Home sales continue decline
BOSTON – For the fourth consecutive month, sales of existing homes declined in Massachusetts, as well as in the United States, according to national and state Realtors associations. In Massachusetts, sales were down 5.4 percent last month, compared with the previous month. Nationally, house sales were down 6.8 percent last month, reflecting an annual rate of 4.79 million sales, the lowest level in two years. Prices for single-family homes in Massachusetts also fell 4.5 percent, according to figures released by the Massachusetts Association of Realtors. The average price for an existing single family home was $243,657, the first drop in two years, according to the Realtors. Despite the drop, that price is still 14 percent higher than the average a year ago. Industry executives cite rising interest rates (the Federal Reserve has raised its rates three times this year in order to cool an overheated or potentially overheated economy) for the decline in sales. The average fixed-rate, 30-year mortgage in October was 7.85 percent, a full percentage point higher than a year ago.
Two merging utilities agree on rate freeze
BOSTON – New England Electric System and Eastern Utilities Associates, in the process of merging have agreed to freeze rates for five years under a rate case settlement with the state’s attorney general and other parties, according to the Boston Globe. The merged utilities are themselves being acquired by National Grid Group of England. The freeze in rates was predicted by the state energy resource commissioner to mean a $70 million savings for consumers over the five-year period, although he said that would only mean a $1 difference in the average $50 monthly bill for consumers. The two merging systems serve about 1.3 million Massachusetts customers.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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Judge clears way for Antarctic project
WASHINGTON, D.C. – The U.S. Court of Federal Claims has rejected a request by the current supplier of support services to the environmental research projects near the South Pole that Raytheon be prohibited from participation. Raytheon won the contract to provide support services over the current supplier, Antarctic Support Services of Colorado. Antarctic Support Services, in its suit appealing the award, which is still pending, claimed that the National Science Foundation made errors in awarding the contract estimated to be worth $1.1 billion over 10 years. Antarctic Support sought a temporary restraining order to keep Raytheon representatives from visiting the site where trade secrets might be obtained, but that petition was rejected by the court, according to the Boston Globe, quoting spokesmen from both companies.
Northeast Optical makes deal to expand
WESBOROUGH – Northeast Optical Network, Inc. announced it had reached agreement with Consolidated Edison of New York and Peco Energy of Philadelphia to use their fiber optic networks to expand its own network around New England. The cost of the agreement was placed at $250 million. As part of the deal, Consolidated Edison would take a 10.75 percent stake in Northeast Optical and Peco would own 9.25 percent. The deals are subject to regulatory approval.
Bath Iron Works sues Tufts HMO
PORTLAND, Maine – Bath Iron Works, Inc. has accused Tufts Health Plan of New England of breach of contact, negligence and fraud in connection with Tuft’s decision to eliminate its Maine operations. Tufts announced in September that rapidly rising costs –$73 million more than they had anticipated–were forcing it to close its operations in Maine, setting an April deadline. As a result BIW was forced to find a new health insurer for its 7,800 workers. BIW argues that Tufts knew that the price it set for its service was unrealistically low, designed to attract customers in a competitive situation. This, BIW asserts, is fraudulent. To find a replacement health insurer, BIW said, it is costing an estimated $40 million more than it would have paid Tufts. BIW asks punitive damages. A Tufts spokesperson declined comment pending receipt of a copy of the suit, which was filed in Cumberland County (Maine) Superior Court. Recently, Tufts announced that it is also pulling out of Rhode Island and New Hampshire, for essentially the same reasons they are leaving Maine.
Lycos reports plan to buy Gamesville.com
WALTHAM – Lycos, Inc. announced that it is buying Gamesville.com, an online game company for $207 million in stock. Lycos said its purchase of the Watertown company would help it boost visitor totals in its competition with its rivals, Yahoo, Inc. and America Online, Inc. In its three years of existence, Gamesville has registered 2.2 million users. Gamesville runs card games and trivia contests on the World Wide Web.
John Hancock to pay $713 million to settle suit
BOSTON – John Hancock Mutual Life Insurance Co. will spend $713 million, at least one-third more than expected, to settle a 1995 class-action law suit over deceptive sales practices. In 1997 Hancock agreed to pay $350 million in benefits to nearly four million policyholders nationwide as a settlement of the suit. That figure did not include administrative expenses and underestimated total costs, Hancock said. Instead of the $350 million, Hancock will pay $471 million in pretax dollars because of an unanticipated and costly increase in the number of aggrieved policyholders. The company will also spend $242 million on administration and paperwork.
Massachusetts Blue Cross to sell dental unit
BOSTON – Blue Cross and Blue Shield of Massachusetts announced it will seek a buyer for its dental insurance unit, not because the unit isn’t profitable -it reports about $7 million in profits annually, but has decided it can’t compete successfully with Delta Dental, its rival. Blue Cross insures 415,000 dental patients in Massachusetts, but Delta Dental insures 1.7 million. A Blue Cross executive told the Wall Street Journal that the company wanted to stick to its core businesses.
