Daily Business Update

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September 30, 2008

Now appearing on iPhone: Lotus Notes

Users of IBM Corp.'s popular Lotus Notes business collaboration software can now log on via Apple Inc.'s popular iPhone.

The Lotus business unit, based in Cambridge, has developed a application called iNotes Ultralite, which will let Notes users check their e-mail, calendar and contacts list over the iPhone.

The iNotes Ultralite software can be downloaded free of charge through Apple's iTunes App Store.

The iPhone already features support for Lotus Notes chief rival, Microsoft Corp.'s Exchange collaboration software.
(By Hiawatha Bray, Globe staff)

Posted by mwarshaw at 4:40 PM | Comments (0)

Converted Organics expands plant capacity

Converted Organics Inc. of Boston said today that it is installing new equipment in a Gonzales, Calif.-based manufacturing facility to boost capacity.

The plant, which processes food waste into fertilizer, will open by Friday, the company said.

"Increased production capacity is critical to Converted Organics' commitment to meet growing market demand for our organic fertilizer and soil amendment products," company president Edward J. Gildea said.

Shares rose 33 cents, or 7.6 percent, to $4.66 in afternoon trading on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 3:38 PM | Comments (0)

New stores formally open at Patriot Place

Patriot Place officials formally announced the openings of three new restaurants, five new retailers, and a Sovereign Bank branch in Foxborough.

According to those officials, the term shopping center fails to capture the grand scale of Patriot Place, which they describe as a 1.3-million-square-foot "shopping, dining, and entertainment destination." Adjacent to Gillette Stadium in Foxborough, Patriot Place is a retail vision of the Kraft family, which also owns the New England Patriots football team.

Now open at Patriot Place are Skipjack's, a seafood and sushi restaurant; Tastings Wine Bar & Bistro; and Dunkin' Donuts, Patriot Place officials said.

New retailers to open at Patriot Place in recent weeks include the accessories store Claire's, a prototype Crabtree & Evelyn location, an Old Navy apparel store, outdoor gear retailer Eastern Mountain Sports, and Victoria's Secret lingerie store, Patriot Place officials said. (The photo at left was taken from Old Navy's website, and the Skipjack image was taken from the restaurant chain's website.)

Patriot Place officials said in a press release: "Patriot Place now boasts 22 retailers and nine restaurants in addition to a 14-screen Showcase Cinema de Lux movie theater, the first Showcase Live music and performance venue, and the Hall at Patriot Place presented by Raytheon. Additional shopping and dining options as well as Green Tangerine Spa & Salon are expected to open soon. By spring 2009, most of Patriot Place’s 70 shops, restaurants, and entertainment venues are expected to open as well as a 150-room Marriott Renaissance Hotel & Spa and a Brigham & Women’s/Mass General Healthcare Center."

To read a Globe story about the Kraft family's vision for Patriot Place, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:55 PM | Comments (0)

Boston home prices nudge up

As house prices around the country slumped again in July, Boston prices went in the opposite direction and nudged up 0.2 percent, according to the Standard & Poor's/ Case-Shiller Home Price Index released today.

In contrast, prices declined between 1 percent and 3 percent between June and July in several cities, including Los Angeles, Miami, New York, San Francisco, Seattle and Washington.

Over the past year, prices in the Boston metropolitan area declined 5.4 percent, compared with double-digit annual declines in 11 of the 20 cities that Case-Shiller tracks. The 20--city index, which includes Boston, dropped 0.9 percent in July and 16.3 percent over the past year.

“There are signs of a slow down in the rate of decline across the metro areas, but no evidence of a bottom," David M. Blitzer, chairman of S&P's index committee, said.

The Case-Shiller index is among the most closely-watched indicators of the housing market because it tracks repeat sales of the same house over time.
(By Kimberly Blanton, Globe staff)

Posted by globebusiness at 12:39 PM | Comments (0)

SpaceClaim appoints Randles as chief executive

SpaceClaim Corp., a Concord company specializing in three-dimensional tools used in computer-aided design, said today that Chris Randles (right) has been appointed president and chief executive.

Randles, who has also joined the company's board of directors, replaces company cofounder Michael Payne, who continues as chairman of the board, SpaceClaim said.

Randles most recently was entrepreneur-in-residence at Borealis Ventures, a firm with offices in Hanover, N.H., said SpaceClaim, which added that Randles previously led the management buyout of Mathsoft and served as its chairman, president, and chief executive until the company was acquired by Parametric Technology Corp., or PTC, of Needham.

The photo of Randles that accompanies this story was taken from the Borealis Ventures website.

SpaceClaim says that its SpaceClaim Professional represents a new class of 3D productivity tool that is optimized for design and conceptual engineering, manufacturing engineering, and computer-aided-engineering model preparation. Introduced in 2007, SpaceClaim Professional requires minimal training and extends 3D modeling functionality to engineers and designers engaged in mechanical design, the company says.

SpaceClaim and PTC were mentioned in a recent Globe story about the democratization of software used by engineers and product designers whose work involves the creation of three-dimensional objects. To read that story, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:09 AM | Comments (0)

Broadcom will offer Skyhook Wireless WiFi services

Broadcom Corp., a California company that makes semiconductors for wired and wireless communications, announced today that it will upgrade its location based services infrastructure to add WiFi positioning from Skyhook Wireless Inc. of Boston to its portfolio of location-based services.

Broadcom said it will leverage both GPS and WiFi technologies to integrate, deploy, and offer this new capability using the WiFi Positioning System developed by Skyhook.

“Broadcom is quickly becoming the market leader in location positioning hardware for mobile devices,” Jed Rice, a Skyhook Wireless vice president, said in a statement. “We’re excited to work jointly to expand our LBS capabilities and support full hybrid positioning while delivering ubiquitous location availability and reliable accuracy in any operating environment."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:53 AM | Comments (0)

Massachusetts business confidence index falls

The Associated Industries of Massachusetts Business Confidence Index declined by six-tenths of a point in September to 46.5, its fifth consecutive month below a “neutral” reading of 50 on the 100-point scale.

The index is compiled by the Associated Industries of Massachusetts, or AIM, which describes itself as a nonprofit, nonpartisan association of Massachusetts employers.

“A majority of survey respondents (51 percent) said a recession was already underway – and most of our survey responses came in early in the month, so this result does not fully reflect the alarming developments of the past two weeks,” Raymond G. Torto, chair of AIM’s Board of Economic Advisors, said in a statement. “Even so, the Index’s monthly average for the third quarter was 46.1, ten points below the average for the same period last year, and the weakest quarterly average since the second quarter of 2003, when we were just coming out of recession.”

The monthly Business Confidence Index, initiated by AIM’s Board of Economic Advisors in July 1991, is based on a survey of AIM member-companies across Massachusetts, asking questions about current and prospective business conditions in the state and nation, as well as for respondents’ own operations. On the index’s 100-point scale, a reading above 50 indicates that the state’s employer community is predominantly optimistic, while a reading below 50 points to a negative assessment of business conditions.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:04 AM | Comments (0)

Ben & Jerry's unveils new project

The latest from Ben & Jerry's? Ice cream that's as green as its native Vermont.

No, not ice cream that's green in color, but ice cream that may be easier on the environment.

Ben & Jerry's, the Vermont ice cream brand that's now part of Unilever, said that it is testing a "cleaner, greener freezer" that hopefully will minimize the freezer's impact on global warming.

“This is an important step for our business which we hope will clearly demonstrate that a more environmentally friendly refrigeration technology can work in the US market,” Walt Freese, Ben & Jerry’s chief executive, said in a statement. “The technology is commonplace in Europe with literally millions of home and commercial units in place.”

The headline of the company's press release: "Ben & Jerry's launches a new kind of cool."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:46 AM | Comments (0)

Smith takes over as chief executive of Kayem Foods

Kayem Foods Inc., a Chelsea meat processor that makes more than 400 products under several brand names, said announced the appointment of Ralph O. Smith as its new president and chief executive.

Smith will replace Ray Monkiewicz, who has been named chairman of the company’s board of directors after 21 years as Kayem’s top executive, the company said.

Smith joined Kayem in 2001 as chief financial officer, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:25 AM | Comments (0)

BioChemics will collaborate with Cynosure

Two local firms said today they are teaming up to offer more options for people who want light-based aesthetic treatments.

BioChemics Inc. of Danvers announced that it has signed a research collaboration agreement with Cynosure Inc. of Westford to evaluate the use of BCI's VALE based compositions in conjunction with light based aesthetic treatments.

BioChemics describes itself as a specialty pharmaceutical company that has developed a transdermal drug delivery system called Vale that allows a wide variety of "actives" to be delivered into the skin.

Cynosure Inc. develops and markets aesthetic treatment systems that are used by physicians and other practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular lesions, rejuvenate skin through the treatment of shallow vascular and pigmented lesions. Cynosure's products include a broad range of laser and other light-based energy sources.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:03 AM | Comments (0)

Junius will head ImmunoGen

ImmunoGen Inc. of Waltham said today that president and chief operating officer Daniel M. Junius will become president and chief executive, effective Jan. 1.

The promotion of Junius is in accordance with a succession plan approved by ImmunoGen's board of directors, said the company, which added that Junius has also been nominated for election to the company's board at the company's annual shareholders meeting.

Current chairman and chief executive Mitchel Sayare will continue as the chairman of the board and as a director of the company, ImmunoGen said.

ImmunoGen, Inc. develops targeted anticancer therapeutics using its expertise in cancer biology, monoclonal antibodies, and the creation and attachment of potent cell-killing agents.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:41 AM | Comments (0)

September 29, 2008

Pollution-credit auction generates $13.3m for state

Massachusetts netted $13.3 million from a regional auction of allowances intended to help it and nine other states reduce carbon dioxide emissions by power plants, state officials said today. The money will be used to fund energy efficiency programs.

The state collective, known as the Regional Greenhouse Gas Initiative, hosted the auction last Thursday. Power plants in region are required to obtain an allowance for each ton of carbon dioxide they emit, or find ways to reduce pollution, as part of an environmental program that caps carbon dioxide emissions.

Fifty-nine bidders from the energy, financial and environmental sectors vied for more than 12.5 million allowances, which ultimately sold for $3.07 apiece. More allowances will be auctioned in December, and on a quarterly basis thereafter.
(By Erin Ailworth, Globe staff)

Posted by globebusiness at 12:54 PM | Comments (0)

Partners HealthCare System CEO leads in compensation

James J. Mongan, chief executive of Partners HealthCare System, in Boston, is the highest paid chief executive among the nation's largest nonprofits in a new survey released today by the Chronicle of Philanthropy. He earned $1,371,399 in total compensation, just head of Henry S. Bienen, president of Northwestern University, who took second place.

Chief executives at the nation’s biggest charities and foundations received a median pay increase of 5 percent, outpacing inflation which rose by 4.1 percent, according to the survey. The 5-percent increase represents the biggest one-year raise for nonprofit leaders since the 7.5-percent median increase reported in The Chronicle’s 2002 survey. The median salary for chief executives at the organizations surveyed was $326,500, up from $308,800 in 2006.

Despite the slowing economy, the survey predicts that compensation of nonprofit executives may continue to rise this year as charity boards are increasingly recruiting for-profit executives to make the switch to the nonprofit world, sweetening pay packages to lure out-of-town candidates who may need to sell their home at a loss as part of a move.

The Chronicle survey was based on information provided by 291 organizations that are among those that raised the most money from private sources in 2007, as well as grant makers that held the most in assets that year. (By Jenn Abelson, Globe staff)

Posted by globebusiness at 11:57 AM | Comments (0)

Authoria purchased by Bedford Funding

The Waltham based business management company Authoria, Inc. announced today that it has agreed to be acquired for $63.1 million by Bedford Funding, a private-equity firm based in White Plains, New York.

Bedford Funding will make an additional $8 million investment in working capital to enhance Authoria’s overall corporate growth.

“Authoria is a platform for building the first billion-dollar company in talent management,” Founder and CEO Tod Loofbourrow said in a statement. “Our partnership with Bedford brings us an investor well matched to the size of the market opportunity before us, and enables us to accelerate our next phase of growth.”

Authoria recently announced 93-percent year-on-year bookings growth in the second quarter of 2008.
(By Jonnelle Marte, Globe correspondent)

Posted by globebusiness at 11:55 AM | Comments (0)

Envit completes Clary acquisition

The Envit Capital Group, Inc., a Boston holding company for financial entities, announced today that one of its subsidiaries has completed the acquisition and name change of Clary Asset Management, LLC, a Registered Investment Advisor located in Texas.

Envit believes that this acquisition will help the company significantly increase its presence throughout the United States.

"This is just another small step in Envit's goal in becoming more than just a small boutique investment firm,” Edward M. Laborio Chairman and CEO, said in a statement.
(By Jonnelle Marte, Globe correspondent)

Posted by globebusiness at 11:53 AM | Comments (0)

Cephalon settles federal, state investigations

Cephalon Inc said today that it has finalized a previously announced agreement with government regulators over its drug sales and promotional practices.

The investigations began in 2004 and involved three of the company's products -- the painkiller Actiq, sleep drug Provigil and epilepsy drug Gabitril.

Under the previously disclosed terms of the federal settlement, Cephalon will pay the $425 million reserved in 2007 plus an estimated $12 million in accrued interest expense. It will plead guilty to a single misdemeanor violation of the U.S. Food, Drug and Cosmetic Act.

Cephalon also settled its two outstanding state government investigations for a total of $6.85 million. In its settlement with the Connecticut Attorney General and Commissioner of Consumer Protection, Cephalon agreed to a $6.15 million payment. It also agreed to a payment of $700,000 to settle an investigation with the Attorney General of the Commonwealth of Massachusetts. (AP)

Posted by globebusiness at 11:12 AM | Comments (0)

Raytheon gets $77M Pentagon deal for Patriot work

The Department of Defense has awarded a $77 million contract to Raytheon Co. for work on the Patriot missile program.

The contract, announced Friday is for upgrades to the Patriot missile defense system. Work will be performed in Andover, Mass. and is expected to be finished by April 2011.

Shares of Waltham, Mass.-based Raytheon fell 22 cents to $55.84 in trading this morning. (AP)

Posted by globebusiness at 11:09 AM | Comments (0)

Gas in Massachusetts down nearly a dime

Gas prices have dropped by nearly a dime in Massachusetts, putting the average cost below $3.50 for the first time since late April.

A survey by AAA Southern New England released Monday found the price of a gallon of self-serve, regular unleaded gasoline averaging $3.47. That's 8 cents lower than a week ago.

That price is 61 cents below the state's record high of $4.08 on July 7 and 17 cents below the national average.

A year ago, gas was averaging $2.67 in the Bay State. (AP)

Posted by globebusiness at 11:09 AM | Comments (0)

Hale and Dorr launches "Silver Bridge Advisors"

Hale and Dorr Wealth Advisors, a financial advising firm in Boston, announced today that it is changing its name to Silver Bridge Advisors in an effort to better reflect its position as an independent, objective wealth advisory boutique.

Silver Bridge Advisors assists individuals and families in making sound decisions about their wealth. The company provides clients with personalized service, access to industry talent, a broad-based set of traditional and alternative investment strategies, enhanced client reporting capabilities and customized solutions.

The name Silver Bridge Advisors was selected because it reflects the distinct characteristics of the firm.

"'Silver' was chosen to honor the firm's 80-year history and depth of expertise and experience in working with multi-generational families, while 'Bridge' connects this lasting tradition to its team of new talent," Stephen Prostano, president and chief operating officer, said in a statement.

Silver Bridge Advisors will still be affiliated with law firm WilmerHale, which has offices in Boston.
(By Jonnelle Marte, Globe correspondent)

Posted by globebusiness at 10:58 AM | Comments (0)

Charlesbank completes Tecomet purchase

Tecomet, a Wilmington-based contract manufacturer of components for the medical device and aerospace industries, has been acquired by Charlesbank Capital Partners, a private equity investment firm.

Founded in 1964, Tecomet manufactures precision-engineered medical devices and components for the orthopedic, cardiovascular, medical imaging and aerospace markets. It also produces orthopedic implants as well as trauma products for medical device customers.

Medical products account for approximately 70% of revenue, and the remainder of revenue is derived from aerospace and industrial products, including components for satellites and infrared applications.

Tecomet has also announced that William Dow will become the company's CEO and John Connolly will be the CFO.

"John and I are thrilled to join this outstanding team and we look forward to working with them to expand Tecomet's capabilities and to capitalize on opportunities to grow the business organically and through strategic acquisitions," Dow said in a statement.
(By Jonnelle Marte, Globe correspondent)

Posted by globebusiness at 10:42 AM | Comments (0)

AVANT now Celldex

AVANT Immunotherapeutics, Inc. today announced that, pursuant to a previously announced shareholder vote, the company will change its name to Celldex Therapeutics, Inc. effective October 1, 2008.

On that day shares of the company’s common stock will be listed on Nasdaq under the ticker symbol “CLDX”.

The Board of Directors also announced the appointment of Anthony S. Marucci, who has been serving as interim President and Chief Executive Officer since May 2008, as President and Chief Executive Officer of the Company.

Posted by globebusiness at 9:51 AM | Comments (0)

Covidien announces restructuring

Covidien Ltd., one of the state's largest life sciences companies, today unveiled a restructuring program to cut costs.

The health care products company said the program, slated to touch its four major business segments and corporate offices, will save $50 to $75 million a year, suggesting it plans to eliminate several hundred jobs around the world. Covidien said it will record a pre-tax charge of $200 million beginning in the first quarter of fiscal 2009 to pay for the cuts. The company declined to say how many, if any, jobs will be cut. A company spokesman, Bruce Farmer, said the company will provide more details of the expense cuts later.

"This initiative will enable us to continue investing for future growth and profitability," said Covidien Chief Executive Richard J. Meelia said in a statement.

Covidien, which is incorporated in Bermuda but operates out of Mansfield, has about 42,000 employees worldwide, including 2,000 in Massachusetts. Earlier this month, Covidien said it planned to seek more than $1 million in state and local tax breaks to help finance an expansion at its Mansfield headquarters, providing space for roughly additional 50 employees. Farmer, the Covidien spokesman, said the company plans to go forward with the Mansfield expansion.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 9:48 AM | Comments (0)

Newman planned for charitable legacy after death

Paul Newman broached the subject of his philanthropic legacy several years ago while fishing with friends Robert Forrester and David Horvitz off the Outer Banks of North Carolina.

Even though he was a Hollywood icon -- a 10-time Academy Award nominee known for his performances in such classic films as "Cool Hand Luke" and "Butch Cassidy and the Sundance Kid" -- it was a rare moment in which Newman reflected on how he would be remembered after his death, Horvitz recalled Sunday.

"Most of the time he didn't think about legacy," he said. "He was pretty much in the moment."

But Newman, who died Friday of cancer at age 83, told the men he wanted to be remembered for the "Hole in the Wall" camps he helped to start across the world for children with life-threatening illnesses and to make sure that 100 percent of the profits from his popular food company, Newman's Own, would continue to benefit such camps and thousands of other charities.

Horvitz is chairman of the Association of Hole in the Wall Camps, which has 11 camps across the globe. Newman told him that he had been lucky in life, born with piercing blue eyes and gift for acting, and how it was unfair that so many innocent children were unlucky to have been burdened with devastating diseases such as AIDS or leukemia.

"He felt a need and an obligation to try to give back," Horvitz said.

"He loved the camps. He loved being there. He loved being with the kids," he added. "He loved their smiles and their laughter."

In 1982, Newman and writer A.E. Hotchner started Newman's Own to market Newman's original oil-and-vinegar dressing. It began as a joke and grew into a multimillion-dollar business.

Newman and the foundation funded by his food company have given more than $250 million to charity over the years. Last year, $28 million from the sale of pasta sauces, salad dressings, popcorn and other products was distributed to a variety of social causes, including the Safe Water Network, which Newman helped start to provide safe drinking water to impoverished communities in places like India and Africa.

Until two years ago, Newman had the task of personally distributing the company's profits. But Forrester helped Newman set up a private, independent foundation, known as Newman's Own Foundation, to carry on the work without Newman.

"Really, everything is in great shape," Forrester said of the foundation and the company after Newman's death.

"He said, 'When I'm not here, this foundation is to continue the tradition of giving all of this money away,"' said Forrester, the foundation's vice chairman.

Forrester joked how such planning wasn't part of Newman's nature. A sign famously hangs in Newman's Westport, Conn., offices that reads, "If I had a plan I would be screwed."

Newman welcomed the opinions of others as he pursued the business and his philanthropic efforts. Forrester explained how the actor believed in the benefit of "creative chaos," where, as in a movie set, different people offer ideas about how a scene should be handled.

"That was Paul's enduring philosophy, and it worked," Forrester said. "It sounds awful, but it was part of Paul saying everybody had a voice."

At Forrester's request, Newman came up with what he wanted the Newman's Own company -- he hated the word "brand" -- to stand for. Newman listed quality food, fair labor practices, a mission focused on philanthropy and not profit, and an open environment in the workplace, not a bureaucratic one.

Forrester said that mission will continue, even though Newman is gone.

Also, his smiling face will still appear on bottles of marinade and boxes of frozen pizza, and his wife, actress Joanne Woodward, will still sit on the Newman's Own Foundation Board of Directors. Newman typically sat in on all the board meetings, with the exception of the most recent one, about a week ago.

Forrester said Newman's friends at Newman's Own -- some who have worked there from the early days of the company -- plan to look for ways to expand the business in order to carry out the actor's wishes and give away even more money.

"We're stewards of this legacy," he said. (AP)

Posted by globebusiness at 9:40 AM | Comments (0)

ImClone says 2nd acquirer set to bid or withdraw

Biotechnology company ImClone Systems Inc said today that it will find out by the end of Wednesday whether a big pharmaceuticals company will make an offer to buy the company.

ImClone's partner, Bristol-Myers Squibb Co has already offered to acquire the 83 percent of ImClone it does not already own for $62 a share.

Billionaire investor Carl Icahn, who is chairman of ImClone's board, has said that the offer is insufficient and that another buyer has made an offer for the company of $70 a share, subject to due diligence.

By one minute before midnight on Thursday, ImClone said the potential buyer will either make a proposal that is no longer subject to due diligence, or withdraw -- at which point the name of the company will be revealed. (Reuters)

Posted by globebusiness at 9:31 AM | Comments (0)

Citigroup to buy Wachovia banking operations

NEW YORK (AP) -- Citigroup Inc. will acquire the banking operations of Wachovia Corp., one of the nation's largest banks, in a deal facilitated by the Federal Deposit Insurance Corp.

Citigroup will absorb up to $42 billion of losses in the deal, with the FDIC covering any remaining losses, the government agency said Monday. Citigroup also will grant the FDIC $12 billion in preferred stock and warrants.

The FDIC asserted that Wachovia didn't fail, and that all depositors are protected and there will be no cost to the Deposit Insurance Fund.

Federal Reserve Chairman Ben Bernanke, in a statement Monday, said he supports the "timely actions" taken by the FDIC "which demonstrate our government's unwavering commitment to financial and economic stability."

The sale of Wachovia Corp. comes just days after the government's seizure of Seattle-based Washington Mutual Inc. -- the largest bank failure in U.S. history. Even as details of its takeover unfolded, Wachovia shares plunged 87 percent in Monday premarket trading to $1.36. The stock had closed Friday at $10, down 74 percent for the year.

Wachovia has been among the banks hardest hit by the ongoing crisis in the mortgage market. Its current problems stem largely from its acquisition of mortgage lender Golden West Financial Corp. in 2006 for roughly $25 billion at the height of the nation's housing boom. With that purchase, Wachovia inherited a deteriorating $122 billion portfolio of Pick-A-Payment loans, Golden West's specialty, which let borrowers skip some payments.

This weekend Citigroup was reportedly in competition with Wells Fargo and Spain's Banco Santander for the struggling bank. Banco Santander declined to comment early Monday and Wells Fargo spokesmen could not be immediately reached for comment.

(AP)

Posted by jtuohey at 8:46 AM | Comments (0)

September 26, 2008

Delta to offer first-class Shuttle seats

Delta, which offers 30 flights daily between Logan and LaGuardia, says it will start giving Shuttle customers the option of going first-class starting Dec. 1.

The carrier will offer 14 first-class and 128 economy seats per flight. First-class shuttle seats will be priced about $100-$250 above economy depending on the route, according to Susan Chana Elliott, a Delta spokeswoman. Besides flying between Boston and New York, the Shuttle also hops between LaGuardia and Reagan National in Washington.

SkyMiles Medallion members will be eligible for complimentary upgrades and the carrier's open-seating policy will remain for both tiers.

First-class customers will get a wider selection of options for snacks and complimentary cocktails, along with bigger, more comfortable seats. Delta will continue to offer all Shuttle customers complimentary snacks, wine, beer, coffee, teas, and soft drinks.

By the Dec. 1 launch, some of the Shuttle fleet's MD-88s will be equipped with WiFi, which the carrier plans to have on its entire domestic fleet in spring, Elliott said.
(By Paul S. Makishima, Globe staff)

Posted by globebusiness at 3:54 PM | Comments (0)

Foreclosure aid comes to Massachusetts

Massachusetts communities will receive $54.8 million in new federal funds to help stabilize neighborhoods hurt by the growing number of foreclosures, abandoned properties and blight.

The allocations were made by The U.S. Department of Housing and Urban Development as part of a $3.92 billion housing stabilization fund passed by Congress this summer to help cities and neighborhoods particularly hard hit by the growing foreclosure crisis.

In Massachusetts, the state government received $43.5 million, the city of Boston $4.23 million, Springfield $2.57 million, Worcester $2.39 million, and Brockton received $2.15 million.

The funding, originating from the Housing and Economic Recovery Act of 2008, will help state and local governments to acquire and redevelop foreclosed properties in an effort to stabilize neighborhoods and stop falling home values.

"To those areas trying to recover from the effects of foreclosure and declining property values, help is on the way,'' HUD Secretary Steve Preston said. "Clearly, the intent is to put this money to work in communities with the highest need and to have a meaningful impact.''
(Jenifer McKim)

Posted by acaffrey at 1:40 PM | Comments (0)

Washington Mutual customers now JPMorgan Chase customers

Customers of Washington Mutual Inc., will be able to conduct business as usual, regulators said, after they took over the institution Thursday night in the largest bank failure in US history.

Washington Mutual's bank accounts and home loans were taken over by JPMorgan Chase late Thursday, which immediately began running WaMu's operations That means banking customers can continue to do business at their old branches and their accounts will remain intact, according to the Federal Deposit Insurance Corp.

Homeowners who have their mortgages through WaMu should continue making payments as usual, the FDIC said. Loan terms won't change, and monthly payments should continue to be made to the same address until further notice.

WaMu was the ninth-largest home mortgage lender in Massachusetts so far this year, with 2,153 new loans, according to real estate data provider, the Warren Group. It had lent out a total of $637 million in 2008, compared with $10.9 billion for JPMorgan at the same point.

In December the thrift said it would close all seven lending offices it had operated in Massachusetts.
(ROSS KERBER)

Posted by acaffrey at 1:22 PM | Comments (0)

Apple to make iTunes more accessible for the blind

Apple Inc. and the Massachusetts attorney general have reached an agreement that will provide blind consumers and students with equal access to Apple's iTunes and iTunes U.

Attorney General Martha Coakley said details of the agreement will be announced today.

A statement from Coakley's office says Apple will ensure that both iTunes -- the company's digital entertainment store -- and iTunes U -- targeted at college students -- are accessible to blind consumers and students using assistive technology called screen access software.

The American Foundation for the Blind has praised Apple for including features on the latest version of iTunes and the latest iPod Nano that make them easier for the blind or visually impaired to use. The agreement also covers additional features. (AP)

Posted by globebusiness at 10:15 AM | Comments (0)

Babich takes over at Molecular Insight

The board of directors of Molecular Insight Pharmaceuticals, Inc. announced yesterday that John Babich, president and chief scientific officer, will replace David S. Barlow as the company’s interim CEO and chairman of the board, effective immediately. Mr. Barlow will continue to serve out his term as a member of the company’s board of directors. The company had begun a search to identify a permanent CEO.

Posted by globebusiness at 9:58 AM | Comments (0)

Boston Private anticipates loss

Boston Private Financial Holdings Inc. said today that it expects a $70 million to $85 million third-quarter loss related to its plan to sell an affiliate's $250 million worth of land and construction loans.

The wealth management firm is looking to sell the First Private Bank & Trust portfolio as focuses on raising more capital. Boston Private said in July that it raised more than $173 million in new equity capital that will be used to deal with worsening credit market conditions. (AP)

Posted by globebusiness at 9:50 AM | Comments (0)

September 25, 2008

S&W execs on the move

Smith & Wesson Holding Corp. said Thursday it has shifted the duties of two executives after the departure of the firm's vice president of marketing.

The Springfield, Mass.-based firearms maker said that Thomas Taylor has left the marketing post to pursue other interests.

In conjunction with Taylor's departure, Smith & Wesson is revising the duties of Leland Nichols and Thomas Kelly.

Nichols, who has most recently served as president and chief operating officer for Smith & Wesson's firearms business, was appointed to the newly created position of senior vice president of sales and marketing. The change will "allow Nichols to focus exclusively on the company's sales and marketing activities," Smith & Wesson said.

Kelly was named vice president of marketing, after recently joining Smith & Wesson as vice president of sales and marketing for the firm's Thompson/Center Arms unit, a designer of hunting rifles and accessories under the Thompson/Center brand. In his new role, Kelly's responsibilities will expand to include all of Smith & Wesson's brands.

President and Chief Executive Michael Golden said the moves "will sharpen our focus on the market and further streamline our decision-making processes."

Smith & Wesson also announced it would eliminate about 80 jobs at its plant in Rochester, N.H.

Shares of Smith & Wesson rose 6 cents to close at $4.27. (AP)

Posted by mwarshaw at 8:03 PM | Comments (0)

Mass. foreclosures dropped a bit in August

Foreclosures in Massachusetts dropped 2 percent in August from the same time last year, reversing a recent trend of steep jumps.

The Warren Group reported Tuesday that 998 foreclosure deeds, the final step in foreclosure, were recorded last month. That's down from 1,018 in August 2007.

The drop comes after year-to-year jumps in home foreclosures of 50 percent in June and 34 percent in July.

The number of foreclosure deeds remains up 79 percent through the first eight months of the year, with 8,804 filed through August, compared with 4,920 during the same period in 2007.

Foreclosure petitions, the first step in the foreclosure process, also are up over the last two months.

In August, 943 foreclosure petitions were filed, nearly 88 percent more than July, when 502 petitions were filed. (AP)

Posted by mwarshaw at 2:14 PM | Comments (0)

NSTAR takes energy products on the road

NSTAR is rolling out a new traveling display that will showcase current trends in energy efficiency and renewable energy technologies.

The NSTAR Energy Showroom of Innovation, or NESI, is visiting local communities and giving customers a chance to view several cutting-edge products, including the latest in LED lighting, solar panels, compact wind turbines and miniature heat pumps.

"By driving our NESI trailer right to their neighborhoods, we're making it convenient to experience the latest technologies in a hands-on, educational setting." Penni Conner, NSTAR vice president of customer care, said in a statement.

