores covering much of the area between Philadelphia and Washington founded 134 years ago by Philadelphian John Wanamaker was the first urban department store and created the now common where linens and bedding are sold for discounted prices But Woodies and Wanamakers have languished in bankruptcy proceedings since January 1994 with creditors sanc tioning the court supervised auction of their stores ederated began the auction by sweetening a previous offer by $84 mil lion proposing to give creditors $4391 million for the properties May and JC Penney Co then proposed the winning bid which Woodies accepted The deal still must receive bankrupt cy court approval Woodies will try to sell the remaining properties that were not included in the deal ederated and May have become the dominant department store companies in the United States over the past sev eral years largely through the purchase of weaker stores The May victory was a setback for ederated which operates eight and stores in Virginia and Maryland It had wanted to convert 11 Woodies stores to the name India To The Store 7bp five categories of merchandise betught at convenience stores as a percent of total purchases 1994: ft astfood Protek 1 4 MIW BBBM280 13 Milk milk products I 1 5 'TEaJ Soltdnnksrr w10 Kqight Ridder Tribune News AMC to shut Holiday 6 theaters on Aug 20 By SHARON LINSTEDT News Business Reporter The screens at the AMC Holiday 6 theater com plex on Union Road in Cheektowaga will go dark after their Aug 20 showings to make room for a new retail project Employees of the theaters have been told the more than 20 year run will come to an end in just under two weeks to make room for bulldozers that will literally bring the house down later this month General Manager Karen Kozlowski said although employees and movie goers have long known of Benderson Development plans to raze the complex for the Union Consumer Square II project official word of the closing was sobering been talking about this for a couple years but this makes it real pretty Ms Kozlowski said The 40 some theater workers will be offered slots at the nearby Como 8 Theaters in AppleTree Mall and at the Maple Ridge 8 in Amherst our part time management staffers will not be as lucky Their jobs will be lost due to the closing Work already has begun at the site on the future home of Circuit City the largest consumer electronics retailer The Richmond Va based retail er is constructing a 33000 square foot store at that location Another Circuit City is under construction in the TJ Maxx Plaza at Niagara alls Boulevard and Sheridan Drive in Amherst Once the Holiday 6 theater buildings are demol ished a 50000 square foot Store will be built at the rear of the site where the four screen struc ture now stands A small strip plaza housing several small retail stores will be constructed at the front of the site replacing Holiday I and II While AMC will lose six screens with the closing of the Holiday complex it is expected the company will pop up at an alternative location in the not too distant future Sources said the theater company is actively reviewing at least two sites to construct a replacement complex The Holiday movie theaters first opened their doors in the early 1970s taking the place for the former Aero Drive In and marking their place in local movie going history as the first multiscreen fa cility in the Buffalo area AMC took over the oper ation 15 years ago In a parting gift to its patrons Holiday 6 will of fer a special family package on Aug 18 19 and 20 or $15 up to five family members can attend the screening of their choice and receive a family size bucket of popcorn a way to mark our 15 year association with AMC and to say to our Ms Kozlowski said 1 A SOUTH EDITION Business Today 'X 1 twOnr SOURCE: National Association of Convenience Stores IP.