Reported by Star-Bulletin staff & wire
Monday, August 3, 1998
Nextel Communications offers service to isles
Nextel Communications Inc., a national leader in wireless digital communications, announced plans today to open a Hawaii network offering all-in-one phones providing cellular, two-way radio and paging services.McLean, Va.-based company will open its Honolulu headquarters at the Airport Trade Center at 550 Paiea St. in September and will employ more than 75 people by the end of the year, the company said.
Nextel said its digital service will cover all major islands. Heading the Hawaii operations will be General Manager Harvey Luke, who most recently was operating manager of Sandwich Isles Communications.
HEI gets $24.5 million in insurance firm failure
Hawaiian Electric Industries Inc. today announced it will receive $24.5 million in a settlement with three insurance carriers over the 1992 failure of its subsidiary, Hawaiian Insurance & Guarantee, after Hurricane Iniki.Following $92 million in losses and a $32 million settlement paid to the state, HEI filed claims against Chubb (Federated Insurance Co.), Aetna Inc. and Aegis (Associated Electric & Gas Insurance Services Ltd.)
Hit with $300 million in claims in the aftermath of Hurricane Iniki on Kauai, HIG was taken over by the state in December of 1992. That action cost HEI $32 million in a 1994 settlement with the state.
HEI then sued the three insurance carriers, arguing that all or part of the $32 million should have been covered under "directors and officers" insurance. The carriers filed suit disputing HEI's claims, a case that was set for trial this week, before settlement was reached.
HEI said it will net $14 million from the $24.5 million settlement after expenses and income taxes. That will add 43 cents to HEI's basic earnings per share in the third quarter of 1998, the company said.
Hawaii attorney chosen to lead ABA division
Richard Turbin is the first Hawaii lawyer to be elected chair of the American Bar Association's 30,000-member tort and insurance section.As chairman, Turbin will provide counsel to the U.S. Congress and the White House. State and federal agencies regularly seek counsel from the bar association.
Turbin will be installed in August 1999 and serve for one year. For the remainder of 1998, he will be chair-elect. Turbin is a Honolulu attorney with a practice in personal injury and insurance.
General Motors plans major reorganization
DETROIT -- General Motors Corp. plans a major reorganization of its North American operations that would dilute the marketing autonomy of four divisions, the trade weekly Automotive News reported today.The reorganization would affect marketing, sales and service at Chevrolet, Pontiac-GMC, Buick and Oldsmobile, Automotive News said. Saturn and Cadillac would be excluded.
The plan is the latest in the No. 1 automaker's continuing effort to reduce the power of its divisions and provide a more cost-effective and coordinated way to market GM's many models. The plan was being reviewed today by GM's board and was expected to be approved, with a formal announcement anticipated by tomorrow. GM officials declined to comment.
In other news . . .
LOUIS -- Department-store operator Dillard's Inc. has agreed to sell 26 stores owned by Mercantile Stores Co. in separate transactions to Proffitt's Inc. and the May Department Stores Co. Terms were not disclosed. The sales will take effect upon closing of Dillard's $2.9 billion acquisition of Mercantile, expected this month.
See expanded coverage in today's Honolulu Star-Bulletin.
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