The NESI trailer is a 16-foot-long showroom on wheels that will stop at local schools, energy fairs, home shows, and other community events.

Along with the innovative technologies, the trailer will also demonstrate traditional energy efficiency standards like compact fluorescent lights and cellulose insulation.
(By Jonnelle Marte, Globe Correspondent)

Posted by mwarshaw at 12:39 PM | Comments (0)

Half of college students going for the paycheck, says study

About half of today’s college students are willing to sacrifice career satisfaction for a bigger paycheck, according to a survey taken by Experience, Inc., a Boston-based career services company.

The Student Loan Survey, completed earlier this month, questioned 336 current college students and recent graduates, and found that members of Gen Y are factoring student loans into their career decisions.

Nearly a third of the students said that student loans impacted their decision to choose a particular career, and two-thirds of current students said they are more likely to accept a job that offers loan assistance or repayment.

“College graduates are taking preemptive measures to deal with the financial ramifications of student loan debt,” Jenny Floren, founder and CEO of Experience, said in a statement.

About 40 percent took a job that provided higher pay, but less satisfaction, in order to pay off their loans. About 47 percent said that their loans impacted their career choice, and 88 percent said they had to make sacrifices in their budget because of loan payments. And 23 percent said they gave up continuing education or graduate school.

The survey also found that students squeezed by higher education costs, rising debt, and the current credit crunch, are seeking alternative ways to pay for tuition. About 31 percent have applied for scholarships and grants, 28 percent are already saving to pay off their loans, and 13 percent are graduating early.
(By Jonnelle Marte, Globe Correspondent)

Posted by mwarshaw at 11:12 AM | Comments (0)

Federated absorbs failed Putnam fund assets

Federated Investors Inc , one of America's biggest money market fund managers, Wednesday acquired assets from rivalPutnam Investments' portfolio facing heavy cash withdrawals.

Federated said it moved securities from Putnam's $12.3 billion Prime Money Market Fund into its $22.1 billion Prime Obligations Fund in a $1 per share for $1 per share transaction that will leave Putnam shareholders with shares in the Federated portfolio.

Putnam, one of America's oldest mutual fund managers, said last week it would close and liquidate the fund, which was reserved for professional investors, as clients suddenly demanded their money back.

The fund had roughly 155 institutional investors. Putnam is a unit of Canada's Great-West Lifeco Inc

"Preserving capital, providing liquidity and competitive yields for clients has been a fundamental strength of our cash management business for more than 30 years," said Deborah Cunningham, chief investment officer for Federated's taxable money markets.

While the Putnam fund's shares did not fall below $1, or break the buck as the expression goes, the heavy redemption requests illustrated just how nervous investors were becoming as U.S. stock prices plunged last week as the country faced its worst financial crisis since the Depression.

Money market funds are usually considered safe investments and are often favored during market turbulence.

Last week, however, marked one of the worst ever for these portfolios as investors hastily pulled out roughly $169 billion, shrinking the market to about $3.4 trillion, data from the Investment Company Institute, a trade group, show.

Markets were initially unnerved by news The Reserve Fund, founded by the man who helped invent money market funds in the 1970s, said its prices had dropped below $1 because of soured investments in Lehman Brothers.

Putnam Investments hired fund industry veteran Robert Reynolds as chief executive officer this summer to help stem persistent outflows. Putnam approached Federated Investors to make this deal, a Federated spokeswoman said.

The news follows on the heels of Putnam's announcement that Kevin Cronin, its head of investments, will leave the firm.

Posted by mwarshaw at 9:05 AM | Comments (0)

Study: Most Americans want to see companies on social sites

A study from Boston consultant firm Cone finds that almost 60 percent of Americans interact with companies on a social media website, and one in four interact more than once per week.

According to the 2008 Cone Business in Social Media Study, 93 percent of Americans believe a company should have a presence in social media, while an overwhelming 85 percent believe a company should not only be present, but also interact with its consumers via social media. In fact, 56 percent of American consumers feel both a stronger connection with and better served by companies when they can interact with them in a social media environment.

"The news here is that Americans are eager to deepen their brand relationships through social media," explains Mike Hollywood, director of new media for Cone. "It isn't an intrusion into their lives, but rather a welcome channel for discussion."

Men, a much sought-after target in the online space, are twice as likely as women to interact frequently (one or more times per week) with companies via social media (33% to 17%, respectively).

"The ease and efficiency of online conversation is likely a draw for men, who historically do not seek out the same level of interaction with companies as women," says Hollywood.

Likewise, of younger, hard-to-reach consumers (ages 18-34), one-third believe companies should actively market to them via social networks, and the same is true of the wealthiest households (household income of $75,000+). Two-thirds of the wealthiest households and the largest households (3 or more members) feel stronger connections to brands they interact with online.

The online survey was conducted September 11-12, 2008, by Opinion Research Corporation, among 1,092 adults comprising 525 men and 567 women 18 years of age and older.

Posted by mwarshaw at 8:55 AM | Comments (0)

Next-gen Boston Scientific stents approved

Boston Scientific Corp. said today it won US regulatory approval for its next generation drug-eluting stents.

Natick-based Boston Scientific, whose shares were bid higher in premarket trading, said it plans to immediately launch its Taxus Express2 Atom Paclitaxel-Eluting Coronary Stent System, the only drug-eluting stent on the U.S. market for use in vessels as small as 2.25 mm in diameter.

The Food and Drug Administration also approved its Taxus Express2 Paclitaxel-Eluting Coronary Stent System for the treatment of in-stent restenosis, or reclogging of the vessels, in bare-metal stents, the company said.

Stents are tiny wire-mesh tubes that are inserted into diseased arteries to prop them open after they have been surgically cleared of blockages.

Stent sales have fallen in recent years amid concerns that the devices could lead to late stent thrombosis, a small but deadly risk of blood clots forming inside the stent a year or more after implantation.

Boston Scientific sales led the decline as more competitive products entered the market.

Shares were bid at $13.06 and offered at $13.10 in premarket trading, up from their New York Stock Exchange close on Wednesday of $12.61.

Posted by mwarshaw at 8:47 AM | Comments (0)

September 24, 2008

Four reverse mortgage sellers told: Cease and desist

The Massachusetts Division of Banks has issued cease-and-desist orders against four licensed mortgage lenders and brokers who offered reverse products in violation of state law, the division announced today.

Reverse mortgages are loans that enable senior homeowners, typically 62 years and older, to convert the equity in their home into income. State law prohibits a lender from making a reverse mortgage without a plan that has been approved.

“The popularity of reverse mortgage products has risen substantially in recent years. However, these products are extremely complicated and every effort should be made to obtain independent legal and financial advice when considering one,” Commissioner of Banks Steven Antonakes said in a statement.

Of the actions taken today, three were against licensed mortgage lenders for making reverse mortgage loans to Massachusetts seniors without an approved plan. The companies were Massachusetts’ Division of Banks has issued four cease and desist orders against licensed mortgage lenders and brokers who offered reverse products in violation of the state’s reverse mortgage statute, the division announced today.

Reverse mortgages are loans that enable senior homeowners, typically 62 years and older, to convert the equity in their home into income. State law prohibits a lender from making a reverse mortgage without a plan that has been approved.

“The popularity of reverse mortgage products has risen substantially in recent years. However, these products are extremely complicated and every effort should be made to obtain independent legal and financial advice when considering one,” Commissioner of Banks Steven L. Antonakes said in a statement.

Of the actions taken today, three were against First Call Mortgage Company, Inc., Sun West Mortgage Company, Inc., and Gold Reverse, Inc. for making reverse mortgage loans to Massachusetts seniors without an approved plan.

In the case of First Call Mortgage, the company was also cited for unfair and deceptive practices for altering mortgage loan documents and misrepresenting applicants’ incomes. All three companies have been prohibited from accepting any new mortgage applications and have been ordered to place all pending applications with a qualified lender at no cost to the consumer. The companies were ordered to provide the state with copies of files for all reverse mortgage loans.

The Division also issued a cease-and-desist order against American Advisors Group, a licensed mortgage broker, for engaging in unfair and deceptive advertising practices. American Advisors Group engaged in a direct mail campaign in which reverse mortgage loans were marketed as government benefits, according to state officials.

The order forbids American Advisors Group from initiating any new mortgage loan transactions and requires pending applications to be placed with a qualified lender. In addition, the company has been ordered to cease its advertising in Massachusetts and give the state a complete list of all individuals to which its direct mail advertisements were sent.

Last month, the Patrick administration launched a new reverse mortgage web site for seniors, which can be found here.
(By Jonnelle Marte, Globe Correspondent)

Posted by mwarshaw at 5:45 PM | Comments (0)

Monster launches student resource

Monster, which has large operations in Massachusetts, today announced the launch of Admissions.com, an online resource for helping prospective college students and parents find the right school.

The website provides an interactive guide for researching and preparing for the college admissions process. Find it here.

"As the college admissions process becomes increasingly competitive, and the cost of tuition continues to climb, it's more important than ever that students and their parents have resources to help them hone into the schools that best align with the student's interest and needs," Mark Stoever, executive vice president of Internet Advertising and Fees for Monster said in a statement.

Features include an “Ask an expert” public forum, where students and parents could pose questions to professionals and academic experts, community discussion boards, and user-generated school rankings.

Monster’s companion sites are FastWeb.com and FinAid.org.
(By Jonnelle Marte, Globe Correspondent)

Posted by mwarshaw at 1:51 PM | Comments (0)

JPMorgan Chase & Co. opens new office

Despite the turmoil in the nation's financial markets, JPMorgan Chase & Co., announced that it is opening a residential mortgage office in Boston's South End neighborhood.

John Hopkins, a South End resident, was selected to manage the office, which will be located at 1313 Washington Street, the company said. Chase operates another mortgage office on Franklin Street in the financial district.

While the housing market is in a slump, prices in the downtown market have held up: condominium prices increased 5.4 percent, to $500,000, in the second quarter, the most current data available.

“We want to provide excellent mortgage expertise for home buyers and real estate professionals in this vibrant area,” Hopkins said in a statement.

Posted by acaffrey at 1:28 PM | Comments (0)

State outlines rules for $250m development program

Governor Deval Patrick's administration today released new regulations governing a $250 million state program to pay for road improvements and other upgrades needed to support development projects across the state.

The regulations, attached to a law known as I-cubed, give priority to projects in economically distressed communities and dedicate state funding to developments that comply with "green" building standards.

"The projects I-cubed will help are those that will produce jobs and new local and state revenues," said Lieutenant Governor Timothy Murray. "They are projects that are smart investments and those that otherwise would not be possible.”

The I-cubed law creates a new way to finance infrastructure improvements for private development projects. Upgrades will be paid for using tax revenue generated by the new development. While a project is under construction, the developer pays the debt costs for the infrastructure upgrades. Once it is completed, the state takes over the debt payments, with the municipality covering any shortfall between the state revenues and actual costs.

Developers whose projects require at least $10 million in infrastructure improvements must apply for funding from the state.
(By Casey Ross, Globe staff)

Posted by globebusiness at 12:51 PM | Comments (0)

AG wins injunction against Hingham advisers

State Attorney General Martha Coakley has set restrictions against a Hingham-based business that her office accuses of giving deceptive investment advice to parents on how to save money for their children’s college education.

According to a statement released by her office today, Coakley obtained a preliminary injunction against College Advisors Group, its sister companies, and its operator, Kirk Brown, requiring them to stop using misleading charts and reports, displaying false information on the company website, and charging an $800 fee for work that it has already been paid for.

“Consumers went to Mr. Brown seeking guidance on how to pay for college for their children and instead received misleading advice, leaving many families facing serious financial harm,” Coakley said in the statement.

The court order, signed earlier this week by Judge Thomas Connolly in Suffolk Superior Court, stems from a February 2008 lawsuit alleging that Brown and CAG knowingly sold consumers investments they could not afford.

The injunction requires the company to stop advising customers to purchase unsuitable life insurance policies and to stop accepting fees and kickbacks for business referrals relating to mortgage refinancing.

The company is also required to tell potential customers about the Attorney General’s pending enforcement action.

The complaint alleges that Brown and CAG began misleading consumers in 2003, by promising free advice on the financing a college education. But neither Brown nor anyone at his company is a certified financial planner or advisor, according to Coakley’s office.

"What this Attorney General is writing is completely and entirely without merit and we are definitely going to fight them," said Brown. "We're going to appeal it and then go from there."
(By Jonnelle Marte, Globe Correspondent)

Posted by mwarshaw at 12:19 PM | Comments (0)

Taunton hummus maker acquired

Tribe Mediterranean Foods, a Taunton pioneer in the hummus business, was acquired today for $57 million by the Osem Group, a Nestle company based in Israel.

Osem produces and distributes food in the United States and Europe and Tribe has a popular line of natural and organic hummus. Tribe will expand its Mediterranean food line. Its operations in North America will be incorporated into Osem’s Prepared Food division.

“Osem’s growth strategy is based on continuing to grow its business in the Israeli market through innovations and entering into new categories, as well as on developing its international operations in the two areas where we have a significant competitive advantage: salads and meat substitutes,” Gezy Kaplan, Osem’s Group CEO said in a statement.

Tribe was established in 1993. It offers 17 all-natural and 5 organic products. The Taunton company built a state-of-the-art hummus factory in 2004 and has showed steady growth, with projected sales of $32 million for 2008.

The Tribe website can be found here, and Osem is here.

(By Jonnelle Marte, Globe Correspondent)

Posted by mwarshaw at 12:04 PM | Comments (0)

3Com authorizes $100 million stock buyback

3Com Corp., a Marlborough-based computer network equipment company, announced today that its board has authorized a stock repurchase program of up to $100 million - a plan effective for one year.

Any repurchased shares will be retired to 3Com's un-issued shares. As of Monday, the company had approximately 405,889,159 shares of common stock outstanding. The stock repurchase program may be limited or terminated at any time. The stock closed at $2.16 Tuesday.

In other news, the company also announced that the board of directors has elected Kathleen Cote, former chief executive officer of Worldport Communications, Inc., to serve as a Class I director. Effective tomorrow, Cote is the seventh member of the 3Com Board of Directors and will also serve on the Board's Audit and Finance Committee and Nominating and Governance Committee.

"We are very fortunate to add someone of Kath's background to the 3Com Board of Directors," said 3Com Chairman Eric Benhamou in a statement.

Cote is a private investor and advisor providing strategic and operational expertise to technology companies. She has previously served as the CEO of Worldport Communications, Inc. and president and founder of Seagrass Partners, among other senior management positions.
(By Jonnelle Marte, Globe correspondent)

Posted by mwarshaw at 10:08 AM | Comments (0)

Bain, Arnold among best firms for working mothers

Working Mother magazine has revealed this year’s picks of the top 100 companies for working mothers, and a number of Boston-based employers made the list.

Included were consulting firm Bain & Co., ad agency Arnold Worldwide, Harvard University, and Massachusetts General Hospital. Several companies with a large number of employees in the Boston area were also listed, including Bank of America Corp., Novartis Pharmaceuticals, and Procter & Gamble Co., which owns Gillette.

The companies were selected for their flexibility with scheduling, back-up child care, and parental leave. Some are also expanding family friendly benefits to include adoptive parents, fathers and grandparents.

Click here to view the full list.
(By Jonnelle Marte, Globe correspondent)

Posted by mwarshaw at 9:43 AM | Comments (0)

Staples launches IT services for business customers

File photo: JB Reed/Bloomberg News

Staples Inc., the office supply giant headquartered in Framingham, said today it is launching a new initiative that offers information-technology services to small- and medium-sized businesses.

With Staples Network Services by Thrive, small- and medium-sized businesses can get back-up data protection, anti-spam service, anti-virus protection, and anti-spyware technology, among other features, the company said.

One offering called Thrive Onsite will provide "organizations with their own dedicated team of IT engineers who, on a regular basis, work on-site to perform services that can not be done remotely, and to provide in-person support to end-users," Staples said in a press release. "Thrive Onsite will initially be available in the Boston and Atlanta areas, with support in other major metropolitan areas to follow."

That press release included a statement from Candy Murphy, vice president of Staples’ contract technology solutions.

“Making it easy for businesses to meet their office needs is in our DNA," Murphy said in the statement. "However, there isn’t anything easy about making the right decision about your IT environment. With the launch of Staples Network Services by Thrive, we allow people to focus on their business while we make sure their technology infrastructure is there to support them, seven days a week, 24 hours a day.”

Today's announcement comes roughly two months after the company's July acquisition of Corporate Express NV, a Dutch company that delivers office supplies to large corporate customers. Please click here to read a June story in the Globe that reported on Staples' announcement that it had agreed to buy Corporate Express for $2.6 billion.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:28 AM | Comments (0)

September 23, 2008

Boston ranked sixth most "sustainable" city

Boston is among the top 10 "sustainable" cities in the United States, according to SustainLane.com, a Website that promotes environmentally-friendly living.

Boston ranked 6th out of 50 cities, behind Portland, Oregon, San Francisco, Seattle, Chicago and New York.

The rankings were based on parks and public transit systems, air and water quality, "green" buildings and farmers markets, and the availability of renewable energy or alternative fuels. (By Erin Ailworth, Globe staff)

Posted by globebusiness at 5:11 PM | Comments (0)

Exa Corp. will open new headquarters in Burlington

Landlord and real estate firm Nordblom Co. has inked a lease for 66,000 square feet with Exa Corp., a software maker that will be the first new tenant at Nordblom's massive Network Drive at the Northwest Park redevelopment project in Burlington.

Exa will open new headquarters at 55 Network Drive, a 132,000-square-foot building completed in 2001.

In 2007, Nordblom, which has its corporate office in Burlington, purchased the building and the surrounding 158-acre office campus from Sun Microsystems Inc., a California company that provides network computing infrastructure products.

"We are pleased to be the first new tenant to move into this state-of-the-art, first class Network Drive campus," Exa chief executive Stephen Remondi said in a statement today.

The new facility will double the firm's space to help accommodate future growth. Exa's current headquarters are also in Burlington.

The deal marks a significant milestone for Nordblom, which has been battling against a sluggish real estate market to attract new tenants to Network Drive, which is among a slew of office parks being developed along Route 128 North.
(By Casey Ross, Globe staff)

Posted by globebusiness at 3:01 PM | Comments (0)

Survey: Mass. is friendly to older workers

Five employers from Massachusetts - more than any other state - have been named to the AARP 2008 list of Best Employers for Workers Over 50, AARP said today.

A nonprofit membership organization dedicated to advocating for Americans 50 and older, the AARP said that the Massachusetts Institute of Technology of Cambridge, Massachusetts General Hospital of Boston, Nashoba Valley Medical Center of Ayer, Harvard University of Cambridge, and DentaQuest of Charlestown made its list of the 50 best employers for older workers.

Healthcare and education are among the economic sectors likely to be hard hit by an aging work force, AARP said, and the large presence of those two sectors locally may be explain why Massachusetts placed more employers on the AARP list than any other state.

Currently, Massachusetts is the 12th oldest state in the nation, the AARP said, and by 2012, nearly one in five Massachusetts workers will be 55 and older.

“As employers face the generational shift in their workforce, it’s in their best interest to keep 50-plus workers on the job,” Deborah Banda, AARP Massachusetts state director, said in a statement. “Those who prepare today have the potential to be more competitive tomorrow.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:39 PM | Comments (0)

Genzyme expects FDA ruling on Myozyme

Genzyme Corp., a Cambridge biotechnology company, said today that it expects to know by Nov. 29 if regulators approve or reject its plans to increase production of the drug Myozyme.

In October, a Food and Drug Administration panel will discuss Genzyme's plans to manufacture Myozyme in a 2,000-liter bioreactor. The company said it expects a ruling from the FDA itself by the end of the following month.

A bioreactor is a vessel in that carries out various chemical or biological processes. Biotech drugs are typically manufactured using living cells.

Myozyme has received FDA approval as a treatment for the genetic disorder Pompe disease, which causes muscle impairment. The drug is currently made in 160-liter bioreactors, and Genzyme wants to manufacture is in larger reactors to increase production.

In April, the FDA said it will treat the 2,000-liter application as if it were a request for an entirely new drug.

Genzyme also said it expects rulings from the agency on two other drug candidates, Mozobil and Synvisc-One, before the end of 2008.

Genzyme also said the agency granted its request for a priority review of Mozobil, meaning it will complete the review in six months instead of the usual 10 months. The company expects a ruling by Dec. 16, and it expects a ruling on Synvisc-One by Dec. 23. The agency can either approve or reject the application, or request more information from the company.

Mozobil is designed to increase the production of stem cells in bone marrow so those cells can be harvested for transplant. Synvisc-One is intended to treat ostheoarthritis of the knee, and combines three older drugs into a single injection. The drug is on sale in Europe and Canada.

In afternoon trading on the Nasdaq Stock Market, Genzyme shares declined 33 cents to $76.51. (AP)

Posted by globebusiness at 2:09 PM | Comments (0)

Raytheon wins $232.8 million Navy contract

File photo: Michael J. Cole/AP

Raytheon Co., the Waltham defense contractor, said today that it has won a $232.8 million contract from the Navy to develop a GPS-based system for landing jets on aircraft carriers.

The company said the system would improve pinpoint landing accuracy in any weather and is based on a modular design to reduce costs for future upgrades.

The contract covers development and demonstration of the system.

Raytheon will be joined on the contract by Rockwell Collins, Northrop Grumman, and SAIC.

GPS or global positioning systems use signals from orbiting satellites to determine exact location. Raytheon officials said the Navy contract would give the company experience toward efforts to develop space-based air traffic management systems.

Shares of Raytheon fell 61 cents to $57.13 in midday trading on the New York Stock Exchange. (AP)

Posted by globebusiness at 12:55 PM | Comments (0)

IRS filing deadline looms for stimulus payments

File photo: Essdras M. Suarez/Globe staff

The Internal Revenue Service said today that an estimated 117,000 Massachusetts residents still have not filed a tax return that would enable them to receive an economic stimulus payment that could be worth $300 or more.

People must file a tax return by Oct. 15 in order to receive an economic stimulus payment - even if they normally are not required to file a return, noted the IRS, which added that many of the Massachusetts residents who have yet to file are likely low-income retirees and disabled veterans.

In many cases, people who fall into those two categories aren't normally required to file a tax return as a Page One story in the Globe pointed out last month.

The economic stimulus payments, sometimes referred to as rebates, are part of $168 billion economic stimulus package signed into law in February by President Bush. As part of congressional negotiations, money was included for those whose incomes are so low that they do not have to submit federal tax returns, the Globe story last month said. That story added that low-income residents who earned at least $3,000 last year likely qualified for individual payments of $300; those who file jointly can receive $600.

In mid August, the IRS estimated that more than 150,000 Massachusetts residents had yet to file the paperwork needed to receive a stimulus check.

The IRS noted in a statement issued today: "The IRS has yet to hear from an estimated 117,000 Massachusetts taxpayers who receive certain Social Security benefits or certain Veterans Affairs benefits. The agency has twice sent letters to this group that included a Form 1040A, a sample form, and instructions on sending the return to the IRS."

A statement from IRS spokeswoman Peggy Riley was included in today's press release.

“Don’t let the economic stimulus payment pass you by,” Riley said in the statement. “If you want the payment this year, you should file by October 15. We recognize that there may be older Americans and disabled veterans who still have not filed for their stimulus payment. If you know of a friend, neighbor, or family members who may be in that situation, please give them a hand if they need it.”

The IRS added that there are more than 400 local offices nationwide where people can get assistance in preparing their tax forms.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:27 PM | Comments (1)

TA Associates completes investment in Radialpoint

TA Associates, a private equity and buyout firm with offices in Boston, said today it has completed a $98 million investment (in Canadian dollars) in Radialpoint.

Radialpoint is a Montreal-based provider of managed digital home security and care services to the world’s largest Broadband Service Providers, or BSPs, said TA Associates, which added that Radialpoint's US customers include Verizon Communications Inc. Through its clients, Radialpoint’s services are currently available to more than 20 million broadband subscribers globally, TA Associates noted.

Hythem T. El-Nazer, a vice president at TA Associates, and Jonathan W. Meeks, a managing director at TA Associates, will join the Radialpoint board of directors, the firm said.

“Radialpoint’s offering addresses many of the business priorities of BSPs, including increasing service revenue and customer acquisition and reducing churn," El-Nazer said in a statement. "There are several potential avenues of growth to Radialpoint’s business, and we look forward to working closely with the company’s talented management team as they seek to further expand the business and increase market share.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:50 AM | Comments (0)

Woburn firm has haptic test to gauge hockey skills

File photo: Charles Krupa/AP

Think you have the hand-eye coordinaton to be a National Hockey League star with skills comparable to Patrice Bergeron (above) of the Boston Bruins? Well, a Woburn company called SensAble Technologies Inc. has helped develop a simulation test that may prove you right - or wrong.

A provider of haptic devices and modeling solutions, SensAble said it worked with neuroscientist Lauren Sergio of York University in Toronto to develop software for force feedback devices that can "measure player finesse in a virtual hockey game."

The simulation is now being used by the NHL Central Scouting organization to provide an additional data point in the rating system that evaluates top draft picks, said SensAble, which added that several Bruins draft picks recently tried their luck on the haptic device.

SensAble said in a press release: "A hockey stick connected to a SensAble haptic device is used to measure the players’ stick-to-ice contact and smoothness as they move around a series of 3D virtual obstacles on a computer screen. This exercise generates a hand-eye coordination score, a key element that separates players with the finesse to glide, shoot, and score effortlessly from those with less efficient on-ice performance."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:25 AM | Comments (0)

WGBH gets Amgen biotech education grant

The WGBH Educational Foundation said today it has been awarded a $926,000 grant to enhance the biotechnology content on Teachers' Domain, an online educational service developed by the Boston public television station WGBH.

The grant, from the Amgen Foundation, an organization associated with California biotechnology company Amgen Inc., will support the development of an online collection of digital resources about biotechnology that is "designed to deepen teaching and learning about biotechnology in middle and high schools throughout the United States," the WGBH Educational Foundation said.

The WGBH foundation added in a press release: "As a result of this grant, teachers and students will have free access to award-winning digital media and interactive visualizations designed to illustrate a variety of core concepts in the field of biotechnology. Additionally, the grant supports the development of a series of video profiles show-casing the careers of selected biotechnology scientists."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:26 AM | Comments (0)

Perini is awarded $170 m in Iraq contracts

File photo: Essdras M. Suarez/Globe staff

Perini Corp. said today that it has been awarded new task orders and additions to existing task orders from the US Army Corps of Engineers for work in Iraq worth approximately $170 million.

Perini is a Framingham construction services firm that has thrived in recent years, partly from business related to building casinos and hotels. (The above photo, taken in 2007, shows Perini chief executive Ron Tutor standing against a Las Vegas skyline. The photo at right was provided by Perini's public relations firm as an example of the type of construction project that the company will be working on in Iraq.)

Today Perini said that it received three new task orders for the design and construction of overhead-coverage systems at military bases throughout Iraq and that the three task orders represent projects for construction in 2009.

In addition to the overhead-coverage system projects, Perini said it was awarded a task order for the design and construction of a large administration building at Victory Base Camp in Iraq.

Robert Band, Perini's president and chief operating officer, said in a statement: "Perini is proud of its long history of providing security-related construction at U.S. government facilities around the world."

For recent stories on Perini, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:56 AM | Comments (0)

Local housing market has its worst August in 6 years

File photo: Lisa Poole/AP

Massachusetts home prices had their worst August in six years, and possible job losses caused by the recent financial turmoil have the potential to prolong the local real estate slump, the Warren Group of Boston said today.

The median price for a single-family home in Massachusetts was $323,000, down 9 percent from August 2007 and the lowest price for August since 2002, said the Warren Group, the publisher of Banker & Tradesman and the provider of local real estate data.

"The big threat to the recovery of the housing market is potential job losses," Warren Group chief executive Timothy Warren Jr. said in a statement. "If the recent failures on Wall Street lead to fewer jobs in Massachusetts, the real estate slump could be prolonged.”

The Massachusetts Association of Realtors also issued a monthly report today on the local housing market; the association uses a different method to track sales activity than the Warren Group does.

According to the realtors association, the median price for a single family homes in Massachusetts was $325,000 in August, down 9 percent from a year ago, and the median price for a Massachusetts condo sold in August was $292,450, up 0.4 percent from the August 2007 median.

A total of 4,029 detached single family homes sold in Massachusetts in August, a year-to-year drop of 14.3 percent, the realtors group said, and there were 1,806 Massachusetts condos sold in August, a volume drop of 19.2 percent.

“Until we have some certainty with the economy and the election, we will most likely see the housing market ping-ponging along as buyers continue hopping off - and then back on - the fence,” Susan M. Renfrew, president of the Massachusetts Realtors Association, said in a statement. “Yet despite all the turmoil of the past few weeks, interest rates have gone down, giving those who are looking to buy the opportunity to take advantage of the favorable market conditions.”

By way of comparison, the July median selling price for single family homes in Massachusetts was down 10.7 percent from a year ago, and the median selling price for a Massachusetts condos fell 2.9 percent from the July 2007 median, the realtors association said.

Meanwhile, the Warren Group reported that August sales of Massachusetts single-family homes fell 14.6 percent to 4,376 in August from 5,127 last year; it was the worst sales pace for the month of August in 16 years.

The Warren Group said in a press release: "Condominium sales fared even worse in August, plummeting 22.4 percent to 2,302 from 2,965 in August 2007."

The release added, "Median condo prices remained relatively flat in August, climbing 1 percent to $295,000 from $292,000."

The Warren Group's Timothy Warren Jr. added in a statement: “This is a continuation of the erosion of the housing market. Even though the 9 percent price decline is modestly better than the steep price drop the state experienced in July, we haven’t seen anything that will lead us to believe that prices will level off before next spring. The recent shock to the financial markets isn’t inspiring consumers with great confidence to make home purchases.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:01 AM | Comments (0)

September 22, 2008

Lowell biomanufacturing pilot plant is set to open

The University of Massachusetts at Lowell said it has scheduled for tomorrow the formal opening of a pilot plant at the Massachusetts BioManufacturing Center.

"The fully automated pilot plant will help businesses move their products forward and provide students the opportunity to interact with the latest trends and technology in the biopharmaceutical industry," UMass Lowell said in a press release. "The facility will also be home to important research in biomanufacturing by UMass Lowell faculty."

Wyeth Biotech, a division of the New Jersey pharmaceuticals company that has operations in Andover, and Dakota Systems of Dracut, whose specialties include making biopharmaceutical systems, were among companies that donated equipment and services worth more than $400,000 to the center, UMass Lowell said.

Also donating equipment and services was Invensys Process Systems, a unit of Invensys plc of London. Invensys Process Systems said it employs more than 1,000 people in Foxborough, where it develops and manufactures automation systems and instruments.

The center also received support from the commonwealth, the school said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:55 PM | Comments (0)

Liberty Mutual completes Safeco acquisition

Liberty Mutual Group of Boston said today that it has completed its previously announced acquisition of Safeco Corp. effective today.

In April, Liberty Mutual disclosed that it had agreed to buy Safeco, a Seattle insurance company, for $6.2 billion.

