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Business Briefs

Reported by Star-Bulletin staff & wire

Wednesday, June 30, 1999

Digital stock soars in 2nd trading day

SAN FRANCISCO -- Digital Island Inc., which provides computer network services to companies that do business on the Internet, surged as much as 73 percent in its second day of trading following an initial stock sale.

The San Francisco company, which used to be based in Hawaii, rose $5.25 to $17.12 as 6.3 million shares traded today on the Nasdaq stock market by midday. Earlier in the day, the shares reached $20.50.

U.S. Bancorp buys Nuveen bank unit

MINNEAPOLIS -- U.S. Bancorp agreed to buy the investment banking division of money manager John Nuveen Co. to become the top U.S. underwriter of long-term municipal bond issues.

Minneapolis-based U.S. Bancorp, the 13th-largest U.S. bank, did not disclose what it is paying for the 50-person unit of Chicago-based Nuveen, which does business in Hawaii.

AOL offers rebate for low-cost PCs

DULLES, Va. -- America Online Inc., the world's largest online service, will offer subscribers who sign up for three years of its CompuServe service a $400 rebate on low-cost personal computers made by eMachines Inc.

The move comes one day after Microsoft Corp., the largest software maker in the world, said it will offer new subscribers to its MSN Internet access service a $400 credit to buy a personal computer.

Frontier, Qwest to discuss takeover

NEW YORK -- Frontier Corp., a small local and long-distance phone company, said today it has agreed to meet with executives from Qwest Communications International Inc. to explore the company's $11.8 billion takeover offer.

The statement opens the door to formal negotiations with Qwest that could jeopardize Frontier's existing $10.9 billion merger agreement with Global Crossing Ltd.

Qwest and Global Crossing are fighting for control of Frontier and U.S. West Inc., a regional Baby Bell phone company.





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