Lorenzo may start up airlineFrank Lorenzo, who was cast...

BUSINESS DIGEST

February 03, 1993

Lorenzo may start up airline

Frank Lorenzo, who was cast out of the airline industry for strong-arming unions and for questionable tactics in managing Eastern Airlines and Continental, is plotting his re-entry into the business.

According to several sources, the former head of Texas Air Corp., which owned Continental and Eastern, has rounded up several DC-9 airplanes that formerly belonged to Delta. The executives say he is planning to start a new airline that would serve select markets from a hub in Baltimore or at Dulles International Airport in Virginia.

Chrysler raises $1.78 billion

In the second-largest stock sale ever, Chrysler Corp. raised $1.78 billion late yesterday, aided by a sharp surge in its stock price over the past year. Through underwriters led by First Boston Corp., Chrysler sold 46 million shares at $38.75 each, according to people on Wall Street who spoke only on condition of anonymity.

Marriott bondholders call impasse

Marriott Corp. bondholders said negotiations with the company over its controversial restructuring plan reached an impasse after Marriott rejected their recommendations. The investors, led by PPM America Inc., own about $120 million Marriott bonds. PPM America said "negotiations with Marriott have substantially broken down." Marriott denied the talks had broken down. "We continue to talk with bondholders," it said.

Coal miners picket Peabody sites

Union miners set up pickets yesterday in a selective strike against subsidiaries of Peabody Holding Co., the nation's largest coal producer.

The strike over job security involves about 7,000 miners at Peabody Coal Co. and Eastern Associated Coal Corp. operations in five states, the union said. The largest group of miners on strike -- 2,300 -- are employed at 10 Peabody Holding mines in West Virginia.

2 makers of cellular phones sued

Users of portable cellular phones made by Motorola Inc. and Mitsubishi Electronics Corp. said yesterday that they had filed suit in a Chicago circuit court against the two manufacturers, citing their alleged failure to test the phones for potentially harmful or lethal radio waves.

The plaintiffs also contend the manufacturers failed to warn phone users that they may be exposed to allegedly harmful doses of the waves.

Waverly deal with Medi-Sim

Waverly Inc. said yesterday that it has purchased more than 250 nursing education software programs from Medi-Sim Inc., a Kansas-based company. The two companies also signed a development agreement. The terms were not disclosed.

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