With the addition of Safeco, Liberty Mutual said today that it becomes the fifth largest property and casualty insurer in the United States, with more than $32 billion in direct written premiums based on 2007 results for both companies.

“The addition of Safeco enhances our ability to compete across a broad spectrum of markets served by independent agents and brokers,” Edmund F. Kelly, Liberty Mutual Group chairman, president and chief executive, said in a statement today. “With our ascent among the top five US property and casualty insurers. we demonstrate the fundamental strength of Liberty Mutual Group’s businesses and balance sheet.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:17 PM | Comments (0)

Talbots names new J. Jill executive

Talbots Inc., the Hingham retailer known for classically styled women's clothing, said today that it has named Sue Walsh as the senior vice president of stores for its J. Jill brand.

(The image accompanying this story was taken from J. Jill's online catalogue.)

Walsh, a 46-year-old veteran of the Pottery Barn retail chain, will oversee sales and operations of J. Jill's 280 stores and report directly to J. Jill president Paula Bennett, the company said.

Talbots acquired the J. Jill brand in 2006. J. Jill aims at a similar demographic of middle-age women as Talbots does, but J. Jill fashions tend to be more relaxed and casual.

At a previous job, Walsh helped grow the Pottery Barn division of Williams-Sonoma Inc. from 103 stores to 200 locations across the United States and Canada, Talbots noted.

“We are thrilled to welcome Sue to the J. Jill team, as she brings a strong track record of success in designing and implementing sales generation, merchandising and customer service training programs that have delivered meaningful operational and financial returns,” Bennett said in a statement. “Further, her success in integrating corporate and field leadership teams will be instrumental as we continue to build the brand and improve the profitability of the business.”

Walsh, who earned a bachelor’s degree in English from Boston College and resides in Dallas, will be relocating to the Boston area, the company said.

For some recent coverage of Talbots, please click here. For a Globe story on J. Jill that ran in March, please click here.
(By Jenn Abelson, Globe staff)

Posted by globebusiness at 11:13 AM | Comments (0)

Anika announces distribution agreement

Anika Therapeutics Inc. of Bedford said today that it has signed an exclusive agreement with DePuy Mitek Inc., a unit of Johnson & Johnson, to distribute and market its osteoarthritis treatments throughout Latin America.

The five-year renewable agreement gives DePuy Mitek exclusive distribution rights for both Orthovisc and Orthovisc mini in all of South America, Central America, the Caribbean, and Mexico, said Anika, which added that DePuy Mitek currently distributes Orthovisc in the United States.

"This agreement with DePuy Mitek to distribute Orthovisc, our flagship osteoarthritis product, as well as Orthovisc mini for the treatment of smaller joints, throughout Latin America gives us a strong foothold in a new and exciting market," Anika president and chief executive Charles H. Sherwood said in a statement. "Industry analysts have projected the osteoarthritis market in Latin America to grow at a rate of nearly 20 percent per year though 2016."

Anika noted in a press release that Orthovisc is approved for use in the knee in the United States and for use in all synovial joints in the European Economic Area.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:48 AM | Comments (0)

Mass. gas prices fall 6 cents a gallon

File photo: Jin Lee/Bloomberg News

"One week after jumping 6 cents in the aftermath of Hurricane Ike, gasoline prices in Massachusetts reversed themselves, with prices today down 6 cents over last week," AAA Southern New England said today.

AAA Southern New England also said: "AAA’s Sept. 22 survey of prices in Massachusetts found self-serve, regular unleaded averaging $3.55 per gallon, 6 cents less than last week."

The release added: "Massachusetts is currently 18 cents below the national average for regular unleaded of $3.73. A year ago at this time, the average price in Massachusetts was $2.67."

Please click here to read a CNNmoney.com story on national gas prices. That story's lead: "Gas prices decreased for the fifth day in a row, according to a nationwide survey of credit card swipes at gasoline stations."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:15 AM | Comments (0)

Babson appoints Donohue to "Cleantech" post

Babson College said today that Mark T. Donohue, founder of Expansion Capital Partners LLC, has been appointed "Clean Technology Entrepreneur-in-Residence," the first such position in the history of the school's business program.

Donohue, a Babson alumnus, will help design and teach Babson's clean technology, sustainability, and social entrepreneurship programs, the college said.

Babson added in a press release: "With a broad commitment to expanding its Cleantech and social entrepreneurship curriculum, partly fueled by the recent $10.8 million gift to create the Lewis Institute, Babson is poised to further its leadership position in this new frontier of higher education."

With offices in Natick, Expansion Capital is a venture capital firm focused on clean technology.

The photo of Donohue that accompanies this story was taken from Expansion Capital's website.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:45 AM | Comments (0)

Raytheon-Boeing team wins missile contract

A team made up of Raytheon Co. and Boeing Co. was awarded a $125 million US Army contract for a joint air-to-ground missile program, Raytheon, the Waltham-based defense contractor, said today.

The contract funds a 27-month technology development program to develop and fire three prototype missiles with fully integrated tri-mode seekers, Raytheon said, and the joint air-to-ground missile program aims to produce "a single missile solution for rotary- and fixed- wing platforms and unmanned aircraft. It is designed to defeat moving and stationary targets at extended ranges in all weather conditions."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:55 AM | Comments (0)

Ian's buys organic snack-food brand

Ian’s, a Lawrence-based manufacturer of all-natural and organic foods for kids, announced its acquisition of products manufactured under the California-based Healthy Handfuls brand.

According to Ian's, Healthy Handfuls is a maker of animal-shaped organic snack foods. Financial terms of the acquisition were not disclosed.

Ian's said in a press release, "The addition of Healthy Handfuls snack boxes and pouches expands Ian’s portfolio of all-natural and organic meal and snack offerings for families."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:19 AM | Comments (0)

Ariad is "disappointed" by patent lawsuit rulings

Ariad Pharmaceuticals Inc. of Cambridge said today that it plans to pursue the "appropriate legal action" after a federal judge ruled against it in a patent dispute.

In April 2007, Dow Jones reported that Ariad sued Amgen Inc. and Wyeth alleging the companies infringed its patents covering treatments regulating certain cell-signaling activity. Ariad filed the claim in response to a suit brought by Amgen that seeks to invalidate an Ariad patent. Ariad's claim relates to Amgen's Enbrel and Kineret drugs.

Today Ariad said that a federal judge in the US District Court of Delaware granted Amgen's motion for summary judgment of noninfringement of seven claims of a US patent based on activities related to Enbrel.

"We are disappointed by these rulings on claim construction and noninfringment, and plan to pursue the appropriate legal action to obtain review of the rulings," Harvey J. Berger, chairman and chief executive of Ariad, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:55 AM | Comments (0)

September 19, 2008

Minehan to head Mass General trustees

Cathy E. Minehan, the former chief executive of the Federal Reserve Bank of Boston, has been tapped to lead the Massachusetts General Hospital's board of trustees.

Minehan, who already serves on four other boards, is the first board chairwoman in the hospital's 200-year-history. She replaces Edward P. Lawrence, who served as the hospital's chairman since 1999.

Mass General with 21,000 employees, is one of the largest organizations in the Boston area. It is part of the Partners HealthCare System Inc., along with Brigham and Women's Hospital and other area hospitals. Partners is the state's largest healthcare system.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 3:49 PM | Comments (0)

Famed ex-Fidelity stock picker Peter Lynch speaks about market turmoil

As markets plunged in 2002 Fidelity Investments’ famed stock picker Peter Lynch appeared with then-Commerce Secretary Donald Evans in Boston and told the audience of small investors to bet on a long-term recovery. “I wouldn’t bet against America, we’ll get out of this one,’’ Lynch said at the time.

In an interview on Friday afternoon Lynch made essentially the same point. Even if in hindsight this turns out to be the eleventh recession in the US since World War II, Lynch said, strong companies will still earn their edge and pay off as long-term investments.

Lynch compared the current period to the retrenchment of 1990 and 1991, when many banks collapsed and lending froze up. “The surprising part is that unemployment hasn’t jumped’’ higher now as in previous downturns.

But only an investor willing to become very knowledgeable about companies and their industries should bother investing in individual stocks, he said. “The term ‘play the market’ has done so much damage’,’’ Lynch said. “The average person should know seven or eight companies really well, and own two or three of them. They should be able to give lectures about them.’’

Lynch’s advice is similar to tips he’s given in the past as the well-known former manager of Fidelity’s flagship Magellan mutual fund. Perhaps ironically given his celebrity, Lynch suggested that some well-known executives get too much attention from investors compared to a company’s fundamentals. He used the example of Bethlehem Steel in the 1980s, facing tough competition and heavy legacy costs. “I’ll tell you, if Jack Welch, Warren Buffett, and Bill Gates tried to turn around Bethlehem Steel 20 years ago, you would have never heard of those guys,’’ he said. (Ross Kerber, Globe staff)

Posted by globebusiness at 3:13 PM | Comments (0)

VMware says another executive is stepping down

VMware Inc. said today that a senior executive in charge of product development is leaving after seven years with the company, the latest in a string of executive departures in recent months.

California-based VMware, whose virtualization software helps businesses boost the efficiency of server computers and cut energy costs, is majority owned by EMC Corp., the data storage giant with headquarters in Hopkinton.

Company spokeswoman Mary Ann Gallo said that vice president of product development Paul Chan will leave Oct. 3.

VMware stock, one of last year's top tech performers, has lost about two-thirds of its value so far this year as two of its founders and its top executive in charge of research and development have left the software maker.

Investors are concerned about the departure of those executives as well as mounting competition from Microsoft Corp , which recently introduced rival software to VMware's top-selling product. They are also worried about cuts to corporate technology budgets as the economy weakens.

Gallo said that she could not immediately say why Chan is leaving or who will replace him.

Chan could not immediately be reached. (Reuters)

Posted by globebusiness at 2:37 PM | Comments (0)

Got tickets on troubled Alitalia? Some tips

Alitalia's slide into oblivion is picking up speed, and if you have tickets you need to stay alert and start considering your options. The Italian carrier offers one daily direct flight to Rome from Logan, according to a schedule on its website.

Alitalia's financial situation has been shaky for years, but in recent months has grown more dire due to surging fuel prices and the malaise in the industry. A series of plans have been launched to rescue the carrier, which filed for bankruptcy protection in August. They all ran afoul either of governmental or labor opposition.

Yesterday the most recent plan fell through when a group of Italian investors dropped its bid to buy profitable parts of Alitalia after unions fought it over the job losses and salary cuts the plan envisioned. After this last thwarted effort, the airline could face potential liquidation in the next couple weeks, according to Reuters and The Wall Street Journal.

The airline's special administrator was scheduled to meet with government regulators Monday to discuss whether Alitalia could keep its operating license.

John DiRienzo, Alitalia's manager for marketing and analysis, declined to comment on the meeting but said that operations were continuing normally.

Alitalia has been near the brink before and it's hard to tell whether the end really is nigh. But if you are concerned Scott McCartney, the Journal's Middle Seat columnist, has these suggestions:

If you’re traveling to or within Italy, you’d be wise to book away from Alitalia, or at least buy a ticket on an Alitalia flight through one of its SkyTeam partners such as Air France, Continental, Delta, KLM or Northwest. If you buy the ticket through Delta, for example, and have a Delta flight number, then Delta will be responsible for rebooking you should Alitalia shut down.

Another option: Air One, Italia’s second-biggest airline. It is probably a better choice for regional flights right now. One possible rescue plan involved merging Alitalia into Air One, which is currently the stronger of the two carriers. It’s also a partner with Star Alliance airlines like United and Lufthansa.

(By Paul S. Makishima, Globe staff)

Posted by globebusiness at 2:21 PM | Comments (0)

Megabus offers passengers mobile alerts

File photo: John Tlumacki/Globe staff

Megabus has launched a free alert system, which allows the company to notify customers of delays or cancellations through an automated voice message to their cellphones.

Travelers can sign up for the service online when booking their trips.

The company, which says only 5 percent of arrivals and departures are delayed, points out on its website that it doesn't guarantee that it will put out an alert for every delay.

Megabus started service in May from Boston to New York offering fares as low as $1 and free WiFi.
(By Paul S. Makishima, Globe staff)

Posted by globebusiness at 2:12 PM | Comments (1)

Airport executives descend upon Boston

An estimated 2,000 airport executives and business partners from around the world are expected to converge in Boston Sunday through Wednesday for Airports Council International's first joint combined globe and North American conference in seven years.

Representatives from up to 50 countries and 150 airports will gather at the John B. Hynes Veterans Memorial Convention Center to discuss topics like airlines' consolidation and technology changes and airport safety, security, and congestion.

During the conference, Logan International Airport will receive the organization's annual Environmental Management Award for its initiatives to improve air quality in and around the airport.
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 2:01 PM | Comments (0)

GM executive will join Mascoma advisory board

Mascoma Corp. said today that Andreas M. Lippert, director of global energy systems for General Motors Corp., will join Mascoma's scientific advisory board.

Mascoma of Boston is working to develop ethanol from wood chips, waste paper sludge, and switch grass.

Earlier this year, automaker GM said it had taken an ownership stake in Mascoma; the extent of GM's ownership in Mascoma was not disclosed.

Mascoma said today that Lippert's appointment to the advisory board will "expand the automaker's involvement with Mascoma as it moves closer to commercial production of cellulosic fuels."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:05 PM | Comments (0)

Columbia Management changes lending practices

Columbia Management, a Boston-based investment unit of Bank of America Corp., said today said that its Columbia funds will stop lending their equity and corporate debt securities, citing market volatility and new government restrictions on short-selling.

In a short sale, an investor borrows shares of a security and sells them in a bet that the security's price will fall before the borrowed shares need to be repaid. The lending of these shares has generated revenue for funds at Columbia and elsewhere.

But some investors and securities specialists argue that certain types of short sales have contributed to the volatile markets this week, and the Securities and Exchange Commission has introduced an increasing number of restrictions on them recently, including an outright ban this morning on the short-selling of the stocks in 799 financial companies.

Columbia's chief investment officer Colin Moore said in a statement that that it is in its shareholders best interests not to lend the securities "given the downward pressure that some borrowers of the securities are placing on the market.''

Although the move will reduce revenue, "we believe that this practice has the potential to be more detrimental than helpful'' in the current environment, Moore said in the statement.

Columbia said it will continue to lend government and Treasury securities. Bank of America has its headquarters is in Charlotte, N.C.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 11:50 AM | Comments (0)

US program aims to protect money market funds

The US government imposed emergency protections on money market mutual funds to staunch the withdrawal of billions of dollars from these accounts and to prevent investors from losing money on their deposits.

The US Treasury Department said today it would provide up to $50 billion in insurance coverage for money market funds. The funds' investment managers would have to pay a fee to receive the government insurance. Unlike bank accounts, money market mutual funds are investment vehicles that are not insured and are at risk of losing money.

Separately, the Federal Reserve said it would extend loans to US institutions and banks to finance purchases of certain securities that money market funds are trying to sell in order to raise cash to meet redemption requests by investors.

Both steps are intended to keep the per-share price of a money market fund stable at $1, so the value of the deposits remains intact. At least five money-market and related funds this week saw their net asset value drop below the sacred $1 a share mark, the so-called "breaking of the buck" that sparked a major run on funds nationwide as investors sought to prevent losses.

The run on funds caused Boston-based Putnam Investments yesterday to close a $12.3 billion money market fund offered to corporations and other institutional clients. Other local investment firms, including Evergreen Investments and the Columbia funds unit of Bank of America, took steps this week to ensure their value of their money market funds did not breach the $1 a share level.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 10:47 AM | Comments (0)

Tech/Ops Sevcon is switching to Nasdaq

Tech/Ops Sevcon Inc. today said that its board of directors has approved a decision to switch the listing of its common stock from the American Stock Exchange to the NASDAQ Stock Market LLC.

The Southborough company, which focuses on the design, manufacture, and marketing of microprocessor-based controls for electric vehicles, said that it expects to begin trading on Nasdaq under the symbol "TO," effective Oct. 1.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:36 AM | Comments (0)

BC professors weigh in on financial turmoil

There are no shortages of opinions about the current financial troubles, and some professors at Boston College are offering theirs.

The following insight comes from Peter Ireland (right), the Murray and Monti professor of economics at BC.

"The recent turmoil in credit markets, though unprecedented in itself, serves mainly to confirm that despite the massive transformation of the US financial system, most of the old rules of economics still apply and that policy makers need to use every tool at their disposal to restore safety and soundness to even our very largest institutions,” Ireland said in a statement.

And, in a statement of his own, Dean Patrick J. Maney of BC's College of Arts and Sciences, had this to say: “Although there are some alarming parallels between the current Wall Street crisis and the events that led to the Great Depression, the differences between then and now far outweigh the similarities. As a result of the Great Depression, we have a large number of built-in safeguards, some of which, like a more powerful Federal Reserve System, should prevent the current crisis from becoming a full-blown depression.”

Ireland's photo was taken from BC's website.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:15 AM | Comments (0)

Forever 21 will open stores at local malls

Simon Property Group, a national mall operator, said it will bring Forever 21, an apparel retailer that targets young women, to five malls in Massachusetts over the next year.

Tomorrow a Forever 21 is scheduled to open at the Auburn Mall, Simon Property Group said.

Forever 21’s expansion into Simon malls also includes Arsenal Mall in Watertown, with a scheduled opening in December. In addition, a two-level store is set to come to the Northshore Mall in Peabody in March, Simon Property Group said.

Forever 21 openings are also set for June at the Cape Cod Mall and for October 2009 at the Burlington Mall, Simon Property Group said.

According to a Simon Property Group press release, Forever 21 focuses on "affordable fashion" for "stylish young women."

The photos accompanying this story were taken from Forever 21's website.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:09 AM | Comments (0)

Staples issues corporate responsibility report

Staples Inc., the Framingham-based office supply company, today released its 2007 corporate responsibility report.

According to Staples, the highlights of the report included expanding the global reach of its ethics program, conducting more than 375 social accountability audits at factories making Staples products, and expanding the number of eco-friendly products it offers in North America to 3,000.

To read Staples' press release on the report, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:45 AM | Comments (0)

PLC Systems receives delisting notice

PLC Systems Inc., a Franklin medical technology firm focused on the cardiac and vascular markets, said today that it has received a delisting notice from the American Stock Exchange.

The company said that the notice from the staff of the exchange's listing qualifications department was dated Sept. 17.

PLC said in a press release: "The notice stated that the company was not in compliance with Section 1003(a)(ii) of the AMEX Company Guide because the company's shareholders' equity was less than $4,000,000 as of June 30, 2008, and it incurred losses from continuing operations and net losses in three out of its four most recent fiscal years. PLC has been granted until October 17, 2008 to submit a plan to the exchange that demonstrates the company's ability to regain compliance with listing standards by March 17, 2010. If the company does not submit a plan or if the plan is not accepted by AMEX, the company will be subject to delisting procedures."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:28 AM | Comments (0)

Fox Sports executive joins Polaris Venture

Polaris Venture Partners, a venture capital firm with offices in Waltham, said today that Brian Grey, senior vice president and general manager of Fox Sports Interactive, is joining the firm as executive in residence.

Grey oversees all interactive programming, production, and business strategy for FoxSports, including FoxSports.com and Fox Sports Mobile, Polaris noted.

Polaris added in a press release, "As executive in residence, Grey will provide strategic guidance to Polaris’ digital media and consumer products and services portfolio companies, mentor entrepreneurs, and help identify new investment opportunities."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:14 AM | Comments (0)

September 18, 2008

Global Insight sold for $200 million

Economic forecasting firm Global Insight Inc. of Waltham said today it has agreed to be purchased for $200 million by IHS Inc., an Englewood, Colo.-based information giant, continuing a wave of consolidation that has swept through the research industry.

The deal would bring Global Insight, which has 175 employees in Lexington and Waltham, under the umbrella of the parent company of another high-profile Massachusetts research firm: Cambridge Energy Research Inc., which has about 250 employees in the state.

"This is an opportunity to create a great Massachusetts platform," said Scott Key, an IHS executive who will move to the Boston area to take over as Global Insight's president and chief operating officer. "With Cambridge Energy Research and Global Insight, you have a research capability unparalleled anywhere in the world."

Key said Global Insight will retain its name and expand its Boston area workforce in coming years, but will work more closely with Cambridge Energy Research and other IHS "insight" companies, which provide data, analysis, and consulting services to businesses and government agencies around the globe. He said he expects the deal will take effect within 30 days, pending regulatory approval.

IHS, a publicly traded company with a market value of $3.8 billion, focuses on industry sectors ranging from energy and the environment to aerospace, transportation, and supply chains.

The company, which employs about 4,000 people around the world, owns several other research brands, ranging from London-based defense specialist Jane's Information Group to IHS Herold of Norwalk, Conn., another energy research firm. IHS shares slipped 49 cents, or 0.8 percent, to $60.50 on the New York Stock Exchange today.

The purchase agreement comes six weeks after Forrester Research Inc. of Cambridge said it was buying technology research rival Jupiter Research LLC of New York in a $23 million deal meant to strengthen Forrester against larger competitors such as Gartner Inc. of Stamford and International Data Corp. of Framingham.

Global Insight was formed in May 2001 when Joseph E. Kasputys, now its chief executive, acquired Data Resources Inc. of Lexington and its rival, Wharton Econometric Forecasting Associates of Philadelphia. Kasputys said he plans to remain with Global Insight as chairman emeritus under IHS, and will help Key manage increasing collaboration between the firm's farflung research operations.

Down the road, Kasputys said, he can imagine Global Insight and Cambridge Energy analysts working side-by-side on research and forecasts. "This is a terrific combination of Global Insight's economic analysis and Cambridge Research's energy analysis," he said.

(By Rob Weisman, Globe Staff)

Posted by mwarshaw at 6:21 PM | Comments (0)

Tufts to sell health coverage in Rhode Island

Tufts Health Plan said today it will sell health insurance in Rhode Island starting Jan. 1. The insurer, the state's third-largest, has been signing contracts with hospitals and physicians in Rhode Island, and has opened a sales office in Providence.

It will offer a preferred-provider organization plan, which typically has a less restrictive network than a traditional HMO plan.

"We believe Rhode Island employers, consumers and providers will benefit from our commitment to quality and health management," said James Roosevelt Jr., Tufts' chief executive, in a statement.

Tufts has about 690,000 members in Massachusetts. Last year, it was named the No. 2 health plan in the country for HMO plans by the National Committee for Quality Assurance, which rates health plans.
(By Jeffrey Krasner, Globe staff)

Posted by globebusiness at 5:51 PM | Comments (0)

AG: Data breach affected 400,000 Mass. residents

More than 400,00 Massachusetts consumers were affected by a data breach at the Bank of New York Mellon Corp. -- twice as many as originally reported in May, according to a statement released today by state Attorney General Martha Coakley.

Coakley is urging consumers to protect themselves by staying informed of the breach and enrolling in fraud protection services.

“While there has been no indication to date that the data has been misused in any way, our office continues to urge consumers to be vigilant about monitoring their financial statements as they may not be aware that BNY Mellon had their personal information,” Coakley said in a statement.

In May, the bank disclosed that back up-data storage tapes were lost by a third party vendor employed by BNY Mellon Shareowner Services.

At that time, BNY Mellon claimed that the breach affected approximately 200,000 Massachusetts customers, but last month, the bank admitted that the number could be much larger. Investigators suspect personal information, including names, addresses, Social Security numbers, and bank account information could have been leaked.
(By Jonnelle Marte, Globe correspondent)

Posted by globebusiness at 3:29 PM | Comments (0)

Farm Aid to help farmers hurt by Ike, Gustav

File photo: Michael Nagle/Bloomberg News

Farm Aid founder Willie Nelson (above) says the organization will give $30,000 in grants to groups that help family farmers in areas of Texas and Louisiana hit hardest by Hurricanes Ike and Gustav.

Nelson, a native Texan, announced the grants today. They include $7,500 each to the Lutheran Social Services of the South, the Southern Mutual Help Association, the Louisiana Interchurch Conference, and the Federation of Southern Cooperatives.

Farm Aid, based in Somerville, says more funds will be distributed as the extent of the hurricane damage becomes clearer.

Farm Aid, the nation's longest-running benefit concert, has raised more than $30 million since its first show in 1985.

The concert will be held in New England for the first time on Sept. 20. (AP)

Posted by globebusiness at 2:38 PM | Comments (0)

Market panic spreading, hits State St. Corp., Putnam

Boston financial stalwarts Putnam Investments and State Street Corp. were each hit today by the wave of market panic over the credit crisis that is devastating the nation's financial system.

Mutual fund manager Putnam abruptly closed and plans to liquidate a $12.2 billion money market fund used by corporations and other institutions after investors in the fund flooded the company with requests for their money back.

Spokeswoman Sinead Martin said the company does not yet know if investors in the Putnam Prime Money Market Fund will get all their money back or if the fund's share value will go below $1, the so-called "breaking the buck" that means losses for holders. She said to prevent such losses, which could occur if Putnam tries to sell fund holdings quickly, the company plans an orderly sale and then will distribute the proceeds to shareholders. The fund's minimum investment was $10 million.

"With these pressures and the constraints in liquidity in money market instruments, the portfolio would've realized losses to meet these high redemptions," she said.

Putnam said its fund had no holdings in Lehman, Washington Mutual or American International Group, three companies in turmoil over the spreading crisis on Wall Street.

Meanwhile, shares of State Street Corp. were taking a pounding today--down as much as half at one point--as investors grew increasingly concerned about the quality of investment vehicles the firm markets.

At 3 p.m. the firm's shares were trading around $43 on the New York Stock Exchange, State Street shares, down about a third for the day. They had traded as low as $29.09 earlier in the day.

The stock had begun to recover somewhat after the firm issued a statement early this afternoon that sought to assure investors about its financial health. The company said it would not have to carry the value of the investment "conduits" on its own books, which would have reduced its capital standing. It also said the company has sufficient reserves, noting that it had raised $2.8 billion in equity capital in June, and that it no current plans to raise more.

RBC Capital Markets analyst Gerard Cassidy said State Street's stock slide seemed to reflect investors' worries that the company had too much debt exposure and that it would have to take back assets from the money market funds of other investment firms that are under pressure from their own jittery clients.

State Street also noted the net asset value of the money market funds managed by its own investment unit, State Street Global Advisors, unit has never fallen below $1, and that the funds do not have "any unsecured exposure" to troubled financial companies including Lehman Brothers, American International Group, or Washington Mutual.

Separately, shares in a money-market like account run by Bank of New York Mellon Corp., BNY Institutional Cash Reserves fund, became the fifth such one to "break the buck" this week, as its net asset value fell to 99.1 cents a share, according to Bloomberg. Restricted to institutional clients, the fund was not a typical money-market fund, though it was designed to work like one.

The Bank of New York fund sustained losses due to its investments in Lehman Brothers Holdings Inc., the giant Wall Street investment house, which filed for bankruptcy protection this week.
(By Kimerbly Blanton and Ross Kerber, Globe staff)

Posted by acaffrey at 2:13 PM | Comments (0)

Mass. AG wants help for auction-rate investors

Massachusetts Attorney General Martha Coakley today urged a House panel probing the collapse of the auction-rate securities market to find a way to provide timely relief for investors.

"Any solutions should actually return full investment amounts to all investors," Coakley said as she testified before the House Financial Services Committee, which is chaired by US Representative Barney Frank, a Massachusetts Democrat.

The auction-rate securities market involved investors buying and selling instruments that resembled corporate debt, except the interest rates were reset at regular auctions, some as frequently as once a week.

The securities were purchased by investors who wanted a place to park their money where it could be easily accessed. Investors have complained brokers led them to believe they were safe, liquid investments.

But starting in February, weekly and monthly auctions at which investors normally purchase such securities failed to yield buyers, as investors sought to avoid risk amid turmoil in credit markets. Many investors, including state entities and local governments, were left with their cash frozen as buyers dried up.

Coakley's office has recovered money for municipalities and state agencies that were misled into investing in auction-rate securities by investment banks, including $75 million this year for Massachusetts governmental entities. (AP File photo of Coakley: AP.)

Posted by globebusiness at 1:27 PM | Comments (0)

Galvin testifies on auction-rate securities

Massachusetts Secretary of State William F. Galvin told a congressional panel in Washington today that the auction-rate securities market "clearly requires more specific rules."

Galvin's office made available a copy of Galvin's prepared testimony to the House Committee of Financial Services.

In that testimony, Galvin outlined several themes that arise from what he described as the "auction rate debacle." Problems arose in the auction-rate securities market partly because financial-services allegedly failed to fully warn some of their customers of the potential risk associated with this type of investment, regulators such as Galvin have asserted.

"Conflicts of interest need to be more aggressively monitored and, when appropriate, disclosed to investors," Galvin said in his prepared remarks to the financial services committee.

"Financial advisor incentives need to be disclosed and financial advisor training needs to be enhanced," he added.

Another point that Galvin made in his prepared testimony was that "state regulators, in conjunction with their federal counterparts, need to continue to be actively involved in enforcement activities."

For recent Globe stories about auction-rate securities, please click here.
(By Chris Reidy, Globe staff. File photo of Galvin: Lisa Poole/AP)

Posted by globebusiness at 1:12 PM | Comments (0)

Genzyme buys Framingham building

Genzyme Corp. confirmed it has purchased a 101,000-square-foot industrial building on New York Avenue in Framingham for $16 million.

The Cambridge biotechnology company, which is building a $250 million biotech manufacturing plant in Framingham, plans to use the building to house tools and construction materials while it builds the adjacent plant.

In the longer term, it could provide additional room to expand the Framingham campus, which now houses about 2,000 Genzyme employees, one-fifth of the company's workforce.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 12:57 PM | Comments (0)

TD Banknorth Garden unveils new seating

The owner of TD Banknorth Garden announced today that a $4 million renovation to the arena has created five new Premium Club hospitality and seating areas that will be ready in time for the 2008/09 seasons for the Bruins and the Celtics.

The garden's owner is Delaware North Cos., which provided the rendering that accompanies this story.

Located at the east end of the garden's Level 6, the area that underwent renovation was formerly known as Banners Restaurant, and the ledge seating area there will be replaced by the Lofts, "an all-inclusive private entertainment option ideal for four to six people," Delaware North said.

The company added in a press release: "The loft-inspired design features trendy lounge décor in a two-tier space overlooking the arena. This all-inclusive experience comes complete with a small plated five-course menu, game tickets, and parking. The 12 Lofts will be sold in 10-game packs, including both Bruins and Celtics, or team specific."

The press release added: "A new area accessible to all Premium Club members will be 'Club Lounge', sure to be a hot spot and valued amenity to our clients for networking and entertaining. The Club Lounge will feature a raw bar and expansive lounge with dining options and waited service. The Executive View is being built after the sold-out success of its next-door neighbor, the Garden View, which debuted at the start of the 2007/08 season. The corporate event suite will be an all-inclusive option for 30-50 people, complete with meeting capabilities and great views of the arena action."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:53 AM | Comments (1)

Progress Software earnings slide, forecast cut

Progress Software Corp., a business software company in Bedford, said today that its profit fell 4 percent in the latest quarter as higher costs offset revenue growth and issued disappointing forecasts for the current quarter and full year.

