Archive for Wednesday, April 28, 1999

BUSINESS BRIEFCASE FOR WEDNESDAY

April 28, 1999

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Southern Union ups bid

for Southwest Gas

Southern Union Co. struck back in the bidding war for Southwest Gas Corp., raising its offer for the Nevada-based natural gas utility to $33.50 a share, or about $1.02 billion, which it said was $108 million more than a rival bid from gas company Oneok Inc.

Austin, Tex.-based Southern Union was rebuffed Monday by Southwest, which said it agreed to be acquired by Oklahoma-based Oneok in a sweetened deal valued at $30 a share, or about $912 million, excluding assumed debt.

Oneok is 45 percent owned by Western Resources Inc. of Topeka.

Park Place to buy

Caesars for $3 billion

One of the most famous names in the hotel-casino industry is changing ownership, ending months of high-stakes negotiations.

Park Place Entertainment Corp. announced it plans to purchase Caesars resorts in Las Vegas, Atlantic City and Lake Tahoe from Starwood Hotels & Resorts Worldwide Inc. for $3 billion in cash.

"This is the cream asset in gaming," said Arthur Goldberg, president and chief executive officer of Park Place.

Sallie Mae acquires

Nebraska service firm

SLM Holding Corp., which employs about 400 people at a Sallie Mae student loan servicing center in Lawrence, acquired EDTECH Inc. of Nebraska.

EDTECH services include CASHE (College Aid Sources for Higher Education), an Internet-based scholarship search service, and FEEDS (Front-End Electronic Delivery System), PC-based software used by post-secondary schools to administer the Title IV Federal Aid Programs.

Earnings roundup

America Online Inc.: Net income $117 million vs. $39 million (+ 200 percent); per share 11 cents vs. 4 cents (+ 175 percent). 1999 excludes one-time charges.

AT&T; Corp.: Net income $1.7 billion vs. $1.2 billion (+41 percent); per share 61 cents vs. 46 cents (+32 percent). Excludes one-time charges, reflects recent stock split.

Phillips Petroleum Co.: Net income $18 million vs. $171 million (-89 percent); per share 7 cents vs. 65 cents (-89 percent). 1999 excludes one-time gains.

Tanger Factory Outlet Centers Inc.: Net income $2.37 million vs. $3.78 million (-37 percent); per diluted share 24 cents vs. 41 cents (-41 percent). Funds from operations $9.57 million vs. $9.61 million.

Texaco Inc.: Net income $199 million vs. $234 million (-15 percent); per share 35 cents vs. 42 cents (-17 percent). 1999 results include one-time gain of $94 million. 1998 includes gain of $25 million.

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