GTE to sell some access lines
GTE's Telephone Operations unit in Stamford, Conn., has agreed to sell 500,000 access lines in nine states to Citizens Utilities Co. for $1.1 billion.
The transaction, announced yesterday, involve all of GTE's local exchange lines in eastern Arizona, Montana, New York, Tennessee, Utah and West Virginia and a small portion of its properties in California, Idaho and Oregon.
Japanese brokerage fined
Nikko Securities Co., one of Japan's "Big Four" brokerages, will pay a $1 million fine to settle charges it violated U.S. financial reporting regulations, the Securities and Exchange Commission said yesterday. In the settlement, the Nikko brokerage did not admit or deny any wrongdoing.
Nikko Securities International Inc., the U.S. unit of Japan's Nikko Securities Co Ltd., was the last of four affiliates of the Big Four to settle civil charges the SEC filed in February. The firms were accused of keeping improper records and making false statements to U.S. regulators.
2 Nordstrom officers demoted
After two years of disappointing sales and a record drop in first-quarter profits, the Nordstrom family has asked two of its company's four co-presidents to step down.
"Darrel Hume and Galen Jefferson will be leaving their positions as co-presidents with the company," Nordstrom Inc. said in a statement late yesterday. The demotion of Mr. Hume, who was responsible for menswear and sales promotion, and Mr. Jefferson, who oversaw women's sales and inventory control, leaves Raymond Johnson and John Whitacre in control of the company's day-to-day operations.
Bell Atlantic, Stentor sign pact
Bell Atlantic Corp. signed an agreement with Stentor, an alliance of Canada's major telephone companies, that allows the two companies to collaborate on telecommunications systems. In a deal worth $17 million, Stentor is also licensing a software system, called the advanced intelligent network, developed by Bell Atlantic, that would allow local phone companies to quickly reroute a customer's calls.
Fla. bans insurance cancellations
Florida barred insurance companies from canceling homeowner policies after outraged consumers berated the state government for allowing insurers to flee because of hurricane losses. Yesterday's order preventing 300 property insurers from canceling coverage due to hurricane risk for 90 days exempts companies only if the restriction would trigger insolvency.
Allstate Insurance Co. plans to cut 300,000 policies and raise rates to reduce losses in a future hurricane to $1 billion. Three other insurers have notified state regulators of plans to cancel policies.