The company said it earned $12.5 million in its fiscal third quarter, which ended Aug. 31, down from $13 million in the same quarter last year. Earnings per share were the same in both quarters, at 30 cents.

Excluding items, earnings totaled 45 cents per share in the latest quarter, up a penny from a year ago.

Revenue grew 4 percent to $127 million. But without the positive effects of the weaker dollar, sales would have declined by 1 percent.

Adjusted profit matched the average estimate of the three analysts polled by Thomson Reuters, who also expected revenue of $127.7 million.

Based on a "less certain" business outlook and the strengthening of the US dollar, the company forecast fourth-quarter results below Wall Street expectations, cut its outlook for the full fiscal year ending Nov. 30, and guided below analysts' projections for next year.

For the fiscal fourth quarter, Progress Software expects to post adjusted earnings of 10 cents to 14 cents per share on sales of $143 million to $147 million. For the full year, the company trimmed its profit estimate ot $1.89 to $1.91 per share, excluding items, on revenue of $519 million to $523 million.

Its previous projection was for earnings of $1.91 to $1.95.

In morning trading today on the Nasdaq Stock Market, Progress shares were down 85 cents, or 3.4 percent, at $24.52. (AP)

Posted by globebusiness at 11:36 AM | Comments (0)

Vertex declines after announcing stock sale

Shares of Vertex Pharmaceuticals Inc. fell today after the drug maker said it will sell 7.5 million shares of new stock to raise cash.

The Cambridge company said late yesterday that it would sell the stock, and early today, it priced the offering at $25.50 per share, which would allow it to raise $191.3 million.

Its shares have been trading slightly higher than that price, closing yesterday at $26.57 on the Nasdaq Stock Market. In morning trading today, Vertex shares gave up $1.06, or 4 percent, to $25.51 and fell as low as $25.18 earlier in the session.

The stock last traded at $25.50 on Sept. 10. Vertex had 140.6 million shares outstanding as of May 6, according to a filing with the Securities and Exchange Commission.

Cowen and Company analyst Rachel McMinn said the move was necessary, and will give Vertex financial flexibility in 2009.

"While the timing appears unusual in the midst of an economic meltdown, Vertex would have needed access to capital in the next 12 months to continue development of its lead pipeline product telaprevir, for hepatitis C, and its follow on product, VX-770 for cystic fibrosis," she said.

She said she thinks the company will need to raise more money before it becomes profitable, however.

Goldman Sachs will manage the books for the stock offering. (AP)

Posted by globebusiness at 11:17 AM | Comments (0)

Bay State bucks national jobs trend

Massachusetts continued to buck national trends last month as the technology and health science sectors drove another month of job gains, the Department of Labor and Workforce Development reported yesterday.

The state jobless rate rose to 5.3 percent from 5 percent in July. Even if the local economy is creating jobs, unemployment rises if it doesn't create jobs fast enough to absorb people looking for work.

Massachusetts employers have added jobs in nine of the past 11 months, including 1,700 jobs in August, the state reported. In contrast, employers nationally have cut payrolls in in each of the past eight months, shedding a total of 605,000 jobs, according to the Labor Department.

Still, the pace of job growth in Massachusetts is slowing. Over the past year, employment grew just three-tenths percent, compated to 1 percent in the previous year.

The state' unemployment rate, in addition, has risen more than a percentage point since April, when it dipped to 4.1 percent.

Professional, scientific and technical services led the state's job gains last month, addding 900 jobs, the Massachusetts Department of Labor Workforce Development said. Leisure and hospitality, a tourism-related sector, gained 800 jobs. Health care employment grew by 700 jobs.

Also adding jobs last month were manufacturing, which gained 700, and construction, which grew by 500 jobs. On the other hand, retailers and wholesalers shed 1,400 jobs; information, which includes software firms and publishers, lost 400; and financial services, 300.
(Robert Gavin, Globe staff)

Posted by globebusiness at 11:13 AM | Comments (0)

Firms will buy back $1.8 b in auction-rate securities

WASHINGTON, D.C. --- The Financial Industry Regulatory Authority, or FINRA, announced today agreements in principle with five financial-services firms to repurchase more than $1.8 billion of auction-rate securities.

FINRA, which describes itself as the largest nongovernmental regulator of securities firms doing business in the United States, added that investigations into the sales of auction-rates securities continue at nearly 50 additional firms.

Before today, other financial services firms had agreed to buy back nearly $60 billion in auction-rate securities after regulators concluded that those firms had failed to communicate to their customers the risks that can be associated with such investments.

“FINRA’s primary goal in reaching these agreements was to ensure that investors disadvantaged in failed auctions will be able to access the millions of dollars they invested in auction-rate securities,” Susan L. Merrill, FINRA executive vice president and chief of enforcement, said in a statement prepared for congressional testimony. “We are pleased that these firms have stepped up and agreed to do the right thing for their customers, and we have given them credit for doing so in assessing their fines.”

The five firms that agreed in principle today to settle charges relating to auction-rate securities are SunTrust Investment Services Inc. and SunTrust Robinson Humphrey Inc., both of Atlanta; Comerica Securities Inc. of Detroit; First Southwest Co. of Dallas; and WaMu Investments Inc. of Irvine, Calif., FINRA said.

Referring to auction-rate securities as ARS, FINRA added in a press release: "FINRA’s investigation has found evidence that each firm sold ARS using advertising, marketing materials, or other internal communications with its sales force that were not fair and balanced and therefore did not provide a sound basis for investors to evaluate the benefits and risks of purchasing ARS."

Merrill made the announcement during a hearing of the US House Committee on Financial Services, which is chaired by US Representative Barney Frank (upper right), a Newton Democrat.

Massachusetts Secretary of State William F. Galvin (left) and Massachusetts Attorney General Martha Coakley are also scheduled to appear at the hearing.

Regulators, including Galvin and Coakley, have secured settlements requiring brokerage firms to buy back nearly $60 billion in auction-rate securities from their customers, who have been unable to sell them since February.

The investments are the bonds of nonprofits and student lenders, as well as the debt of certain investment funds. They stopped trading abruptly when all brokerage firms abandoned the market, amid other troubles in the credit markets.

For recent Globe stories about auction-rate securities, please click here.
(By Beth Healy and Chris Reidy, Globe staff. File photo of Barney Frank: Susan Walsh/AP. File photo of William Galvin: Stephan Savoia/AP.)

Posted by globebusiness at 10:30 AM | Comments (0)

Alseres drug gets orphan status in Europe

Alseres Pharmaceuticals Inc. of Hopkinton said today that Cethrin has been granted designation as an orphan medicinal product for the treatment of traumatic spinal cord injury by the European Commission.

Orphan drug status rewards companies that develop drugs for rare diseases by giving them a period of time, generally from seven to 10 years, to sell each new treatment without competition from other manufacturers.

Cethrin is a recombinant protein drug that is being investigated for its potential to restore motor and sensory function after spinal cord injury, Alseres said.

Cethrin said it received orphan drug designation from the US Food and Drug Administration in 2005 for the treatment of acute spinal cord injury.

"Following drug approval, Orphan Designation provides a drug with market exclusivity for a 10 year period in the EU and for seven years in the United States for a particular indication," Alseres noted in a press release.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:17 AM | Comments (0)

Children's Hospital Boston gets donation

File photo of Children's Hospital: Pat Greenhouse/Globe staff

The Jeffrey Modell Foundation and Talecris Biotherapeutics Inc. said today that they have donated $150,000 to Children's Hospital Boston to expand clinical care and outreach for children with primary immunodeficiency, or PI.

"PI is a term that encompasses more than 150 diseases caused by an immune system that does not function properly," the foundation and Talecris said in a press release.

"Early recognition and diagnosis of PI can save lives and improve health outcomes for children," Raif Geha, M.D., chief of the division of immunology at Children's Hospital Boston and the James Gamble Professor of Pediatrics at Harvard Medical School, said in a statement. "The educational and diagnostic programs made possible through this support will improve care for patients with PI, and will also generate cutting edge research opportunities."

According to its website, the Jeffrey Modell Foundation has offices in New York City.

Headquartered in North Carolina, Talecris Biotherapeutics is a global biotherapeutic and biotechnology company that discovers, develops, and produces critical care treatments for people with life-threatening disorders in a variety of therapeutic areas including immunology, pulmonology, and hemostasis.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:55 AM | Comments (0)

Pulmatrix hires chief medical officer

Pulmatrix Inc., a Lexington biotechnology company, announced today the appointment of John P. Hanrahan, M.D., as senior vice president and chief medical officer.

Pulmatrix is focused on commercializing a broad new class of treatments for respiratory disease, and it will be Hanrahan's role to lead the company’s clinical development programs, beginning with Phase II trials assessing the efficacy of Pulmatrix’s lead product in the treatment and prevention of several different respiratory infectious diseases, Pulmatrix said.

Hanrahan joins Pulmatrix from Sepracor Inc. of Marlborough, where he most recently served as executive medical director for pulmonary products, which include the asthma drug Levalbuterol and the COPD drug Arformoterol, Pulmatrix said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:09 AM | Comments (0)

Life sciences firm outlines cost-cutting measures

Pro-Pharmaceuticals Inc. of Newton, which had previously warned that it run out of cash in October, said today that it will reallocate resources in order to extend the company's cash runway and fund operations into December.

As a result of the initiatives, the company said it is focusing its resources on its New Drug Application, or NDA, filing with the Food and Drug Administration and the commercialization of Davanat, its drug candidate designed for use as a component in chemotherapy treatments for cancers such as advanced colorectal cancer.

Pro-Pharmaceuticals said in a press release: "To date, there has been a significant reduction in operating expenses that extend the company's cash runway into December. On the short list of cost reductions targets, the company has eliminated non-core expenses; significantly reduced management compensation; lowered legal and accounting expenses and consulting fees; and reduced research and development and clinical trial expenses in order to focus on the PK study needed to file the NDA and has halted its Phase II, line l, biliary cancer trial."

"These cost cutting steps will better position the company to achieve our near-term goal of commercializing Davanat by 2009," Pro-Pharmaceuticals chief executive David Platt said in a statement. "We are absolutely convinced that Davanat is critical to the many patients suffering from advanced colorectal cancer. Regardless of the difficulties that we must overcome, we remain completely focused on achieving our goal."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:49 AM | Comments (0)

September 17, 2008

State gets $11.5m in heating assistance

Massachusetts will receive $11.5 million in emergency funding from the federal government to help low-income residents heat their homes this winter, according to Governor Deval Patrick's office.

The money was part of $120.7 million in funds released by the federal Department of Health and Human Services.

Massachusetts officials still hope to receive more money. Earlier this year, Patrick and several other New England governors called on the federal government to significantly increase funding for home heating assistance.

Last year, $130 million in state and federal funding was used to help about 141,000 residents.
(By Erin Ailworth, Globe staff)

Posted by globebusiness at 6:47 PM | Comments (0)

Mass General cuts 200 jobs

In an effort to contain rising costs, Massachusetts General Hospital said today it plans to cut nearly 200 positions, about 1 percent of its workforce, mostly through attrition.

But in a letter to employees, the hospital said it hopes to find alternate positions for most of the other employees affected by the cuts. The hospital said that over the next few months it expects to lay off "fewer than 20" of its 21,000 workers.

"We want all employees to know that no other layoffs are planned for fiscal year 2009,'' said Jeff Davis, senior vice president of human resources, in a letter to employees.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 4:30 PM | Comments (0)

Two Hub brownstones are sold for $5.25 million

Tosi LP sold two brownstone apartment buildings on Bay State Road in Boston to Nora LLC for $5.25 million, a broker involved in the transaction said today.

The broker is NAI Hunneman Commercial, a Boston-based commercial real estate services firm.

"The sale includes two large, adjacent brownstone buildings, that are currently comprised of 19 apartments units," NAI Hunneman said in a press release. "Most notable is the building’s location on Bay State Road , which has exceptional, unobstructed views of the Charles River."

NAI Hunneman said it represented the seller and procured the buyer, and it added in its press release added, "The buyer will continue to manage the building as apartments."

The photo shown with this story was provided by NAI Hunneman.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:56 PM | Comments (0)

Genzyme to celebrate new Framingham center

Genzyme Corp. is planning a ceremony Monday to mark the recent opening of its new early-stage research center in Framingham. The $125 million Science Center, which will ultimately house 350 employees, is just the latest expansion for the Cambridge biotechnology company in Framingham.

It now has about 2,000 employees in 14 buildings in the town -- one-fifth of its total workforce and the largest concentration of employees in the world. Construction is also underway on a $230 million manufacturing plant in Framingham, expected to be completed in 2011.

Monday's ceremony will feature Massachusetts Genzyme Chief Executive Henri A. Termeer, Governor Deval L. Patrick and US Representative Edward J. Markey.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 12:26 PM | Comments (0)

Survey: Say adios to the lunch break, multi-taskers

Endangered species? Photo: Wiqan Ang for The Boston Globe

A new survey asks, "Could the lunch hour be facing extinction?" The survey's headline: "Table for none."

The 24/7 workplace features so many e-mails, deadlines, and employees conferencing with colleagues and customers in other time zones that the lunch break may be as threatened as the polar bear, suggests a survey commissioned by OfficeTeam, a temporary staffing service that is part of Robert Half International Inc. of California.

Lunch locally could face especially tough times in the coming months, said OfficeTeam regional manager Ryan Sutton in Boston. Cold weather puts a damper on lunching, and New England winter is on the way, Sutton noted in an e-mail.

In bygone days when the Beatles wanted to hold your hand and many people still bought newspapers, the three-hour, three-martini lunch was an art form.

But over the last five years, the "lunch hour" has shrunk from 42 minutes to 35 minutes, OfficeTeam said.

That was one finding of a survey that was conducted by an independent research team that did telephone interviews with 150 randomly selected senior executives across the United States, OfficeTeam said.

For folks working longer hours, skimping on lunch may be a bad idea.

"While it is understandable that some employees may want to work through lunch to catch up on work or get ahead, taking regular breaks to recharge can actually increase rather than hinder productivity," Sutton wrote in an e-mail.
(By Chris Reidy, Globe staff. File photo of polar bears: Jonathan Hayward/AP)

Posted by globebusiness at 11:14 AM | Comments (0)

Roddick will pitch for Champion Exposition Services

Photo: Quinn Rooney/Getty

Tennis star Andy Roddick will initially be featured in a new national branding and advertising campaign for Champion Exposition Services of Middleborough, the firm said.

The provider of event solutions and exposition services said that the theme of the campaign is, "It's more than a show, it's a performance." On its website, the company says it can provide customers with everything they need to build a better show, a better exhibit, or a better brand.

A new corporate logo is also being unveiled as part of the rebranding effort, the company said.

"Champion's new brand reflects not only who we are, but where we're going and the innovative people and services that differentiate us from the rest of the crowded marketplace," Mark Epstein, Champion president and chief executive, said in a statement. "For years, we have cultivated an environment that encourages creativity, flexibility, and collaboration, and our new identity fully reflects that ethos."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:12 AM | Comments (0)

American Science and Engineering wins order

American Science and Engineering Inc. of Billerica announced the receipt of a multi-year $12.5 million service order to provide service, maintenance, training, and spare parts for multiple cargo systems.

The company specializes in X-ray detection technology used for screening contraband and for spotting possible smuggling or terrorist activity at ports and entry points. One of its products is the Z Backscatter Van, which is shown here in a photo taken from the company's website.

The company said the order was placed by "a Middle East government client."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:44 AM | Comments (0)

Statewide job fair is set for tomorrow

Governor Deval L. Patrick has announced plans for a statewide job fair at One-Stop Career Centers throughout Massachusetts tomorrow.

In Boston, job fairs will be held at such locations as 210 South St., from 10:00 a.m. to 4:00 p.m., with more than 100 openings at 10 area colleges and universities, and at 1010 Harrison Ave. from 10 a.m. until noon with five employers, including T.J. Maxx, the off-price retail chain, the governor's office said.

“A skilled workforce is our competitive edge, and this career day will help employers and employees alike make successful connections,” Patrick said in a statement.

The governor's office added in a press release, "Last year’s event drew 575 employer representatives who met with 8,000 job seekers about thousands of employment opportunities statewide."

For more information on the job fairs, please click this link.
(By Chris Reidy, Globe staff. File photo: George Rizer, Globe staff)

Posted by globebusiness at 8:19 AM | Comments (0)

Boston firm secures venture funding

Boston business software firm Rapid7 LLC said today it has secured $7 million in funding from Bain Capital Ventures, the venture capital arm of Bain Capital, a global private investment firm headquartered in Boston.

Rapid7 focuses on corporate network data security with its NeXpose solution, which provides comprehensive, high performance coverage of Web applications, databases, and networks. According to the company, NeXpose is "the broadest and deepest vulnerability management system on the market, comprehensively scanning IT systems, including Web 2.0 and JavaScript."

“It is extremely rare to find a company that has doubled sales for each of the past four years despite the challenging economic environment," Ben Nye (left), managing director at Bain Capital Ventures, said in a statement. "Rapid7’s customers told us repeatedly that the company’s NeXpose solution uniquely addresses their need for far-reaching security assessments that quickly identify and expose IT risks that can have severe business consequences.”

Rapid7 said it will use the funds to broaden global sales channels, expand marketing and management teams, and further advance NeXpose.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:54 AM | Comments (0)

September 16, 2008

Study: Training for life sciences careers needed

The University of Massachusetts Donahue Institute today released its final version of a $250,000 state study on how the state can help life sciences companies find qualified employees. Companies have long complained it is difficult to recruit employees such as experienced clinical researchers.

Among the study's recommendations: Produce and retain more graduate students with interdisciplinary training, improve vocational training, and encourage younger students to consider careers in science and technology.

The study was sponsored by the Massachusetts Biotechnology Council and the Massachusetts Life Sciences Center.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 4:19 PM | Comments (0)

Vermont coffee company will buy Seattle brand

This image was taken from Tully's website

Green Mountain Coffee Roasters officials say they've agreed to buy a Seattle coffee brand for $40 million.

The Waterbury, Vt., coffee maker has agreed to buy the Tully's coffee brand and wholesale business from Tully's Coffee Corp., which will remain an independent company, its retail outlets operated under license agreements with Green Mountain Coffee.

Tully's sells specialty coffee via food service distributors and more than 5,000 supermarkets located primarily in the West.

Green Mountain CEO Lawrence J. Blanford said the Tully's brand will give Green Mountain a complementary West Coast brand and infrastructure. (AP)

Posted by globebusiness at 2:56 PM | Comments (1)

Mass. student lender is back in business

The Massachusetts Educational Financing Authority has completed its $400 million bond offering and can now offer student loans for the rest of the 2008-2009 school year.

The authority said today that it will offer a 7.75 percent fixed rate, lower than the federal government’s 8.5 percent rate on a parent PLUS loan.

MEFA makes loans to undergraduate and graduate students in Massachusetts and to residents of the Commonwealth who attend schools in other states.

MEFA was unable to raise funds in time for the fall loan season, due to turmoil in the student loan industry and to the shutdown of a part of the bond market it had long used to borrow money — auction-rate securities. The authority’s inability to lend for fall affected thousands of families who had relied on its low, fixed-rate loans in the past. Nearly 40,000 students took out MEFA loans last year.

‘‘On behalf of MEFA and the families we serve, I extend our gratitude to Governor Patrick and his administration for their strong support and cooperation through this unprecedented time in student lending,’’ said MEFA’s executive director, Thomas Graf. ‘‘The governor’s advocacy on behalf of MEFA strengthened our position in the capital markets.’’

The authority borrowed the funds at a rate of 6.2 percent.

Selling a student-loan bond offering was challenging enough in the current environment, but MEFA managed to complete its financing amid Wall Street’s meltdown over the weekend. Morgan Stanley was the lead underwriter. Goldman Sachs and JPMorgan Chase & Co. participated. About 10 institutional investors bought the bonds.

MEFA’s newly replenished coffers most likely will be put to work for the spring semester. In addition, Graf said, some families may elect to refinance loans they obtained for the current semester at higher rates.
(By Beth Healy, Globe staff)

Posted by globebusiness at 2:27 PM | Comments (0)

Energy summit set for Oct. 9

Want to learn how to become energy efficient, get up to speed on recent environmental legislation, or hear about the state's emerging green jobs sector? Those and other topics will be discussed Oct. 9 at the Massachusetts Energy Summit at the DCU Center in Worcester. House Speaker Salvatore DiMasi, who was instrumental in the recent passage of Massachusetts' Green Jobs Act, is one of the scheduled speakers.

For more information, call 508-755-8004, ext. 286.
(By Erin Ailworth, Globe staff)

Posted by globebusiness at 2:03 PM | Comments (0)

Program to speed screening at Logan -- for a price

Verified Identity Pass's Clear program, which speeds prescreened travelers through security checkpoints at participating airports, will debut at Logan International Airport this month.

Clear gives travelers who pay the $128 annual fee a high-tech identification card to verify their fingerprint or iris image at designated security lane kiosks.

Clear spokeswoman Cindy Rosenthal said the Massachusetts Port Authority, which runs Logan, was one of the first agencies interested in this fast-pass program since it was tested in Orlando in July 2005.

But she said Massport's long approval process has held up Clear's arrival, so instead Delta is sponsoring the program at its Logan terminal.

More than 200,000 travelers have registered for Clear and used their fast passes nearly 1.5 million times across 18 airports nationwide since the program began three years ago.
(By Nicole C. Wong, Globe staff)

Posted by guest at 1:32 PM | Comments (0)

Hill Holliday taps Rich

Hill Holliday announced the appointment of Rob Rich as executive vice president and group creative director for the ad agency’s headquarters office in Boston.

Rich will partner with Ernie Schenck, who is also an executive vice president and a group creative director, on the agency's Liberty Mutual and Bank of America Corp. accounts, Hill Holliday said.

Before joining Hill Holliday, Rich was executive vice president and executive creative director at the Publicis ad agency office in Seattle, where he led the creative endeavors for such brands as Hewlett-Packard, Coke, and Heineken, Hill Holliday said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:08 PM | Comments (0)

Boston Scientific won't get new stent patent trial

Boston Scientific Corp., the Natick medical device company, said an appeals court denied its request for a new trial of a patent case brought by Johnson & Johnson.

Late Monday, Boston Scientific said the United States District Court in Delaware granted Johnson & Johnson's motion for entry of final judgment, and refused to allow a new trial. In 2000, Boston Scientific said a jury found the company had violated a patent on the NIR stent, and awarded Johnson & Johnson $324 million.

A final judgment will be entered on Sept. 30.

Boston Scientific no longer sells the NIR stent.

Shares of Boston Scientific fell 30 cents, or 2.3 percent, to $12.89 on the New York Stock Exchange, while Johnson & Johnson added 18 cents to $69.79. (AP)

Posted by globebusiness at 11:10 AM | Comments (0)

FedEx taps Enigma for aircraft maintenance

Photo: AP

Enigma Inc. said today that it has been chosen by FedEx Corp. to streamline maintenance and service operations for the FedEx fleet of more than 800 aircraft.

With North American headquarters in Burlington, Enigma provides aftermarket services and support technology.

Headquartered in Memphis, FedEx is perhaps best known for "on-time deliveries."

“Enigma’s selection by FedEx is a major milestone for expanding our solution within the aerospace and aviation industries,” Jonathan Yaron, chief executive of Enigma, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:54 AM | Comments (0)

BLS study: Local grocery prices rose in August

Commuters got some relief from a decline in energy prices in the Boston metropolitan area last month, but grocery prices continued to climb.

The US Bureau of Labor Statistics said today that consumer energy prices fell 5.9 percent in August, compared with July, the first decline since earlier in the year.

Gasoline and heating-oil prices were both down last month.

Boston-area gas prices, at $3.73 a gallon, were slightly below the national average. Despite recent declines, energy prices overall are still 35 percent higher than a year ago.

Grocery store prices surged 1.9 percent, after a 1.5 percent increase in July. Higher meat prices drove prices higher, BLS said. The 6.2 percent increase in food prices is the largest one-year advance since 1998.
(By Kimberly Blanton, Globe staff. File photo: Dominic Chavez, Globe staff)

Posted by globebusiness at 10:32 AM | Comments (0)

Babson professor picked for FINRA board

Babson College said today that one of its finance professors, Michael Goldstein (right), has been named to the Economic Advisory Board of the Financial Industry Regulatory Authority, or FINRA.

According to its website, FINRA is the largest non-governmental regulator for all securities firms doing business in the United States.

At Babson, Goldstein teaches in the undergraduate, MBA, and executive education programs, the school said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:17 AM | Comments (0)

Dunkin' Donuts adds to its marketing team

Dunkin' Donuts, the Canton-based coffee-and-baked goods chain, said that Cynthia Ashworth has joined the company's marketing team in the newly created position of vice president, consumer engagement.

Ashworth, who most recently worked for the Oxygen Network media company, will be responsible for all Dunkin' Donuts' consumer messaging, including advertising, media, interactive marketing, and in-store retail; Ashworth will report to Frances Allen, Dunkin' Donuts brand marketing officer, the chain said.

The Globe photo illustration at left shows Rachael Ray, the TV celebrity who pitches Dunkin' Donuts products.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:34 AM | Comments (0)

Advanced Electron Beams gets GE investment

GE Energy Financial Services said today that it has made a $4 million venture-capital investment in Advanced Electron Beams Inc.

Advanced Electron Beams is a Wilmington company that focuses on technology that helps traditional manufacturers become more environmentally sustainable while improving profitability.

"The technology uses a stream of electrons to initiate chemical reactions or break chemical bonds more efficiently than existing thermal and chemical approaches," GE Energy Financial Services noted in a press release.

GE Energy Financial Services is a unit of General Electric of Connecticut.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:59 AM | Comments (0)

Staples will open LEED-registered store in Boston

The above photo of the new store was provided by Staples.

Office supply retailer Staples Inc. today announced the opening of its first LEED-registered store in the Northeast.

According to Framingham-based Staples, the store at 4165 Washington St. in Roslindale, is one of the first stores in Boston to be registered with the US Green Building Council’s Leadership in Energy and Environmental Design, or LEED, program.

The council is a nonprofit group that encourages the construction of so-called green buildings.

Staples said in a press release: "Through the use of innovative features, such as an energy efficient roof with skylights that provide natural light for much of the store, the new Staples will use 35 percent less energy than a standard Staples store and reduce carbon emissions by an estimated 105,821 lbs. per year. In addition, the store is estimated to save 20,325 gallons of water per year (56 gallons per day) compared to standard Staples through low-flow sinks and toilets."

Boston Mayor Thomas M. Menino is scheduled to join Staples officials this morning at a special store-opening ceremony, Staples said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:42 AM | Comments (0)

Cell phone use drives applications market

Cell phones equipped with multimedia capabilities are driving "solid growth" for the applications processors and media coprocessors markets, a new study from IDC says.

Headquartered in Framingham, IDC provides global market intelligence and advisory services.

Revenues from the worldwide device applications processor and media coprocessor industry reached $2.9 billion in 2007, a 14 percent increase, IDC said.

As chipset pricing has declined, multimedia capabilities have spread quickly from high-end mobile phones into many mobile and consumer electronics devices, according to IDC. Multimedia functionality can now be found in most mid-range and even some entry-level phone segments, as well as devices ranging from handheld gaming platforms, toys, and a variety of medical and industrial devices, IDC said.

"While 2006 was the year multimedia functionality gained traction on mobile phones, 2007 was the year when it hit full stride and started expanding into other devices," Flint Pulskamp, IDC program manager for wireless semiconductors, said in a statement.
(By Chris Reidy, Globe staff. Photo: Danny Johnston/AP)

Posted by globebusiness at 8:14 AM | Comments (0)

Epix will receive $500,000 milestone payment

Epix Pharmaceuticals Inc. of Lexington said today it will receive a $500,000 milestone payment for work on discovering potential drug therapies targeting cystic fibrosis.

Epix has a collaboration agreement with Cystic Fibrosis Foundation Therapeutics Inc., the nonprofit affiliate of the Cystic Fibrosis Foundation, and Epix said that the $500,000 will bring the total of milestone payments it has achieved under this agreement to $4.5 million.

Under the terms of the agreement, Epix said it will own all worldwide rights to any compound that results from this collaboration.

Cystic fibrosis is a life-threatening genetic disease that affects approximately 30,000 children and adults in the United States and nearly 70,000 people worldwide, Epix noted in its press release.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:49 AM | Comments (0)

September 15, 2008

State orders utility discounts for low-income residents

The state today told electric and natural gas utility companies to increase their discounts for eligible low-income customers by Nov. 1, as well to as enhance programs to help them pay past-due bills.

The order from the state Department of Public Utilities is expected to save the average low-income electric heating customer up to $300 a year. Similar savings are expected for natural gas customers, the state said.
(By Erin Ailworth, Globe staff)

Posted by globebusiness at 4:47 PM | Comments (0)

A day of concern in downtown Boston

It might have been just another day in Boston’s Financial District today, as even workers at the High Street building that houses the local offices of Lehman Brothers calmly shuffled in and out. Many had cell phones to their ears -- not an uncommon sight on any day.

But as lunchtime crowds emerged to a sparkling September day, chatter palpably turned to news about Lehman’s bankruptcy filing, Bank of America Corp.’s planned purchase of Merrill Lynch & Co. Inc., and especially, the stock market, which bounced a bit - the Dow Jones industrial average had once again fallen more than 300 points by early afternoon.

Even residents who do not work in the financial industry fretted over the future of their retirement funds, came to terms with lost investments, and worried about the effect the news would have on the rest of the market.

Sharon Dupiche, 29, a Winthrop resident (right) who works as a paralegal for a downtown law firm, sat on a bench in Post Office Square Park - a popular meet-and-greet spot known in the Financial District as "The Beach" - talking with her husband about how the recent announcement could have a rippling effect on the market.

“We are already on an unstable market, with the housing and mortgage crisis and the federal bailouts,” Dupiche said as she played with her five-month old son. “This is the price now that we are all paying for those private companies’ mistakes.”

Jim Keating, 44, of Somerville, also works for a Boston law firm.

“My retirement account is shriveling up,” he said, adding he feared the effect Lehman’s bankruptcy would have on his mutual fund investments. “I don’t have a lot of options. I’ll have to wait it out.”

One indicator of the general angst was the reaction of a group of three Merrill employees outside the Federal Street eatery Boloco. At an 8 a.m. meeting today, they said, they were prepped for what was sure to be a trying day -- and specifically told not to comment to the press, which was out in force throughout the morning.
(By Jonnelle Marte and Angel Jennings, Globe correspondents. Photo: Joanne Rathe Strohmeyer, Globe staff)

Posted by globebusiness at 2:03 PM | Comments (0)

Kaszynski joins Eaton Vance

Eaton Vance Corp., a Boston-based investment management firm, said today that Stephen J. Kaszynski has joined the firm as a member of its large-cap value management team.

The team, which includes Michael Mach, John Crowley, and Matt Beaudry, oversees more than $19 billion in large-cap value assets, said Eaton Vance, which added that Kaszynski was most recently managing director and head of US equities at Credit Suisse.

