Reported by Star-Bulletin staff & wire
Tuesday, June 10, 1997
BankAmerica Corp.'s pending sale of its Hawaii banking operations is helping free up capital for the San Francisco-based banking giant's latest purchase.
Isle deal helps bankroll
Yesterday, BankAmerica confirmed that it was paying $540 million to buy Robertson Stephens & Co., a San Francisco investment bank.
Shirley Norton, a BankAmerica spokesman, said that the company would finance the purchase with proceeds from the sale of its consumer finance unit, Security Pacific Financial Services, to the Travelers Group Inc. for $1.6 billion and from the sale of its Hawaii banking operations to American Savings Bank, a unit of Hawaiian Electric Industries Inc.
The Security Pacific deal was also announced yesterday, while the Hawaii deal was announced last month.
Joe Morford, an analyst with Alex. Brown & Sons, said BankAmerica apparently did not profit from the Hawaii sale, the terms of which have not been disclosed, but that it did free up $80 million of capital to invest.
The deals come as David Coulter, BankAmerica's chairman and chief executive, has been shedding underperforming assets and using the capital to acquire businesses with better margins.
PALO ALTO, Calif. -- Hewlett-Packard Co. said that federal antitrust regulators have cleared the way for its $1.18 billion purchase of VeriFone Inc.
H-P buyout of VeriFone
receives federal antitrust OK
VeriFone, which was founded in Hawaii, is best known for the small gray terminals used to approve credit-card and debit-card purchases in stores and restaurants. The Redwood City, Calif.-
based company pioneered that market during the 1980s and now controls three-fourths of the world market.
Hewlett-Packard, based in Palo Alto, Calif., is a major computer and electronic equipment maker. The two companies announced their agreement April 23.
NEW YORK -- America Online Inc. and the huge marketing company CUC International Inc. today agreed to a deal to put CUC's shopping, travel and other online services on the AOL network.
America Online signs $50 million
pact with marketing firm
The nation's largest online service will receive at least $50 million under the three-year marketing agreement.
Under the deal, Stamford, Conn.-based CUC will allow AOL's 8 million subscribers to buy goods and services at discounts through CUC's Internet site and its Shoppers Advantage, Travelers Advantage, Auto Vantage and other clubs, the companies said.