Business Briefs

Reported by Star-Bulletin staff & wire

Friday, September 19, 1997

Isles more popular,
travel survey finds

Hawaii is a more popular choice than it was last year among mainlanders planning to take trips this fall, according to a survey by the Travel Industry Association of America.

The results of the survey conducted in July show Hawaii still in third place, after Florida and California, among travelers asked to pick their favorite destination. But this year 20 percent of the intending travelers picked Hawaii, up from 16 percent last year. The association surveyed 1,500 adults on their travel plans.

Kelley-backed stock
debuts on Wall St.

A new gaming company in Nevada, partly financed by Hawaii hotelier Richard Kelley, began trading today on the Nasdaq small-cap market.

The stock, traded under the symbol NVST, started at $5 and closed at $4.50 after 255,800 shares were traded, according to Bloomberg News.

Kelley, chairman of Outrigger Enterprises Inc., invested $3.5 million of his own money into the venture, which is developing a hotel, casino and shopping complex in Mesquite, Nev., on the Arizona border about 80 miles from Las Vegas.

Whirlpool Corp. to cut
4,700 jobs, sell unit

DETROIT -- Whirlpool Corp. plans to cut 4,700 jobs and sell its financing business in a move intended to boost the global market of the world's largest appliance maker.

The proposed job cuts could total 800 in North America, roughly half involving positions near Whirlpool's Benton Harbor, Mich., headquarters.

"Beyond that, we're not ready to disclose additional details," spokesman Christopher Wyse said. He said the impact of the job cuts -- perhaps beginning later this year -- should be eased by expected attrition and retirements.

The company said the restructuring would result in a $350 million charge against its third-quarter earnings and will save $180 million yearly by full implementation in 2000.

The company also plans to sell Whirlpool Financial Corp., its inventory and consumer financing business, to Transamerica Corp. for $1.35 billion.

Teamster aides admit
illegal fund-raising

NEW YORK -- Three men pleaded guilty in a conspiracy to funnel illegal contributions to Teamsters President Ron Carey's re-election campaign and implicated AFL-CIO and Democratic officials in the scheme.

They also agreed to cooperate with federal prosecutors.

Jere Nash, Carey's campaign manager, and Martin Davis, a Washington political consultant, yesterday each pleaded guilty to conspiring to funnel union funds through political groups into Carey's re-election bid against James P. Hoffa. Nash also confessed to accepting cash from other union leaders for Carey.

Michael Ansara, the owner of a Massachusetts telemarketing firm that did business with the Teamsters, pleaded guilty to creating a shell company that helped Davis and Nash carry out one of their plans to embezzle union funds.

Officials at the Democratic National Committee and the AFL-CIO denied the organizations tried to steer money to Carey's campaign.

Carey was not named in connection with any wrongdoing in the voluminous complaints.

Gillette to buy back
25 million shares

BOSTON -- Gillette Co. said today it plans to repurchase up to 25 million shares, or about 4.5 percent of its outstanding stock, over the next two years.

The consumer-goods giant, based in Boston, had 1996 sales of $9.69 billion. Last month, in a departure from years of steady profits, the company warned analysts to lower their 1997 and 1998 earnings forecasts.

One purpose of a buyback is to increase earnings per share by reducing the number of shares outstanding.