Detroit Free Press from Detroit, Michigan • Page 52

BRIEFL cnnvriniiCfiq I 1 fit Business People, Page 21 Michigan Memo, Page 2 Call Business: 222-8765 Detroit jfcee Vxcss Late rally helps Dow MiMM) Caution Technical factors set off a rally on Wall Street Wednesday, turning around a session in which stocks meandered in response to a slightly worse- i than-expected report1 on housing starts. The Dow Jones industrial average rose 19.65 points to 3,511.65. More, see Page 3E. urged for THE DOW Mutual Funds, Page2E NYSE, Page 5E Claim: "Nothing's Bigger" Maker little Caesar's Dimensions: 22 11H inches Slices: 21, in two pies Price: $8.88 with one topping (cheese); $9.99 (pepperoni) Pickup only Claim: "World's Largest Rectangular Pizza" Maker Pizza Hut Dimensions: 2434 12fc inches Slices: 21 Price: $8.99 with one-topping carryout, $10.99 for three-topping delivery Claim: "Industry's biggest carry-out-only pizza" Maker Domino's Dimensions: 30H 10 inches Slices: 30, in two pies Price: $9.99 with one topping Pickup only 1 tvnrcl ah Source: Pizza companies, Free Press measurements. Photo by MARY SCHROEDER Detroit Free Press Detroit station sold Paramount Communications Inc.

has agreed to buy television station WKBD-TV (Channel 50) in Detroit from Cox Enterprises expanding Paramount's TV holdings to seven stations. Terms of the deal were not disclosed. Paramount said the purchase is expected to be completed by September, subject to regulatory approval and the approval of the boards of both companies. Cox Enterprises is based in Atlanta. The station would give Paramount four stations in (the 10 biggest TV markets.

WKBD is the largest independent station in the Detroit market and is among the top five highest rate affiliates of the Fox Broadcasting Co. State seeks damages The state of Georgia deserves part of a $101-million punitive damage award assessed against General Motors Corp. because the public has a stake in product liability cases, the Georgia Supreme Court was told Wednesday. Georgia is trying to claim 75 percent of the award given to a Snellville couple whose son died in a GMC pickup truck wreck. A 1987 law requiring punitive damages to be split with the state was struck down this year by a Fulton County judge, but the state appealed.

Sculley weighs options HUT VJL Vll Northwest Airline disputes group warning Bloomberg Business News Minneapolis An airline passenger group Wednesday warned its 400,000 members that Northwest Airlines flights could be disrupted if the financially troubled carrier files for bankruptcy protection. 4 Northwest, which has been struggling to get concessions frorn its unions to stave off a possible Chapter 11 filing, disputed the warning by the International Air line Passengers Association (IAPA). The airline said flights' would not be affected by a bank- ruptcy filing. Association spokesman David Stempler said the group "issued a travel alert for possible disruption' of service at any time by Northwest Airlines because of threats issued by Northwest management about filing a bankruptcy "IAPA members should protect, themselves against a Northwest bankruptcy filing by paying for all Northwest Airlines tickets with a credit card," he said. The Washington-based group also warned fliers to have alternative travel plans when taking Northwest flights.

The Eagan, airline is the dominant carrier at Detroit Metro Airport, carrying 70 percent of all passengers. Northwest spokesman Doug twiiy m4 ItMHm'l mi fe.uj' kfMZPl BY JANET BRAUNSTEIN JCT Free Press Business Writer I (L 1 i .1. in iiwmwihii 21 Apple Computer Inc. chief executive John Sculley anticipates leaving the company, although his plans are not imminent. USA Today reported that the 54-year-old executive has privately discussed pursuing other opportunities.

It said he arWnnwIpHopH that hp he hype over whose pizza is biggest is going sky high and right over enemy territory. Pizza Hut's Bigfoot PUPiPEB-UP t4w- HOT A big-time ad battle for slice of the market blimp will float over Tiger Stadium Saturday night and Sunday as part of a cross-country tour to tout the "World's Largest Rectangular Pizza." Bob Perkins, Pizza Hut's marketing senior vice president, knows that Domino's founder Tom Monaghan used to own the Tigers. "And we know who owns it now," he said, an oblique reference to Tigers owner and Little Caesars founder Mike Bitch. "But we figure in the spirit of Brgfoot, we should have some fun with it." The Big Three of pizza are at it again: fighting over hungry cost-conscious consumers with their extra-large pizzas. Responding to the Bigfoot, Domino's is offering the Dominator and Little Caesars has the Big, Big Cheese.

