Business Briefs

Reported by Star-Bulletin staff & wire

Monday, July 21, 1997

GTE seen as attractive
target, magazine says

NEW YORK -- GTE Corp. is seen as an attractive takeover target as long distance carriers aim to enter local telecommunications markets and capitalize on GTE's strength in Internet and data transmission, Business Week reported in its July 28 issue.

GTE's chief executive Charles Lee is not discouraging merger talk, the magazine said. "I'll continue to explore other business arrangements to the extent that they make sense for helping shareholders," Lee told Business Week.

Since GTE, parent of GTE Hawaiian Tel, is spread out in 28 states in mostly rural or suburban regions, the company would serve as a springboard for a leading carrier such as AT&T Corp., MCI Communications Corp., or Britain's Cable & Wireless Plc to enter local businesses, the magazine said.

IBM earnings up 7.4%,
beating expectations

NEW YORK -- IBM Corp. today reported a 7.4 percent increase in second-quarter profits on a 3.8 percent increase in revenues, as strong demand for computer services, parts and business PCs helped offset weakness in IBM's biggest business machines.

IBM said it earned $1.45 billion, or $1.46 a share, in the quarter ended June 30. That was up from $1.35 billion, or $1.26 per share, in the year-ago quarter. Revenues grew to $18.87 billion from $18.18 billion.

The results, issued after the stock markets closed today, were slightly above expectations of analysts surveyed by IBES International, who called for profits of about $1.42 per share.