A Sept. 29 news service brief in the Business section incorrectly described the raise given to Robert J. Stevens, chief executive of Lockheed Martin Corp. He received a 14 percent raise, to $1.38 million, for 2005. (Published 10/5/2005)
CapitalSource to Sell 15 Million Shares
CapitalSource said it will sell 15 million common shares in a public offering. The Chevy Chase commercial lender plans to sell some shares to insiders and their affiliates at the public offering price. CapitalSource said it will use the capital for general corporate purposes, including paying debt and acquisitions, but may specify other uses. Company shares closes at $21.47, up 7 cents.
mergers & acquisitions
Hibernia Schedules Takeover Vote
Hibernia, a New Orleans-based bank, set a Nov. 14 shareholders vote on an amended takeover offer from Capital One Financial. Hurricane Katrina forced the banks to postpone the transaction. All Hibernia shareholders of record as of Sept. 26 will be able to vote at the meeting, the companies said
Capital One cut the price of its planned purchase by 7.6 percent to $5 billion after Katrina left a fifth of Hibernia's branches in the affected area with "significant damage." The transaction had been scheduled to close on Aug. 31. The previous terms were approved with more than 94 percent of the votes cast at an Aug. 3 meeting held by Hibernia.
Lockheed's Chief Executive Gets 29% Raise
Lockheed Martin increased the salary of chief executive Robert J. Stevens, right, by 29 percent to reflect his additional duties as chairman as well as his "individual performance." Stevens's annual salary was increased to $1.38 million, effective Sept. 26, Bethesda-based Lockheed said in a regulatory filing. His salary last year was $1.07 million. Incentive compensation will be set in January, Lockheed said.
Since taking over in August 2004, Stevens, 54, has bolstered the company's role as the largest supplier of computer services to the U.S. government by making acquisitions such as the $440 million purchase of Sytex Group in March. In the past month, Lockheed won computer awards including a $500 million order from the U.S. Census Bureau. Stevens was named chairman in April.
mergers & acquisitions
Choice Hotels Buys Atlanta Chain
Choice Hotels International of Silver Spring has purchased Suburban Franchise Holding, an Atlanta hotel chain with 67 extended-stay locations. The $10.5 million acquisition, announced after the financial markets closed, is Choice's first foray into economy extended-stay lodging, giving it more than 9,000 rooms.
Choice Hotels owns and runs several economy hotel brands, including Cambria Suites, Comfort Inn, Comfort Suites, Quality, and Clarion. Choice shares closed yesterday at $60.51, down $1.47.
Norfolk Southern Picks New Chief
Norfolk Southern named Charles W. "Wick" Moorman chief executive effective Nov. 1, replacing David Goode, the longest-serving chief executive of a major railroad. Moorman is being elevated 11 months after he was named president of the Norfolk-based company. Goode will remain chairman until his retirement next year.
McCormick earned $48 million (35 cents a share) in the quarter ended Aug. 31, up from $46.2 million (33 cents) in the comparable quarter last year. Sales for the Sparks, Md., producer of spices and seasonings increased 1.5 percent to $622.7 million from $613.5 million. Chairman and chief executive Robert Lawless said McCormick "has been challenged" by a high-cost inventory of vanilla beans, weakness in industrial sales, an accounting adjustment and the effects of Hurricane Katrina.
Compiled from staff and news service reports.