In the Region Struever Bros., Va. company to redevelop...


September 07, 2001

In the Region

Struever Bros., Va. company to redevelop apartments

AHC Inc., an Arlington, Va.-based developer of affordable housing, has teamed with Baltimore-based Struever Bros. Eccles & Rouse Inc. in buying a Baltimore apartment building to redevelop.

The building in the Park Heights neighborhood, about 5 miles north of the central business district, will be renovated into 189 units.

The companies said the $17 million project, aimed at preserving the dwindling stock of affordable housing in the area, was bolstered by Federal Housing Administration debt restructuring, low-interest financing from the Maryland Department of Housing and Community Development, federal low-interest housing tax credits and funding from city government.

Royal Ahold sells shares to finance U.S. purchases

Royal Ahold NV sold 2.2 billion euros ($2 billion) of new shares yesterday to help pay for the purchase of U.S. rivals Alliant Foodservice Inc. and Bruno's Supermarkets Inc.

Ahold sold 70 million shares at 31.90 euros each. That's 2.2 percent below the closing price Tuesday, before the sale was announced. The sale, which closed a day early, was more than two times oversubscribed, Chief Executive Cees van der Hoeven said.

The Dutch owner of the Giant Food and Stop & Shop grocery chains in the United States made 15 takeovers last year. It's focusing on the business of supplying food to restaurants and hotels, which is growing faster than supermarkets.

FDA accepts Novavax medication for review

Novavax Inc. said that the Food and Drug Administration had accepted for review its application for the approval of Estrasorb, an estrogen-replacement lotion.

The Columbia pharmaceutical company also said it has received a $2.5 million milestone payment from King Pharmaceuticals Inc., the Bristol, Tenn.-based company that is Novavax's co-promotion partner for Estrasorb.

The payment, which was in addition to the $2.5 million King paid when the application was filed, was triggered by the FDA's formal acceptance of the filing. Novavax said it expects to receive an additional $5 million from King shortly, money that will be used to pay for Estrasorb marketing expenses.

Lockheed gets pact to build 3 satellites

Lockheed Martin Corp. won a contract yesterday to build three satellites that a General Electric Co. unit will use to broadcast cable-television programming in the United States, Mexico and the Caribbean. Terms weren't disclosed.

The satellites are being built by Lockheed's Commercial Space Systems business and will be used by GE American Communications, known as GE Americom.

Two of the satellites are scheduled to be launched in 2004, Lockheed said, and the third is being built as a spare. They are replacing existing Lockheed satellites.

EarthShell to provide containers for colleges

EarthShell Corp. said yesterday that it has signed an agreement with Bon Appetit Management Co. to provide plates, bowls and hinged-lid containers to the food service firm. Bon Appetit will use the recyclable containers in its service contracts with Whitman College and Evergreen College, both in Washington state.

EarthShell, which is based in California but manufactures its products under an operating agreement with Sweetheart Cup. Co. in Owings Mills, said the deal will not increase employment at the plant, which has about 40 people dedicated to making Earth- Shell products.

The value of the deal was not disclosed.

Gilliam named to board of T. Rowe Price Group

T. Rowe Price Group said yesterday that its board has named James H. Gilliam Jr. a director of the Baltimore-based mutual fund company.

Gilliam, a lawyer, private investor and consultant, also is counsel to Knickerbocker LLC, a private investment company in Gladstone, N.J.

Until June 1998, Gilliam was general counsel of Beneficial Corp. of Wilmington, Del., and a member of its executive committee and board. He also was chairman of its commercial banking subsidiary, Beneficial National Bank, and a director of Household International, a consumer finance company in Prospect Heights, Ill., that acquired Beneficial in 1998.


Troubled Polaroid to cut contribution for health benefits

Debt-ridden Polaroid Corp. plans to reduce health benefits for workers and retirees, saying rising medical costs mean it can no longer afford to continue picking up its previous share of the bill.

The instant photography company confirmed the cuts yesterday after The Boston Globe reported on the plans. Polaroid, which owes about $950 million to banks and investors in its bonds and has missed interest payments for two months running, said it has been paying 80 percent of the health insurance premiums for its employees and retirees.

The cuts will increase workers' and retirees' premiums up to 50 percent on Oct. 1. The company expects to save $20 million a year.

P&G, Unilever agree on disclosure settlement

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