Fleet selling branches to Lynn, Cape banks
BOSTON – Fleet Financial Group, Inc., complying with its agreement with regulators, will sell four of its branches to Eastern Bank Corp., based in Lynn, and two others to Cape Cod Bank and Trust Co. As part of is compliance agreement with regulators to win approval of its planned merger with BankBoston, Fleet agreed to divest itself of about 300 branches, selling 278 to Sovereign Bancorp. for $1.4 billion and the remaining branches, all in Massachusetts, to smaller banks. Eastern Bank would get branches in Brockton, Canton, Norwell and Randolph, according to the report. Those four branches have a reported total of $200 million in deposits and $28 million in loans. The Cape Cod branches are in Falmouth and Wareham. They have a reported combined total of $67 million in deposits and $11 million in loans. All current employees would be retained by the purchasing banks, spokespersons for both banks said.
General Cinema parent to fire 40, centralize
NEWTON – GC Cos. announced that it will fire 40 employees (5 percent of its staff) and centralize regional offices in Newton to save about $10 million in its movie theater business, Bloomberg News reported. GC said it would close its Los Angeles and Chicago offices. The staff cuts will be made at all three of its locations, according to Bloomberg. General Cinema operates 1,067 screens in 140 locations in the United States, and another 160 theaters in16 locations in Mexico and South America.
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Seniors losing coverage offered enrollment
BOSTON – Senior citizens in five counties will be offered open enrollment in Medicare supplemental insurance between October 1 and November 30, under a special program arranged by the state insurance commissioner. Kaiser Permanente, United Healthcare of New England, and Harvard Pilgrim Health Care announced earlier this year they would eliminate their HMO Medicare business in certain areas deemed unprofitable. The counties affected are Berkshire, Franklin, Hampden, Hampshire and Worcester. The insurance supplements to be offered will not be cheap, ranging from $222 to $286 a month, according to the Insurance Division.
Staples plans Web-performance stock
FRAMINGHAM – Staples, Inc., a major national office supply chain announced that it will create a separate stock to trace the company’s performance on the World Wide Web, where it operates under the Staples.com logo, as well as Quillcorp.com, and StaplesLink.com. The company also announced it is increasing its stock repurchasing program by $100 million to $300 million. Recently Staples stock hit a 52-week low. This fact is seen as related to the company’s two moves.
Viewlogic reported taking control of Ore. firm
MARLBOROUGH – Viewlogic Systems, Inc. announced plans to gain control of Summit Design, Inc., a design software maker in Beaverton, Oregon in a stock deal reportedly valued at $57.6 million. According to the report, Summit would issue 16.2 more shares of its stock in exchange for all outstanding shares of closely held Viewlogic. The exchange will give Viewlogic a controlling interest in Summit and the two firms will be merged in newly named company with its headquarters here in Marlborough. According to a Viewlogic executive, most of that company’s employees will be retained, but some of Summit’s, especially those attached to its headquarters in Beaverton, would lose their jobs. The deal is subject to regulatory and shareholder approval.
Tufts Health Plan adjusts prescription payment
WALTHAM – Tufts Health Plan announced it would begin paying for prescription drugs bought by senior citizens who are enrolled in its Transitional Pharmacy Assistance Program once they have spent $3,000 of their own money on prescriptions. The limit had been set by Tufts at $5,000 when it was established by Tufts to help seniors enrolled in its Medicare health maintenance organization (HM0) pay for their prescriptions. Tufts, along with all other HMOs in the state, stopped offering unlimited prescription coverage to seniors.
Celtics lost $10 million last year
BOSTON – The Boston Celtics LP, the basketball team’s parent company reported losing $10 million last year, largely because revenue was reduced by the strike-shortened season. However, a spokesman for the company predicted a return to profitability this year because of a new TV contract, and season ticket sales already at the 90 percent level.
John Hancock plans $2 billion offering
BOSTON – John Hancock Mutual Life Insurance Co. plans to raise $2 billion through an Initial Public Offering next year as it shifts from its present state into a publicly traded company better able to make acquisitions and raise capital with which to compete with other publicly traded insurance companies like AllState. Hancock’s plans are subject to approval by the Securities and Exchange Commission as well as by regulators from several states and by policyholders.
Fall River Gas rejects buyout
FALL RIVER – Fall River Gas Co. announced that it had rejected a $51.6 million buyout offer from an unidentified source. Rejected by the company’s board of directors, the unsought buyout offered $23.50 a share. The company statement said the offer was “not in the best interest” of shareholders. Fall River Gas supplies about 47,000 customers in Fall River, Somerset, Swansea and Westport.