Eaton Vance and its affiliates managed $156 billion in assets as of July 30.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:41 PM | Comments (0)

Millipore closing plants in New Jersey, Sweden

Millipore Corp. said today it plans to close plants in Lincoln Park, New Jersey and Nodinge, Sweden and has proposed shuttering two sites in the United Kingdom, as part of a company-wide plan to streamline its operations.

A spokeswoman for the Billerica life sciences company said it plans to eliminate or relocate up to 140 positions around the world, though none in Massachusetts.

In addition to its desire to become more efficient, Millipore cited declining revenue in its bioprocess division, which provides services and supplies to companies involved in drug manufacturing.

Millipore said it expects to record charges of $25 million to $30 million, including $8 million to $10 million for employee separation costs and $3 million to end leases. After the cuts, Millipore expects to save $11 million to $15 million a year.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 12:37 PM | Comments (0)

Springfield got money from Merrill Lynch

A spokeswoman for Springfield Mayor Domenic Sarno says Merrill Lynch already has repaid millions of dollars it owes the city for making risky investments.

The brokerage firm's sale to Bank of America will not affect its $13.9 million reimbursement to Springfield because it paid the debt in February.

Merrill Lynch agreed to reimburse the city over risky investments in the subprime mortgage market. Their value dropped from almost $14 million to slightly more than $1.2 million as the market plunged.

Springfield and state officials say the investments were too risky for municipal funds and city officials never gave explicit permission to invest in those securities. (AP)

Posted by globebusiness at 12:02 PM | Comments (0)

Gas rises 6 cents in latest Mass. survey

Photo: Erik Jacobs/Globe staff

The average price for a gallon of gas in Massachusetts rose 6 cents in the latest weekly survey from AAA Southern New England, the first increase since early July.

AAA Southern New England cited Hurricane Ike as the reason why the average Massachusetts price for a gallon of self-serve, regular unleaded gas is $3.61.

Massachusetts is currently 23 cents below the national average for regular unleaded of $3.84; a year ago at this time, the average price in Massachusetts was $2.65, AAA Southern New England said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:26 AM | Comments (0)

Mall Networks has a new chief executive

Mall Networks Inc. today announced that Tom Beecher has been named as its new president and chief executive.

The Lexington company provides merchant-funded loyalty shopping solutions that increase revenue, strengthen customer loyalty, and improve member engagement for a range of industries including financial services, card issuers, airline and hospitality, affinity organizations, and loyalty programs.

The company said in a press release, "Mall Networks founder David Andre will continue to have a full-time role with the company as chairman and chief customer officer, focusing on client success, best practices, product strategy and vision, and new business development."

Beecher comes to Mall Networks from Imagitas, a Pitney Bowes Co., where he was president and chief executive, Mall Networks said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:13 AM | Comments (0)

ATG will help Talbots create new retail websites

Art Technology Group Inc., a Cambridge provider of e-commerce software services, said today that apparel retailer Talbots Inc. will use its ATG Commerce Suite to power the creation of two new personalized Web stores for both of its retail brands, Talbots and J. Jill.

ATG said in a press release: "Earlier this year Talbots management detailed a three-year plan to further develop the brand's reputation as the go-to destination for modern classic styles in apparel, shoes, and accessories. At the time, the company revealed a strategy to make its collections more sophisticated in order to drive sales both online and in-store. As Talbots.com and JJill.com continue to grow at a rapid pace, Talbots determined it needs a more scalable, flexible e-commerce platform to support the vast volume of customers and the increasing number of products being made available. Additionally, the company wanted to create a more personalized Web destination that appealed to both new and returning customers."

The photo accompanying this story was taken from a Talbots website.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:45 AM | Comments (0)

Merrill purchase could mean big changes in Boston

Bank of America Corp.’s planned purchase of Merrill Lynch & Co. could mean big changes for their Boston operations, where both companies serve wealthy clients.

Of the two companies, Bank of America has the bigger presence here in its Global Wealth and Investment Management unit, which includes businesses such as its US Trust private-banking operation and its Columbia Management investment division.

But both overlap somewhat with Merrill Lynch operations, including its First Republic private-banking unit, which could lead to layoffs.

Headquartered in San Francisco, First Republic has been in the midst of an expansion in Boston such as a banking center it is building in the Mandarin Oriental hotel. The center will give Merrill about 50 employees in Boston at First Republic alone, plus a number of more traditional brokerage offices here.

Based in Charlotte, N.C., Bank of America has about 14,000 employees in its Global Wealth division, but won’t say how many work in Boston under the head of the unit, Keith Banks.

Since yesterday, neither side of the deal has provided details about their intentions toward the Boston operations or the banks’ role going forward.

On a conference call with analysts this morning, Bank of America chief executive Kenneth D. Lewis (right) said specific decisions about the combined firms’ management teams are under development.

Bank of America’s chief financial officer Joe Price said there would be headcount reductions and mentioned back-office operations and optimizing real estate, but didn’t give more details.

Combined the two companies will have about 20,000 financial advisers, mostly from Merrill Lynch, which will fit Bank of America’s long-term goals for serving wealthier customers.

“We will finally have enough financial advisers to take advantage of that opportunity,’’ Lewis said.

Bank of America also will have Merrill’s 50 percent stake in investment firm BlackRock, with $1.4 trillion in assets under management, in addition to $425 billion in assets under management at Columbia Funds.
(By Ross Kerber, Globe staff. File photo: Victoria Arocho/AP)

Posted by globebusiness at 9:18 AM | Comments (0)

SEC has completed its investigation of SeraCare

SeraCare Life Sciences Inc. said today that the Securities and Exchange Commission has notified the company that the SEC has completed its investigation of SeraCare and does not intend to recommend any enforcement action

SeraCare of Milford provides products and services to the life sciences industry.

SeraCare said in a press release: "The investigation was initiated in 2005 while the company was under prior management and focused on the company's financial statements filed with the SEC prior to Sept. 30, 2005."

"With the completion of the SEC investigation, that chapter of the company's corporate history is now completely closed, allowing us to focus solely on SeraCare's future." Susan Vogt, president and chief executive of SeraCare, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:51 AM | Comments (0)

Nano-C is awarded US patents

Nano-C Inc. announced today that it has been issued US patents that cover the manufacturing of its core products.

Headquartered in Westwood, Nano-C develops nanostructured carbon materials, including fullerenes, single-walled carbon nanotubes, and their chemical derivatives.

"The fundamental competitive advantage of our technology covered by these patents enables us to offer an array of unique carbon nanotubes and fullerene products tailored to specific applications," Viktor Vejins, president and chief executive of Nano-C, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:22 AM | Comments (0)

Video network standardizes on Akamai framework

Akamai Technologies Inc. of Cambridge said today that a large video ad network in Germany has standardized on Akamai's Media Player Framework for its online advertising customers.

Akamai provides managed services for powering rich media, dynamic transactions, and enterprise applications online. The German company is smartclip AG.

Akamai said in a press release, "With Akamai and smartclip, premium content owners and publishers can take advantage of turnkey solutions to deliver and monetize digital video content."

"The open standards provided through Akamai's Media Framework allow for a massive inflow of media buying against rich media," Tim Napoleon, chief strategist for digital media at Akamai, added in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:06 AM | Comments (0)

Stride Rite announces Keds appointment

Stride Rite Corp., the Lexington footwear brand, announced today that Tom Morgan will join the company in the newly created position of senior vice president of global sales, Keds Group & general manager, PRO-Keds.

Stride Rite said that Morgan will assume his role in early October, overseeing global sales for the Keds, Grasshoppers, and PRO-Keds brands.

Before joining Stride Rite, Morgan was most recently at Puma North America, Stride Rite said.

Stride Rite is now part of Collective Brands Inc., a Kansas-based company focused on footwear.

The image that appears above this story was taken from the Keds website.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:39 AM | Comments (0)

September 12, 2008

Fidelity to buy back $300m in auction-rate securities

Fidelity Investments has agreed with Massachusetts and New York regulators to buy back about $300 million in auction-rate securities from customers who have been unable to sell them since February.

The Boston-based brokerage and mutual fund giant has been under pressure from regulators in Massachusetts and New York to buy back the securities, as nine Wall Street brokers have agreed to do, even though Fidelity did not underwrite or issue the bonds. The firm pledged to buy back the securities within 90 days, in a letter to Massachusetts Secretary of State William F. Galvin from Fidelity President Rodger A. Lawson.

Fidelity's agreement is the first involving a secondary seller of auction-rate securities. Initially, regulators had focused on Wall Street firms like UBS Financial Services Inc. and Merrill Lynch & Co., which both helped issue these bonds as an investment banker, and sold them to customers through their brokerage forces. At UBS and other firms, top executives knew late last year that the auction-rate market was in danger of freezing, yet they continued to encourage brokers to sell the securities to clients without warnings about the risk.

Since coming under the regulators' scrutiny, Fidelity has said that it should not have to meet the same obligation as the Wall Street firms that issued the auction-rate securities. But it and other discount brokers -- which generally are not paid to give investment advice -- like Charles Schwab Corp. have become part of the national probe of what was a thriving $330 billion market.

Numerous customers have said it was a Fidelity representative who first brought auction-rate securities to their attention. As a result, they felt that Fidelity -- despite being a discount broker that is generally not paid for investment advice -- was at least partly responsible for their decision to buy the investments. Fidelity insists that it had nothing to gain by pushing auction-rate securities on its clients.

Galvin said other firms should follow in Fidelity's footsteps: "I think it's significant that this is the first downstream vendor of these instruments that's come up with a plan, and I think it sets a standard for the others."

Under the terms of the agreement, Fidelity will buy back customers' auction-rate securities within 30 days of their request.

Auction-rate securities are the debt of nonprofits, such as student lenders, and municipalities, as well as some investment funds. Brokers for years sold them as alternatives to money market funds, and they performed that way until February, when all trading stopped. Amid a drop in demand for the investments and other turmoil in the credit markets, the brokerage firms all stopped taking buy and sell orders around the same day, Feb. 13.

Galvin, Cuomo and the Securities and Exchange Commission have secured about $60 billion in buyback agreements from the firms -- the largest return of investment funds in history, according to the SEC. The largest deal was with UBS, which agreed to repurchase nearly $19 billion in auction-rate securities from nearly 40,000 customers. Together, the firms will pay more than $500 million in fines.
(By Beth Healy, Globe staff)

Posted by globebusiness at 4:01 PM | Comments (0)

Two small Massachusetts shopping centers are sold

Jones Lang LaSalle said it has helped negotiate the sales of two small Massachusetts shopping centers, one in Hudson, the other in Webster, which together sold for $27.9 million.

RK Associates purchased the Washington Square Plaza in Hudson for $10.3 million, said Jones Lang LaSalle, a Chicago-based financial and professional-services firm specializing in real estate; Jones Lang LaSalle is an active player in the Greater Boston market.

According to its website, RK Associates is a privately held, family owned real estate development firm with headquarters in Dedham.

The press release from Jones Lang LaSalle, or JLL, included a statement from David Katz of RK Associates.

"The acquisition of this center nicely complements our long-standing ownership of the Hannaford-anchored center across the street," Katz said.

Washington Square Plaza is anchored by a CVS, and other tenants include Applebee's, Domino's Pizza, and Dunkin' Donuts, JLL said.

JLL said it helped negotiate the sale of a second shopping center, this one the sale of Price Chopper Plaza in Webster; Cedar-Webster LLC paid $17.6 million to purchase a shopping center that also includes a Papa Gino's and a CVS besides a Price Chopper supermarket, JLL said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:28 PM | Comments (0)

Cable TV spots seek to lift awareness for City Year

Public service announcements that seek to raise awareness for City Year are starting to air on the Comcast cable network, said Arnold Worldwide, the Boston ad agency that helped develop the announcement.

City Year was founded on the belief that young people can change the world by volunteering as tutors and mentors for disadvantaged children. City Year's recruiting pitch to young people interested in joining its organization: "give a year. change the world."

Arnold said in a press release that the public service announcements, or PSAs, "feature City Year corps members - 17-to-24 year-olds from diverse backgrounds – in meaningful moments that convey the powerful impact they have as young people engaged in citizen service: tutoring in schools, mentoring students, cleaning up neighborhoods, working together for a common purpose. Each PSA conveys the City Year tagline 'give a year. change the world.'"

“The more you learn about City Year, the more you are inspired by the energy, passion, and optimism that shine through everything they do,” Arnold creative director Brian Hayes said in a statement. “We hope that these new ads convey this feeling and motivate more young people to get involved in the program.”

Arnold's press release also said: "The ads will be broadcast nationwide by Comcast, one of City Year’s leading corporate partners. A component of Comcast’s three-year, $27 million commitment to City Year is the donation of air-time that will show the PSAs nearly 2,400 times on their networks."

Some of the City Year spots can be viewed by clicking on this link.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:30 AM | Comments (0)

Harvard fund top performer, again

Harvard University's $36.9 billion endowment earned 8.6 percent on its investments in its latest fiscal year while stock markets around the world were losing money, the school's money managers reported today.

The return for the year ended June 30 compares with a loss of 13.1 percent by the Standard & Poor's 500 stock index during the same period.

Harvard Management Co., the university's investment arm that manages the endowment, also easily outperformed many other investments funds in its universe. The fund said an index that measures the performance of 165 other large institutional investors had a 4.4 loss percent during that period; the top performers in that group, moreover, earned 3.2 percent. Some other closely watched university endowments, particularly that at Yale University, have yet to report results for the fiscal year.

Harvard Management said its endowment, which grew $2 billion during the fiscal year, distributed $1.6 billion to the university to support teaching, research and student aid.

One reason Harvard's endowment performed so well is that it invests less money in equities than many other funds. Harvard lost 12.7 percent on its US stock portfolio and 12.1 percent on its foreign equity portfolio in the last fiscal year. But those categories accounted for an estimated 22 percent of the endowment's total assets at the end of the fiscal year.

Harvard also invests a substantial amount of its endowment in hedge funds, private equity funds, commodities and real estate. Most of those other investments earned substantial profits in the last fiscal year.

Harvard's "real assets" portfolio, which includes easily tradeable commodities, timber, agricultural land and real estate, earned 35.8 percent. Private equity investments returned 9.6 percent and hedge funds roughly broke even.

The endowment's bond portfolio also posted big gains during the year. Domestic bonds earned 16.1 percent while foreign bonds gained 21.3 percent and inflation-indexed bonds advanced 20.3 percent. The combined bond portfolio accounts for about 11 percent of Harvard's assets.
(By Steven Syre, Globe staff)

Posted by acaffrey at 11:02 AM | Comments (0)

State Street is named a best place to work for gays

State Street Corp., a Boston-based provider of financial services to institutional investors, today announced that it has earned the top rating of 100 percent for the third consecutive year in the Human Rights Campaign Foundation's 2009 Corporate Equality Index and Best Places to Work Survey.

The Corporate Equality Index rates employers annually on a scale from 0 to 100 percent on their treatment of gay, lesbian, bisexual, and transgender employees, consumers, and investors, State Street noted.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:49 AM | Comments (0)

AT&T is investing in Mass. wireless network

AT&T Inc. announced a planned investment of nearly $50 million in the Massachusetts wireless network in 2008.

As part of the 2008 investment plan, AT&T said it will bring its 3G mobile broadband network to more cities and towns in Massachusetts.

The expansion, ATT said, will give "consumers and businesses significantly enhanced in-building coverage, mobile broadband-like wireless data speeds, and access to the latest interactive voice, video, and data applications. By year end, the company will add 3G technology to 214 cell sites in the state."

Michelle Consalvo, vice president of external affairs for AT&T in Massachusetts, said in a statement, “AT&T is reaffirming its commitment to Massachusetts and continues to deliver significant benefits to consumers and businesses across the state - a direct result of the company’s efforts to expand and enhance its network operations and the synergies that come from being part of the world’s leading communications company.”

Rival T-Mobile USA Inc. also made a recent announcement regarding its 3G service in Boston. To go directly to a Boston.com post on that announcement, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:29 AM | Comments (0)

Raytheon wins Navy contract

Raytheon Co., the Waltham defense contractor, said today that one of its divisions received a Navy contract worth up to $43 million for education and training services.

Raytheon Technical Services Co. will provide instructional systems development, program management, and analytical support for the Naval Education and Training Professional Development and Technology Center.

The indefinite delivery-indefinite quantity pact includes four one-year options.

Raytheon had $21.3 billion in sales last year.

Shares of Raytheon were down 10 cents to $60.11 in morning trading on the New York Stock Exchange. (AP)

Posted by globebusiness at 10:07 AM | Comments (0)

T-Mobile brings its 3G service to Boston

T-Mobile USA Inc. announced the continued expansion of its next-generation wireless network with the launch of 3G service in Boston.

T-Mobile said its 3G network in Boston supports voice and data services consistent with available service and handset offerings and added that it has invested more than $243 million in infrastructure and spectrum to bring its 3G service to the Boston area.

The company said it plans to expand its 3G network to at least 20 markets by the end of 2008.

T-Mobile said in a press release, "Customers using a 3G-capable handset from T-Mobile will also experience faster data speeds when accessing the Web, or downloading content from the T-Mobile t-zones content portal."

Rival AT&T Inc. also made a recent announcement regarding its 3G service in Boston. To go directly to a Boston.com post on that announcement, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:41 AM | Comments (0)

Mattress Discounters to close nearly 50 NE stores

Mattress Discounters plans to close 48 stores in New England because its operations are losing millions of dollars.

The discount retailer is seeking Chapter 11 protection from the US Bankruptcy Court in Maryland. Plans to close its New England branches were contained in court filings made Wednesday.

The Maryland-based firm blames the sales trouble on an industry downturn, heightened competition, and a weak economy. The New England stores lost $1.5 million last year and about $2.9 million this year.

The firm's turnaround plans include exiting the New England market, reducing some of its retail operations in the Mid-Atlantic and possibly selling its manufacturing business.

Mattress Discounters owes about $16.5 million to its lenders and about $10 million to other creditors. (AP, which cited information from the Providence Journal.)

Posted by globebusiness at 8:15 AM | Comments (0)

NMS announces name change, new chief executive

NMS Communications Corp. announced plans today to sell its traditional enabling technology business, change its name, and appoint a new chief executive.

The Framingham firm said it has agreed to sell for roughly $28 million in cash a platform business that provides enabling tools and value-added services to Dialogic Corp., a Montreal-based company that provides open-systems platforms to the enterprise and service provider markets.

NMS said it is looking to focus on its LiveWire Mobile business, which brings a high level of personalization to mobile communications through a single, integrated storefront that delivers ringback, full-track music, ringtone, and video services.

As a result, NMS also announced today its intent to change its corporate name to LiveWire Mobile Inc.

When the sale to Dialogic closes, something expected to happen in the fourth quarter, NMS said that Joel Hughes will replace Bob Schechter as chief executive of the company

Schechter will continue serving on the board of directors as non-executive chairman, and it is anticipated that Mr. Hughes will be elected to the company's board of directors, the company said.

"Over the past year, we have taken steps to separate our LiveWire Mobile and NMS Communications Platforms businesses in order to sharpen the focus on and realize the value inherent in each," Schecter said in a statement. "We believe that the sale of the NMS Communications Platforms business paves the way to best drive long-term value creation for our employees, customers, and shareholders. Upon closing, 100 percent of our resources and focus will be dedicated to LiveWire Mobile, and the completion of this transaction will provide LiveWire Mobile with financial resources to execute its growth strategy."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:57 AM | Comments (0)

Bentley, City Year will unveil partnership

Students at Bentley College, a Waltham school specializing in business education, will receive incentives to give a year of community service through the national youth service organization City Year, in a partnership being rolled out today at a ServiceNation Summit in New York.

Under the "give a year" program, participating students -- to be called Bentley National Service Scholars -- will get scholarship support and internships with global organizations. They'll join City Year corps members in 18 locations in the United States and one in South Africa, working as tutors, mentors, and role models.

Bentley is investing a total of $1 million in the program, which aims to make community service an integral part of the college experience for Bentley students. The name of the program derives from the tagline of Boston-based City Year: "give a year, change the world."

The college plans to award as many as 10 $20,000 scholarships each year to Bentley students who take part. Each will also receive a $4,725 Segal AmeriCorps Education Award when they complete the program. During the year, they'll receive monthly stipends, health insurance, and other benefits.

The ServiceNation Summit, co-chaired by Caroline Kennedy, was launched yesterday with a presidential candidates forum with Republican John McCain and Democrat Barack Obama. The Bentley program will be announced today by the college's president, Gloria Cordes Larson (right), and City Year chief executive Michael Brown.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 7:30 AM | Comments (0)

September 11, 2008

Mass. officials to testify in D.C. on trading scandal

Two Massachusetts officials will testify at a hearing in Washington next week on the sale of auction-rate securities.

Massachusetts Secretary of State William F. Galvin and Attorney General Martha Coakley will appear before the House Committee on Financial Services, chaired by Representative Barney Frank, on Thursday. Frank, a Newton Democrat had promised during the summer to hold hearings on the Wall Street scandal.

Regulators, including Galvin and Coakley, have secured settlements requiring brokerage firms to buy back nearly $60 billion in auction-rate securities from their customers, who have been unable to sell them since February.

The investments are the bonds of nonprofits and student lenders, as well as the debt of certain investment funds. They stopped trading abruptly when all brokerage firms abandoned the market, amid other troubles in the credit markets.

Others who will testify include the Securities and Exchange Commission’s director of enforcement, Linda Thomsen, Susan Merrill, director of enforcement at the Financial Industry Regulatory Authority, and William Adams IV of Nuveen Investments.
(By Beth Healy, Globe staff)

Posted by globebusiness at 5:52 PM | Comments (0)

Globe to shut down its Billerica printing plant

The Boston Globe plans to shutter its Billerica printing plant by 2010, affecting as many as 200 employees who work at the site. The paper plans to keep its main printing plant in Dorchester.

The decision is the latest in a series of moves by the Globe, a unit of The New York Times Co., to reduce expenses because of declining print circulation and advertising.

‘‘We are closing our Billerica printing plant because we no longer need as many presses to print all the copies of the Globe,’’ publisher Steve Ainsley said. ‘‘This has been a very difficult decision to make, but one that will strengthen the financial position of the business.’’

Other newspapers have taken similar actions. The Boston Herald recently said it would close its sole printing plant in Boston, rather than upgrade its worn-out presses, and let go 130 to 160 workers. Dow Jones & Co. and Boston Offset will print the paper. Last year, The Patriot Ledger in Quincy cut 130 jobs when it shifted printing to the Globe.

Globe spokesman Bob Powers said the Billerica satellite plant will probably close in 2009 or 2010. He said it’s unclear how many of the 200 workers at the 15-year-old plant would lose their jobs, adding that it depends on negotiations with labor unions and production decisions.

Many of the affected workers are pressmen represented by the Boston Newspaper Printing Pressman Union No. 3. A union official could not be reached for comment.

Powers declined to say how much the Globe would save by closing the plant. He said the company is working with real estate brokers to sell the site.

The company has not decided where to print local copies of The New York Times, which have been printed in Billerica, Powers said.

In the first half of this year, overall revenue fell 9.6 percent at New England Media Group, which includes the Globe, Boston.com, and the Worcester Telegram & Gazette. The Globe has aggressively cut expenses, including trimming jobs through buyouts and attrition.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 5:37 PM | Comments (0)

German firm buys Boston office tower

Broadway Partners said today it has sold a 16-story office tower in Boston's Financial District to a firm representing European institutional investors for $167 million.

The building is 200 State St., said the seller, Broadway Partners, a private real estate investment and management firm headquartered in New York. (Broadway Partners' public relations firm provided the photo that appears above this story.)

The buyer is GLL Real Estate Partners GmbH, a real estate funds management group based in Germany that was acting on behalf of European institutional investors, Broadway Partners said.

Broadway Partners said in a press release: "Broadway acquired the property in May of 2007 with occupancy at 94 percent, and has brought it to 99 percent in just over a year through an aggressive leasing effort. The firm executed new leases and expansions totaling 33,787 square feet, along with 75,064 square feet of renewals. The building’s blue-chip tenants include Eaton Vance Management Corp., Beacon Capital Partners, the Parthenon Group, and the law firm of Morgan, Brown & Joy."

Broadway Partners added that this was the first major acquisition in Boston for Munich-based GLL Real Estate Partners. Broadway was represented in the transaction by Cushman & Wakefield.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:40 PM | Comments (0)

Analyst cuts estimates on Bank of America

RBC Capital Markets analyst Joe Morford cut his profit estimates on Bank of America Corp. after the bank said it will buy back about $4.5 billion worth of auction-rate securities as part of a settlement with Massachusetts regulators.

As a result of the settlement, the bank expects to record a pretax charge of about $275 million in the third quarter.

Due in part to the expected charge, Morford late Wednesday lowered his third-quarter profit estimate to 60 cents per share from 75 cents and his full-year estimate to $2.17 per share from $2.37.

The estimate cut is also based on Morford's expectation for higher loan loss provisions and lower investment banking revenue going forward. Additionally, the bank recently disclosed expectations for a minimal impairment charge in the third quarter from its exposure to Fannie Mae and Freddie Mac preferred securities, which have declined in value in the last year.

Morford maintained a "Sector Perform" rating on the shares, and raised his price target to $29 from $26.

Under the agreement with Massachusetts regulators, Bank of America will buy back auction-rate securities held by roughly 5,500 retail clients at the value at which they purchased them.

The auction-rate securities market involved investors buying and selling instruments that resembled corporate debt, except the interest rates were reset at regular auctions, some as frequently as once a week. The market for the securities collapsed in February.

Federal and state regulators have been investigating the reason for the market's collapse; eight other big investment banks that have already agreed to buy back a total of more than $50 billion of the securities.

Shares of the Charlotte, N.C.-based bank fell 88 cents, or 2.7 percent, to $31.53 in afternoon trading on the New York Stock Exchange.

To read today's story in the Globe about Bank of America's agreement with regulators, please click here. (AP)

Posted by globebusiness at 1:53 PM | Comments (0)

State calls for workplace access to literacy programs

A new state report calls for expanding access to literacy, basic skills, and English language programs as a way to help working adults find jobs and increase opportunities.

The report, issued by the Workforce Investment Board, said such programs should become more available at businesses where people work.

The study found that only 5 percent, or $1.5 million, of state funds for adult basic skills and English language programs go to workplace education. Specifically, the report calls for: creating a dedicated fund for workplace programs; creating a board to coordinate and implement; improve connections to higher education; and support job and educational counseling.

“We know that adult literacy and basic education are absolutely essential to a person’s ability to earn a decent wage," said Secretary of Labor and Workforce Development Suzanne M. Bump. "We must create a better framework for providing adult-basic education and training."
(By Robert Gavin, Globe staff)

Posted by globebusiness at 1:40 PM | Comments (0)

Airport checkpoint officers don new uniform

Airport checkpoints' Transportation Security Administration officers, whose jobs and federal agency were established in the aftermath of the Sept. 11 terrorist attacks, today started wearing new uniforms and badges that they requested in order to raise their levels of respect, confidence, and utility.

Their white long-sleeve shirt has been replaced with a dark blue one, and their embroidered patch traded for a gold metal badge.

The 65 percent polyester, 35 percent cotton-blended blue shirt will supposedly stay cleaner and be more comfortable to wear, and a wider belt is being used to ensure better-fitting uniform pants.

Additionally, each officer now wears a nametag displaying the last name and rank. The new look grew out of a recommendation from the TSA's National Advisory Council, the formal organization of transportation security officers, assistant federal security directors and security managers that meets quarterly.

For photos of how the TSA officers' uniform has changed annually since 2005, go to
http://www.tsa.gov/press/happenings/091108.shtm.
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 1:25 PM | Comments (0)

Covidien's shares rise

Wall Street held a positive outlook for Covidien Ltd. today following the medical device maker and diversified health care company's guidance for sales growth in 2009.

Following its annual investor conference yesterday, a company that is operated out of Mansfield said it expects sales to rise between 5 percent to 8 percent from 2008 at current foreign exchange rates, or 6 percent to 9 percent on an operational basis, excluding foreign exchange rates. Also, it expects sales of the painkiller Oxycodone Hydrochloride extended-release tablets to add at least 15 cents per share to fiscal 2009 earnings.

Shares rose $1.11, or 2 percent, to $56.20 in mid-day trading on the New York Stock Exchange.

The 2009 fiscal year begins at the end of September. The company split from former parent Tyco International Inc. last year.

Analysts polled by Thomson Financial expect fiscal 2009 profit of $3 per share on revenue of $10.57 billion.

"Covidien's second investor day was considerably more upbeat than last year's and even though we expect the consensus view to move up to our $3.09 fiscal 2009 earnings per share estimate, we think there is still room for further upside," said Citi Investment Research analyst Matthew Dodds in a note to investors.

He reaffirmed a "Buy" rating with a $65 price target, saying the company's surgical and pharmaceutical businesses are both poised for success in 2009.

Meanwhile, Deutsche Bank analyst Tao Levy reaffirmed a "Buy" rating with a $63 price target, saying the company is poised to deliver double-digit earnings per share growth over the next several years, with medical devices being the primary driver in fiscal 2009.

"Bottom line is that the current health and outlook of Covidien's businesses remain robust," Levy said.

BMO Capital Markets analyst Joanne Wuensch upgraded Covidien to "Outperform" from "Market Perform," saying the company's positive performance since its split from Tyco is likely to continue. (AP)

Posted by globebusiness at 12:31 PM | Comments (0)

Borenstein moves from behind bench to in front of it

Isaac Borenstein, a Massachusetts Superior Court judge, is retiring Friday after almost 22 years on the bench to join a law firm. Borenstein will become a partner at the Rudolph Friedmann LLP in Boston, where he will work as a civil litigator and criminal defense lawyer.

During his tenure as judge, he presided over many high-profile cases, including the Amirault-Fells Acre day-care abuse trial. Borenstein, a Cuban immigrant who came to the United States in 1961, was the first Latino judge to sit on the Lawrence district court, and the second Latino judge to sit on the superior court.

"I just turned 58 yesterday," he said. "There are a lot of interesting things I want to do with my life and I can't do that on the bench."
(By Angel Jennings, Globe staff)

Posted by globebusiness at 12:22 PM | Comments (0)

Stem cell registry opens at UMass

The state today launched the International Stem Cell Registry, intended to be an online resource center for information on human embryonic stem cells for the biomedical researchers and the public.

The center is based at the University of Massachusetts Medical School's campus in Shrewsbury, alongside the Massachusetts Stem Cell Bank.

The stem cell registry was partially funded by a $570,000 grant from the Massachusetts Life Sciences Center, a quasi-public organization established by the state.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 12:14 PM | Comments (0)

Two Hub law firms make family friendly list

Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo PC of Boston said it has been named to Yale Law Women's annual list of the top 10 family friendly law firms for the second year in a row.

According to the website for Yale Law Women, WilmerHale was another local firm to make Yale's 2008 list of top 10 family friendly firms.

Also for the second straight year, Mintz Levin said it has received a top rating of 100 percent on the Human Rights Campaign's Corporate Equality Index, an index that provides analysis and ratings of large US employers and their policies and practices pertinent to gay, lesbian, bisexual, and transgender employees.

The firm added in a press release, "One of only three firms to make the Yale Law Women's Family Friendly Firms list more than once, Mintz Levin was selected based on a number of factors including its leave and part time policies, same sex partner benefits, and on-site child care benefits."

