National Medical settles 2 suitsNational Medical...

BUSINESS DIGEST

September 30, 1993

National Medical settles 2 suits

National Medical Enterprises Inc. said yesterday that it agreed to pay up to $125 million to settle two of three lawsuits brought by insurance companies. The company's psychiatric hospital division has been hit by lawsuits filed by insurers alleging fraudulent billing practices, and it has been under the cloud of a federal investigation.

Md. jobless fund out of trouble

The head of Maryland's unemployment compensation fund said yesterday that the fund is out of financial trouble, but still needs to build up reserves.

Thomas Wendel, executive director of the Office of Unemployment Insurance, told a legislative subcommittee that the fund, which pays benefits to the jobless, has about $240 million in reserve.

Mazda to cut work force by 10%

Mazda Motor Corp., the latest blue-chip Japanese company to fall victim to the high yen, said yesterday that it will slash its work force by 10 percent to offset an expected record loss.

It said it plans to cancel its dividend and cut its 30,000-member work force by 3,000 within three years.

NationsBank merger stock price set

NationsBank Corp. said yesterday that the average daily closing price of NationsBank common stock from Sept. 1 through Sept. 29 was $50.64375 per common share -- a price that will be used to determine the conversion ratio for its merger with MNC Financial Inc.

Under terms of the agreement, MNC shareholders will receive $15.17 cash or 0.2995 share of NationsBank common stock. Based on 90.8 million MNC shares outstanding at June 30, the purchase price would be $1.38 billion.

Shipyard gets $27 million contract

The U.S. Maritime Administration has officially awarded a $27 million contract to Bethlehem Steel Corp. for the refurbishing of two ships at its Sparrows Point shipyard.

The work, to begin in October, is expected to increase the work force to more than 1,000 from 565, the company said. Each ship will take 95 days to complete, the administration said.

New York Post purchase to proceed

Press baron Rupert Murdoch agreed yesterday to restart operations at the New York Post and will go ahead with his planned purchase of the money-losing paper, his spokesman said.

The decision came after eight craft unions agreed to cross the picket lines put up by the striking Newspaper Guild, which represents 290 editorial, clerical and advertising workers. The union had gone on strike Monday, shutting down the tabloid.

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