Reported by Star-Bulletin staff & wire
Monday, May 11, 1998
'Chainsaw Al' to cut 6,400 Sunbeam jobs
DELRAY BEACH, Fla. -- Sunbeam Corp. will lay off 6,400 employees, or 40 percent of its work force, and shut a third of its plants, as the maker of mixers and grills slashes costs following three acquisitions and an unexpected first-quarter loss.Chief Executive Al Dunlap said he expects the moves to save $250 million a year at Coleman Co., Signature Brands USA Inc. and First Alert Inc., which Sunbeam just bought for $2 billion.
Dunlap, known as "Chainsaw Al" for mass firings at companies he's led, is trying to restore his credentials as a turnaround expert after two warnings of lower-than-expected sales cut the value of Sunbeam's shares by half in two months. Yet he disappointed Wall Street again today with earnings forecasts for this year and next that fall short of estimates. Besides closing eight of 23 factories, Sunbeam will also shut warehouses and sales offices and sell three businesses.
Report: Seagram near deal for PolyGram
NEW YORK -- Seagram Co., seeking a strong music business to keep up with its huge rivals, is reportedly close to acquiring PolyGram NV, the world's biggest record company, for $9 billion to $10 billion.Shares in London-based PolyGram rose 6 percent after today's report in the Wall Street Journal, which the companies would not confirm.
The Journal said Seagram turned to PolyGram after talks with Britain's EMI Group Plc unraveled last week. Seagram, the owner of Universal Studios, is apparently trying to bolster its relatively small music business to catch up to entertainment conglomerates such as Time Warner Inc.
PolyGram owns the Motown, Island and Mercury record labels, among many others, and has a vast roster of artists including U2, Elton John, Hanson and Boyz II Men. Seagram's roster includes Beck, Reba McEntire, Bush and B.B. King. Its labels include Universal and Interscope.
DuPont will divest Conoco oil subsidiary
WILMINGTON, Del. -- DuPont Co., the biggest U.S. chemical company, said it plans to divest its Conoco Inc. oil unit and will start by selling a 20 percent stake in one of the largest initial public offerings ever.Analysts said the sale could fetch as much as $3 billion, valuing Conoco at $15 billion to $30 billion. DuPont said the sale will free it to bolster its chemicals and life-sciences businesses, such as biotechnology, agricultural products and pharmaceuticals, Bloomberg News reported.
"Analysts and investors have been bugging them to do this for a while," said Sergei Vasnetsov, an analyst at BT Alex Brown & Sons Inc.
AT&T, union reach tentative agreement
WASHINGTON -- AT&T Corp. and negotiators for two unions have reached tentative agreement on a new contract covering 51,800 workers nationwide, according to union officials.Details of the pact were not immediately available, but Candice Johnson, spokeswoman for the Communications Workers of America, said an announcement would be made today.
The negotiator's final product is subject to the approval of members of CWA and the International Brotherhood of Electrical Workers whom it covers. CWA represents operators, service representatives and technicians at AT&T. The IBEW represents technicians
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