WilmerHale also issued a release on its inclusion on Yale's 2008 list of top 10 family friendly firms.

“We are proud to be recognized by Yale Law Women for our innovative initiatives that help women attain balance in their personal and professional lives and flourish as practitioners,” Carol Clayton, WilmerHale assistant managing partner, said in a statement. “The firm is focused on creating a culture of open communication, inclusion and respect that allows us to recruit and retain exceptionally talented lawyers from diverse backgrounds.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:56 AM | Comments (0)

Novartis to open new labs tomorrow

Swiss drug maker Novartis AG is set to open a new vaccine research center tomorrow on Sydney Street in Cambridge, and by next year plans to hire 150 more full-time scientists to work there.

Novartis, one of the state's larger life sciences companies, already has about 1,800 employees in Cambridge. Its global research headquarters and vaccines and diagnostics unit are based in the city. A company spokesman said research center scientists will focus on developing vaccines for several major viruses, including influenza and HIV.

Tomorrow's ceremony is expected to features speeches from several Novartis executives, including Joerg Reinhardt, chief executive of the company's vaccines and diagnostics unit. Representatives from the city and federal government are expected to attend.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 11:47 AM | Comments (0)

MassMutual promotes Dillman

Massachusetts Mutual Life Insurance Co., also known as MassMutual, said today that Rodney J. Dillman has been appointed president of MassMutual International LLC and senior vice president of MassMutual.

Dillman will have responsibility for MassMutual International LLC, the holding company for MassMutual's international insurance subsidiaries; he was most recently general counsel at Babson Capital Management LLC, a MassMutual subsidiary, and corporate vice president and associate general counsel at MassMutual, the firm said.

He will be succeeded as general counsel at Babson by Trish Walsh, who will remain as corporate vice president in MassMutual's Law Division.

MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual and its subsidiaries had more than $500 billion in assets under management at year-end 2007. Founded in 1851, MassMutual is a mutually owned financial protection, accumulation, and income management company headquartered in Springfield.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:14 AM | Comments (0)

Textron plans to sell fluid and power unit

Textron Inc., a diversified manufacturer headquartered in Providence, said today that it had reached a deal to sell its fluid and power unit to UK-based Clyde Blowers Ltd for $526 million in cash.

The terms of the agreement also call for Textron to receive six-year notes worth up to $78 million and for Clyde to assume about $41 million of employee-benefit liabilities.

Textron, the world's largest maker of corporate jets, said it expected the sale to close by the end of the year and generate an after-tax gain of about $85 million.

The company will begin treating the fluid and power unit as a discontinued operation, which it said would reduce full-year profit from continuing operations by about 15 cents a share. Analysts look for earnings of $3.96 per share for 2008, according to Reuters Estimates.

Textron said it expected the fluid and power business, part of its industrial segment, to generate about $675 million in revenue this year. Wall Street had looked for total corporate revenue of $15.27 billion.

The company, which makes Cessna corporate jets, Bell helicopters, and EZ-GO golf carts, said it expected after-tax cash proceeds at closing to come to about $350 million. It plans to use about half that amount to buy back common stock. (Reuters)

Posted by globebusiness at 10:26 AM | Comments (0)

Arnold promotes ad executives

At the Boston ad agency Arnold, Chris Edwards has helped to create many ads celebrating the Big Mac (above) and other products from McDonald's Corp., and now he is getting a promotion.

Edwards, whose titles had been senior vice president and creative director, has been elevated to executive vice president and group creative director in the agency's Boston office, Arnold said.

A year or so ago, Edwards and the Arnold team worked on McDonald's ad for Chicken McNuggets that gained a lot of attention. Its starting point: An amateur video that two young men posted on Youtube.com, the video-sharing website. To read a Globe story about that ad, please click here.

Arnold said it also promoted Don Lane to executive vice president. Lane, a 13-year Arnold veteran, currently leads the agency's work on the Volvo account, among others.

And Chris Carl was promoted from vice president and creative director to senior vice president and creative director, Arnold said.
(By Chris Reidy, Globe staff. Volvo photo: John Tlumacki, Globe staff)

Posted by globebusiness at 10:18 AM | Comments (0)

Shear tapped to chair auctioneer education program

Berman Auctioneers & Appraisers of Worcester said its president, Mark Shear, is now the new chairman of an education program run by the National Auctioneers Association.

Shear chairs the Accredited Auctioneer of Real Estate education program, Berman Auctioneers said.

"The auction industry is growing and evolving dramatically so our professional education must keep pace," Shear said in a statement. "I am honored to be chosen by my colleagues to serve in this capacity."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:56 AM | Comments (0)

Survey: Locals not cutting back on organic chow

New Englanders are not cutting back on healthful organic food and environmentally friendly products despite a sluggish economy that often means higher grocery prices.

So asserts a new market research survey released by Mambo Sprouts Marketing, a New Jersey firm that develops and executes direct mail, retail, Web, and market research programs targeted at consumers interested in natural and organic products.

Mambo Sprouts said that 83 percent of 111 New England respondents to the survey reported that they were buying the same (55 percent) or more (28 percent) green environmentally friendly products than they were six months ago, and 45 percent of them said they are still willing to spend more for green products, Mambo Sprouts said.

The firm added in a press release: "Natural and organic consumers from New England appear slightly more frugal than their counterparts on the opposite coast. About four in ten Californians (39 percent) and Northwesterners (38 percent) reported buying more green products."

The firm also said that its Go Mambo! van and sampling tour is set to roll into New England this week and rove about through mid October. The photo of the van at right was provided by the firm's publicist.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:15 AM | Comments (0)

Acumentrics introduces new power supply system

Acumentrics Corp., a Westwood firm that has a focus on solid oxide fuel cells, said today it has developed and introduced a rugged uninterruptible power supply system able to provide simultaneous DC and AC outputs.

"This new flexibility reduces capital costs by enabling system engineers to match the power backup system's capacity and DC-AC output to specific configuration needs," the company said.

"Our client base is recognizing the improved efficiency of using DC power for electronic equipment for a wide variety of industrial and military purposes, including transportation, communications, process, manufacturing, and other applications," Bob Tomasetti, a company vice president, said in a statement. "Because most electronic equipment converts AC input internally to DC power, providing DC power directly to the equipment eliminates the need for additional conversion and the associated energy losses. Additionally, as power requirements are often one of the last-defined elements of a program, our ability to quickly configure 2000W output between AC and DC requirements has been a huge advantage for our clients."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:18 AM | Comments (0)

Maine's oil customers are called 'desperate'

AUGUSTA, Maine (AP) -- A heating oil industry official had sobering news yesterday for a legislative panel that's looking for ways to address a price crisis, saying customers are "desperate" and more Maine oil dealers are going out of business.

"We see a desperate customer base," said David Martin, chairman of the Maine Oil Dealers Association and vice president of Webber Energy of Bangor. With oil running about $4 a gallon, "nobody knows" what the price will be when the cold weather hits, Martin told the Heat and Energy Emergency Task Force.

To help customers squeezed by limited incomes and rising costs of oil and other basic needs, more oil dealers -- including some who shouldn't be doing so -- are extending credit, said Martin. Some dealers, he said, are also making smaller deliveries than they should.

"We see oil companies that have been great competitors for generations and generations in Maine, family-owned businesses, that probably are not well-positioned for this marketplace," said Martin. "We anticipate as an industry that there'll be less oil companies in the state in a year from now."

As one of the larger players in the state, Webber Energy is "in the acquisition business," said Martin, adding there's a waiting list of willing sellers because the heating oil business has become so stressful. That means some customers who need oil may discover that their dealer is no longer around.

"It is not pretty," Martin told the legislative panel, which includes Democrats and Republicans and is made up largely of leaders, during a daylong session. But he and other industry officials said no one will be completely left in the cold.

Heating oil prices in Maine have been falling in recent weeks but are still well over $1 per gallon more than they were a year ago. The task force is looking at several approaches over the longer term to help shelter people from oil price spikes and to encourage heating alternatives and weatherization.

But its immediate focus is on Congress, where members from Maine and other northeastern states have been pushing to bolster the states' allocations under the Low Income Home Energy Assistance Program this winter.

Last year's average LIHEAP benefit was about $750 in Maine and served about 48,000 households. But with higher oil prices and broadened eligibility standards, the state's allocation -- $38 million last year -- will have to increase substantially to deliver the same benefit, the task force was told.

Its co-chair, House Majority Leader Hannah Pingree, said that if LIHEAP is seriously underfunded, the responsibility falls on the state to meet people's heating needs. And action could come in December soon after the new Legislature is sworn in, she said.

"If Congress is able to take positive action on that, that would be tremendously helpful and that will change our task here," said Pingree, a Democrat from North Haven.

For Maine's longer-term strategy, the task force yesterday began looking at what other regional states have done to cut down on heating costs. Examples are New Hampshire's program in which efficiency upgrades can be paid with the energy savings, and Vermont's $31 million program to promote energy efficiency, according to a presentation by the National Conference of State Legislatures.

Massachusetts has weatherization assistance providing average grants of $1,600, and free attic and wall insulation, Rhode Island requires gas and electric distributors to have affordable energy plans, and Connecticut assists with weatherization, energy audits, and purchases of efficient appliances.

Maine Gov. John Baldacci in August advanced a $12.6 million energy action plan that includes new investments in weatherization, low-income heating assistance, and alternative modes of transportation. (AP)

To read a story in today's Globe on falling oil prices, please click here.

Posted by globebusiness at 7:45 AM | Comments (0)

Home monitoring: Folks will do it for themselves

The home monitoring market is set to undergo major transformation as a result of strong consumer interest and the emergence of new technologies, IDC said today.

IDC, a Framingham-based provider of global market intelligence, said more than half of 1,500 consumers who responded to a poll that it had commissioned "expressed interest in the ability to monitor and control heating, ventilation, and air conditioning, as well as electricity and home appliances from an external PC or wireless phone."

The home security and monitoring market "has changed little in decades and remained largely unaffected by the Internet," IDC said. "The major difference between traditional and next-generation security systems is that the latter are broadband-based and offer redundant connectivity via wireless and voice," while many traditional systems rely on voice or wireless alone.

"The new home security systems are digital, broadband-based, and give the user unprecedented control, including the ability to log in and control systems from anywhere," Irene Berlinsky, an IDC research analyst, said in a statement. "New distribution channels through cable and telecommunications companies will reach nontraditional customers and potentially expand the entire market."
(By Chris Reidy, Globe staff. Photo: Michael Moore/AP)

Posted by globebusiness at 7:26 AM | Comments (0)

September 10, 2008

Stop & Shop drops lawsuit against Whole Foods

Stop & Shop, the Quincy-based supermarket chain, has dropped a trademark infringement suit after rival Whole Foods agreed to change a disputed promotional slogan.

Stop & Shop sued in July, claiming Whole Foods stole its "Real Deal" campaign. Please click here to read an earlier Globe story about that lawsuit.

Texas-based Whole Foods says it has renamed its campaign "The Whole Deal." The two supermarket companies agreed to settle out of court. (AP)

Posted by globebusiness at 2:01 PM | Comments (0)

Potter court ruling gets Berkman Center's attention

The Berkman Center for Internet & Society at Harvard University said today that its Citizen Media Law Project will "work closely" with a new nonprofit that launched on the heels of a judge's copyright ruling involving the Harry Potter books.

A federal judge in New York ruled that author Steve Vander Ark's Harry Potter Lexicon infringed the copyright of J.K. Rowling, author of the Harry Potter series of books. To read some recent coverage of that case, please click here.

The nonprofit that the Berkman Center's Citizen Media Law Project, or CMLP, will work with is the Right to Write Fund, an educational repository and clearinghouse for freedom of expression and “fair use” issues that writers, filmmakers, professors, recording artists, and publishers encounter when moving among the worlds of print, Internet, film, the fine arts, and new media, the Berkman Center said.

The center said in a press release: "CMLP Director David Ardia will sit on the Right to Write Fund’s board of directors, and CMLP will assist the fledgling nonprofit by providing access to its database of legal threats, which contains lawsuits, cease-and-desist letters, subpoenas, and other legal threats directed at those who engage in online speech."

“We are seeing far too many important works being scuttled because of baseless legal threats directed at creative artists by copyright holders who object to the use or criticism of their work,” Ardia said in statement. “The Right to Write Fund in conjunction with the Citizen Media Law Project will give creative artists a place to go for legal guidance and support.

Besides the Berkman Center, the Citizen Media Law Project is affiliated with the Center for Citizen Media, an initiative, according to its website, to enhance and expand grassroots media.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:38 PM | Comments (0)

Harvard Business Press has a new editorial director

Harvard Business Publishing said that it has promoted Jacqueline Murphy to the post of editorial director of Harvard Business Press.

Murphy, who joined Harvard Business Press in 2001, previously held the position of senior editor.

Harvard Business Publishing said in a press release: "In her role as editorial director, Ms. Murphy is responsible for the editorial direction of Harvard Business Press, publisher of some of the world's most important business ideas. In addition to managing the print publishing program, Ms. Murphy will lead the expansion of the Press's portfolio mix to include new digital product and delivery formats, more global content, and the development of new community-based initiatives."

Harvard Business Press publishes for the general, professional, and academic markets on the topics of management, technology, marketing, strategy, innovation, and leadership.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:48 AM | Comments (0)

Galvin reaches settlement with Bank of America

Massachusetts Secretary of State William F. Galvin (right) said today that a nation-wide settlement in principle has been reached between Banc of America Investment Services Inc. and Banc of America Securities LLC (“Bank of America”) concerning auction rate securities, or ARS.

“With this settlement, thousands of Bank of America clients will be provided with access to billions of dollars in funds that have been frozen in the ARS market.” Galvin said in a statement.

In a telephone interview, Galvin said that the bank will buy back $4.8 billion of the securities from individuals, small businesses, and nonprofit customers starting Oct. 1. The bank said it would make "best efforts" to reimburse larger institutional customers beyond that.

The settlement will resolve the Massachusetts Securities Division’s investigation of Bank of America with regard to its marketing and sales of auction rate securities, said Galvin's office, which includes the Securities Division.

Bank of America issued a press release in which it neither admits nor denies allegations of wrongdoing. Please click here to read the bank's press release.

Galvin's office said in a press release: "Under the terms of the agreement, Bank of America will offer to buy back beginning October 1, 2008 and continuing through until December 31, 2008, all illiquid ARS, at par value, from all Bank of America retail customers nationwide. The offer shall be extended to also include all small business customers who have up to $10 million on deposit, all ARS of all charitable entity customers who have up to $25 million on deposit. In addition, Bank of America had previously agreed to buy back all ARS held by government entities, including municipalities."

Galvin's press release also said: "Bank of America stopped supporting its auction program in February this year, triggering a flood of complaints from investors who were shocked to find that they could not withdraw money from their accounts. The investigation found that Bank of America clients were unaware of the increasing risk of collapse of the ARS market and that Bank of America continued to sell ARS securities to its clients as safe, liquid, money-market like instruments notwithstanding the risk."

To read earlier Globe coverage about Galvin and auction rate securities, please click here.
(By Chris Reidy and Beth Healy, Globe staff. File photo of Galvin: Dominic Chavez, Globe staff)

Posted by globebusiness at 10:50 AM | Comments (0)

Proteon drug candidate gets fast-track designation

Proteon Therapeutics Inc., a privately held Waltham biopharmaceutical company, said today that it has received fast-track designation for a drug candidate from the Food and Drug Administration.

The drug candidate is PRT-201, which is being investigated for its ability to improve vascular access in patients currently on or being prepared for hemodialysis, said the company, which noted that the FDA's fast-track designation is intended to facilitate development and expedite review for drugs that treat serious diseases and fill unmet medical needs.

PRT-201 is a recombinant human elastase that is being studied for its ability to improve surgery outcomes in patients requiring chronic hemodialysis, the company said.

"This is a very important milestone for us as we prepare to initiate clinical trials with PRT-201 this year," Timothy P. Noyes, president and chief executive of Proteon, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:17 AM | Comments (0)

Upromise launches paperless coupon program

Upromise said today that it is introducing paperless coupons to augment its shopping rewards program that is tied to college savings.

The Newton company says it can help consumers save money for college through a rewards network set up with hundreds of consumer brands; when one of its more than 9 million members makes an everyday purchase of one of the brand's products, members receive a portion of their eligible spending back in the form of college savings.

Upromise said in a press release, "With up to $25 in value each month, eCoupons provide a new way for Upromise members to add to the $450 million dollars they have received in college savings rewards since 2001."

The release stated further: "Each month, new eCoupons will be available and can be used by clicking on participating products at www.Upromise.com/eCoupons. Each eCoupon is then automatically linked to a member’s registered grocery or drug store cards and can be redeemed for college savings in their Upromise account upon purchase of those products in-store."

Aquafina FlavorSplash, Charmin, Huggies, and Spray 'n Wash are among 20 brands that will be offering Upromise members eCoupons, Upromise said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:45 AM | Comments (0)

Eastern Bank announces grant program

Eastern Bank Corp. said today that its Eastern Bank Charitable Foundation is accepting nominations from the public to help it award grants totaling $50,000 to not-for-profit organizations.

Grants will be distributed in $2,500 increments to 20 organizations, said the bank, which added the program was developed to mark its recent acquisition of MASSBANK Corp.

According to Eastern Bank, the acquisition enhances its abilities to serve consumers and businesses in Middlesex County.

Eastern said it is accepting grant nominations for not-for-profit organizations headquartered in communities served by a MASSBANK office: Chelmsford, Dracut, Everett, Lowell, Medford, Melrose, Reading, Stoneham, Tewksbury, Westford, and Wilmington.

People can learn more about the nomination process by clicking on this link.

Founded in 1818 and based in Boston, Eastern has $7 billion in assets and almost 90 branches.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:54 AM | Comments (0)

Verizon has tentative deal to sell Boston building

Verizon Communications Inc. says it has a tentative agreement to sell its landmark art deco building in Boston's Financial District.

The company did not release details of the proposed deal with Kennedy Associates/Commonwealth Ventures other than to say that the roughly 1,500 employees who work in the facility would move to other Verizon buildings in the city.

The 18-story, 875,000-square-foot building is known for its art deco trimmings, marble interior floors and prime location. It was built in 1947 by AT&T for its New England Telephone unit.

Real estate experts said last summer when the building was put up for sale that it could fetch about $300 million. But that was before the economic downturn. (AP)

Posted by globebusiness at 8:10 AM | Comments (0)

Grocery store will try less-is-more format in Plymouth

The above photo was provided by the Market's PR firm.

The Market, a grocery story looking to take advantage of a less-is-more industry trend, has scheduled its formal opening for Sept. 17, its managing director said.

The Market is located in the Pinehills, a planned community in Plymouth.

The Market is deliberately small scale with about 14,000 square feet of space; many supermarkets are four times as large.

According to the Market's managing director, Michael Szathmary, the Market is part of a larger trend that has taken hold across the country; the trend is a response to consumers who feel put off by "the impersonal nature of mega stores."

Szathmary said in a statement: "“We have held many meetings with shoppers, and we repeatedly heard that they were not happy pushing their shopping carts down aisles the length of a football field. People want high-quality foods and good service, but do they really crave 15 different choices of paper towel and miles of aisles? We don’t think so, and our research supports that.”

Or as its press release says of the Market, "It has the spirit of a 1950’s neighborhood grocery store with the convenience of today."

A story in today's New York Times discusses the less-is-more trend in the supermarket industry. Please click here to read that story.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:49 AM | Comments (0)

HFF is marketing Fort Point Channel office buildings

The photo above was provided by HFF.

The Boston office of Holliday Fenoglio Fowler LP said it has been named by the seller to market 313 and 330 Congress Street, two office buildings totaling 106,028 square feet in Boston’s Fort Point Channel neighborhood.

The seller is Brickman, a real estate owner-operator and investment company headquartered in New York, said Holliday Fenoglio Fowler, or HFF, a provider of commercial real estate and capital markets services.

HFF said in a press release: "313 and 330 Congress Street are six-story, brick-and-beam office buildings with 70,217 square feet and 35,811 square feet respectively. They were originally built in the 1890s and have been renovated, modernized, and professionally maintained. The buildings are currently 98.1 percent leased to tenants including National Mentor Holdings, Neoscape, and Commercial Construction. Located across the street from each another, the properties are situated between the emerging South Boston Waterfront District and Boston’s Financial District with easy access to Interstate 93, Interstate 90 (Massachusetts Turnpike), and Logan Airport."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:08 AM | Comments (0)

September 9, 2008

Citizens loan analyst will help Respond Inc.

Denise Lamas (right), a loan analyst at Citizens Bank, has been awarded a three-month Community Service Sabbatical, the bank said.

While on sabbatical, Lamas is volunteering at Respond Inc., a local nonprofit organization that works to improve the lives, protect the rights, and ensure the safety of women and children suffering from domestic violence, the bank said. Lamas will assist with the planning of Respond's annual fund-raising gala, the bank said.

The Citizens Bank Community Service Sabbatical program is open to all full-time Citizens employees who have three or more years of service at Citizens; each year, a sabbatical is offered on a competitive basis to employees in Massachusetts, the bank said.

The bank is operated by Citizens Financial Group, or CFG, of Providence. CFG, in turn is owned by the Royal Bank of Scotland Group plc.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:35 PM | Comments (0)

AG reaches settlement with online retailer

The office of Massachusetts Attorney General Martha Coakley (right) said today that it has reached a settlement with a Waltham man over alleged illegalities involving an online electronics store that he operated.

Coakley's office said it obtained a consent judgment against "Jeremy Paradies, 28, of Waltham, resolving allegations that he violated the Massachusetts Consumer Protection Act by misleading consumers, many of them British, by routinely engaging in deceptive pricing, overcharging customers, failing to give refunds, and shipping wrong orders in the operation of an online electronics store."

"Under the terms of the agreement, filed yesterday in Suffolk Superior Court, Paradies will pay $22,000 in restitution and $8,000 in penalties," Coakley's office said in a press release.

In a complaint, Coakley's office alleged that Paradies through his operation of an online retailer sold a "variety of electronics, including digital cameras, recorders, plasma televisions, iPods, and video game equipment."

“Massachusetts will not be a safe haven for those wishing to set up shop to operate misleading and deceptive websites,” Coakley said in a statement. “Our office will continue to monitor any domain names and websites Mr. Paradies operates or becomes involved with over the next three years to ensure he does not engage in this type of unscrupulous behavior again.”
(By Chris Reidy, Globe staff. Photo: Bizuayehu Tesfaye/AP)

Posted by globebusiness at 2:10 PM | Comments (0)

Financial technology firm LifeYield marks launch

LifeYield LLC, a financial technology provider to wealth management firms and advisers, announced its launch.

Headquartered in Boston, LifeYield was founded, and is managed, by industry veterans Mark W. Hoffman (left), Paul R. Samuelson, and Michael P. Benedek, LifeYield said in a press release.

Previously, the three founded and managed Upstream Technologies, a provider of scalable asset management technology that serviced some of the world’s largest financial institutions, LifeYield said. Upstream was later acquired by another firm.

LifeYield said it provides "innovative Web-based tools that help financial professionals systematize and streamline decumulation activity - the complex and time-consuming process of raising cash from an investment portfolio."

Hoffman said in a statement: “Asset decumulation is a major challenge facing today’s financial professionals. While vast resources have been devoted to providing services that maximize asset accumulation, little attention has been paid to technology that automates income distribution strategies to maximize the cash flow from a person’s life savings or trust account. LifeYield provides smart, flexible technology that enables wealth advisors to immediately implement scalable best practice decumulation services.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:25 PM | Comments (0)

Mortgage rates still down

Mortgage rates nationwide remained steady today after falling as much as half a percentage point yesterday following the U.S. government's takeover of financial giants Fannie Mae and Freddie Mac.

National rates remained a little over 6 percent today for a 30-year fixed rate after falling from about 6.5 last week, said Bankrate.com financial analyst Greg McBride.

Drew Grandi of Dynamic Capital Mortgage Inc. in Brookline said his rate for the most qualified borrowers dropped to 5.5 percent today -- a number not even on the table a day before. The average rate for a 30-year fixed held at 5.625, he said.

Because of the dramatic shift, potential home buyers and others hope rates will stay steady or continue to fall. They hope the U.S. Treasury Department's takeover will provide confidence in the markets, rather than concern about its potential cost to taxpayers.

"It has been such a large shift in a very short time period, I will feel more comfortable in about two weeks,'' Grandi said.

(By Jenifer McKim, Globe Staff)

Posted by acaffrey at 1:24 PM | Comments (0)

Boston ranks fourth in urban job growth

The Boston area had the fourth fastest rate of job growth in July among the nation's 12 biggest metropolitan areas, the Bureau of Labor Statistics reported.

Employment in Boston grew just under 1 percent from July 2007, even as employment nationally fell by a tenth of a percent during this period.

Education and health care, professional and business services, and tourism-related leisure and hospitality led job gains in Boston, the BLS said.

Only three other large metropolitan areas experienced stronger job growth in the past year: Dallas-Fort Worth, up 2.3 percent; Houston, up 2.2 percent; and Washington, up 1.2 percent.
(By Robert Gavin, Globe staff)

Posted by globebusiness at 10:50 AM | Comments (0)

Chatham is chosen as a "Fishing for Energy" port

Photo: Lisa Poole/AP

Fishing for Energy, a partnership to recycle old fishing equipment into energy, said it is expanding to Chatham.

According to the partnership, it is an initiative that is made up of Covanta Energy, the National Oceanic and Atmospheric Administration's marine debris program, the National Fish and Wildlife Foundation, and Schnitzer Steel Industries Inc.

One goal of the partnership is to help coastal communities reduce the amount of abandoned fishing gear that ends up in the nation's oceans.

Fishing for Energy said in a press release: "Derelict fishing equipment can threaten marine life, impair navigational safety, and have serious economic repercussions on shipping and coastal communities. Since the partnership was launched in February, over 83,000 pounds of fishing nets, trawl gear, crab pots, and line have been collected and converted into energy."

Once removed from the environment, the gear found near Chatham will be shredded at a Schnitzer facility and transported to Covanta's energy-from-waste facility in Haverhill, where it will be converted into clean, renewable energy at no cost to the town, Fishing for Energy said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:34 AM | Comments (0)

Quattro and uLocate announce a partnership

Quattro Wireless, a Waltham-based mobile ad network, and uLocate Communications, a Boston-based publisher of mobile location-based services, today announced a partnership that will present brands with advertising opportunities to target and serve iPhone owners through a location-based advertising service.

The companies said in a press release: "The deal extends Quattro's In-App Network by leveraging uLocate's Where application to deliver location-based overlays for Quattro's innovative iPhone ad units. In addition, Quattro and uLocate will develop new ad-sponsorships for location-based keyword search, Widgets, and Map options within Where."

The release also said: "Where helps users connect with the people, places, and things around them by delivering geographically relevant retail, business, and event information, as well as entertainment content. By contextualizing advertising with location through a consumer's proximity and active search, Quattro and uLocate will create a premium and unprecedented advertising opportunity for brand marketers to elevate the mobile ad market."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:30 AM | Comments (0)

Sox ads thank fans for consecutive sellout record

The Boston Red Sox released TV and print ads to mark last night's milestone of breaking the all-time Major League Baseball record for consecutive sellouts, with a new record of 456 consecutive sold-out games. A TV ad that is airing on NESN featured Red Sox players and executives thanking the fans. At one point, Red Sox chairman Tom Werner says, "Thanks for never taking a game off." At another, closer Jonathan Papelbon says, "Thanks for always waiting for the last out." Manager Terry Francona says, "Thanks for all the advice." And principal owner John W. Henry says, "Congratulations Red Sox fans on setting a new all-time Major League record."

Print ads ran this morning in the Globe and the Herald, and in those ads, the Red Sox proceeded to thank their fans in 456 ways. Among them:

Reason 64: Calling in sick on Opening Day
Reason 115: Eating over 6 million Fenway Franks
Reason 120: 648 marriage proposals
Reason 121: 359 yeses and 89 maybes
Reason 206: Watching 7 a.m. games from Japan
Reason 356: Treating April like October

The ads are a collaboration between Boston Red Sox Productions and Conover Tuttle Pace, a Boston ad agency. (The agency supplied the video of the ad accompanying this story.) The Globe's corporate parent, The New York Times Co., owns 17 percent of the Red Sox.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:37 AM | Comments (0)

Indian job recruitment website chooses Akamai

Akamai Technologies Inc. of Cambridge said today that Info Edge (India) Limited has chosen Akamai's Web Application Accelerator service to optimize the search application of it's flagship brand and India's No. 1 job site: Naukri.com.

Akamai provides market-leading managed services for powering rich media, dynamic transactions, and enterprise applications online.

Also today, Akamai released its quarterly "State of the Internet" report, which provides insight into such Internet statistics as origin of attack traffic, network outages, and broadband connectivity levels across the globe. To have a look at that report, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:48 AM | Comments (0)

Zafgen appoints Hughes as chief executive

Zafgen Inc., a Cambridge company focused on developing novel obesity therapeutics, said today that Thomas Hughes has been named chief executive.

Hughes was formerly a vice president at the Novartis Institutes for BioMedical Research Inc. in Cambridge, where he directed drug discovery research teams specializing in cardiovascular disease, type 2 diabetes, and related metabolic disorders.

Zafgen explained its approach to obesity in a press release: "Fat tissue is exceptional for its plasticity, its high degree of vascularization, and its ability to continuously remodel and grow new blood vessels as it expands. Zafgen's lead molecules directly target this ability to remodel and expand, causing the fat tissue to shrink, ultimately leading to reduction in weight."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:23 AM | Comments (0)

September 8, 2008

AG opposes New England Gas rate increase

Attorney General Martha Coakley's office is opposing a request from New England Gas Co. for permission to raise its distribution rate by $5.6 million, or about 23 percent, partly because the increase would hit customers at the height of the winter heating season.

Representatives for Coakley are scheduled to voice their disapproval at a public hearing tonight in Fall River, and tomorrow night in North Attleboro, said Jill Butterworth, a spokeswoman for the attorney general.

Jody Stiefel, manager of Regulatory Affairs for New England Gas, said that prior to last year, the company had not had a rate increase in a decade. Stiefel said the utility wants to get its "rates adjusted to make a reasonable rate of return."

New England Gas serves about 55,000 customers in Fall River, Somerset, Swansea, Westport, North Attelboro and Plainville.
(By Erin Ailworth, Globe staff)

Posted by globebusiness at 5:49 PM | Comments (0)

DesPrez promoted at Manulife, but not to ceo

Manulife Financial Corp. today selected its top investment officer, Donald Guloien, over the chief of its Boston-based John Hancock subsidiary, John DesPrez III, to become the next president and chief executive of the giant Canadian insurance company.

Guloien, a 28-year veteran at the company, and DesPrez were in a two-executive race to succeed Dominic D'Alessandro, who will retire as Manulife's chief executive next May.

DesPrez will become chief operating officer of the company at that time. He currently serves as senior executive vice president of Manulife and chief executive of its John Hancock Financial Services subsidiary. DesPrez will continue to run John Hancock after his promotion at the parent company.

