Reported by Star-Bulletin staff & wire
Monday, April 27, 1998
U.S. home resales set record in March
WASHINGTON -- Homes resales in the United States boomed to a new record in March, unexpectedly jumping 2.5 percent to a seasonally adjusted annual rate of 4.89 million units.The level breaks the old record, a 4.77 million unit rate, set just the month before, the National Association of Realtors said today. The rates are the highest since the group began compiling the data in 1968.
Based on the first three months of the year, Realtors President R. Layne Morrill predicted sales for all of 1998 would set a record. "Sales were at extraordinary levels in February and the momentum continued," he said. "This brings us into uncharted territory."
Driving sales were low mortgage rates, which makes home-buying more affordable, and healthy income gains fueled by the lowest unemployment since the early 1970s.
Lucent agrees to buy Yurie Systems Inc.
NEW YORK -- Lucent Technologies Inc. said today it had agreed to acquire Yurie Systems Inc. , a leading maker of data, voice and video networking equipment, for $35 cash a share, or a total of about $1 billion.Lucent, a maker of telecommunications products, said the deal would result in an unspecified charge against its earnings in the fiscal third quarter and would be slightly dilutive to earnings in the first full year of operations after the deal was completed. Yurie shares rose $3.25 to close at $34.75 on the New York Stock Exchange.
Best Buy announces 2-for-1 stock split
EDEN PRAIRIE, Minn. -- Best Buy Co. said today it will split its shares 2-for-1.The stock split will double the number of shares to 100 million, halving their per-share value.
On a day when the market was sharply lower, Best Buy's shares were down 871/2 cents, to close at $67.87-1/2 on the New York Stock Exchange. The new shares will be issued May 26 to shareholders of record as of May 11. Best Buy, based in Eden Prairie, Minn., operates 285 stores selling personal computers and home office products, consumer electronics, entertainment software and appliances.
Real estate trust buys six Residence Inns
PALM BEACH, Fla. -- Innkeepers USA Trust plans to buy six Residence Inns from Marriott International Inc. for $89.4 million, boosting the number of Residence Inns it owns to 44.Palm Beach, Fla.-based Innkeepers, a real estate investment trust, specializes in upscale hotels where customers stay for longer periods. Marriott will sell the hotels for 85 percent cash and 15 percent in operating partnership units. Marriott will manage the six properties, which are located in Atlanta; Chicago; Detroit; San Jose, Calif.; Gaithersburg, Md.; and Richmond, Va.
The acquisition follows Innkeepers' acquisition in January of eight Residence Inns in the Midwest for $59.5 million.
Washington-based Marriott also manages those hotels.
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