Because of erroneous information from the Associated Press, a Business section item Thursday incorrectly reported the status of asbestos-disease lawsuits filed by workers at the old Brooklyn Navy Yard. Most of the 20 defendants in the cases have settled with plaintiffs, but cases are proceeding on the rest of the claims. (Published 9/15/90)
COMPANIES Atlantic Richfield will pay Alaska $287 million to resolve a dispute over oil royalty payments. Arco said the settlement resolves all major claims made against it by the state since Alaska filed a lawsuit against North Slope oil producers in 1977. The agreement will result in a third-quarter charge of $25 million. RCA is bringing Nipper, its canine mascot, back to help launch a new marketing campaign. MGM/UA Communications sued four insurance carriers over a proposed $20 million settlement of 1986 shareholder suits against the studio and its directors.
ACQUISITIONS Westinghouse Electric said it completed the sale of its beverage group, which includes the world's largest bottler of 7-Up, to a management-led group. Renault said Volvo has joined it in its bid for a stake in the Czechoslovak automaker Skoda. Speculation placed Renault ahead of Volkswagen and GM in the contest for a controlling interest in Skoda. Swissair, Switzerland's national airline, said the planned sale of its Swissotel hotel interests to Aoki of Japan has been canceled. Swissair cited uncertainty in world financial markets. COURTS Brooklyn Navy Yard workers reached an agreement with asbestos makers, settling nearly 265 health-liability lawsuits. The mass trial was viewed as a litmus test for efforts to clear court dockets of asbestos claims. Details were not disclosed. A federal appeals court ruled that airlines can be sued for damages for selling tickets that are subject to bumping when flights are overbooked. Advanced Micro Devices lost a patent infringement lawsuit brought by Brooktree of San Diego, as a U.S. District Court jury ruled that AMD violated three of Brooktree's patents and also infringed on the company's rights to protect chip layout designs under a 1984 law. A U.S. District judge agreed to let regional Bell telephone companies transfer cellular phone calls in progress to systems in adjacent communities, avoiding interrupted conversations. Steven L. Glauberman, an associate specializing in mergers and acquisitions at the firm Skadden, Arps, Slate, Meagher & Flom, pleaded guilty to two counts of securities fraud and one of wire fraud. Southmark's $960,000 bonus to the chairman who marshaled the company through its recent reorganization has been disallowed by a federal bankruptcy judge. The bonus would have supplemented the $480,000 annual salary and $480,000 in severance benefits for Arthur G. Weiss, who stepped down last month as part of the court-approved reorganization plan. A Hughes Aircraft worker was awarded $1.9 million after a jury found the company retaliated against him for uncovering alleged overcharges on government military contract work. A Hughes spokesman said an appeal would be filed. REGULATION The Transportation Department approved the buyout of Frank Lorenzo's stake in Continental Airlines by Scandinavian Airlines System. Terms of the deal were not disclosed, but it has been reported that Lorenzo would get more than $30 million. CONTRACTS Rockwell International won a $130.5 million Air Force contract for MX rail garrison missile components and for basic MX missile components. General Electric received a $30.2 million Air Force contract for satellite systems. END NOTESUniversal Systems of Fairfax won a $3.2 million Army contract to convert paper and microfiche military personnel records to optical digital imagery that can be read by computers.
GTE Airfone and Comsat entered into a service agreement for a satellite-based system for telephone calls from airplanes anywhere in the world. Terms were not disclosed. PEOPLE Gedale B. Horowitz, senior executive director at Salomon Brothers, was asked to serve as chairman of the Securities Industry Association in 1991. Harowitz will succeed Robert Downey of Goldman, Sachs. James R. Mellor was named to succeed Herbert F. Rogers as president and chief operating officer of General Dynamics. INTERNATIONAL The National Bank of Kuwait said it is continuing to sell portfolio assets to increase liquidity. At year-end 1989, the bank had assets of $13.5 billion, of which 50 percent was situated outside Kuwait, a spokesman said. ODD LOTS UAW union leaders have been called to a meeting Monday in Detroit amid speculation that a national auto workers' contract agreement may be near, union officials said. Meanwhile, the Canadian auto workers union rejected an offer made by Ford Motor of Canada as a strike deadline loomed tomorrow. North Sea oil installations were hit by a one-day strike by more than 1,000 workers. The strikers want recognition of unions and tougher safety standards. Eastern Air Lines's court-appointed trustee Martin Shugrue was two hours late to an appearance before an Atlanta audience to brag about the company's 100-day service improvement plan begun in June. Shugrue's Boeing 727 was delayed in Miami, while mechanics grappled with a computer problem.