Hyundai picks Alabama as site for first U.S. plant

The decision by Hyundai Motor Co. to build its first U.S. manufacturing plant near Montgomery, Ala., is the state’s “biggest economic development announcement ever,” the governor said Tuesday after Hyundai Motor Co. President Kim Dong-jin announced the decision.

“This is a tribute to the people of Alabama that a renowned corporation like this would look to Alabama for a place to call home,” said Gov. Don Siegelman.

One expert says the decision to build the $1 billion plant in Alabama should be an economic boost for a poor state attempting to recover from a recession. The plant will employ about 2,000 workers and make 300,000 cars a year starting in 2005.

Restaurant: Lone Star Steakhouse announces buyout plans

Lone Star Steakhouse & Saloon Inc. said Tuesday it agreed to be acquired by an unnamed buyout firm for as much as $547 million.

The company, which operates a chain of casual-dining restaurants, said it entered a nonbinding letter of intent to sell its common stock for $20.50 a share. The offer is a 3.6 percent premium to Lone Star’s 30-day average stock trading price of $19.78 a share.

Shares of Wichita, Kan.-based Lone Star closed Tuesday at $20.02, down 64 cents, or 3.1 percent on the Nasdaq Stock Market. The transaction is expected to close before the letter of intent expires April 27, the company said.

Railway: Company reports job cuts

Burlington Northern and Santa Fe Railway Co. will eliminate 91 jobs at its locomotive shops in Topeka and 50 more jobs at its West Burlington, Iowa, locomotive shops, the company said Monday.

Those laid off in Topeka will include 86 employees and five apprentice electricians, said Steve Forsberg, spokesman for BNSF. Those employees will be furloughed on Friday, but they were let go immediately with five days pay plus four months medical coverage.

Forsberg said the good news is that the company will keep its shops in Topeka and not transfer any work out of the city. Earlier this year the company transferred out 100 car repair jobs to Lincoln, Neb.

Takeover: Gray Communications buys Topeka TV station

Gray Communications Systems Inc. has agreed to buy 21 midsize-market television stations from bankrupt Stations Holding Co. Inc. in an all-cash deal valued at $500 million.

Stations Holding is the parent of Benedek Broadcasting Corp., based in Hoffman Estates, Ill. Benedek has 22 stations in 21 markets. It filed for Chapter 11 bankruptcy protection March 22.

The deal also includes cash for the future sale of Benedek assets.

Atlanta-based Gray will finance the Benedek purchase by issuing debt and equity securities.

Among the Benedek stations being sold are WIBW, Topeka, and KAKE, Wichita.

Economy: High-tech’s weak demand pulls down factory orders

Orders to U.S. factories dipped 0.1 percent in February as weaker demand for computers and cars eclipsed gains for household appliances and industrial machinery.

The decline was the first drop in overall orders since November and followed a solid 1.1 percent advance in January, the Commerce Department reported Tuesday.

Orders for computers fell 4.6 percent in February, following a 5.2 percent increase.