Pizza Hut began testing Bigfoot in December and wrung a few Bigfoot jokes out of Jay Leno on national TV in early February. Little Caesars launched its Big, Big Cheese pizza in March with ads featuring a small girl and George Burns as thp Bi Cheese delicious! Colossal value! The new Pepperoni Dominator is the biggest of them all." Little Caesars ad: "Nothing's bigger than Little Caesars Big, Big Cheese." Actually, the Big, Big Cheese (followed recently by the Big, Big Pepperoni) and the Dominator are two pies each, not a single pizza as Bigfoot is. And also unlike Bigfoot, which uses a new and different crust and sauce recipe, they are made from the same crust and ingredients as other Domino's and Little Caesars pizzas. Pizza Hut, owned by spent $50 million equipping restaurants with new machines to make Bigfoot's special dough and said it would hire approximately 50,000 new permanent part-time employees to handle the increased demand. It's spending $50 million promoting Bigfoot with heavy national advertising and gimmicks like the three-month See PIZZA, Page 2E Killian said that "there are no plans for any action, under any circujn stances, that will interrupt North-, west's operations or customer service.

Tickets for future travel on Northwest will be honored in all circumstances, as will Worldperks; miles, our free travel plan." Killian said that "customers can book Northwest flights with full, confidence." In a letter to the International Association of Machinists this! week, Northwest said that it could; be forced to seek Chapter 11 protection if employees don't agree to $886 million in wage and benefit! cuts sought by the airline. No talks are scheduled between! Northwest, a unit of Wings Hold-; ings and the IAM, the airline's; largest union, said IAM spokesman John Massetti. However, Massett said the IAPA warning to travelers is premature. I "I don't foresee any major prob- lems even if the company files" for. bankruptcy protection," Massett said.

"History has shown in the past 10 or 12 years that it happened to TWA and Continental, and there was no disruption." IAM members continue voting John Sculley expects to leave the computer maker at some point, but said he would stay at Apple long enough to ensure it "can go on for years and years." Ford pink slips workers Ford Motor Co. de Mexico, a unit of Ford Motor has laid off 680 autoworkers from its Cuautitlan plant on the outskirts of Mexico City, company officials said. The layoffs, which will affect temporary workers, result from a decline in auto sales in the country, said company spokesman Carlos Bandala. Ford employs about 5,200 workers in its Mexico City plant, 700 of whom are temporary. Refrigerator plant to be sold Whirlpool Europe said it is selling its Barcelona, Spain, refrigerator plant to an Italian appliance maker.

Whirlpool said it will consolidate refrigerator production from the Barcelona plant to its Cassinetta, Italy, plant over the next four years. In the meantime, IARSiltal will continue to make Whirlpool refrigerators at a declining rate and make appliances of its own. The company plans to continue employing 270 existing plant workers. GM saves facility General Motors Corp. says it will keep open its minivan plant in Baltimore, ending 2lh years of suspense for employees, city and state officials worried about the factory's 3,400 jobs.

The future of the plant has been in doubt since late 1990. The company "has no plans to shift its van production out of Baltimore," said Mary Ann Tyler, a GM spokeswoman. Still, she added, "there are no guarantees," and the future of the plant depends on demand for the minivans and quality of work at the plant. Rolls into Russia The fledgling oil barons and capitalists of the former Soviet Union will be able to browse through the first Rolls-Royce and Bentley dealership in Moscow in about a month. If they want to drive a model home, they'll have to i come up No rubles, please.

Rolls-Royce expects to sell about two dozen of the cars a year in Russia. Love me tender checks O'Brien, sales director at NPD Research's CREST service in Park Ridge, 111. That's why viewers and listeners are getting big servings of ads that sound like: "Nyah, nyah, my pizza's bigger than your pizza." Pizza Hut's ad, quoting make-believe bystanders at a Bigfoot sighting: "It was big. Huge, huge, large. Big would be an understatement.