"John has an 18-year history with Manulife and is a superb executive who has led our business in Canada and the US through a period of outstanding growth," said Manulife chairman Arthur Sawchuk.
(By Steven Syre, Globe staff)

Posted by acaffrey at 2:45 PM | Comments (0)

TF Green Airport expects fewer flyers

Photo: Victoria Arocho/AP

As airlines laboring under huge fuel costs cut flights next quarter, TF Green International Airport's seat capacity is scheduled to decline 9.7 percent in October, 6.5 percent in November, and 3.2 percent in December compared with the same months last year, the airport said today.

The losses are relatively larger at the small Warwick, R.I., airport than some other ones because American Airlines Inc. will stop serving TF Green in November, removing 132 seats that would have been available on departing flights each weekday.

Continental Airlines Inc. is the only carrier at TF Green that's bucking the trend by slightly increasing its seat capacity all three months - by 32 daily seats in October, 21 seats in November, and 122 seats in December - by using wider aircrafts on the route to Newark, N.J.
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 2:37 PM | Comments (0)

D'Angelo unveils bistro sandwich line

D’Angelo Grilled Sandwiches, the Dedham-based restaurant chain, said it is unveiling four Hearty Bistro Sandwiches today at all D’Angelo locations.

The new sandwiches, which are served on toasted ciabatta rolls and retail for $5.99, include the Bistro Italian, a blend of the Italian meats and cheeses topped with tomato, lettuce, red onion, banana peppers, and balsamic dressing.

Another new offering is the Bistro Turkey Club, 100-percent turkey breast topped with bacon, lettuce, tomato, and a "savory bistro sauce," D'Angelo said.

The new Hearty Bistro line is part of D'Angelo's ongoing strategy to offer consumers a wide range of choices.

D'Angelo's parent company is Papa Gino’s Holdings Corp., which also operates the Papa Gino's chain.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:52 PM | Comments (0)

State Street division to buy Aquin Components

Princeton Financial Systems, a division of Boston-based financial services firm State Street Corp., said today it agreed to acquire European investment management software maker Aquin Components GmbH.

The deal is expected to close in the fourth quarter, subject to regulatory approvals. Financial terms weren't disclosed.

Princeton Financial said the acquisition will help the company expand the reach of its accounting software into markets in Europe where Germany-based Aquin has a strong presence.

Shares of Princeton Financial's parent company State Street Corp. rose $3.63, or 5.4 percent, to $71.50 in afternoon trading on the New York Stock Exchange as the broader market surged on the government's bailout of struggling mortgage lenders Fannie Mae and Freddie Mac. (AP)

Posted by globebusiness at 1:39 PM | Comments (0)

Carbonite secures additional funding

Carbonite Inc., a provider of online backup services for consumers and small businesses, said today it has closed its C round of financing.

"The round provides Carbonite with approximately $20 million of new capital, bringing the total raised by the Boston-based company to approximately $47 million," Carbonite said in a press release. "While the company does not disclose specific terms, the valuation of the C round is a significant step up from prior rounds."

The round was led by Performance Equity of Connecticut, said Carbonite, which added that the new cash would be used to expand the company's marketing and partnership programs.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:29 PM | Comments (0)

Siemens Healthcare formally expands in Walpole

Siemens Healthcare Diagnostics, an arm of the German conglomerate, said it formally opened a 115,000-square-foot addition to its manufacturing plant in Walpole this morning.

Siemens said it invested more than $100 million in the addition, which is expected to bring more than 70 new jobs to the area. The new space will enable the Walpole site to nearly double its production capacity, allowing it to produce more than 1 billion diagnostic tests.

US Senator John Kerry, Democrat of Massachusetts, was among the dignataries attending a ribbon-cutting celebration this morning, along with Donal Quinn, chief executive of Siemens Healthcare Diagnostics and Jim Hughes, vice president and site leader for Siemens.

As a recent Globe story noted, Siemens is one of several life sciences companies to plan expansions in Massachusetts.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 1:09 PM | Comments (0)

Bingham continues to grow its securities practice

Bingham McCutchen LLP, a large Boston law firm with offices nationwide, said it is continuing its strategic expansion of its international securities practice with the addition of two partners to its Washington office.

The two new partners are Michael D. Wolk and Amy N. Kroll, formerly of Foley & Lardner LLP.

Wolk is a former vice president and chief counsel of the Market Regulation Department at what is now known as the Financial Industry Regulatory Authority, or FINRA, the nongovernmental regulator for securities firms doing business in the United States.

Kroll is a former assistant general counsel at the Securities and Exchange Commission.

"Our goal is to continue to build upon our core practice strengths to
remain a market-leader in the securities area to better serve clients'
legal needs nationally and internationally," Bingham chairman Jay
S. Zimmerman (right) said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:51 PM | Comments (0)

CRA taps Anthony as chief information officer

CRA International Inc. today announced the appointment of Steven J. Anthony as chief information officer.

Headquartered in Boston, CRA is a global provider of management, economic, and financial consulting services.

Previously, Anthony was vice president of professional services and engineering at GCi Inc., and vice president of operations and business technology at Celerant Consulting.

CRA president and chief executive James C. Burrows said in a statement, "As a global organization with an extensive network of consultants, our information technology needs are continually evolving. Steve is a seasoned technology executive, and we look forward to the experience and insight he will bring to the CIO position."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:27 PM | Comments (0)

Mass. gas prices are down another 5 cents

Photo: David L. Ryan/Globe staff

The average price for a gallon of gasoline in Massachusetts fell 5 cents, the ninth straight week of price declines, AAA Southern New England said today.

AAA said its Sept. 8 survey of prices in Massachusetts found self-serve, regular unleaded averaging $3.55 per gallon, 5 cents less than last week and 53 cents less than the record high of $4.08 on July 7.

AAA said in today's press release: "Massachusetts is currently 10 cents below the national average for regular unleaded of $3.65. A year ago at this time, the average price in Massachusetts was $2.65."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:07 AM | Comments (0)

Esquire unveils "revolutionary" magazine cover

A revolutionary and top-secret Esquire magazine cover was revealed this morning on NBC’s “The Today Show.”

The magazine’s 75th anniversary cover – the first mass-produced glossy magazine cover featuring electronic ink – has an inset that electrically sorts tiny black or white capsules to read, “The 21st Century Begins Now.”

A computer chip allows the 10-square-inch display to present parts of the phrase in succession before the entire sentence blinks together.

That technology originated in Cambridge at E Ink Corp., where the Esquire project was seen as one step toward a paperless future.

Esquire’s parent company, Hearst Corp., is an investor at E Ink, and plans to print 100,000 copies of the special October issue, to be sold at Barnes & Noble and Borders bookstores this week.

Copies featuring the E Ink technology will cost $2 more than the regular newsstand price of $3.99.

Esquire editor David Granger declined to reveal the project’s cost in his interview with Matt Lauer, but each electronic ink unit costs $8 to $10 per copy, Granger told the Globe. Part of that cost was offset by selling electronic ink ad space to Ford Motor Co.

Granger said the issue’s theme pronounces a new century after eight years of “more pessimism than America is used to” following the attacks of September 11.

A list of the 21st century’s 75 most influential people highlights the issue. Democratic presidential nominee Barack Obama made the cut, but his Republican counterpart, John McCain, did not. Other honorees included politicians Bill and Hillary Rodham Clinton, comedian John Stewart, actress Scarlett Johansson, and basketball star LeBron James.

The anniversary issue continues the publication’s mission of “showing men a certain level of ambition they can aspire to,” Granger said.
(By Erich P. Schwartzel, Globe correspondent)

Posted by globebusiness at 9:39 AM | Comments (0)

iRobot agrees to buy small underwater robot firm

Bedford's iRobot Corp., which makes household and military robots, said today it has agreed to buy Nekton Research LLC, an unmanned underwater robot and technology company based in North Carolina.

Terms of the merger agreement include a cash payment of $10 million with the potential for additional consideration of up to $5 million, based on the achievement of certain business and financial milestones, iRobot said, and the impact of the transaction on iRobot's revenue will be "minimal" in 2008; in 2009, the anticipated product and contract revenue will be $6 million to $8 million.

(Images with this story were taken from Nekton's website; the images show some of the firm's underwater robots.)

IRobot said in a press release: "Nekton has been instrumental in shaping the underwater marketplace during the past six years by supporting customers such as the Office of Naval Research, Naval Undersea Warfare Command, the Naval Air Systems Command, and the US Special Operations Command."

"We believe that the underwater market is the next frontier for robots," Helen Greiner, cofounder and chairman of iRobot, said in a statement. "This acquisition positions us for leadership in robot solutions on both the land and sea."

Some of Nekton's product line will complement the Seaglider robot that iRobot has licensed from the University of Washington, iRobot noted.

The transaction is expected to close by September 12, iRobot said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:19 AM | Comments (0)

Orthofix names Vaters chief financial officer

Orthopedic product maker Orthofix International NV of Boston said today it appointed Robert S. Vaters a chief financial officer and executive vice president.

Vaters replaces Tom Hein, who will become Orthofix's executive vice president of finance.

Vaters is general partner of a health care private equity firm and is a former executive at Inamed Corp., a medical device company acquired by Allergan Inc.

(Images of some of Orthofix products were taken from the company's website. The sports medicine bracing product shown at right might be something that Patriots quarterback Tom Brady needs to check out.)

"Bob's experience in providing financial leadership for global companies and his knowledge of the medical device industry will be valuable assets as we continue to focus on strengthening our legacy businesses while executing the strategy for our emerging spine business," Orthofix's chief executive Alan Milinazzo said in a statement. (AP)

Posted by globebusiness at 8:36 AM | Comments (0)

CVS clears antitrust hurdle in Longs Drugs buyout

Drugstore chain CVS Caremark Corp. of Woonsocket, R.I., said today that it cleared a hurdle to its acquisition of Longs Drugs Stores Corp. now that the regulatory waiting period under the Hart-Scott-Rodino Antitrust Improvement Act has expired.

CVS said the waiting period ended Sept. 5.

California-based Longs, which operates more than 500 drug stores, agreed in August to be acquired by CVS for $2.7 billion. (AP)

Posted by globebusiness at 7:55 AM | Comments (0)

Pro-Pharmaceuticals submits data to the FDA

Pro-Pharmaceuticals Inc. of Newton said today it has submitted data to federal regulators to support a plan for its Davanat to be considered as part of chemotherapies for the treatment of advanced solid tumors and breast and colorectal cancers.

Specifically, Pro-Pharmaceuticals said it has submitted clinical and pre-clinical data to the US Food and Drug Administration for a pre-Investigational New Drug (IND) meeting that is scheduled for Oct. 8.

Pro-Pharmaceuticals said in a press release: "The company plans to present the development plan to the FDA for an anti-hypoxia drug to be used in combination with Davanat and 5-FU to treat advanced solid tumors, including head and neck, breast and colorectal cancers. The plan is in direct response to current studies indicating tumors resistance to chemotherapy and radiation are linked to hypoxia."

Davanat is a compound that Pro-Pharmaceuticals hopes can be brought to market with multiple chemotherapy drugs.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:36 AM | Comments (0)

September 5, 2008

Perini shareholders approve buying Tutor-Saliba

Perini Corp., a civil and commercial construction contractor headquarterd in Framingham, said today that its shareholders approved the acquisition of privately-held Tutor-Saliba Corp.

Terms were not disclosed. (The 2007 photo above shows the construction of Center City on the Las Vegas strip; the hotel-entertainment complex is a Perini project.)

Perini said in April it would acquire privately held Tutor-Saliba for $862 million in an all-stock deal pairing two contractors that handle large public and private construction projects.

Perini expects to close the transaction on Monday.

The acquisition will help grow the company's backlog of projects and diversify its reach into new segments, said Michael R. Klein, lead director of Perini.

In May, Perini was named top Massachusetts company of the year in the Globe 100.

On the New York Stock Exchange, shares gained $1.73, or 7 percent, in afternoon trading to $26.29. (AP)

Posted by globebusiness at 2:26 PM | Comments (0)

Mild winter is a chilling thought for US ski resorts

(Daniel Smith Photo/Weston Ski Track)

With the US economy stuttering, the owners of the nation's ski resorts get chills worrying if a mild winter and the growing hassles of airline travel will leave their slopes bare this year.

The nation's 10.6 million well-heeled downhill skiers and snowboarders typically find a way to get out on the mountains when snow falls, data shows. But current worries about the economy may prompt some, particularly in the Northeast, to drive to nearby mountains rather than flying to destination resorts in Colorado and Utah this year.

That could leave resorts light on guests during the off-peak weekends, when traffic is not boosted by school and work holidays.

"The concerns this year may center on the higher cost of air travel, the nickel-and-diming by the airlines," said Hayley Wolff, senior research analyst at Rochdale Research, who follows the tourism sector.

Rising airfares, not to mention moves by carriers including American Airlines and United Airlines to hike fees for checked luggage, could turn off skiers, who travel with bulky equipment.

"That could pinch that three-day trip in January, the off-peak kind of trip that you might take," Wolff said. "I don't know if it cuts into the week vacation with the family as much as it cuts into the off-peak visitation pattern."

An analysis by Wolff shows the total number of days skiers visited US resorts declined in three of the last seven US recessions or slowdowns since 1981, with the sharpest decline, of 4.9 percent, coming in the wake of the 9/11 attacks, a season that saw unusually low snowfall in the Northeast.

"There is no question that the environment today from every front does not feel as robust as it felt last year," said Rob Katz, chief executive of Vail Resorts Inc, which owns high-end ski resorts in Colorado and California. "At the same time, we're certainly seeing and hearing that people still want to take vacations."

To make a ski vacation seem less financially daunting, the Broomfield, Colo.-based company this year has cut by about $1,000 the cost of its unlimited season pass, which it is offering for $579 until Nov. 15. It has also introduced an unlimited-ski-rental program for repeat visitors.

"This year people may not want to bring their own skis with what the airlines are doing," Katz said.

WEATHER WORRIES

The number of visits US skiers have made to resorts has held steady between 50 million and 60 million for most of the past 30 years, falling below that range only four times and beating it for the first time last winter, according to data from the National Ski Areas Association. That steady traffic partly reflects the relative affluence of skiers -- 45 percent of whom claim household income of $100,000 or more, according to data from the National Sporting Goods Association.

With a shaky economy leaving many Americans more worried about lavish holiday outlays, resort owners will be all the more worried about the weather.

"In the years when we've seen those kinds of economic times combine with a bad weather year, whether it's regionally or nationally, we'll see a downturn," said Michael Berry, president of the National Ski Areas Association. "Not often into the double digits, but 5, 7, 8 percent is the impact that we've seen in the past."

Both the Farmer's Almanac, a 192-year-old US journal that offers long-range weather forecasts and homey advice, and its 216-year-old rival The Old Farmer's Almanac are predicting an unusually cold and snowy winter for much of the country.

Those prognostications stand in marked contrast to the long-term outlook of the US National Oceanic and Atmospheric Administration, which is forecasting above-normal temperatures across much of the country for December through February - the heart of the ski season - according to Mike Halpert, deputy director of NOAA's climate prediction center.

The ski business gives little credence to long-term weather forecasts of any kind.

"You have to be an optimist to run a ski resort," said Dave Belin, director of RRC Associates, a travel and tourism consulting company in Boulder, Colo., that focuses on skiing and snowboarding. "These guys always think there's going to be great weather."

CLOSE TO HOME?

Financial worries may prompt people to ski closer to home - with Northeasterners driving to nearby mountains rather than flying to Colorado's Rocky Mountains.

"You'll see a little bit of people staying closer to home," Belin said. "People from New York or Boston going to Vermont instead of booking that trip to Whistler or Vail."

While driving has also gotten more expensive as the price of gasoline has risen some 30 percent over the past year, New England resort owners are keeping their fingers crossed that the skiers will still make the trip to nearby mountains.

"Obviously, we're a very close regional drive from major markets such as Boston, Hartford (Connecticut), New York City, Montreal and Toronto," said Tom Horrocks, communications manager at the Killington Resort, in Killington, Vt., located about 250 miles north of New York City.

"Not only is it more expensive to purchase an airline ticket to fly to other destinations, but it's also more expensive to take your ski and snowboard equipment with you as well," Horrocks said. "That's going to weigh heavily on people's minds." (Reuters)

Posted by globebusiness at 1:10 PM | Comments (0)

New England School of Law has a new "nickname"

New England School of Law will change its name to New England Law | Boston as it looks to avoid confusion with other law schools with similar names and tie its identity more closely to the city of Boston.

In an e-mail to students, faculty, and alumni that was made available to the Globe, John F. O'Brien (right), dean and professor of law, wrote that as the school prepares to celebrate its 100th anniversary this month, one way to mark its entry into its second century was to adopt a new "'nickname' - New England Law | Boston - that will serve as our public identity (although our legal name will remain the same, including on diplomas)."

The school will be using not just a new nickname but also a new logo and a revamped website, he wrote.

O'Brien also wrote in the e-mail, "We chose a name that we feel differentiates us from other law schools in the region with very similar names, provides continuity with our old name, and connects the school with its very appealing location in Boston."

The school is set to commemorate its 100th anniversary at a convocation ceremony Sept. 23, and former Supreme Court Justice Sandra Day O’Connor (left) is scheduled to be the featured speaker.

The new name and the new logo seek to recall the spirit of graduate Lenny Zakim (right), the late New England regional director of the Anti-Defamation League, whose civil rights legacy was honored in the naming of the Leonard P. Zakim Bunker Hill Bridge, the school said in a memo.

O'Brien discussed the school name change further in a telephone interview.

"We're downtown," he said. "We're in the Theater District, and we want people to know who we are."

The school's name change was first reported by the Boston Business Journal.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:21 PM | Comments (0)

Raytheon gets $85 million contract for projectiles

Waltham defense contractor Raytheon Co. today said that it received an $85.3 million contract from the Army to produce Excalibur precision artillery projectiles for the Army, Marine Corps, and the Australian Defence Forces.

Excalibur, a joint effort by Raytheon Missile Systems and BAE Systems Bofors of Sweden, provides precision-strike capability at long ranges for current and future 155-millimeter howitzers.

Shares of Raytheon climbed 62 cents to $59.12 in morning trading on the New York Stock Exchange. (AP)

Posted by globebusiness at 10:56 AM | Comments (0)

Disk storage systems market posts strong growth

Worldwide factory revenues for external disk storage systems were $5.1 billion in the second quarter, up 16.7 percent from the same period a year ago, IDC said today in a report titled the IDC Worldwide Disk Storage Systems Quarterly Tracker.

Headquartered in Framingham, IDC is a global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets.

EMC Corp., the Hopkinton storage giant, maintained its lead in the external disk storage systems market with 21.7 percent revenue share in the second quarter, followed by IBM and Hewlett Packard Co. in a statistical tie with 13.1 percent and 12.9 percent revenue share, respectively, IDC said in a press release.

 "Despite concerns about a 2008 slowdown in IT spending, external disk storage systems spending experienced strong growth in the first half of 2008," Natalya Yezhkova, research manager of storage systems at IDC, said in a statement. "The second quarter of the year was remarkable, not only because it is the highest growth in two years, but also because of the distribution of this growth across different market segments. The ability of vendors to meet a variety of needs among customers with a diversity of storage products and initiatives led to solid growth across all installation environments, even in those that declined over the past several quarters."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:55 AM | Comments (0)

Zaltman wins MIT Sloan marketing award

Harvard Business School professor Gerald Zaltman (right) is being honored with the Buck Weaver Award for Marketing, the MIT Sloan School of Management said today.

The award, which recognizes individuals who have made important contributions to the advancement of theory and practice in marketing science, was established by MIT Sloan in 2003 and is sponsored by General Motors Corp.

Zaltman is the Joseph C. Wilson professor of business administration, emeritus, at Harvard Business School and the author of "How Customers Think: Essential Insights into the Mind of the Market." His research interests focus on customer behavior and marketing strategy. To read Zaltman's biography on the Harvard Business School website, please click here.

Discussing the origins of the Buck Weaver Award, MIT Sloan said in a press release: "Henry Grady "Buck" Weaver was a pioneer in marketing research and market-based decision making in the 1930s. Working for GM, he was the first known director of marketing research who went on to pioneer formal consumer research on attitudes, opinions, styling preferences, and customer design feature priorities."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:48 AM | Comments (0)

Biogen Idec testing Tysabri as a cancer treatment

Biogen Idec Inc. of Cambridge and Elan Corp. plc of Dublin today announced the initiation of the first clinical trial of Tysabri as a potential cancer treatment.

Tysabri is already approved for treating multiple sclerosis and Crohn's disease, but there have been setbacks. Tysabri was originally launched in 2004 but was temporarily taken off the market after several multiple sclerosis patients contracted a brain disease. In mid 2006, Tysabri was reintroduced to the market with strict prescribing guidelines. Several weeks ago, Biogen Idec said that two more patients appeared to have contracted the rare and potentially fatal brain disease, the first cases since Tysabri was reintroduced to the market two years ago.

Speaking about Tysabri as a potential oncology drug, Biogen Idec and Elan said that the first dose of Tysabri was administered yesterday in the trial.

The companies said in a press release, "The objectives of this Phase I/II study are to evaluate the safety and potential anti-tumor activity of Tysabri in patients with relapsed or refractory multiple myeloma."

Having Tysabri approved for cancer treatment would boost Biogen Idec and Elan, which share the rights to Tysabri, and widen the market for the drug.

Last month, before the two companies announced plans to test Tysabri as a potential cancer treatment, a Wall Street analyst said that even under his best scenario, Tysabri will have only about 75,000 users by 2013, short of Biogen Idec's goal of 100,000 by 2010.

In January, Tysabri won US regulatory approval as a treatment for Crohn's disease, a debilitating disease that frequently causes diarrhea and abdominal cramps as well as fever, bleeding, and weight loss.

For additional coverage of Tysabri, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:18 AM | Comments (0)

Phase Forward acquires Clarix

Phase Forward Inc. of Waltham said today that it has acquired privately held Clarix LLC of Pennsylvania for $40 million in cash.

Phase Forward provides data-management solutions for clinical drug trials and drug safety while Clarix is focused on fully Web-integrated interactive response technology, or IRT.

The majority of Phase II and Phase III clinical trials require randomization and related medication supplies management, and IRT is the predominant solution for automating these processes, Phase Forward said.

Phase Forward said it estimates the current IRT market to be between $200 million and $250 million, and believes that the addition of an IRT offering will present significant cross-selling opportunities by enabling Phase Forward to offer both new and existing customers an expanded product offering.

Phase Forward said in its press release, "Clarix generated approximately $2.7 million in revenue in 2007, and Phase Forward estimates that they will generate approximately $6.3 million for the full year 2008 on a stand-alone basis."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:38 AM | Comments (0)

September 4, 2008

Bank of America says it's working to settle with state

Responding to a Massachusetts regulator’s threat to sue, Bank of America Corp. today said it has been negotiating in good faith for nearly a month to buy back its customers’ auction-rate securities.

‘‘We have repeatedly and consistently said that we are ready and willing to enter into an agreement that follows the same basic terms of previously announced settlements. We understood that we had reached such an agreement in principle nearly two weeks ago,’’ the banking firm said.

A person briefed on the talks said the lack of a resolution appeared to be due to disagreements between the regulators pursuing the case.

The statement was issued as Reuters reported that New York Attorney General Andrew M. Cuomo’s office was issuing several new subpoenas to Bank of America executives this week. Cuomo’s office was not immediately available for comment.

On Wednesday, Massachusetts Secretary of State William F. Galvin expressed frustration that his office had not been able to settle with Bank of America. He said the state might deepen its investigation and file a lawsuit against the bank if there isn’t an agreement soon.

Bank of America said: ‘‘We hope that all of the parties will work towards completing a settlement for the benefit of investors who have been affected by unprecedented market disruptions.’’

The bank said it has been negotiating with Cuomo, Galvin, a coalition of other states, and the Securities and Exchange Commission.

So far, eight major brokerage firms have settled with regulators, pledging to buy back more than $50 billion of auction-rate securities. The investments were bonds issued by nonprofits and municipalities that were sold to investors as cash equivalents. The $330 billion market froze in February, when Wall Street firms suddenly stopped trading the securities, leaving thousands of investors trapped.
(By Beth Healy, Globe Staff)

Posted by globebusiness at 5:01 PM | Comments (0)

Dunkin' Donuts franchise owners want ad spending oversight

Dunkin' Donuts franchise owners today called for new oversight over the Canton coffee chain following the federal indictment last week of a former company executive allegedly involved in a kickback scheme.

According to the indictment filed in US District Court in Boston, Carolyn Kravetz, 42, Dunkin's former director of external communications, steered contract work totaling $400,000 to a close college friend, Boris Levitin, in exchange for 50 percent of his gross receipts between August 2004 and October 2005. Levitin, 43, was self-employed, doing business as Luminophore, providing graphic design, technical publishing, and information system services.

Kravetz allegedly authorized payments for $396,875, including payment in full for multiple projects in which Levitin had performed no work. In turn Levitin kicked back to Kravetz roughly $200,000, according to court records. The funds Dunkin' paid to Luminophore came from the ad fund, which is financed by contributions from all Dunkin' Donuts franchisees, according to the Dunkin' Donuts Independent Franchise Owners, the largest association of franchise owners in the US.

Kravetz and Levitin, who both attended Boston University during the 1980s, were charged with six counts of mail fraud, and Kravetz was charged separately with two additional counts of subscribing a false tax return.

Kravetz, reached by phone, declined to discuss the matter and referred questions to her lawyer, Joseph Balliro, who did not return calls seeking comment.
Jeffrey Licthman , Levitin's lawyer, said his client returned all of the money paid to him and Kravetz.
"She's the one that made the arrangements. He never once looked to skirt any of the work and never wanted a dime more than he was paid for," Licthman said of his client.

Stephen Caldeira , Dunkin' Brand's chief communications office, said in a statement that Kravetz was responsible for day-to-day communication with print and broadcast media, as well as supporting the marketing staff in promotion of new products and offers.

"In regard to Ms. Kravetz's recent indictment, we have been working with the appropriate authorities. Given that this is a pending legal matter, we will not make any further comment," Caldeira said.

The Dunkin' franchise association, in a press release yesterday, demanded greater controls over the franchisee ad fund by franchisees and regular audits by an independent certified public accountant that are made available to all franchisees.
(By Jenn Abelson, Globe staff)

Posted by globebusiness at 4:24 PM | Comments (0)

Details on Murray's Ireland trip released

Lieutenant Governor Timothy Murray's office provided more details about his upcoming trade mission to Ireland and Northern Ireland.

The trip will include stops in four cities from Oct. 5 through Oct. 11 and focus on life sciences, information technology and tourism.

The delegation will also include Senate President Therese Murray and representatives from state government, industry and higher education. They will visit Galway and Dublin in Ireland and Belfast and Derry in Northern Ireland.

Several local companies, including Boston Scientific Corp., EMC Corp. and Cognex Corp., have major manufacturing operations in Ireland. And Creganna, an Irish medical device company, recently opened a manufacturing plant in Marlborough, creating 100 jobs.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 3:53 PM | Comments (0)

TJX shares fall on August results

Shares of TJX Cos. fell today after the operator of T.J. Maxx and other off-price retail stores reported August same-store sales below expectations.

On the New York Stock Exchange, shares for the Framingham company fell $2.41, or 6.6 percent, to $34.38 during midday trading. The stock has traded between $25.49 and $37.52 during the past 52 weeks.

Same-store sales were flat, while analysts expected a 2.1 percent rise. The company said an unexpected drag from foreign currency exchange hurt monthly results.

Same-store sales, or sales at stores open at least a year, is a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.

The company also had leaner clearance merchandise during the month.

C.L. King analyst Mark Montagna urged investors in a note today to buy the stock on any decline in share price.

"TJX has had periods of weakness in its shares and in its reported monthly results, wrote Montagna, who has an "Accumulate" rating on the stock. "In both cases, the shares and performance rebounded. We believe the August reported results present such a buying opportunity."

He said that T.J. Maxx geared its back-to-school marketing and merchandise toward September.

"While such a decision likely hindered August selling, it will almost certainly help September results," Montagna wrote.

TJX operates off-price apparel and home stores including T.J. Maxx, Marshalls, HomeGoods, and A.J. Wright stores in the U.S. It also operates Winners and HomeSense stores in Canada and T.K. Maxx and HomeSense stores in Europe. (AP)

Posted by globebusiness at 2:54 PM | Comments (0)

Aramark won't cater Green Building Council's event

In a bid to soothe labor tensions, the Massachusetts Convention Center Authority and its sole concessions provider, Aramark Corp., have granted the US Green Building Council's request for a different caterer at the council's Nov. 19-21 conference at the Boston Convention & Exhibition Center.

The agreement should clear the way for the keynote speaker, Archbishop Desmond Tutu (left), to attend the annual conference without Unite Here's Local 26 picketing. About 30,000 people are expected to attend the event.

The union, which represents food and beverage workers, has for the past year been entrenched in bitter contract negotiations with Aramark.

Last month, the Green Building Council said it was contacted by the union and was talking to the MCCA, Aramark, and the union to seek a compromise.
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 2:33 PM | Comments (0)

Caritas Christi promotes two executives

Caritas Christi Health Care, the financially troubled six-hospital chain owned by the Archdiocese of Boston, announced today the appointment of Robert E. Guyon, Jr. as chief operating officer.

Guyon is the current chief executive of Saint Anne’s Hospital, a Caritas Christi hospital in Fall River.

Effective October 1, Guyon will replace Richard Cunningham, who served as the system’s chief operating officer for the past four years, and Joseph E. Ciccolo, Jr., the current senior vice president of support services at Caritas Christi, will replace Guyon at Saint Anne's, Caritas Christi said.

Ralph de la Torre (right), president and chief executive of Caritas Christi Health Care, praised Guyon in a statement.

“Bob has an outstanding track record within Caritas Christi of effective leadership across our system and has an expertise in the financial, operational, and clinical requirements of running a large, complex health care organization,” de la Torre said in his statement.

For recent coverage of Caritas Christi, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:22 PM | Comments (0)

Logan improves on-time performance

Boston's Logan International Airport improved its on-time performance rate for both departures and arrivals in July, but not as much as most other large airports did, according to the latest data from the US Department of Transportation.

Logan ranked 24th best out of the top 32 major US airports with an on-time departure rate of 73.74 percent in July, compared with ranking 18th best with 71.16 percent in the same month last year.

For arrivals, Logan ranked 28th best with an on-time rate of 67.46 percent, compared with ranking 27th best with an on-time rate of 63.35 percent in July 2007.

The government considered flights to be on-time if they departed from or arrived at their gates within 15 minutes of schedule.
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 1:58 PM | Comments (0)

Archstone gets construction loan for Hub project

Holliday Fenoglio Fowler LP, or HFF, announced today that they arranged a $90 million construction loan for the development of Archstone Avenir, an apartment complex in Boston.

The project's developer, Archstone, is a national company specializing in apartment investment and operations. (The image above is a rendering that was supplied by HFF.)

