Business news in brief

QUOTE OF THE DAY

“I think these companies are just looking to reward shareholders so shareholders can keep more of their money instead of the government.”

John Blackwell,

managing director of equity trading at Stephens Inc.

on early and larger stock dividend payments Article, 1DHawker Beechcraft: Alter loan terms

Hawker Beechcraft Inc. wants to extend the terms of its debtor-in-possession loan as the aircraft maker moves forward with its Chapter 11 reorganization, according to a report by Dow Jones News Wires.

In a Monday filing with U.S. Bankruptcy Court for the Southern District of New York, Hawker said most of the lenders on its $400 million bankruptcy loan have agreed to push back until late February the date by which Hawker must be out of bankruptcy. Without a judge’s approval, the lenders would be allowed to back out of the loan.

In exchange for pushing back the expiration date of the loan, Wichita, Kan.-based Hawker will pay more fees to the lenders. Those investors plan to own a controlling stake in Hawker after it emerges from bankruptcy.

Hawker filed for bankruptcy in May.

The company has cut about 270 jobs in recent months at its two Little Rock facilities, where jets are finished to customer specifications and planes are serviced. The service center will be closed.

  • Jack WeatherlyMercy Hot Springs’ president leaving

Tim Johnsen has resigned as president of the Mercy Hot Springs hospital, effective Dec. 7. Johnsen has accepted the position of president of Baptist Medical Center in Oklahoma City, according to a news release from Mercy Hot Springs on Tuesday.

His departure comes amid turmoil surrounding the proposed sale of the 309-bed Catholic hospital to a forprofit chain.

Mercy Health System of Chesterfield, Mo., is seeking to sell the hospital to Capella Healthcare of Franklin, Tenn.

Bishop Anthony Taylor of the Little Rock Diocese opposes the sale, fearing it will undermine the hospital’s historical ministry to the poor. Also, he is skeptical of the provision in the deal that would prohibit elective abortion at Mercy Hot Springs only for five years.

Capella, which owns the 166-bed National Park Medical Center hospital in Hot Springs, responded that the hospital has never carried out an elective abortion there.

The parties paid visits to the Vatican this fall and were recently urged by church officials to continue discussions to look for options other than an outright sale. The sale requires Vatican approval, in addition to that of the Federal Trade Commission.

Johnsen said in a telephone interview that had had been recruited for the Oklahoma City position.

  • Jack WeatherlyConAgra set to purchase Ralcorp

NEW YORK - ConAgra Foods is set to become the nation’s biggest maker of store brand foods, with its $5 billion purchase of Ralcorp expanding its stake in the fast-growing market for cereals, crackers and other packaged foods sold under private labels.

Omaha, Neb.-based ConAgra also snapped up brands including National Pretzel, Bertolli frozen meals and Del Monte Canada in the past year. With the Ralcorp purchase, about a quarter of the combined company’s $18 billion in sales will now come from private labels. Ralcorp, based in St.

Louis, makes products for a wide array of companies including Wal-Mart Stores Inc., Kroger Co. and McDonald’s Corp.

The companies didn’t say whether there would be any layoffs for their 36,000 employees, saying that the deal was about “growth.”

ConAgra will pay Ralcorp Holdings Inc. stockholders $90 per share, a 28 percent premium to its Monday closing price of $70.23. St. Louis-based Ralcorp currently has about 55 million outstanding shares, according to FactSet.

Ralcorp’s stock soared $18.57, or 26.4 percent, to $88.80 in Tuesday trading. Shares of ConAgra gained $1.34, or 4.7 percent, to $29.63.

The companies value the transaction at about $6.8 billion when debt is included. The deal, which was unanimously approved by both companies’ boards, is expected to close by March 31. It still needs Ralcorp shareholder approval.

  • The Associated PressBig Lots settles sex-harassment case

FORT SMITH - Big Lots Stores Inc. has agreed to pay $155,000 to four female workers who claimed a male store manager sexually harassed them at the company’s Fort Smith location, the U.S. Equal Employment Opportunity Commission said Tuesday.

The women reported that the manager made sexually offensive comments and requested sexual favors, according to a lawsuit the commission filed against the company.

Tuesday’s statement also said that after a female employee reported sexual harassment, Big Lots “failed to take the appropriate remedial measures necessary to protect its employees.”

Columbus-Ohio based Big Lots Stores denied the allegations, but settled “to avoid the additional expense and other burdens that continued litigation of this case would involve,” according to a consent decree. The commission’s lawsuit was filed in U.S. District Court in Fort Smith.

Besides the monetary award, the retail company agreed to redistribute its harassment-free environment policy;

provide mandatory anti-discrimination training; deliver notice of the settlement to all Fort Smith store employees;

and report future sexual harassment complaints to the commission for one year.

Commission senior trial attorney Pamela Dixon said Big Lots dismissed the store manager.

  • Lisa Hammersly

Tyson names corporate-affairs chief

Tyson Foods Inc. of Springdale said Tuesday that Sara Lilygren has been named executive vice president of corporate affairs. She formerly was senior vice president of external relations.

Lilygren joined Tyson Foods in August 2002 as director of federal government relations and ran the company’s Washington, D.C., office for seven years. Before that, she was a lobbyist and did public relations for various foodindustry groups for 22 years.

She moved to Tyson Foods’ headquarters in 2009 to manage external relations, which includes public relations, community relations and corporate-communications departments.

In her new role, Lilygren also will lead the company’s charitable giving, with a focus on education and hunger relief.

  • Steve Painter

Business, Pages 26 on 11/28/2012

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