Marriott plan spurs another outcry
Marriott Corp., under siege from big bondholders over its plan to split the company in two, is prompting another outcry from other investors worried about the hotel chain's reorganization plan. Marriott said yesterday about $200 million of a special kind of Marriott securities, convertible into the company's common stock, will instead convert into the new company that will keep $2.9 billion of debt and real estate under the plan.
The latest detail of the controversial restructuring amounts to a "trampling of the rights of the convertible holder," said Barry Alter, president of Capital Performance Group, an investment adviser and owner of the Marriott preferred shares. "If they pull this [restructuring] off it will undermine every convertible issue out there now."
GM non-automotive results mixed
General Motors Corp.'s key non-automotive businesses reported a mixed third quarter yesterday, with record earnings for its information technology unit and a tripled gain for defense-electronics but a slight drop in financial services.
The results reported by Electronic Data Systems Corp., GM Hughes Electronics Corp. and General Motors Acceptance Corp. stood in marked contrast to the severe losses that have plagued the automaking operation. Third-quarter results from GM's automotive business will be reported today.
NationsBank chairman to retire
NationsBank Corp. Chairman Bennet Brown will retire at year end and be succeeded by Chief Executive Hugh L. McColl Jr., the bank said yesterday.
Separately, NationsBank raised its quarterly dividend to 40 cents a share from 37 cents, payable Dec. 23 to common stockholders of record Dec. 4.
NationsBank, the fourth-largest U.S. bank holding company, was formed last year from the $4.7 billion merger of NCNB Corp. and C&S;/Sovran Corp.
Irradiated poultry may go to Iraq
The first batch of chickens zapped with radiation to kill bacteria may be headed to Iraq, a company official said. %J Vindicator Inc. of Plant City, Fla., the nation's only food irradiation plant, is negotiating with U.S. Harvest Technologies of Baltimore to ship up to 25,000 tons of the chickens to Iraq, said Sam Whitney, Vindicator president.
The shipment would need the permission of the United Nations.
Delta, USAir shuttle fares rise
The one-way peak weekday fares on hourly Northeast shuttles operated by Delta Air Lines and USAir were increased $10 to $150 as part of a broader price increase by major airlines last week.