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Business Briefs

Reported by Star-Bulletin staff & wire

Tuesday, August 29, 2000

Building contracts down 18% in isles

The total value of future construction contracts in Hawaii dropped 18 percent to $117.5 million in July from $143.7 million in July 1999, according to the F.W. Dodge Division of the McGraw-Hill Cos.

The total value of nonresidential building fell 30 percent to $33.7 million last month from $48.4 million in July 1999, while nonbuilding construction dropped 38 percent to $25.9 million from $41.7 million. In contrast, residential building contracts rose in total value to $57.9 million, an 8 percent increase from $53.6 million in July 1999.

From January through July, the total value of contracts written for future Hawaii construction is down 23 percent to $807.88 million from about $1.045 billion last year.

City Bank parent forms separate unit

CB Bancshares Inc. has formed a separately managed subsidiary that will process checks for City Bank, then attempt to sell the service to other financial institutions in Hawaii, the company said today.

Datatronix Financial Services Inc. is an affiliate company to City Bank, the principle subsidiary of Honolulu-based CB Bancshares. Datatronix will have its own board of directors, CB Bancshares said. City Bank operates 21 branches on Oahu, Maui and the Big Island.

AT&T to take control of Excite next month

NEW YORK -- AT&T Corp. assumed voting control of Excite At Home Corp. earlier than expected and said 2000 earnings will be 1 cent to 2 cents lower than forecast.

AT&T said that it will begin consolidating Excite's results into its own in September rather than October. As a result, AT&T said it expects third-quarter earnings of 35 cents to 38 cents a share, down from a previous forecasts of 40 cents to 43 cents. On the same basis, AT&T's restated first-quarter earnings are 48 cents a share, down from 53 cents, spokeswoman Eileen Connolly said. Second-quarter earnings are 53 cents a share, down from 57 cents, she said. Full-year 2000 earnings will be 1 cent to 2 cents below the range of $1.75 to $1.80 a share reported in late July, which didn't factor in the restatements.

Redwood City, Calif.-based Excite is the largest provider of high-speed Internet access over cable-TV lines. AT&T agreed in March to pay as much as $3 billion for the Excite stakes owned by cable-TV providers Comcast Corp. and Cox Communications Inc. In exchange, the sellers will let Excite deliver Web content over their cable systems beyond 2002.

The deal gives New York-based AT&T about 25 percent of the economic interest in Excite and 74 percent of the voting interest.

Australian firm buys Napa winemaker

MELBOURNE, Australia -- Shares of Beringer Wine Estates Holdings Inc. jumped 22.7 percent today on news the company is being bought for $1.14 billion by Australia's Foster's Brewing Group Ltd.

Fosters said it expects the deal, announced late yesterday, to double its wine-related earnings within five years. The acquisition gives Australia's leading brewer direct access to the lucrative U.S. premium wine market and serves to complement Foster's Mildara Blass wine division.

Meanwhile, Napa, Calif.-based Beringer moved to assure its customers the move would not lead to foreign grapes finding their way into their premium wines.

Investors sent the firm's shares up $10.25 to $55.31 on the Nasdaq. Melbourne-based Foster's will offer $55.75 in cash for each share of Beringer and will assume $319 million in Beringer debt.