Longs Drug investor Ariel increases stake to 10.6%

Washington >> Longs Drug Stores Corp. shareholder Ariel Capital Management Inc. said it raised its holdings to 10.6 percent from 9.4 percent reported in September because the drugstore chain is a possible buyout target.

Ariel Capital reported buying shares between Oct. 29 and Dec. 27 with prices ranging between $21.11 and $23.80, according to a filing with the Securities and Exchange Commission. Ariel now holds about 4 million shares, up from the 3.5 million shares held as of September.

The Chicago-based investor, Longs Drugs' second-largest shareholder, first filed with the SEC in September 2000 disclosing it had purchased almost 5.6 million shares on the open market for a 14.9 percent stake. Ariel holdings had fallen to as low as 8.9 percent, or 3.3 million shares, reported in April. Longs may consolidate with a larger company in the next year, said Ariel research director Franklin Morton.

"We think Longs has a good franchise but lacks the scale to be successful as an independent entity," Morton said. "It may change its strategy and seek to be part of a larger entity."

Longs Drug, based in Walnut Creek, Calif., owns a chain of stores in the western U.S. Hawaii is is second-biggest market. Its shares rose 24 cents to $23.34 yesterday. Longs' stock has risen 17 percent since falling to a 52-week low of $19.90 on July 11.

Japan temp workers hit record this year

TOKYO >> The number of temporary workers in Japan jumped 29.8 percent to a record last year as companies cut wage and benefits costs amid the nation's prolonged economic slump, newspapers reported today.

The Health, Labor and Welfare Ministry said the number of temporary workers who were either working or registered at employment agencies climbed to 1.38 million in the fiscal year that ended March 31, 2001, according to the Yomiuri newspaper, Japan's biggest daily. The figure was the highest since the ministry started the survey in 1968, said the report, which was also carried by the nationally circulated Mainichi newspaper.

Japan's biggest companies -- once able to guarantee jobs for life -- have announced massive job cuts and wage reductions to compensate for an economic slump that has lasted more than a decade. Unemployment stands at a record 5.5 percent.

Temporary workers cost less than full-time employees because companies pay them less in combined wages and benefits. The ministry said about 70 percent of the temporary workers were employed for a period of three months or less, according to the Yomiuri.

U.S. hotels chalk up best week since Sept. 11

LOS ANGELES >> U.S. hotel revenues fell 5.3 percent last week, as one of the industries hardest hit by the post-Sept. 11 travel meltdown made its strongest showing since the attacks, according to data released yesterday.

The 5.3 decline in room revenues for the week ended Dec. 22 was easily the industry's best showing since Sept. 11, coming on the heels of the next best showing, a 10.7 percent decline, in the previous week, according to data tracking firm Smith Travel Research.

In the weeks before that, room revenues were down mostly in the 14 percent to 19 percent range in November compared with the year before.

Analysts said the latest numbers came just before a holiday week when the number of travelers is typically low.

In other news . . .

ATLANTA >> Blimpie International Inc., which operates a chain of submarine sandwich shops, said its shareholders have agreed to sell the company to a private investor group for about $25.8 million. The sale is expected to close in the first part of January. Blimpie shares, which have traded under $3 recently on the American Stock Exchange, will be delisted.