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IN HAWAII

Matson reverses course on ships

Matson Navigation Co. said today it has decided to buy two new containerships after all, reversing an earlier decision to seek another buyer who would lease the vessels to the company.

Matson said the purchase of the ships, worth about $110 million each, was made possible by new agreements with offshore unions that make the operations more economical.

The company, the major subsidiary of Alexander & Baldwin Inc., announced in early March that rising operating costs meant it could no longer justify the capital expenditure but that it still planned to operate the ships.

The company was confident it would find a buyer or someone else to finance the vessels.

Now there is a new cost model that "justifies the significant financial investment," said James Andrasick, Matson president and chief executive officer.

"Matson is very pleased that we have been able to reach agreements with all but one of our current offshore unions that will allow us to achieve most of the cost savings that are vital to this project," he said.

He said he hopes a similar agreement can be reached with the last union, which places one crew member on each ship.

The 712-foot containerships are being built at the Kvaerner Philadelphia Shipyard. One, Manukai, scheduled for completion next month, is already in the water and has a giant Matson sign painted along each side.

The other, Maunawili, is due for completion next year.

Young named MLP interim chief

Maui Land & Pineapple Co., still searching for a new president and chief executive officer to replace the retiring Gary Gifford, said today its board has named MLP executive Donald Young to fill those roles on an interim basis.

Young, who will assume control at May 27's annual shareholders meeting in Kahului, Maui, is executive vice president of resort and commercial property at MLP and CEO of Kapalua Land Co. Ltd.

MLP, which announced March 6 that Gifford would be stepping down at the shareholders meeting, initially had hoped to have a replacement by that time. However, Spencer Stuart, a national executive search firm, still is conducting its search. MLP said yesterday it expects the permanent president and CEO to be in place by mid-summer.

Campbell Estate trustee David Heenan, who has been involved with the CEO search, will take over as a nonexecutive board chairman at next week's meeting.

Heenan will replace Chairman Richard Cameron, who still will retain a seat on the board.

Insurance Division revokes license

The state Insurance Division said it has revoked the license of insurance producer Terry T. Seguritan and fined him $150,000 for allegedly defrauding the public by issuing identification cards for insurance policies that did not exist and collecting money for them.

An Oahu grand jury has indicted Seguritan on twelve counts of second-degree theft, nine counts of third-degree theft and other counts. There are more than 26 victims of the scheme, but there may be more, the state said.