Polaroid Corp. said Wednesday it would explore a merger or sale and said it received a reprieve from lenders, as the camera and film maker tries to dig out from beneath a mountain of debt.
The company announced a waiver, good through Oct. 12, on a $363 million line of credit that was set to expire Thursday, but said it would miss payments to bond holders next month. It now faces negotiations with bondholders to restructure that debt.
The company also has retained advisers to explore several options for the future of the company, including "a sale of assets, a merger or sale of the company, and/or a strategic partnership," said Polaroid spokesman Skip Colcord.
Pending the announcement, Polaroid shares were suspended near the end of trading Wednesday on the New York Stock Exchange.
M&Ms uses dulce de leche
to entice Hispanic consumers
Candy giant M&M/Mars Inc. hopes to win over Hispanic consumers with a new style of M&Ms made with dulce de leche, a sweet Latin American variety of caramel.
The new M&M's will be sold next month in San Diego, Los Angeles, Miami, Puerto Rico, San Antonio and Brownsville, Tex. Dulce de leche is roughly translated as "candy milk."
The company said it is the first major confectioner to sell the flavor in the United States.
M&Ms are made in plants in New Jersey and Tennessee.
Newell Rubbermaid cites
sales decline for shortfall
Shares in Newell Rubbermaid Inc. tumbled nearly 7 percent Wednesday after the housewares and consumer products maker warned that its earnings for the second quarter and full year will fall short of estimates.
The Freeport, Ill.-based company cited declining sales as a result of the economic slowdown in the United States and Europe, as well as investment costs of an overhaul and streamlining begun this year under new chief executive Joseph Galli Jr.
It said it now expects to report per-share earnings of 29 cents a share for the second quarter and $1.20 to $1.30 for 2001. Analysts surveyed by Thomson Financial/First Call had estimated 37 cents for the quarter and $1.50 for the year.
Traders can look for coal
How hot is the market for coal?
The industry is about to find out as coal futures begin trading today at the New York Mercantile Exchange.
Futures exchanges exist to transfer the risk of price volatility from people who don't want it -- in this case, power producers or steel manufacturers -- to speculators who are willing to take a gamble on making profits from this uncertainty.
Yet while more than half of the nation's electricity is derived from coal, analysts are skeptical that Nymex's Central Appalachian futures contract will succeed.
For starters, coal has little history of wide price fluctuations, a key ingredient in bringing together buyers and sellers. And of the roughly 1 billion tons of coal burned in the United States annually, 80 percent is bought through long-term contracts, not on the daily spot market.
to buy bankrupt retailer
Zany Brainy, the bankrupt upscale toy retailer, has agreed to be sold to a Los Angeles investment firm for $115 million.
The deal with Waterton Management, announced Tuesday, must be approved by a U.S. Bankruptcy Court. A hearing is set for Aug. 10.
No layoffs or closings are planned among the chain's 187 stores nationwide, and headquarters will remain in King of Prussia, Pa., said Thomas Vellios, Zany Brainy's chief executive officer.
Creditors would get about 20 cents on the dollar through the sale, Vellios estimated. Shareholders are expected to get nothing.
Dow Jones announces
150 more job cuts
Dow Jones & Co., publisher of The Wall Street Journal, said Wednesday it is cutting about 150 additional jobs because of a rapid decline in advertising revenues.
The company laid off 16 editorial staff from The Wall Street Journal on Monday. Company spokesman Steven Goldstein said executives plan to disclose details of the additional job cuts today when it releases its second quarter earnings.
Goldstein declined to say which parts of the company would be affected.
Monetary board to discuss
Turkey loan installment
The International Monetary Fund's board will consider a $1.6 billion loan installment for Turkey today after the government took steps to meet conditions for obtaining the funds.
Horst Koehler, the IMF's managing director, announced the session Tuesday.
The board meeting, which had been set for July 3, was postponed because the government had not fulfilled IMF requirements to reform the banking system and name nonpolitical appointees to the board of Turk Telekom, the state-owned monopoly that is slated for privatization.
The World Bank, the IMF's sister institution, followed suit, postponing a $1.7 billion loan to Turkey.
Troubles in the banking sector were widely seen as the main cause of a financial crisis in February that led to massive layoffs and a plunge of more than 50 percent in Turkey's currency.
Fortune editor named
Time editorial exec
AOL Time Warner Inc. completed a reshuffling of its top editorial ranks, naming longtime Fortune magazine editor John Huey as the No. 2 editorial executive of Time Inc., AOL's giant magazine division.
The move Tuesday came a day after AOL pulled Walter Isaacson from the position to take over CNN, another part of the company's sprawling media empire. CNN is in the midst of a major revamp as competitors Fox News, CNBC and MSNBC eat away at its market share.
Huey, 53, who had been in charge of Fortune and four other business magazines, will take a hands-on role as editorial director while Norman Pearlstine, Time Inc.'s top editorial executive, spends more time on corporate affairs.