EMC agrees to buy Data General
HOPKINTON – EMC Corp. has agreed to buy Data General, based in Westboro, for a reported $1.05 billion in stock. EMC has become a leader in the computerized information storage industry. Data General was once a leading manufacturer of minicomputers, but lost ground as the personal computer became dominant. EMC announced that it would use Data General’s line of storage products to supplement systems selling for between $50,000 and $100,000. The prospect of layoffs loomed in the melding of the two firms, but a spokesman for EMC, noting the continuing demand for storage systems, expressed doubt that there would be any “significant layoffs.” Data General employs 5,000, about 1,800 of them in Westboro. EMC reports that it employs 11,200 worldwide, 4,600 of them in Massachusetts. The MC spokesman also said the company planned to hire 1,500 workers “soon,” many of them in Massachusetts.
Lawrence Mills redevelopment plan approved
LOWELL – The University of Massachusetts and the city of Lowell will combine efforts to redevelop the 500,000 square-foot, state-owned Lawrence Mills complex here, as the result of the governor’s recent signing of an enabling bill. The university will use about one-quarter of the complex for its College of Education. The rest of the property will be refurbished and leased to private companies. The state’s Division of Capital Asset Management has hired Meredith & Grew, based in Boston to develop the complex, with the architectural assistance of Graham Gund Architects of Cambridge.
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Cahners publishers to lay off 300
NEWTON – Cahners Business Information, publishers of 128 business trade publications, including Variety, is cutting 300 employees, including about 27 employed here. The company employs 527 people in this city, but also employs about 750 in Manhattan and New Jersey. According to the Boston Globe, the company is also considering relocating its headquarters from this city to New York. So far only the company’s chief executive’s relocation to New York from Newton has been confirmed by the company. Cahners also has magazine offices in Chicago, Denver, Philadelphia and Radnor, Pa.
Fore River yards get six-month reprieve
QUINCY – Efforts to restore the Fore River shipyards here won a reprieve recently when the U.S. Maritime Administration granted the developers a six month extension on its payments to its principal lender. The project is already about a year behind schedule because of cost overruns and delays, while its only shipbuilding contract is in doubt. Heavy Industries, Inc. missed its $1.5 million June interest payment to Fleet Bank. Fleet, the principal lender, holds a $55 million loan to the company, supported by the Maritime Administration. Despite growing doubts and questions about the financial viability of the project, the chief financial officer for Heavy Industries was quoted in the Boston Globe as saying, “There should be no doubt in anyone’s mind about the completion of this project.”
Marriott agrees to operate Quincy hotel
QUINCY – The Marriott International Corporation has agreed to operate a hotel to be built by the Flatley Cos. in the Crown Colony Office Park in this city. With outspoken support from Quincy Mayor James A. Sheets, Flatley does not expect any problem obtaining building permits. The hotel would be the city’s largest, though details about the number of rooms it would hold were not available. Construction is scheduled for completion in 2001. The announcement of Marriott’s plans for Quincy came just before the company was chosen as one of three finalists for the rights to build a major hotel at the site of the city’s new convention center that is now under development in South Boston. The other finalists are Starwood Hotels and Resorts Worldwide, Inc. and Hilton Hotels Corp. Marriott already operates two hotels in Boston and one in Cambridge as well as two dozen other hotels, motels and residence inns operating under a variety of names in the Boston metropolitan area.
Rykodisc leaving Salem for New York
SALEM – Rykodisc, a record label that gained prominence with its releases of Frank Zappa. David Bowie, and Elvis Costello catalogs, is moving to New York City. The company which merged last year with Chris Blackwell’s Palm Pictures label in New York said there would be layoffs because of the move, but that the number hadn’t been determined. Rykodisc employs 60 at its Salem operation, and many of those are expected to relocate, the company spokesperson said. Sales, production and marketing departments will all move to New York, the company announced. Rykodisc plans to retain an independent A&R (artist and repertoire) operation with the Palm group, the announcement said.
Raytheon gets $238 million training plane pact
LEXINGTON – Raytheon Co. announced it had reached contract agreement with Greece for that country to buy 45 training aircraft for about $238 million. The delivery of the T-6A Texan II training planes will be completed 44 months after the first delivery, the announcement said. Greece would have the option to buy an additional five of the planes, a flight simulator, spare parts and ground support equipment.
MetroJet to link Boston to Atlanta
BOSTON – US Airways announced that it will begin low-cost MetroJet service between Boston and Atlanta starting October 1. The company announced there would be three flights a day between the two cities. Walk-up fare would be $189 each way, but the 14 days advance purchase price would be $95 each way. US Airways began MetroJet service June 1, 1998 in competition with the low cost service offered by Southwest Airlines. The company now operates 41 aircraft serving 23 cities, including Providence.