Very big, huge." Voiceover: "When it arrives, you'd better not be alone." Domino's ad: "Humongously satisfying! Tremendously himself. In April, Domino's announced the upcoming birth of the Dominator, a pizza it promised would "dominate the market." While industry analysts say it's too soon to tetyhow successful the new big pizzas really are, they view the development as a way to increase the size of the per-meal check and make customers feel they're getting a good deal. "It's kind of a variation on the bundling theme that the fast-food hamburger places have rolled out value meals to drive up the average check per person while increasing the consumers' perception ofalue," said Bob 1 11 I Price jump shows health cost dilemma 1 flk. rfrS i' ft i With these checks, you can buy a pair of "Blue Suede Shoes" or register at the "Heartbreak Hotel." But if you bounce thein, you could be dancing to the "Jailhouse Rock." To the long list of Elvis stuff comes personalized checks with images of the Kino Currant Inp hacpH rtn on the company's concession proposal, even though the union last week told Northwest the give-backs appeared headed for defeat and asked for new talks. IAM members can vote on the proposal through June 26, Massetti said.

Bell names Wilkes as president by Hiawatha bray Free Press Business Writer One year after being named president of Michigan Bell Tele-1 phone Robert Hurst is moving up and out. Hurst is headed for Chicago to run the network services arm of Michigan Bell's parent company, Ameritech. Illinois Bell Vice PresH dent James Wilkes will replace Hurst as Michigan Bell president. Hurst was appointed president of Ameritech Network Services in April, but continued as Michigan" Bell president until a replacement could be selected. That arrangement forced Hurst to fly to Chicago several times a week.

"Quite frankly, Michigan Bell See BELL, Page 2E MARK RIGHTMIREOrange County Register Planned ParentKood nurse practitioner Fran Losch, left, prepares to give Michele Dickinson an injection of Depo-Provera at a Santa Ana, clinic. And it's typical of the clash between free-market principles and social concerns as the nation debates health-care reform. Depo-Provera, developed 25 years ago by Kalamazoo-based Upjohn, is a synthetic version of the female hormone progesterone. It is used to treat renal and endometrial cancers and as a birth-control method in about 90 countries. In October, the FDA approved it for contraceptive use to the enthusiasm of health-care providers, who praised its convenience and effectiveness.

Depo-Provera, the only injectable contraceptive available in the country, prevents pregnancy for three months. Some doctors have prescribed Depo-Provera as a contraceptive in the United States for more than 20 years, but they risked liability for any adverse side effects. Upjohn spokeswoman Kaye Bennett said the company is sensitive to price complaints but has other people to answer to. "We want to make sure people have access to our products," Bennett said. "We also have a respon- BY SUSAN KELLEHER Orange County Register Twenty years after she first started taking Depo-Provera, Mar-jorie Martin is experiencing sticker shock.

The cost of the drug she took first as a contraceptive and then as hormone-replacement therapy quadrupled in May, seven months after the U.S. Food and Drug Aclministration officially apprpved it as a birth-control method. "It's pure greed," said Martin, whose out-of-pocket costs for Depo-Provera went from $12 a month in January to $80 a month in May, with two price increases in between. Martin says she's angry and cynical about the drug maker's motives, even as the Upjohn Co. argues that it has the right to recover its research costs and charge what the market will bear.

The anger surrounding Depo-Provera's cost is a microcosm of a debate over whether drug companies should be forced to help contain medical costs by their prices. Elvis Presley fa cdorado Springs, will issue the special-edition pastel checks July 12. There are four depictions of Elvis Presley in each set. Edited by Carol Cain from Free Press staff and wires. they've been charging for 20 years." The company's list price for the drug is $29.50 for a 150-milligram dose, although discounts are given to state agencies and others who buy it in bulk.

The price is competitive with birth-control pills, which run $15 to $30 a month. Upjohn has no control over the price of Depo-Provera once it is out of the company's hands, Bennett said. "Any doctor or (medical) group can chiirge whatever they want for anything," she said. sibility to our shareholders. If we don't stay in business, nobody gets the product." For Martin and her husband, Michael, however, the affordability of the drug is a social issue.

"They have skillfully avoided a wonderful opportunity to help women," Michael Martin said of Upjohn. "I'm not talking about people with insurance or on government assistance. I'm talking about the working poor, the people we're supposed to be giving a hand. Getting 90 days of contraception fir $6 a pop is something just about anyone can afford. That's what YOUR MONEY Some people are taking advantage of low interest rates and changing fixed-rate mortgages to adjustable-rate ones.

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