7-Elevens to get ATMs
Electronic Data Systems has signed a 10-year contract with Southland Corp. to install and operate automated teller machines in 4,000 7-Eleven convenience stores nationwide.
The deal -- worth more than $100 million -- will almost double EDS' network of ATMs. The Dallas-based computer services company now operates about 5,200 electronic cash-dispensing machines nationwide. EDS will begin placing ATMs in 7-Eleven stores next month and expects to complete installation of its machines in three years.
Virgin Atlantic sues British Air
Virgin Atlantic Airways filed suit against British Airways, accusing its larger rival of improperly using computer information on passengers and airplanes to undermine Virgin's business. In the action filed in London yesterday in the High Court of Justice, Virgin is seeking unspecified damages. The airline previously turned down a $14 million settlement.
Electronic news consortium forms
A group of 17 companies that includes the publishers Gannett, Knight-Ridder and Times Mirror plan to announce today that they are forming a research consortium to explore new ways to use computers and telecommunications to deliver news. The possibilities might include electronic newspapers transmitted to pocket-sized wireless computers or personalized papers printed at home.
The project will be carried out at the Massachusetts Institute of Technology Media Laboratory. Other participants include the Tribune Company, Hearst, IBM, Capital Cities/ABC and BellSouth.
Maryland bars World Card firm
The Maryland attorney general's office issued a cease-and-desist order yesterday against World Card, an Arizona company that mails prize notifications to consumers. World Card is run by Roger H. Byers and Donald Frank Byers, who also use the name World Banc Card and North American Credit Card, the attorney general's office said.
The company allegedly tells consumers they have won a luxury car, a Hawaiian vacation, $2,500 cash or a home entertainment system. Consumers cannot get prizes, however, unless they pay $149 for merchandise sent to them "cash on delivery." This violates Maryland law, the attorney general's office said.
Zale settles case for $32 million
Zale Corp. agreed to settle claims of negligence and mismanagement against three of its former directors for $32 million.
The claims relate to a series of complex loan transactions and shell companies the company and its creditors claim were designed to siphon hundreds of millions of dollars out of the jewelry retailer.
The transactions exacerbated Zale's financial problems and ultimately led to its bankruptcy, according to a motion filed in U.S. Bankruptcy Court in Dallas.