The Daily Herald from Provo, Utah on August 30, 1995

Is?” To sumblt a press release, announce a new business, or comment on Utah County business, call Business Editor Travis Jasobsen during normal business hours at 344-2552. The Daily Herald Wednesday, August 30, 19 if .J ha issiiioso SinfefjMis SEATTLE (AP) Microsoft Corp. sold 1 million copies of Windows 95 during its first four days of availability, the company said. However, the number of phone calls from people who were having trouble with the new software from Thursday to Sunday was also staggering, leaving many people who called Microsoft with a busy signal. Microsoft said the first four days exceeded internal projections for both sales and trouble calls, but it wouldn’t be specific. Demand for the product could be hurt if the perception grows that getting help is difficult. NEW YORK (AP) Donaldson, Lufkin & Jenrette Inc. disclosed plans to go public for the second time in its 36-year history with a stock offering that would infuse the investment bank with needed financial capital. The sale of up to 10.58 million common shares, combined with a stock-exchange program with DLf employees, could raise up to $385.7 million for the brokerage and its parent, Equitable Companies Inc. Equitable, one of the world’s largest insurance companies, would sell a 20 percent stake in DLJ, returning the brokerage to public company status for the first time since 1985. NEW YORK (AP) Financier Bennett S. LeCow’s New Valley Corp. has received clearance from federal antitrust regulators to buy up to 15 percent of RJR Nabisco Holdings Corp., maker of Winston and Camel cigarettes and Oreo cookies. LeBow was mum Tuesday on his intentions. But RJR disclosed that it had spurned an earlier proposal by LeBow that they combine their tobacco interests under his control while spinning off RJR’s remaining food business interests. LeBow also controls Liggett Tobacco, whose domestic brands include L&M and Chesterfield as well as private label cigarettes. NEW YORK (AP) The fight for supremacy in the $1 billion-a-year antacid market has moved from the drugstore counter to the federal court. SmithKline Beecham PLC, maker of Tagamet HB, has filed a false advertising suit against Johnson & Johnson-Merck, maker of Pepcid AC. The two drugs are the first in a new class of antacids introduced this year. The suit accuses Pepcid of falsely claiming it works better and longer than Tagamet and is safer. Pepcid’s makers expressed confidence their advertising will stand up in court. YOUNGSTOWN, Ohio (AP) A federal bankruptcy judge approved Phar-Mor Inc.’s financial reorganization plan, setting the stage for the deep-discount drugstore chain to emerge from creditor protection next month. Under the plan, former Dart Group Inc. President Robert Haft will hold 3 1 percent of Phar-Mor stock and will become chief executive officer. The company’s financial problems were disclosed three years ago when executives uncovered a $1.1 billion insider embezzlement. A reorganization since then has left it one third its original size. DOW (Industrials) August 28, 1995 NYSE S&P 500 NASDAQ UITA AM EX NYSE Diary Advances: 1,145 Declines: 1,104 Unchanged: 785 Total issues: 3.034 1994 avg. comp. vol.: 352,288,590 Volume: 331 ,827,550 Time, Turner discussing merger Satura By SKIP WOLLENBERG AP Business Writer NEW YORK Time Warner Inc. is talking with Turner Broadcasting System Inc. about buying Turner, the companies said today. If completed, the merger would create the world’s largest media and entertainment company. The companies did not disclose the terms under discussions but two sources familiar with the situation said that Time Warner has proposed buying the Atlanta-based cable television concern for about $8.5 billion in stock. If they reach a deal, it would be the third major combination in the industry this summer as program providers and distributors team up on the theory that bigger companies will compete more profitably worldwide. Time Warner wants to bring Turner’s impressive array of cable television networks including Cable News Network under the same corporate umbrella with Warner Music, Warner Bros, films and Home Box Office. In their statement, the companies said Turner would become a wholly owned subsidiary of Time Warner. But they cautioned that “significant issues remain to be negotiated.” The sources, who spoke on condition of anonymity, said Turner Broadcasting chairman Ted Turner liked Time Warner’s proposal, but it was unclear whether his board would support it. “I have no idea where John Malone is on it,” one of the sources said, referring to the chief executive of Tele-Communications Inc., which is a major Turner shareholder and a Time Warner rival in cable TV systems. TCI owns about 21 percent of Turner’s stock, while Time Warner owns about 18 percent. They each have three seats on the 15-member Turner board. The sources said Time Warner is offering 0.7 to 0.8 shares of its stock for each Turner share making the swap worth about $35 a share. The proposed deal comes on the heels of Walt Disney Co.’s $19 billion agreement to buy Capital CitiesABC Inc. and Westinghouse Electric Corp.’s agreement to buy CBS Inc. for $5.4 billion. Ted Turner has coveted a broadcast network for years, and was believed to be trying to raise the financing for a rival offer for CBS. Time Warner until had recently been negotiating to sell its Turner stake back to Turner Broadcasting to reduce its $15 billion debt, and had blocked an earlier effo.t by Turner to bid for NBC. But one of the sources said the relationship between the companies veered in a new direction