HFF said in a press release: "Due for completion in Spring 2009, Archstone Avenir will have 241 luxury apartment units, approximately 28,000 square feet of street-level retail space and a 115-space structured parking garage. Intended uses for the retail space include a restaurant, full-service bank and coffee shop. Located at the corner of Canal and Causeway Streets, Avenir is adjacent to the Rose Kennedy Greenway in the Bulfinch Triangle area of downtown Boston. The property is situated above a newly-constructed MBTA subway super station offering access to the Orange and Green lines, and across Causeway Street from the North Station commuter rail station within the TD Banknorth Garden."

HFF, a provider of commercial real estate and capital markets services, said it worked on behalf of Archstone to secure a 36-month construction loan through the National Electrical Benefit Fund, a pension fund for those in the electrical industry.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:52 AM | Comments (0)

Synageva picks chief, opens Waltham office

Synageva BioPharma announced the appointment of Sanj K. Patel as president and chief executive.

The company added in a press release: "In conjunction with Sanj Patel's appointment, Synageva has opened new corporate headquarters outside of Boston in Waltham, Mass. The company maintains research and production operations in the greater Atlanta area where the company was originally founded under the name of Avigenics."

Synageva said it is focused on the development of biopharmaceuticals that address the needs of a global patient population in multiple areas, including oncology, autoimmune diseases, and genetic diseases.

Patel joins Synageva from Genzyme Corp. of Cambridge, where he worked from 1999 to 2008, Synageva said. Most recently, he was head of US Sales, Marketing, and Commercial Operations for Genzyme Therapeutics.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:01 AM | Comments (0)

Mass. business confidence remains weak

Confidence among Massachusetts employers regained some ground in August as a Business Confidence Index rose 2.5 points to 47.1, but the survey results continued to depict a weak economy with no signs of substantial improvement in the months ahead, said the compiler of the index, the Associated Industries of Massachusetts, or AIM.

On its website, AIM describes itself as nonprofit, nonpartisan association of Massachusetts employers.

“More positive assessments of national conditions and six-month prospects gave us only the second monthly gain since last October,” Raymond G. Torto, chair of AIM’s Board of Economic Advisors, said in a statement. "Though the index recouped much of July’s loss in August, it is still well below a neutral 50 on its 100-point scale, and the ratings of national and state economic conditions are near 40, which is very weak.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:39 AM | Comments (0)

Altra Industrial Motion is relocating to Braintree

Altra Industrial Motion Inc. plans to relocate its headquarters from Quincy to 300 Granite St. in Braintree in November, a broker involved in the transaction said today.

The broker is Colliers Meredith & Grew, a Boston-based commercial real estate firm.

Altra Holdings, Inc., through its wholly-owned subsidiary Altra Industrial Motion, Inc., is a multinational designer, producer, and marketer of a wide range of mechanical power transmission products.

Built in 1985, 300 Granite St. is a four-story 89,466-square-foot office building located near the South Shore Plaza shopping mall, Colliers Meredith & Grew said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:25 AM | Comments (0)

TJX reports August sales

TJX Cos., the Framingham company that operates such retail chains as T.J. Maxx, Marshalls, and HomeGoods, said today that a key metric for August sales was "slightly below plan."

Same-store sales, or sales at stores open at least a year, were flat in August when compared with a year ago, said TJX, which refers to same-store sales as "consolidated comparable store sales." Consolidated comparable store sales, or same-store sales, are regarded as an important measure of a merchant's performance in the retail industry.

Total sales for the four-week period ended August 30, 2008, were $1.5 billion, up 4 percent over the $1.4 billion achieved during the four-week period ended September 1, 2007, TJX said.

Carol Meyrowitz, TJX president and chief executive, said in a statement: "Our August consolidated comparable store sales results were slightly below plan, driven by the unanticipated negative impact of foreign exchange rates. Additionally, as we have previously mentioned, we entered August with leaner clearance merchandise and have geared our back-to-school marketing and merchandising toward September. Margins remain strong, and with great liquidity in our inventories, we are in an excellent position to pursue our opportunistic buying strategies."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:39 AM | Comments (0)

BJ's Wholesale same-store sales rise in August

BJ's Wholesale Club Inc. of Natick said today that same-store sales rose 15.4 percent in August, boosted by gas and grocery sales.

Analysts polled by Thomson Reuters had expected a 14.1 percent rise.

Same-store sales, or sales at stores open at least a year, are a key measure of retailer performance, because they measure growth at existing stores rather than from newly opened ones.

For the four-week period ended Aug. 30, total sales rose 17 percent to $774.4 million.

Year-to-date, same-store sales rose 13 percent and total sales rose nearly 16 percent to $5.68 billion.

The Southwest and upstate New York were the strongest regions, while the metro New York region was the weakest.

Sales of food rose 11 percent, boosted by perishables, and computers and health and beauty products also sold well.

Weaker categories included air conditioners, cigarettes, jewelry, storage, summer seasonal merchandise, televisions and prerecorded video.

Traffic was up about 5 percent from last year, excluding sales of gas. (AP)

Posted by globebusiness at 8:24 AM | Comments (0)

Epix will regain worldwide rights to Vasovist

Epix Pharmaceuticals Inc. of Lexington said today that Bayer Schering Pharma will transfer the worldwide commercial rights for the novel blood pool magnetic resonance angiography agent, Vasovist, to EPIX.

The collaboration agreement between the two parties will terminate effective March 1, and until that time, Bayer Schering Pharma will continue to provide continued supply of Vasovist in the 19 countries where it is currently marketed, Epix said.

Earlier this year, Epix resubmitted a new drug application to the Food and Drug Administration for Vasovist, an imaging agent for diagnosing vascular disease.

The FDA had previously denied approval for Vasovist and suggested that additional testing was necessary. Ultimately the FDA said new trials would not be required and asked EPIX to submit the results stemming from a re-read of its Phase 3 clinical trial images, the company said. Epix has expressed the hope that Vasovist will gain US approval by the end of the year.

Epix said in today's press release: "Vasovist is an injectable intravascular contrast agent designed to provide improved imaging of the vascular system through magnetic resonance angiography imaging (MRA). Vasovist has been approved for marketing in 34 countries, including all 27 member states of the European Union, Switzerland, Turkey, Australia, and Canada. Global marketing rights to Vasovist are currently held by Bayer Schering Pharma. Vasovist is currently marketed in Canada and 18 European countries, including Germany, the Netherlands, Italy, all Nordic countries, the United Kingdom, and Switzerland."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:03 AM | Comments (0)

Repligen receives research grants

Repligen Corp. of Waltham said today that it has received $1.125 million in research grants to support the development of new treatments for Friedreich's ataxia.

Friedreich's ataxia is an inherited neurodegenerative disease in which a single gene defect results in inadequate production of the protein frataxin, leading to progressive damage to the nervous system and loss of muscle function, the company noted.

The research grants are made up of $1 million from the Muscular Dystrophy Association and $125,000 from the Friedreich's Ataxia Research Foundation and the National Ataxia Foundation, the company said.

In a press release, Repligen said, "The grants will further the development, characterization, and selection of a drug candidate for human clinical trials as well as support the development of tools ('biomarkers') to monitor the desired biological impact of the drugs in clinical trials."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:33 AM | Comments (0)

Brandeis will offer "green" MBA

Brandeis International Business School, or IBS, announced a new "Global Green MBA."

The new concentration, the MBA in Socially Responsible Business, strengthens the position of IBS as a leading global business school, Brandeis said.

"This new program will provide students the tools they need to build sustainable businesses in a complex global marketplace," Marty Wyngaarden Krauss, provost and senior vice president for academic affairs at Brandeis, said in a statement.

Brandeis added in a press release, "Requirements will include specialized courses on corporations and communities, corporations and the environment, and a seminar exploring what 'green' means in different contexts."

Brandeis is offering the course this fall. For more details, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:12 AM | Comments (0)

September 3, 2008

State's talks with Bank of America stall

Talks with Bank of America Corp. over sales of auction-rate securities have stalled, Secretary of State William F. Galvin said today. If the banking giant doesn’t agree to repay its customers soon, the Massachusetts Securities Division may sue, he said.

Galvin said Massachusetts regulators have been negotiating with Bank of America for two weeks. Galvin said the delays are leaving investors trapped with no answers. ‘‘We want to resolve this for them,’’ he said.

The Globe previously reported that Bank of America was warning some large clients about the looming problems in the auction-rate market in December, while continuing to sell the securities without such warnings to smaller investors through February.

Auction rate securities are the bonds of nonprofits and municipalities that were widely sold on Wall Street as safe and cash-like. But all trading in the securities ceased in February, amid other problems in the credit markets, leaving thousands of investors unable to access their money.

State and federal regulators have so far secured more than $50 billion in settlements with brokerage firms that sold auction-rate securities and then stopped trading them.

Bank of America had no immediate comment.
(By Beth Healy, Globe Staff)

Posted by globebusiness at 4:16 PM | Comments (0)

Hamilton Canal area is identified as a growth district

Lieutenant Governor Timothy P. Murray today announced that some acreage near the Hamilton Canal area in Lowell has been identified as a municipal growth district.

Such a designation enables the state to make targeted areas “development ready” and to expedite commercial and residential development, state officials said.

"Growth districts are hubs of economic growth and housing development across the commonwealth,” Murray said in a statement. “By identifying districts, such as the Hamilton Canal Growth District in Lowell, and focusing our collective resources on making each one development ready, we are creating the conditions for business growth and community revitalization for years to come.”

According to state officials, the Hamilton Canal Growth District is made up of 50 acres, which when fully developed, will included 550,000 square feet of commercial space, 65,000 square feet of retail space, and space for more than 500 housing units.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:24 PM | Comments (0)

LoJack stock rises sharply on expansion plans

LoJack Corp. shares rose sharply today after regulators gave approval for the Westwood company to use its national wireless system to track more than just stolen vehicles.

LoJack shares jumped 44 cents, or 6.1 percent, to $7.67 in afternoon trading. In the past year, the stock has ranged between $5.42 and $20.25 per share.

The company said the Federal Communications Commission granted a 2005 petition that will enable it to expand its tracking services to areas such as missing people at risk, individuals of interest to law enforcement, lost or stolen cargo, and hazardous materials.

The FCC also approved certain requests that will allow the company to comply with an FCC mandate to switch its network from wideband to narrowband, which it expects to do by 2019.
(AP)

Posted by globebusiness at 2:48 PM | Comments (0)

Boston Fed chief sees slow growth for rest of year

The head of the Federal Reserve Bank of Boston today told a business audience in Manchester, N.H., to expect slow growth for the rest of the year.

Eric Rosengren said the national credit crunch would have been worse if the Federal Reserve had not cut interest rates and taken other steps to loosen credit this year. But he said the hoped-for reduction in interest rates for consumers and businesses has not happened.

Rosengren told the business leaders that continued weakness in the housing market and consumers’ tightening up on spending could help push unemployment above 6 percent nationally.
(AP)

Posted by globebusiness at 2:40 PM | Comments (0)

Massachusetts expands its China presence

Massachusetts has expanded its foreign trade mission in China, another sign of the Bay State's efforts to help local companies do more business in Asia.

The state, which already shared an office with four other states in Shanghai, has opened a second office in Beijing's financial district, according to the state Executive Office of Housing and Economic Development.

The move comes nine months after Governor Deval L. Patrick led a trade mission to China.

Daniel Ding, a former Beijing consultant, will run both offices and report to the Massachusetts Office of International Trade and Investment, the state said.

Many Massachusetts companies, including Covidien Ltd. and Inverness Medical Innovations Inc., already have offices in China, while others have partners in the country.

Massachusetts exports to mainland China have increased by 79 percent since 2005, according to the Executive Office of Housing and Economic Development.

The state also has trade offices in Brazil, Germany, and Mexico.
(By Todd Wallack, Globe staff))

Posted by globebusiness at 2:30 PM | Comments (0)

Stylesight raises $16 million from Fidelity Ventures

Stylesight, a New York-based style information service, said today that it has raised $16 million in Series A financing from Fidelity Ventures as it looks to embark on international expansion.

(An image taken from Stylesight's website appears above.)

A recent Globe story noted that Fidelity Ventures is a venture capital firm that invests funds from affiliates of Fidelity Investments, the Boston mutual fund giant; Fidelity Ventures has focused on bankrolling Internet start-ups that connect buyers and sellers of everything from loans to receivables to airplane parts.

Stylesight, which provides trend forecasting and product development tools for the fashion industry, said in its press release: "Since its launch in 2004, Stylesight.com has dramatically improved the way fashion and style professionals work by simplifying their processes with its state-of-the-art online technology platform and unparalleled trend forecasting and reporting. Stylesight's world class information is supported by its advanced image search engine with more than 3 million fashion images."

Larry Cheng, a partner at Fidelity Ventures, will join Stylesight's board of directors, the company said.

The company's press release included a statement from Cheng.

"Stylesight has become the premier information service company for the global fashion industry," Cheng said in the statement. "Stylesight's product portfolio has a real 'wow' factor and is the must-have service for fashion retailers, manufacturers, designers, and factories around the world."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:58 PM | Comments (0)

Chamber announces small business award winners

Janet Wolfe (right), president and founder of Wolfe Laboratories Inc., will be honored with this year’s Entrepreneur of the Year Award, the Greater Boston Chamber of Commerce said today.

The chamber added that its 2008 Small Business of the Year Awards will go to Hartney Greymont Inc., Bakers’ Best Inc., and the Elizabeth Grady Co.

Wolfe Laboratories of Watertown provides contract research and development services to the pharmaceutical and biotechnology industries.

Hartney Greymont of Needham, meanwhile, is an employee-owned company specializing in tree care. Bakers' Best of Newton is a full-service catering take-out restaurant. And Elizabeth Grady is a Medford-based chain of skin-care salons.

This year’s Small Business of the Year Awards Luncheon will be held at the Colonnade Hotel Oct. 16, the chamber said, and Wyc Grousbeck, managing partner and chief executive of the Boston Celtics, will be the event’s featured speaker, the chamber said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:12 PM | Comments (0)

Proposed biotech complex wins local approvals

Burlington Research Center, a proposed development in Burlington, has received local approvals for biotechnology use, two firms involved in the project said today.

The firms are the Gutierrez Co. of Burlington, the project's developer, and Richards Barry Joyce & Partners LLC, a Boston commercial real estate firm. (The image above is a rendering of the proposed project.)

The firms said in a press release: "Burlington Research Center, which will be comprised of three buildings with 590,000 square feet of biotechnology research and development and office space plus a restaurant and retail space, is located at 43-63 South Ave. The approval, granted by the town of Burlington, makes Burlington Research Center the largest development in the Route 128 marketplace to be cleared for biotech research and development use."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:40 AM | Comments (0)

Ad agency Mullen taps Hahn-Griffiths

Mullen, the Wenham advertising agency, said today that it has appointed Stephen Hahn-Griffiths as executive vice president and director of brand planning.

Hahn-Griffiths, 41, joins Mullen from Doner, an agency with offices in Michigan; at Doner, he worked on such Coca-Cola brand accounts as Minute Maid, Simply Orange, and Odwalla, Mullen said.

Mullen's clients include General Motors Corp., T.J. Maxx, and Panera Bread.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:05 AM | Comments (0)

Baskin-Robbins debuts presidential "flavorites"

Baskin-Robbins is asking ice cream lovers to vote for president by selecting between two new flavors dedicated to candidates US Senator John McCain, a Republican, and US Senator Barack Obama, a Democrat.

Baskin-Robbins said in a press release: "Beginning Sept. 3, Americans can vote for their "flavorite" candidate in any Baskin-Robbins store nationwide or online at www.baskinrobbins.com. Flavor polls will close midnight, Oct. 20. Votes will be tallied and the winner of Flavor Debate '08 will be announced on Oct. 21, possibly providing a taste for which candidate Americans will choose as the next president of the United States in November."

The flavor that represents McCain, is Straight Talk Crunch, whose ingredients include caramel ribbon, chocolate pieces, candy red states, and crunchy mixed nuts swirled into white chocolate ice cream, Baskin-Robbins said.

The Obama flavor is Whirl of Change, which includes peanut-nougat ice cream whirled with chunks of chocolate-covered peanut brittle and a caramel ribbon, the chain said.

Headquartered in Canton, Baskin-Robbins is part of Dunkin' Brands Inc., which also operates Dunkin' Donuts, a coffee-and-baked-goods chain.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:45 AM | Comments (0)

Lincoln office building is sold for $28.5 million

An affiliate of Cranberry Hill Associates has purchased Lincoln North, a three-story office building in Lincoln (pictured above) with nearly 130,000 square feet of space, for $28.5 million, said a broker involved in the transaction.

The broker is CB Richard Ellis Group Inc., a commercial real estate firm.

According to its website, Cranberry Hill Associates specializes in commercial real estate development, commercial brokerage, and property management services. The firm is headquartered in Lincoln.

The seller was IBUS Asset Management, a developer and real estate investment firm with offices in the Netherlands.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:23 AM | Comments (0)

Gymnast signs up as Beacon Street Girls role model

B*tween Productions said today that Olympic gold medal gymnast Nastia Liukin (right) will serve as a role model on the company's new social networking site.

B*tween Productions of Lexington is perhaps best known as the developer of Beacon Street Girls, a consumer and entertainment brand focused on the health and well-being of girls between the ages of 9 and 13.

The new social networking site is called Club BSG; the beta version of the website is modeled on a junior high school, and Liukin has a virtual locker at the junior high, where Club BSG friends can leave messages on her whiteboard, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:56 AM | Comments (0)

IRobot unveils Roomba for pet owners

Have a tabby that sheds fur at a frightful rate? Not to worry. Bedford's iRobot Corp. said today it has introduced a new version of its vacuum-cleaning Roomba house robot that's designed to resolve a pet owner's "hairy situations."

According to iRobot, the Roomba Pet Series Vacuum Cleaning Robot won't just put an end to Fido fur balls; it's also powerful enough to pick up "pet dander, kitty litter, and debris." Who knows what's next from iRobot? A Roomba pooper-scooper, perhaps?

In any case, the pet series Roombas, which comes in several models, have a suggested retail price range of $349 to $399, iRobot said.

The company also unveiled the new iRobot Roomba 610 Professional Series Robot; with a suggested price of $599, this Roomba is ideal for "larger homes, offices, or business settings," the company said.

For some previous stories about iRobot, including a story in today's Globe about the departure of the company's chief technology officer, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:02 AM | Comments (0)

Firm issues a report on local IT hiring

A net 8 percent of chief information officers in the Boston area expect to hire information technology (IT) professionals in the fourth quarter of 2008, according to a hiring index compiled by Robert Half Technology.

The firm said in a press release: "Thirteen percent of executives surveyed plan to add staff during the quarter and 5 percent anticipate reductions in personnel. The net 8 percent increase is up one point from the area's third-quarter 2008 forecast."

(At right, an image from the firm's website.)

"IT hiring projections for the last quarter of 2008 indicate increased activity in the Boston area compared to the third-quarter forecast," Katherine Spencer Lee, executive director of Robert Half Technology, said in a statement. "Organizations are directing recruitment efforts toward professionals who can provide essential services -- such as help desk and networking -- and support the launch of Web 2.0 based functionality."

Robert Half Technology describes itself as a "provider of IT professionals on a project and full-time basis, for initiatives ranging from web development and multiplatform systems integration to network security and technical support."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:34 AM | Comments (0)

Staples profit drops 16 percent

Staples Inc. says its second-quarter profit dropped 16 percent, hurt by slow sales in the United States at established stores.

The Framingham office supply retailer said today that its net income fell to $150.2 million, or 21 cents per share, from $178.8 million, or 25 cents per share.

Thomson Reuters says analysts expected profit of 21 cents per share.

Staples says sales jumped 18 percent to $5.07 billion from $4.29 billion. Analysts anticipated sales of $4.69 billion.

Same-store sales fell 7 percent as fewer customers come through the doors. Staples says sales of furniture, desktop computers, printers, and digital cameras were also weak.

Staples says it expects low single-digit earnings per share growth for the full year.

For more stories about Staples, including stories about its recent purchase of Corporate Express, please click here. (AP)

Posted by globebusiness at 7:21 AM | Comments (0)

September 2, 2008

Eastern Bank is opening a Chelsea branch

Eastern Bank today announced the opening of a new branch in Chelsea as it continues to expand its presence throughout key markets across eastern Massachusetts.

Eastern said the new location, at 90 Everett Ave., is its 74th branch. A ribbon-cutting ceremony is set for Thursday.

With more than $6.6 billion in assets, Eastern Bank said its geographic footprint stretches from Merrimack Valley to Cape Cod.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:27 PM | Comments (0)

Boston Scientific reports drug-coated stent data

Boston Scientific Corp., the Natick medical device maker, today reported results from an aftermarket study of its drug-coated stent Taxus Liberte as the company attempts to gain approval to sell the device in the United States.

The Taxus Olympia trial tracked 22,345 coronary artery disease patients for a year after the stent was implanted. Boston Scientific says 3.8 percent of patients needed further surgery, suffered a heart attack, or died from heart-related causes in the year after having the drug-coated metal tube implanted in a blocked blood vessel.

Three-quarters of the trial patients were considered "expanded use cases" with more complex medical problems, including hard-to-treat lesions. Most had coronary disease in more than one blood vessel, while about a third had already had a heart attack and about a third had had an angioplasty with a stent implanted.

Overall, Boston Scientific said 2.5 percent of patients required further surgery, while 1.2 percent died of heart problems and 0.8 percent had a myocardial infarction, or heart attack.

Results from the study were presented at the European Society of Cardiology Congress in Munich, Germany.

Taxus Liberte is being sold in Europe, but the Food and Drug Administration has not yet granted approval for sale in the U.S. The data came from patients in 57 countries.

In morning trading on the New York Stock Exchange, shares of Boston Scientific rose 28 cents, or 2.2 percent, to $12.84. (AP)

Posted by globebusiness at 12:06 PM | Comments (0)

Red Sox to raise funds for hurricane victims

The Boston Red Sox will hold a two-day fundraising drive to benefit victims of this year's hurricane season.

The club said in a statement released yesterday that volunteers will be collecting donations for the American Red Cross from fans at all five gates at Fenway Park from the time the gates open until the end of the third inning, beginning with Tuesday night's game against the Baltimore Orioles.

The donations will help Gulf Coast residents hit by Hurricane Gustav.

Another hurricane, Hanna, is currently in the southeastern Bahamas. Forecasters predict Hanna could come ashore in Georgia and South Carolina late in the week.

Gustav slammed into the heart of Louisiana's fishing and oil industry with 110 mph winds, but delivered only a glancing blow to New Orleans. (AP)

Posted by globebusiness at 11:56 AM | Comments (0)

IntercontinentalExchange completes acquisition

TA Associates, a private equity firm with offices in Boston, noted that IntercontinentalExchange, an operator of regulated global derivatives exchanges and over-the-counter markets, has completed its acquisition of Creditex Group Inc., a company that TA had invested in several years ago.

Total consideration, including a working capital adjustment, was $513 million, said InterContinental Exchange of Atlanta.

TA said it completed a $57 million minority investment in Creditex in 2005. TA had previously been an investor in IntercontinentalExchange.

Creditex, which has offices in New York, is focused on trade execution and processing of credit default swaps, or CDS's,, in markets spanning the United States, Europe, and Asia.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:32 AM | Comments (0)

Gas prices fall another 2 cents in Massachusetts

Massachusetts gas prices fell for the eighth straight week, down 2 cents in the most recent weekly survey from AAA Southern New England.

Today's survey found that self-serve, regular unleaded averaged $3.60 per gallon, down 48 cents from the record high of $4.08 on July 7, AAA Southern New England said.

The Massachusetts average price for a gallon of gas is currently 8 cents below the national average of $3.68, said AAA Southern New England, which noted that a year ago at this time, the average price in Massachusetts was $2.67 a gallon.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:03 AM | Comments (0)

Richelieu buys Sara Lee sauces and dressings

Richelieu Foods Inc. of Randolph said today that it has acquired the sauces and dressings business from Sara Lee Corp.'s foodservice unit for an undisclosed amount.

Sara Lee's retail sauce and dressing products are not impacted by this transaction, Richelieu said. Sara Lee is based in Illinois.

With annual sales of about $200 million, Richelieu describes itself as a store brand and contract packing manufacturer of frozen pizzas, salad dressing, sauces, marinades, condiments, and deli salads.

In a press release, Richelieu said that Sara Lee's Foodservice unit manufactures a variety of products, including salad dressing, mayonnaise, and barbecue sauce for national restaurant and foodservice distribution customers.

"This acquisition positions Richelieu as one of the most significant national manufacturers of sauces and dressings for the private label channels," said Henk Hartong, chairman of Richelieu Foods, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:41 AM | Comments (0)

GDF Suez to buy US power company FirstLight

French energy giant GDF Suez said today that its North American subsidiary has agreed to buy FirstLight Power Enterprises Inc., an operator of hydro- and gas-powered electricity plants in Massachusetts and Connecticut.

GDF Suez declined to say how much it was paying for FirstLight. French newspaper Le Figaro cited unidentified "banking sources" as saying the deal was valued at 1.28 billion euros ($1.87 billion).

The deal will add to GDF Suez's existing liquefied natural gas and gas operations in North America, and its power-generating assets and retail activities in New England and eastern Canada, GDF Suez said.

FirstLight is owned by US private equity firm Energy Capital Partners, based in Short Hills, N.J., and San Diego. The company operates 15 power plants with total capacity of 1,538 megawatts. (AP)

Posted by globebusiness at 9:43 AM | Comments (0)

Irobot announces Army contract

Bedford's iRobot Corp. said today that it has been awarded a contract under which the US Army could order up to $200 million in military robots, spare parts, training, and repair services over the next five years.

The company described the contract as a ceiling priced Indefinite-Delivery/Indefinite-Quantity, or IDIQ, contract from the U.S. Army Program Executive Office for Simulation, Training, and Instrumentation.

IRobot said in a press release: "This award replaces a previous IDIQ contract that expired in May 2008 and does not limit orders to any particular robots within iRobot's government and industrial line. Previous IDIQ contracts awarded to the company were specifically for purchases of its iRobot PackBot robots. This contract, however, allows the Army to request additional products and services from iRobot as needed."

The company also makes a consumer line of robots, such as the Roomba, which performs vacuum-cleaning chores around the home.

A story in last Sunday's Globe referenced iRobot.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:00 AM | Comments (0)

Mass. foreclosure deeds push past 2007 levels

Foreclosure activity has doubled so far this year, with 7,804 deeds filed through July 2008 compared with 3,902 filed during the same period in 2007, the Warren Group said in a new report.

The publisher of Banker & Tradesman, the Warren Group of Boston is a provider of local real estate data.

Foreclosure deeds in Massachusetts jumped 34 percent in July from a year ago but declined slightly from June 2008, the Warren Group said.

In July, 1,097 foreclosure deeds were filed, up from 819 in July 2007; July’s foreclosures deeds were 3 percent lower than June 2008 when 1,131 deeds were recorded, the Warren Group said.

“The bad news is that we have more foreclosures so far this year than all of last year," Timothy Warren Jr. (left), chief executive of the Warren Group, said in a statement. "But on a more positive note, foreclosure activity appears to have moderated. The number of foreclosure deeds has dropped 22 percent from a peak in May of this year, when 1,405 deeds were recorded. In addition, the number of auctions scheduled has fallen 33 percent from a high of 2,028 in March."

The most foreclosure deeds in July were recorded in Worcester (68), Springfield (61), Brockton (46), Dorchester (46) and Lynn (46), the firm said.

The Warren Group added in its press release: "Petitions to foreclose, which is the first step in the foreclosure process, rose 43.4 percent to 502 in July from 350 in June. But petitions to foreclose fell 79.8 percent from July 2007, when lenders filed 2,485 foreclosure petitions. The sharp drop-off is connected to a law that took effect in May that requires lenders intending to foreclose to give borrowers 90 days to pay off loan defaults."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:33 AM | Comments (0)

Teradyne plans to buy Eagle Test Systems

Teradyne Inc. of North Reading said today it has agreed to buy Eagle Test Systems Inc.

Teradyne said in a press release: "Under the terms of the agreement, Eagle Test shareholders will receive $15.65 per share in cash. The aggregate purchase price is expected to be approximately $250 million, net of cash acquired, and includes the fair value of fully vested employee equity instruments."

Teradyne is a supplier of automatic test equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries while Eagle Test of Illinois is a provider of analog, mixed-signal and radio frequency semiconductor test products.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:14 AM | Comments (0)

Covidien announces agreement with Purdue Pharma

Covidien Ltd. of Mansfield said today that one of its subsidiaries has reached an agreement with Purdue Pharma LP to end a patent infringement lawsuit between them.

Covidien is a global provider of healthcare products - the photo above shows some of the products made by the company - and the subsidiary involved in the agreement is Mallinckrodt Inc. Headquartered in Stamford, Conn., Purdue Pharma is a privately held pharmaceutical company focused on the treatment of pain.

Under the agreement between the two companies, Purdue will grant Mallinckrodt a royalty-bearing license to sell limited quantities of oxycodone hydrochloride extended-release tablets for a limited period of time ending in 2009; as a result, Mallinckrodt expects to begin selling oxycodone hydrochloride extended-release tablets before the end of September 2008, Covidien said.

Purdue said in a press release posted on its website: "According to the agreement, Mallinckrodt acknowledges the validity and enforceability of Purdue's patents and admits that marketing generic versions of OxyContin under its Abbreviated New Drug Application without a license from Purdue would infringe these patents. In exchange, Purdue has agreed to grant Mallinckrodt a royalty-bearing license, ending in 2009, to sell limited quantities of generic versions of 10 mg, 20 mg, 40 mg, and 80 mg extended-release oxycodone tablets."

Covidien's announcement follows the U.S. Food and Drug Administration approval of Mallinckrodt's Abbreviated New Drug Application for oxycodone hydrochloride extended-release tablets in various dosages, which was obtained in July, Covidien said.

Mallinckrodt's oxycodone hydrochloride extended-release tablets are the generic pharmaceutical equivalent to OxyContin.

The agreement is subject to review by federal agencies, Covidien added.

A story in today's Globe noted that Covidien, a healthcare products giant spun out of Tyco International a year ago, is considering buying a 115,000-square-foot building in Mansfield for research and development as well as administrative space. Covidien spokesman Bruce Farmer said the building could provide room for an additional 50 employees. But Farmer said the company does not yet have a firm option or agreement to buy.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:50 AM | Comments (0)

Massachusetts farmers expect strong apple harvest

Massachusetts apple growers say they expect a strong harvest this fall thanks to the hot and wet weather in August.

Diane Fay, owner of the six-acre Fay Farm in Haverhill, says alternating heat and rain was "perfect" for apples. She says the rain also helped the farm save money because it did not have to use its irrigation system.

Bob Connors of Connors Farm in Danvers says this year's apples are "bigger and brighter."

Mary Jordan, director of the state's agricultural development division, said Massachusetts' apple inspector has reported that this year's crop is especially colorful and bountiful.

Jordan says the predicted yield is about 1 million bushels, slightly more than last year.

The bumper harvest will inject anywhere from $12 million to $15 million into the economy.

The Associated Press reported this story citing information from the Boston Herald.

Posted by globebusiness at 7:21 AM | Comments (0)