Lehman, American Express splitLehman Bros. Holdings Inc...

BUSINESS DIGEST

April 06, 1994

Lehman, American Express split

Lehman Bros. Holdings Inc. filed yesterday to become a public company, breaking a decade-long tie to American Express Co., and indicated that it's worth less than investors expected.

American Express plans to distribute 98.7 million shares in a tax-free transaction that will separate it from the securities firm by the end of June. Shareholders of American Express will receive one Lehman share for every five shares they own.

Lehman will initially be worth about $2.7 billion, based on the price that American Express and others agreed to pay for the firm's common shares. In February, American Express investors said they expected the firm to have a market value of more than $3 billion.

As part of the spinoff plan, American Express will pump $1.1 billion into Lehman.

Macy expects March sales gain

R. H. Macy & Co Inc. expects to report "double-digit" sales growth for March, Chairman and Chief Executive Mike Ullman said yesterday.

Mr. Ullman, in an address to the National Retail Federation, said Macy is considering releasing preliminary sales results for March tomorrow.

Macy's has had a 45-day delay on sales reports due to its bankruptcy proceedings. It has been in Chapter 11 reorganization for two years.

Genome firm posts profit

Human Genome Sciences Inc. yesterday reported net income of $1.8 million, or 15 cents a share, for 1993, its first full year of operations.

The Rockville-based company, which did not disclose financial results for the fourth quarter, said annual revenue totaled $22.0 million, all of it consisting of payments from SmithKline Beecham Corp. SmithKline Beecham owns about 7 percent of the company's stock.

USAir drops fares

USAir yesterday began offering year-round fare discounts as deep as 55 percent on many routes between the Northeast and Florida, including flights from Baltimore-Washington International Airport, with ticket prices varying by season.

Travel would be cheapest from April 19 to Dec. 15, with round trips between $198 and $258, depending on the day of the week.

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