after Time Warner Chairman Gerald Levin visited Turner at Turner’s ranch in Montana earlier this month and outlined his plan to combine the companies. Turner would become a Time Warner vice chairman under the proposed deal and his company would be a subsidiary of Time Warner, one of the sources said. Time Warner was the world’s biggest media and entertainment company last year with revenue of about $15.9 billion. The Disney-Capital Cities had threatened to topple Time Warner from that top spot by creating a company with combined revenue of about $16.5 billion. But if Time Warner succeeds in buying Turner, it would reclaim that spot with combined revenue of about $18.7 billion. The combined company would be a major player in both the cable television and entertainment industries. Time Warner owns the Home Box Office and Cinemax premium channels, and operates the nation’s second-biggest collection f cable systems after those owned Tjy Tele- Herger considered TIME WARNER 8 Headquarters: New York Chairman, President and CEO: Gerald M. Levin Programming: Cinemax, Home Box Office Cable: Time Werner Cabie Film: Warner Bros. Music: Atlantic Recording Corp., Elektra Entertainment, Warner Bros, Records Inc. Publishing: Book-of-the-Month Club; Little, Brown and Co.; Warner Books Magazines: Time, Entertainment Weekly, People, Sports illustrated 1994 Earnings: Lost $91 million 1994 Revenues: $15.91 billion Headquarter: Aibnta “Chairman and President: Ted Turner Netwctiks: Cartoon Network, TBS h SuperStation, Turner Classic Movies “Production & Distribution: Castie Rock Entertainment, Hanna-Barbera Cartoons, Inc., New Line Cinemas, Turner Entertainment Co. News: Cable News Network, CNN Headline News, CNN International Other: Atlanta Hawks basketball, Atlanta Braves baseball 1994 Earnings: $21 million 1994 Revenues: $2.8 billion Source: company reports, Hoover’s Handbook of American Business 1995. AP Communications. Turner’s CNN, Headline News, Turner Network Television and Cartoon Network channels are among the industry’s most popular. Time Warner had at one time considered proposing a swap of its Turner stake for a channel or two. The deal would also create a more powerful player in Hollywood. Settlement reached in harassment suit CHARLESTON, W.Va. (AP) A lawsuit alleging sexual discrimination and harassment against Shoney’s Inc. has been settled, lawyers said Tuesday. The terms of the settlement with the restaurant chain were not disclosed, said Deborah Reed, who represented some of the nine women in the lawsuit. The trial was to begin Tuesday in Kanawha County Circuit Court. The women alleged in the 1993 lawsuit that a former manager showed them a pornographic video in the Cross Lanes restaurant office. They also alleged he made lewd jokes. Each of the women had sought at least $100,000 for incidents in the two years leading to the lawsuit. Shoney’s officials claimed the women never filed formal complaints against the employees, court records said. Roger Wolfe, a lawyer for Nashville, Tenn.-based Shoney’s, said some of the women also told sexual jokes. The bulk of the complaints were against Jamie Lively, who had been a manager but was fired after the allegations surfaced. Lively told a Shoney’s executive he told some of the jokes, but he did not intentionally show them the pornographic movie. He claimed he was planning to return the movie to a friend but wanted to make sure it was in good condition, saying his home videocas-sette recorder was hot working. He alleged another restaurant worker played the video while the women were there. There are 890 Shoney’s restaurants in 36 states. market forces Silo out . .’A r.. nnn a i n u; urvene By UU!1NLU I. mLlfcnj, -.,,1 The Daily Herald . r ; Orem’s Silo store closed its, doors for good Tuesday. ; – Patrons coming to the Stated Street location found the dootf; locked, lights out and a sign direct- ing them to take their business tcr the Michigan-based home applK-; ance chain’s Salt Lake City outlet”‘ The store was one of several that closed statewide. Jack C”lark’ Silo’s district manager, referred,” questions to Stewart Garson, in thier chain’s legal department. .’ Garson did not return multiple: ; phone calls placed to his office by’. The Daily Herald. A secretary m.j Garson’s office said he was either:! out or in meetings. ‘)'” DeLance W. Squire, executive ; director of the Commission” f Economic Development in Oreni; ! said he had not heard about Silo’s ; closing until one of his co-workers,,;, went down to the store Tuesday but the report was not surprising.. ‘ “It would be something Jogi cal,” Squire said. “We have &Oi many businesses like that coining” into the city.” ‘ Squire said Silo did not appa( ‘ to be equipped to handle the fierce retail competition in the city. f Ultimate Electronics and Circuit City are already located along the., city’s 1300 South business corridor? ‘ The appliance departments at’RvC? Willey, ZCMI and Granite Furm ture are also competing with Sjlp” ; On top of the established busi : nesses in the area, Squire said anoth ; er home electronics store is prepar? ing to make a bid to locate in ,the city, adding to the competitive mix.” I Squire said financial benefits” the city’s Redevelopment Agency ; gave to businesses such as IRJC-Willey and Circuit City da ‘-npt ,’. appear to be factors in Silo’s vfah drawal. ‘ ” Critics of the RDA claim the; city’s offers of tax breaks and oth-:-er financial incentives to large’ business chains hurts local busj- nesses and forces them out of the city. i”i “First, this is not a local busi ness. 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