Briefcase
Red Lion in Seattle sold, will keep brand
Red Lion Hotels Corp. will sell its Hotel on Fifth Avenue in Seattle to an affiliate of Lowe Enterprises for $71 million, the Spokane-based hospitality company said Wednesday.
The deal, expected to close this quarter, will maintain the Red Lion brand on the 297-room property, but Lowe subsidiary Destination Hotels & Resorts will take over management responsibilities.
The agreement also provides for cross-promotion of Red Lion and Destination hotels.
Red Lion announced in January it would sell the Seattle property, preferably to an owner who would retain the brand.
“This is exactly the type of agreement we were targeting,” said Red Lion President Jon Eliassen, noting the deal will strengthen the company’s balance sheet.
Red Lion is scheduled to announce its earnings today. Red Lion owns or franchises 43 hotels in addition to the Seattle property.
Destination Hotels operates more than 7,000 hotel and condominium rooms.
Bert Caldwell
Revett Minerals to start trading
Revett Minerals Inc. of Spokane Valley will start trading its shares on the New York Stock Exchange Amex next week, company officials said.
The stock is expected to begin trading on the exchange Monday under the symbol “RVM.” Revett will retain its current listing on the Toronto Stock Exchange under the symbol RVM:TSX.
Revett owns the Troy Mine and the Rock Creek project, a proposed silver-copper property. Both properties are in northwest Montana.
Associated Press
Ralcorp rebuffs bid by ConAgra
NEW YORK – ConAgra Foods Inc. made a $4.9 billion bid for Ralcorp Holdings Inc., which the maker of Post cereal and store-brand products rejected Wednesday.
ConAgra has made two offers to acquire Ralcorp in an effort to expand its business into private-label products.
Ralcorp said the $86-per-share bid from ConAgra is not in shareholders’ best interests. It followed an $82-per-share offer in March.
The latest offer is a 3.2 percent premium over Ralcorp’s most recent closing stock price of $83.33 but well below what some analysts estimate it could fetch.
Ralcorp’s Chairman William Stiritz said the company has a proven track record of delivering shareholder value and the company is confident that its team and strategic plan will continue to do so as an independent company.
Associated Press
Freddie Mac reports quarterly gain
WASHINGTON – Freddie Mac earned $676 million in the January-March quarter, the first time the bailed-out mortgage giant has reported a quarterly gain in nearly two years.
The government-controlled company requested no additional federal aid Wednesday after receiving $13 billion over the past four quarters.
CEO Charles Haldeman attributed the net income to cost savings and fewer single-family homeowners who have fallen behind on their mortgages. Tighter lending requirements have also helped increase the quality of Freddie’s new loans.
Still, Freddie has lost $25.3 billion in the previous six quarters, and analysts don’t expect the company to report sustained earnings this year.
Associated Press
Reports say drivers cutting back on gas
NEW YORK – Gasoline demand continues to fall in the U.S. as pump prices keep climbing.
Reports from government and industry groups show motorists have been cutting back on the amount of gas they put into their tanks for more than a month. That could signal trouble for the economy since Americans typically cut spending on other activities before they do less driving.
Since January, the national average for a gallon of regular unleaded has risen 91 cents, or 30 percent, to $3.98. The main reason is a 20 percent gain in the price of oil this year. Gas rose more than 30 cents in April alone.
Associated Press
Price cuts for Wii, other Nintendo games
Nintendo is dropping the price of its Wii game system by $50 to $150. It’s also cutting the price of several popular games.
The cuts come ahead of next year’s launch of a successor to the console.
Starting May 15, the newly priced Wii system will come in either black or white with a “Mario Kart Wii” game and a Wii Wheel accessory, replacing the previously included “Wii Sports” and “Wii Sports Resort” games.
Associated Press