Business Briefs

Reported by Star-Bulletin staff & wire

Wednesday, July 30, 1997

United Airlines offers
double mileage credit

Seeking to boost usually soft fall travel, United Airlines is offering Hawaii travelers to the West Coast double miles in its frequent flyer program for trips during September.

Travel between Honolulu and Los Angeles, San Francisco, Seattle, Los Angeles or Portland will qualify. United said travelers must register by calling 1 (800) 500-1674 between 7 a.m. and 10 p.m. Honolulu time Monday through Friday. The plan does not apply to direct mainland flights from Maui or Kona.

The airline said Alamo Rent-A-Car also is offering double miles to United passengers using the bonus plan.

Bank donates money
for Ewa Villages homes

Bank of America Hawaii has completed its $50,000 donation to help 20 low-income families build their own homes at Ewa Villages.

The donation to the Self-Help Housing Corp. of Hawaii, through the bank's Filipino Community Affordable Housing Program, will combine with a $26,000 grant from the Federal Home Loan Bank of Seattle. The families will build three-bedroom, two-bath homes of 1,100 square feet on lots of 5,000 to 6,000 square feet. The cost for each home will be $135,000.

Bank of America's donation is for a consultant's fees and preparatory materials. The Federal Home Loan Bank will match the families' Bank of America savings accounts dollar for dollar, up to the $26,000 total for the project, to cover down payments and closing costs.

J.P. Morgan takes
big stake in fund company

NEW YORK -- J.P. Morgan & Co. agreed to buy 45 percent of American Century Cos. for $900 million to boost its share of the mutual fund and individual retirement plan businesses.

J.P. Morgan, the fifth-largest U.S. bank, has about $30 billion of its $234 billion under management in mutual funds. American Century has about $60 billion under management in 70 mutual funds. The Kansas City, Mo.-based money manager is the fourth-biggest U.S. seller of no-load funds, those that don't charge up-front fees, Bloomberg News reported.

With the acquisition, J.P. Morgan is joining other big banks in offering corporate clients a stable of mutual funds that can comprise an individual retirement investment, such as a 401(k) plan. It's also trying to appeal to retail mutual fund customers as more Americans save for retirement.

Last year, Twentieth Century Cos. merged with Benham Group to form American Century.

Sugar marketing group expanding

MIAMI -- U.S. Sugar Corp. said it will join United Sugars Corp., a sugar marketing cooperative, creating the first coast-to-coast sugar marketing organization in the United States, Bloomberg News.

U.S. Sugar Corp. is Florida's largest grower of sugar cane, producing about 700,000 tons of raw sugar a year. United Sugars, based in Bloomington, Minn., markets sugar on behalf of three cooperatives that produce 17 percent of all sugar consumed in the United States.

With the addition of Clewiston, Fla.-based U.S. Sugar Corp., United Sugars' annual sales will rise to about $1.5 billion from $1 billion, U.S. Sugar Corp. said.

The combination of U.S. Sugar Corp. and United Sugars, whose producers grow beet sugar in the Midwest, means United Sugars' customers will be more protected against crop risk. If crops are damaged in Florida, sugar will be available out of the Midwest.

United Sugars was formed in 1994 as a joint marketing entity for three sugar producing cooperatives. The intent of giving smaller producers the clout to be able to compete with big international companies such as Tate & Lyle Plc of the United Kingdom, which sells sugar in the United States under the Domino brand.