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Business Briefs

Reported by Star-Bulletin staff & wire

Thursday, December 7, 2000

Dillingham awarded $5.4 million pact

The Navy has awarded a $5.4 million contract to Dillingham Construction Pacific Ltd. for modifications to two jet fuel tanks at Pearl Harbor.

The contract is an option being exercised on an existing contract, bringing the total value of the work to $17.7 million. The option adds Tanks 47 and 54 to a modernization and consolidation project for Jet Propellant-Eight tanks at Fleet and Industrial Supply Center. Work will include repairs and upgrades to the two large petroleum product storage tanks.

Best Buy grabbing Sam Goody's parent

MINNEAPOLIS -- Consumer electronics retailing giant Best Buy Co. has signed an agreement to acquire Musicland Stores Corp. for about $425 million.

The deal announced today will give Minneapolis-based Best Buy entree into more than 1,300 retail outlets that Musicland operates under the names Sam Goody, Suncoast, Mediaplay and On Cue. There are three Sam Goody stores on Oahu. Minnetonka, Minn.-based Musicland also operates four commercial Web sites. The cash deal values Musicland's common stock at $12.55 per share, and Best Buy would also assume $260 million in debt. Musicland's stock rose $1.88 today to $12.13 on the New York Stock Exchange while Best Buy shares fell $5.88 to $22.94.

Mortgage rates fall to 17-month lows

WASHINGTON -- Thirty- and 15-year mortgage rates declined this week with rates to their lowest levels in 17 months.

The average interest rate on 30-year, fixed-rate mortgages fell to 7.54 percent, down from 7.65 percent last week, according to a survey released today by mortgage broker Freddie Mac. Fifteen-year mortgages declined to 7.19 percent last week, down from 7.35 percent last week.

This week's 30-year and 15-year mortgage rates were the lowest since July 23, 1999, when they averaged 7.52 percent and 7.16 percent respectively.

One-year adjustable-rate mortgages averaged an initial rate of 7.21 percent, vs. 7.24 percent last week.