Posted on Sat, Nov. 22, 2008
In the Region
2 Phila. funds in settlement
Drug distributor
McKesson Corp., San Francisco, said yesterday it would pay $350 million to consumers and health plans - including the
Teamsters Health & Welfare Fund of Philadelphia Vicinity - to settle lawsuits alleging it inflated the price of hundreds of drugs. Another plaintiff in the suit was the
Philadelphia Federation of Teachers Health & Welfare Fund. The settlement will be submitted to U.S. District Court in Boston for preliminary approval, and then to the parties who brought the suit before a final approval hearing. McKesson acknowledged no wrongdoing.
- AP
Tropicana lays off 50 supervisors
The
Tropicana Casino and Resort has laid off 50 supervisors, becoming the latest of several Atlantic City casinos to slash staff this year as the economy worsens. The jobs eliminated by the Tropicana were designed not to hurt what the casino calls its most important initiative: improving its interaction with customers and winning back players.
- AP
Unisys cutting costs
Unisys Corp., Blue Bell, said it was reducing its annual selling, general and administrative costs by $100 million, or about 8 percent of the $1.2 billion it spent in those areas in 2007. Unisys shares yesterday closed sharply higher, up 11 cents, or 29 percent, at 49 cents.
- Paul Schweizer
Cigna revises 4Q outlook
Cigna Corp. has revised its fourth-quarter outlook for earnings from operations to show a loss of $165 million, instead of $125 million, related to its variable-annuity death-benefits business. The Philadelphia-based insurer said its revision was based on market conditions at the close of business on Nov. 19. Company shares closed down 6 cents at $8.82.
- Roslyn Rudolph
Pa. jobless rate up, but below U.S.'
Pennsylvania's unemployment rate rose a modest 0.1 of a percentage point in October to 5.8 percent, the state
Department of Labor and Industry said. That compared with an increase nationally of 0.4 of a percentage point to 6.5 percent as the U.S. economy probably fell into a recession. A year ago, Pennsylvania's jobless rate was 4.4 percent of the labor force. In October, employment in the state fell by 2,000, while unemployment rose by 4,000.
- Paul Schweizer
Rate hike OK'd for S. Jersey Gas
New Jersey Board of Public Utilities said
South Jersey Gas, Folsom, could increase its base rate for natural gas by 9.2 percent. That will add $141.30 to the average residential customer's bill, said the company, which makes no profit on the sale of natural gas, but earns a return on its service. The rate increase is lower than the 18.2 percent request from early this year, reflecting a decline in the whole price natural gas since then.
- Harold Brubaker
BMP Sunstone acquires drug
BMP Sunstone Corp., Plymouth Meeting, said its subsidiary, Sunstone Pharmaceutical Co. Ltd., had signed an agreement to acquire Runchang capsule, a liquid-filled hard capsule used to treat constipation, from Darentang Pharmaceutical of China. Sunstone also will receive the entire filling and sealing production line, as well as related technology for the product. BMP Sunstone did not disclose a price. Company shares closed up 64 cents, or 13.8 percent, at $5.28.
- Miriam Hill
Merger gets Japan's approval
Philadelphia Consolidated Holding Corp., a Bala Cynwyd insurer, said in a statement that Tokio Marine Holdings Inc. received approval for its proposed acquisition of Philadelphia Consolidated from the Financial Services Agency of Japan. The two companies anticipate that the closing of the merger will take place Dec. 1.
- Rhonda Dickey
Escalon completes placement
Escalon Medical Corp. said it had completed a $1.1 million private placement of common stock and common stock purchase warrants. The medical-devices company, which is based in Wayne, said it sold one million shares of common stock at $1.10 a share. Company shares closed up 59.8 cents, or 5.6 percent, at $1.12.
- Roslyn Rudolph
Elsewhere
Wal-Mart CEO to retire
Wal-Mart Stores Inc. unexpectedly announced that its chief executive officer will retire in February and be replaced by the head of its international division. Wal-Mart said
Mike Duke, 58, vice chairman of its international division, will take the reins from
Lee Scott, 59, effective Feb. 1. Duke also becomes a member of the board of directors immediately. Scott, who joined Wal-Mart in 1979 and became president and CEO in 2000, will continue as chairman of the executive committee of the board until January 2011.
- AP
Boeing warns of possible layoffs
Boeing Co. may lay off some workers next year as part of an effort to cut costs in response to difficult market conditions and a slowing global economy, a company executive said. In an internal memo sent to employees, Rick Stephens, senior vice president of human resources, was quoted as saying the aerospace company expects its number of employees to decline in 2009 after several years of growth. That decline could exceed Boeing's average annual attrition rate of 4 to 5 percent, though the Chicago-based company has not made a firm estimate. It would include a mix of attrition, hiring freezes and layoffs, he said, according to the memo.
- AP
Regulators to ease purchase of banks
Federal regulators issued their first approval of a new kind of bank charter intended to increase the "pool of potential buyers" of failed banks. The Treasury Department's
Office of the Comptroller of the Currency said the new charter was intended for private investors interested in bidding on troubled banks that have been taken over by the
Federal Deposit Insurance Corp. Under the new mechanism, regulators grant preliminary approval of a national bank charter to an investor group, which is then able to bid on failed banks. Regulators must then grant final approval if the FDIC approves the bid, the OCC said.
- AP
Delta to trim future capacity
Days after announcing new overseas routes for 2009,
Delta Air Lines Inc. said in a regulatory filing that it plans to reduce future domestic and international capacity because demand for seats has slowed amid the global financial crisis. Spokeswoman Betsy Talton said Delta still plans to add starting next spring the 15 new international routes it announced Nov. 12, but the company will continue to monitor performance.
- AP
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