In the Region
Judge decides she'll not preside over Rite Aid case
A federal judge has removed herself from presiding over the criminal case of four current or former Rite Aid Corp. executives accused of falsifying accounting statements to inflate the company's stock price.
Judge Yvette Kane, of U.S. District Court in Harrisburg, cited language in a 3rd U.S. Circuit Court of Appeals decision issued Nov. 8. The appellate decision upheld Kane's original decision to hear the case but noted that her past association with lawyers who have done business with Rite Aid and former chief executive Martin L. Grass may leave her impartiality in doubt.
Grass, the son of the company founder, and three others were named in a 37-count criminal indictment in June. Grass' attorney, William Jeffress Jr., called Kane's decision the "right thing to do."
A trial had been scheduled to begin March 3.
Eisner lands account to promote Krytox
Eisner Communications said yesterday that it won an account with Dupont Chemical Solutions Enterprise to promote Krytox, a lubricant first developed for the NASA space program.
Krytox is used in the automotive, aerospace, aviation and semiconductor industries.
Baltimore-based Eisner, which had $248 million in billings last year, said it six other companies had competed for the contract.
Elsewhere
Campbell learns that it may be in soup with IRS
Campbell Soup Co., the biggest soup maker, has been told by the Internal Revenue Service the company may be liable for $79 million in back taxes and interest.
The notice challenges Campbell's treatment of gains and interest deductions on government securities, the company said in a filing with the Securities and Exchange Commission.
Campbell said it reported the transactions properly on its 1995 tax return and will challenge the IRS proposal.
Yum! names Hearl president of Pizza Hut
Peter R. Hearl was named the new president of Pizza Hut Inc. yesterday by the chain's parent company.
Hearl, 51, is a 12-year veteran of Louisville, Ky.-based Yum! Brands Inc., Pizza Hut's parent. He succeeds Michael Rawlings, 47, who resigned to spend more time with his family and pursue other interests.
Hearl was most recently executive vice president and chief people officer for Yum, which has 32,500 restaurants, including Pizza Hut, Taco Bell, KFC and Long John Silver's. Previously, he oversaw Yum's international operations, which the company said is its largest profit driver.
Dividend boosted 15% by Union Pacific
The board of directors of Union Pacific Corp. has raised the company's quarterly common stock dividend by 15 percent, from 20 cents a share to 23 cents.
The increased payout is payable Jan. 2 to stockholders of record Dec. 11.
Heinz says spinoff will be tax-free to all
H.J. Heinz Co. said yesterday that a plan to spin off brands such as StarKist Tuna and 9-Lives cat food to Del Monte Foods will be tax-free to the companies and shareholders.
The Internal Revenue Service's decision capped a regulatory review that was the final hurdle for the companies to complete the estimated $2.5 billion deal, which includes transferring $1.1 billion in debt to Del Monte.
This column was compiled from reports by Sun staff writers, the Associated Press and Bloomberg News.