Reported by Star-Bulletin staff & wire
Friday, February 13, 1998
PUC rejects request to fine Hawaiian Tel
The state Public Utilities Commission has denied a wireless phone company's request to fine GTE Hawaiian Tel nearly $7 million.Western Wireless Corp. has sought the fine for what it claimed was GTE's failure to abide by a PUC order. The company alleged that GTE blatantly disregarded an order setting new interconnection rates for when customers of the two companies call each other.
But the PUC said the dispute involved contractual issues between the two parties and therefore didn't warrant commission intervention. It also found no basis to levy sanctions against GTE.
Prudential's plan to go public draws criticism
NEWARK, N.J. -- Prudential Insurance Co. of America, the nation's largest life insurer, says it is taking steps to become publicly traded.If it converts, which requires the approval of the New Jersey Legislature and other entities, Prudential would end over 80 years as a mutual company owned by policyholders.
Conversion to public ownership would involve selling stock on the open market. Analysts said it could benefit the policyholders by raising cash for the company to make acquisitions and improving its tax position.
But consumer advocate Ralph Nader and another analyst said policyholders would lose. "Mutual managements' only prime allegiance is to policyholders, while stock companies have to cater to shareholders as well as policyholders," Nader said. "The loss of leading mutuals like Prudential means stock insurers will no longer have to compete with mutuals' better performance, which will raise premiums."
Accounting giants scrap merger plan
LONDON -- KPMG Peat Marwick LLP and Ernst & Young LLP said they canceled plans to merge and create the world's largest accounting and consulting firm because regulatory hurdles got in the way.The cancellation comes a week after the European Commission launched an extended probe of the proposed merger, which would have created a firm with sales of $16.6 billion.
South Korean union calls off huge strike
SEOUL -- A labor group bowed to public pressure and internal opposition today, calling off a nationwide strike aimed at scuttling legislation that would make it easier for businesses to lay off workers.But the Korean Confederation of Trade Unions said it would still call the strike if the legislation before Parliament is adopted.
Government officials said the bill is certain to be adopted this month. The union, with 500,000 members in key industries, had called for the strike, starting today.