Business Digest

BUSINESS DIGEST

May 21, 2004

In The Region

USinternetworking makes deal to acquire Strong3

USinternetworking Inc., the Annapolis software services firm, said yesterday that it has acquired Strong3 Inc., a management consulting firm based in Chicago.

Terms of the deal, which closed Wednesday, were not disclosed.

USinternetworking is a top provider of outsourced software applications. Strong3 is highly regarded for its work with enterprise-wide software solutions that help its clients manage their technology, supply chains and outsourcing activities.

Guilford Pharmaceuticals registers with SEC

Guilford Pharmaceuticals Inc. said yesterday that it filed a registration statement with the Securities and Exchange Commission that, if approved, would permit it to sell securities and to raise as much as $100 million.

Approval would allow the Baltimore-based biosciences firm to offer and sell common stock, debt securities, derivatives such as warrants, and preferred stock from time to time.

Guilford is an integrated pharmaceutical and bioscience company that has targeted the hospital market. It has two commercialized products: the Gliadel wafer for the treatment of brain cancer, and the Aggrastat injection, a heart drug.

GSA signs 10-year lease for U.S. attorney's office

The General Services Administration has signed a 10-year lease for the U.S. attorney's office in Baltimore to occupy an additional 7,000 square feet of space at 36 S. Charles St.

That transaction brings the U.S. attorney's office to a total of 62,000 square feet of space on the third through seventh floors of the 25-story tower.

The building, managed by Columbia-based Manekin LLC, is at 85 percent occupancy.

Elsewhere

Ex-Dynegy official begins sentence of more than 24 years

A former mid-level finance executive at Dynegy Inc. surrendered to a low-security federal prison in Texas yesterday to begin serving a sentence of more than 24 years.

Jamie Olis, 38, was convicted of conspiracy and five counts of securities, wire and mail fraud last year for helping push through a 2001 scheme to disguise a loan as cash flow after Wall Street analysts questioned earnings that lagged behind high trading revenues.

Olis was sentenced to 24 years and four months in prison under federal sentencing guidelines revised as of November 2001 that require double-digit terms for white-collar criminals whose actions are tied to investor losses of $100 million or more. Under previous guidelines, he would have served less than a decade.

Gagalis pleads not guilty to conspiracy charges

The first of three former top executives of Enterasys Networks Inc. pleaded innocent yesterday to federal charges of conspiring to inflate the company's revenue at a cost of $1.3 billion to investors.

Robert Gagalis, 49, surrendered to U.S. marshals and appeared in federal court in Concord, N.H., wearing a suit and ankle cuffs. He answered firmly "not guilty" as Magistrate James Muirhead read the five charges of securities, wire and mail fraud.

Gagalis was freed on $500,000 unsecured bail. But Muirhead denied Gagalis' request to be allowed to leave the country on a planned vacation and ordered him to surrender his passport. A trial was set for July 20.

Safeway chairman repels attempt to remove him

Safeway Inc. Chairman Steve Burd easily fended off an attempt to oust him from the board of directors of the struggling supermarket giant yesterday, but he still faced a fusillade of angry shareholders during an acrimonious company meeting.

Of the shareholders who cast ballots, 16.7 percent withheld their votes from Burd's re-election as chairman, well below the 25 percent disapproval vote sought by dissident shareholders seeking to force Burd to separate his jobs as chairman and chief executive officer.

The dissident shareholders, led by a group of public pension funds, were hoping to pressure Burd into relinquishing some of his power to a leader with no previous ties to the grocer.

Burd, 54, has steadfastly refused, brushing off the complaints as catering to politically powerful labor unions that are trying to punish him for a bitter Southern California grocery strike that ended in February.

Williams shareholders reject stock-option plan

Williams Cos. shareholders narrowly rejected yesterday a union pension fund's proposal to replace executive stock options with share grants based on performance.

About 51 percent of shares voted came against the United Association S&P 500 Index Fund's proposal made on behalf of the Building Trades Pension Funds, which own about 1.5 million Williams shares.

Williams directors had advised shareholders to vote against the pension fund's proposal, which would have tied senior executives' stock compensation to specific performance objectives and required bosses to hold the stock for at least three years.

About 450 to retire early from Eastman Chemical

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.