Gymboree stock soars in IPOGymboree Corp. stock soared...

BUSINESS DIGEST

April 01, 1993

Gymboree stock soars in IPO

Gymboree Corp. stock soared yesterday in heavy trading as investors rushed to buy shares in the hot initial public offering.

Gymboree, a children's clothing retailer, closed at $31.50, up from its initial offering price of $20. About 3 million shares were traded.

Boeing's bonds downgraded

The rating of Boeing Co.'s $1.7 billion in senior bonds was downgraded by Moody's Investors Service yesterday, based on a weak market for airliners and the plane maker's high development costs of its 777 widebody aircraft.

The debt-rating company also cited the growing demand from airlines for manufacturer-provided financing for purchases of new planes.

Moody's review began two days after Boeing said it expected to slash production in 1993 and cut a significant number of jobs.

Food Lion settles allegations

Food Lion, the supermarket chain accused of selling spoiled meat and violating labor laws, has reached a settlement with Delaware over allegations that it sold food that weighed less than what was marked on the package.

The Salisbury, N.C., supermarket chain denied guilt but agreed to pay $10,000 to the state Consumer Protection Fund and to donate $50,000 in cash or food to the Food Bank of Delaware to be distributed in Sussex County, Del.

NationsBank aids Atlanta housing

NationsBank Corp. said yesterday it bought 11 foreclosed apartment buildings throughout the metropolitan Atlanta area and plans to renovate and rent them to low- to moderate-income people.

NationsBank, in what it said it believes is the largest single private investment in affordable housing in the city's history, paid $22 million to the Federal Home Mortgage Corp. for the 2,811 apartments. The Charlotte, N.C.-based bank plans to spend at least $11.5 million to renovate the buildings' unhabitable units.

IBM to cut 1,900 jobs in Minn.

International Business Machines Corp. said yesterday it will transfer its Adstar disk-drive manufacturing operation in Rochester, Minn., to other IBM plants, eliminating 1,900 jobs.

The cuts, which could include layoffs, are the latest in a restructuring by IBM, which is eliminating 25,000 jobs this year, on top of 40,000 cuts in 1992, to try to regain profitability.

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