Procter & Gamble shares fell 8.8 percent, to $102.68 3/4, amid concern that it could enter a bidding war for drugmaker Warner-Lambert, possibly overpaying to build its small prescription-drug business. P&G's board was to have met yesterday to consider buying Warner-Lambert and its would-be merger partner, American Home Products. Investors backed away from the stock, choosing not to wait to to see if P&G will try to top Pfizer's $75 billion hostile bid for Warner-Lambert.
Computer hacker Kevin Mitnick was released from a federal prison in Lompoc, Calif., under orders to stay away from the devices he used to break into corporate and university computers across the country. Mitnick was accused of causing millions of dollars of damage by hacking into the computers of Motorola, Novell, Nokia and Sun Microsystems and the University of Southern California and stealing software, product plans and other data. He was sentenced to five years in prison last March after pleading guilty to five felony counts. Under a negotiated plea agreement, he was given credit for four years served while awaiting trial.
Dominion Resources, owner of Virginia's largest electric utility, plans to build a $97.5 million natural gas-fueled power plant 40 miles north of Richmond. The plant will use two 160-megawatt turbines that the utility purchased two years ago. It will be able to light 300,000 homes when completed in June.
Pratt & Whitney is eliminating 1,700 more jobs, most of them from its Connecticut factories. The cuts are in addition to 3,500 jobs the jet-engine maker has been eliminating since it started a major restructuring effort in 1998. It employs 31,000 people worldwide.
International Paper said it will increase prices for uncoated paper by $60 a ton in mid-February as global demand increases. Based on trade estimates of market prices, the price increase for uncoated free-sheet paper, which is used to make office and copy paper, will be about 8 percent.