Mass. proposal not enough to lure life sciences project

October 20, 2007

Massachusetts appears to have lost out on attracting a key life sciences project to the state. Kofi Jones, a spokeswoman for the Executive Office of Housing and Economic Development, said the state's package of economic incentives was not enough for the unnamed company, which decided to look elsewhere. Peter Abair, director of economic development for the Massachusetts Biotechnology Council, described Project Magellan as a 700,000-square-foot biotech manufacturing plant that would have cost $500 million and potentially have created 400 jobs. Because the company contacted state officials through an intermediary, Abair said he never learned the company's name. Project Magellan's demise was first reported by the Boston Business Journal yesterday. (Todd Wallack)

The Massachusetts Convention Center Authority said it has hired a team of consultants led by Watertown-based Sasaki Associates to develop a master plan for the Boston Convention & Exhibition Center. The consultants will analyze the South Boston Waterfront center's performance, 62-acre property, and industry trends in space and amenities that conventions demand to determine if and when an expansion of the facility is needed. A 1,300-car parking lot currently occupies most of the expansion space. The analysis and planning are expected to begin by Dec. 1 with preliminary findings and recommendations due June 1. (Nicole C. Wong)

Avidia Bank will be the new name of the institution formed by Hudson Savings Bank's merger with Westborough Bank, the companies said, in a combination to be finalized Monday. Combined assets will be about $1 billion for the bank, now headquartered in Hudson. The name was developed by BrandEquity of Newton, the companies said. Avidia will operate branches in communities in central Massachusetts. (Ross Kerber)

Citigroup Inc. confirmed it has secured enough funding to cover the $80 billion in assets held in its structured investment vehicles - at least until year-end. This means Citigroup won't have to sell the debt underlying the seven SIVs it manages at bargain-basement prices, which would translate to losses for the bank. SIVs are vehicles sponsored by banks that sell short-term debt - such as unsecured commercial paper - to investors such as hedge funds. But in August, demand for short-term assets dried up, creating liquidity problems for SIVs. A Citigroup spokesman wouldn't name the buyers, but said they were "top-tier name institutions." (AP)

Beleaguered Internet phone company Vonage Holdings Corp. said it is being sued by AT&T Inc. for alleged patent infringement. In a filing with the Securities and Exchange Commission, Vonage said AT&T's suit, filed Wednesday in US district court in Madison, Wis., pertains to a patent on a wide area packet telephony system. Vonage said it has been in discussions with AT&T to resolve the matter. This is at least the third such suit Vonage has faced this year. (AP)

Wal-Mart Stores Inc. is recalling toy animals made in China because of excessive lead levels discovered since it stepped up safety testing in August, the world's largest retailer and toy seller said. Wal-Mart described the items as sets of farm animals, jungle animals, and dinosaurs. The toys are sold in loose sets in cellophane-type bags without a brand name for 88 cents. A Wal-Mart spokeswoman declined to name the manufacturer. (AP)

Finance officials from the world's top economic powers pledged to do all they can to limit damage to the global economy from a jarring credit crisis. "We remained committed to doing our part in sustaining strong global growth," the Group of Seven finance officials said in a joint statement. While saying the functioning of global financial markets was improving somewhat, they warned that "uneven conditions are likely to persist for some time and will require close monitoring." (AP)