Millennium to pay CEO $1m for Novartis options
Millennium Pharmaceuticals Inc. will pay its new president and chief executive, Deborah Dunsire, $1 million for unvested options she holds for Novartis Pharmaceuticals Corp. stock, the company said after making public her appointment. According to a filing with the Securities and Exchange Commission, Dunsire will receive an annual salary of $800,000, a $300,000 signing bonus, and options to purchase 450,000 shares of the company's stock. Additionally, she will be eligible for a target bonus of 80 percent of her salary, or $640,000, based on the salary provided in the filing. (Dow Jones)
Retailer forecasts loss of 20-22¢ in 2d quarter
Brookstone Inc., a Merrimack, N.H., retailer that's being bought by a group led by Singapore-based Osim International Ltd., expects a fiscal second-quarter loss of 20 to 22 cents a share before any items. Brookstone also said it plans to sell its Gardeners Eden business, which had $16 million in sales in fiscal 2004. Total company sales fell 6.5 percent to $62.6 million in the eight weeks ended June 25, compared with the year earlier, Brookstone said. (Bloomberg)
THE NATION
Record industry sues 784 people over file-sharing
Record companies sued 784 people, alleging they illegally distributed songs from file-sharing networks such as Grokster Ltd., in a new round of piracy lawsuits days after a US Supreme Court ruling against the networks. The Recording Industry Association of America, the trade group for music companies, filed copyright-infringement suits in eight states and Washington, D.C., the group said. Those sued were distributing music via the Grokster, KaZaa, and Limeware Internet file-sharing sites, the group said. (Bloomberg)
DSW shares jump 27 on their first day of trading
Shoe retailer DSW Inc.'s shares surged in their public market debut as investors embraced the opportunity to own a stake in a chain that operates huge off-mall stores. The shares, trading under the symbol DSW, closed at $24.10 on the New York Stock Exchange, up 27 percent from the $19 price the company placed on its 14.1 million shares. DSW raised about $267.2 million from the IPO. Lehman Brothers led the offering's underwriters, which had an option to buy an additional 2.1 million shares to cover over-allotments. (AP)
Airline wants to see if 2d attempt at $50 hike will fly
Northwest Airlines said high fuel prices are prompting it to try another fare increase. Northwest said it added $50 each way to fares that had been capped at $499, and added $5 each way to fares that match discount carriers' prices. It also said it was adding a two-night minimum stay in some markets. A hot line message to employees said the increases took effect Tuesday. This is the second time Northwest added $50 to fares that match the $499 cap Delta Air Lines introduced in January. The first one failed after other carriers declined to match it. (AP)
Former president Mack seen as pick for chief
Investment bank Morgan Stanley could disclose as soon as today that it has rehired its onetime president John Mack to replace departing chief executive Philip Purcell, people familiar with the situation said yesterday. Mack's appointment would follow months of pressure from dissident former executives who lobbied for changes at the investment bank. The company's share price has been pressured as the debate raged over Purcell's tenure. One of the sources, who asked not to be named, said Mack had been talking to members of Morgan Stanley's board of directors and was the favored candidate. Also yesterday, the AFSCME public employees' pension plan, which holds 4 percent of Morgan Stanley shares, asked the investment bank to cut ties with board members who supported Purcell. (Reuters)
Bank agrees to sponsor Nascar race for 5 years
Bank of America, the second-biggest US bank, agreed to sponsor a Nascar Nextel Cup series stock-car race at Lowe's Motor Speedway for the next five years, marking the company's entry into motor sports. The agreement with Speedway Motorsports Inc., which owns and operates the track in Charlotte, N.C., starts next season and continues through 2010, the bank said. The race, typically held in October, is the second of the season to be held at the track and will be called the Bank of America 500. (Bloomberg)
