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Business Briefs

Reported by Star-Bulletin staff & wire

Monday, February 19, 2001

BancWest takes over 23 bank branches

The parent company of First Hawaiian Bank said today it has completed its purchase of 23 branches in New Mexico, which will reopen Feb. 20 as branches of its subsidiary Bank of the West.

The former First Security Corp. branches -- 22 in Albuquerque and one in Las Cruces -- mark Bank of the West's first move into New Mexico, Honolulu-based BancWest Corp. said. Bank of the West, based in San Francisco, will become New Mexico's third-largest bank by share of deposits.

The purchase, announced in September, also included seven branches in Las Vegas, which were acquired last month. First Security divested the operations to allow for its recent merger with San Francisco-based Wells Fargo & Co.

Canadian company buys baking business

TORONTO -- George Weston Ltd., owner of Canada's biggest grocery chain, agreed to buy Unilever's U.S. baking business for $1.77 billion, beating out rival bidders Sara Lee Corp. and Mexico's Grupo Bimbo SA. The purchase will boost Weston's annual sales by $1.8 billion and give it brands such as Thomas' English muffins and Entenmann's cakes. George Weston, which had 1999 sales of $13.55 billion, will focus on bakeries including Wonder Bread and get rid of its dairy and fish-processing units. Unilever is getting rid of a unit acquired in last year's $24 billion purchase of Bestfoods. Bestfoods Baking Co. is an independently operated unit that was never consolidated in Unilever's accounts, according to Bloomberg News.

In other news . . .

TOKYO -- The benchmark 225-issue Nikkei Stock Average closed down 55.90 points today at 13,119.59.

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Of Mutual Concern

News for mutual fund investors

Fidelity, Schwab plan to offer stock 'baskets'

NEW YORK -- Two giants in the mutual fund industry, Fidelity Investments and Charles Schwab Corp., are preparing a new type of investment vehicle -- baskets of individual stocks put together by analysts.

Fidelity, a unit of FMR Corp., plans to start offering in June five to 10 baskets made up of stocks of a particular sector or investment style picked by stock analysts from Fidelity and Lehman Brothers.

Schwab, meanwhile, is conducting a pilot project in the Washington area, offering two types of stock baskets selected by analysts at U.S. Trust and Schwab. Once investors buy a basket, they'll receive email advice on how to trade stocks in the portfolio.

The new products, which fall into the area between traditional mutual funds and individual stocks, come at a time when mutual fund companies face increasing competition from new types of low-cost products.

Exchange-traded funds, which are similar to index-based mutual funds but trade all day on stock exchanges, are now taking in a sizable chunk of new money flowing into the fund industry.

With this new investment vehicle, investors initially buy a pre-selected basket of stocks but then are free to sell individual stocks in the portfolio. The baskets are similar to exchange traded funds in that they are priced in real time and traded throughout the day. But they differ from ETFs in that they aren't listed on exchanges and investors are free to modify the composition of the basket.

American Century fund would deter redemptions

DENVER -- A big selloff in the stock market and nervous mutual fund holders rush to redeem shares, forcing a portfolio manager to sell stock to raise cash, triggering unwanted capital gains taxes for the fund. That's a scenario American Century Funds thinks it can avoid.

The mutual fund company has filed with the Securities and Exchange Commission to offer a new fund called Avanti, under its Sierra name, that will require holders to stay on board for the long haul as it scours the market for undervalued shares.

Holders would incur a yet-to-be determined redemption or penalty charge if they redeem before the five years are up. The fund will invest in companies of all sizes.

GM's OnStar to offer trading while driving

DETROIT -- Subscribers to General Motors Corp.'s OnStar vehicle assistance service soon may be able to track, manage and trade

stocks while behind the wheel, under the automaker's alliance with Fidelity Investments.

Under the deal, Fidelity will offer in-vehicle access to quotes and market information to all subscribers of OnStar's Virtual Advisor, already available in the Northeast and to be rolled out nationwide in April.

The service eventually will be expanded to allow Fidelity clients retrieve their account balances and do wireless trading.

The OnStar service uses voice-activated, hands-free software allowing drivers to keep their eyes on the road as the information is read to them, and the companies said that makes their service safe to use while driving.