TheState.com: Breaking Business

Companion buys Miss. insurer

Wed, 15 Oct 2008 09:13 EDT

Columbia-based Companion Property & Casualty Insurance Group announced today that it acquired AmFed Holding Company Inc., a large Mississippi insurer.

Financial terms of the deal were not disclosed.

AmFed is Mississippi's biggest workers’ compensation insurance and self-insurance administration company, Companion said.

John "Billy" Roberts, AmFed's CEO and founder, will continue leading the Mississippi company. No cuts are planned from AmFed’s staff of 98 employees.

The deal includes AmFed National Insurance Co., AmFed Casualty Insurance Co., AmFed Cos. and AmFed Insurance Services.

Company needs $230M to build SC ethanol plant

Wed, 15 Oct 2008 09:15 EDT

A proposed ethanol plant in Chester County faces one big snag before it can open — investors will have to raise $230 million in tough economic times and a tight credit market.

The Herald of Rock Hill reports that East Coast Ethanol officials came to Chester on Tuesday to discuss their plans. They said the plant would produce 110 million gallons of ethanol a year and create at least 43 jobs.

The Columbia-based company hopes to begin building the plant in the spring, but can take a year to get the financing.

The Chester County plant is one of four plants East Coast Ethanol is proposing across the Southeast.

The company's 120 investors have raised nearly $10 million of the $871 million need to build the four plants.

S.C.'s only BJ's Wholesale Club closing

Wed, 15 Oct 2008 09:53 EDT

South Carolina's only BJ’s Wholesale Club will close today in Greenville.

The Massachusetts-based chain announced last week that it will close the store on Woodruff Road for failing to meet sales expectations, company spokeswoman Maria Fruci told The Greenville News.

BJ's operates 178 wholesale clubs in 16 states. The Greenville store opened in 2000 and employs about 60.

Fruci told the Greenville paper the company has no plans to close any additional clubs.

BJ's members in the Greenville area will receive pro-rated membership fee refunds.

S.C.'s sweet tea vodka to go nationwide soon

Wed, 15 Oct 2008 10:07 EDT

South Carolina's Firefly Sweet Tea Vodka will go nationwide by year's end.

Kentucky-based distillery Buffalo Trace will begin producing the tea-flavored vodka this week in a joint venture that will expand Firefly's reach, the Post and Courier of Charleston reported today.

The vodka, born on Wadmalaw Island, is available in 11 states, but demand has been heavy since its introduction in April.

The joint venture with Buffalo Trace does not include Firefly's other vodka, a muscadine wine flavor, the Charleston paper reported.

US stocks set to open mixed ahead of retail sales

Wed, 15 Oct 2008 09:05 EDT

Wall Street headed for a mixed open Wednesday ahead of some key reports on retail sales and bank earnings that could show investors how badly the financial crisis is slamming the broader economy.

The Commerce Department is expected to report that retail sales fell in September from the previous month by 0.7 percent, according to economists surveyed by Thomson/IFR. Meanwhile, two major banks that have snapped up weaker players as a result of the mortgage bust - JPMorgan Chase & Co. and Wells Fargo & Co. - reveal their third-quarter results.

JPMorgan, which bought the assets of failed bank Washington Mutual Inc. late last month, is forecast to post a loss, and Wells Fargo, which recently bought Wachovia Corp., is predicted to report a profit. Both reports should offer some insight into the severity of the deterioration in U.S. consumer credit.

On Tuesday, for the first time in nine sessions, the Dow Jones industrial average did not finish the day with a triple-digit loss or gain. Instead, after swinging erratically throughout the session, the blue-chip index closed the day down 76 points following Monday's record 936-point advance.

Ahead of the market's open Wednesday, Dow futures fell 92, or 0.98 percent, to 9,270. Standard & Poor's 500 index futures fell 7.30, or 0.73 percent, to 995.00, and Nasdaq 100 index futures rose 6.75, or 0.49 percent, to 1,372.75.

Piggly Wiggly lays off about 30

Tue, 14 Oct 2008 06:58 EDT

Piggly Wiggly officials said the grocery store chain has laid off about 30 workers due to the economic downturn.

The Post and Courier of Charleston reported Tuesday the company laid off 26 workers at its corporate offices and two warehouses.

The move last Friday followed the layoff of 17 mechanics after Piggly Wiggly Carolina Co. sold its truck fleet to Ryder Systems about two months ago. The newspaper reported 10 of those workers took other jobs with the supermarket chain or Ryder.

The 61-year-old Charleston-based chain employs about 5,000 people and operates 115 stores in the Carolinas and Georgia.

US stocks set to extend Monday's huge rally

Tue, 14 Oct 2008 08:48 EDT

Wall Street was gearing up for another surge higher Tuesday following the Dow Jones industrial average's historic 936-point jump, with investors encouraged by the U.S. government's plans to spend $250 billion on private banks' stock.

President Bush is expected to announce Tuesday morning the details of the plan, which would use a chunk of the $700 billion bailout to recapitalize the nation's troubled banks.

Dow Jones industrial average futures rose 176, or 1.85 percent, to 9,684. Standard & Poor's 500 index futures rose 16.50, or 1.62 percent, to 1,033.20, and Nasdaq 100 index futures rose 16.75, or 1.15 percent, to 1,475.25.

Asian and European markets shot higher as well, after Wall Street on Monday propelled the Dow to its largest one-day rise ever.

Hong Kong's Hang Seng index rose 3.19 percent, after a more than 10 percent increase on Monday. Japan's Nikkei index, catching up from the country's market holiday Monday, jumped 14.15 percent - the largest increase ever. The Bank of Japan said it will hold an unscheduled policy board meeting Tuesday at 8:30 p.m. local time, or 9:30 a.m. Eastern time, to study recent developments in global markets.

Maintenance facility to create more than 100 jobs at airport

Mon, 13 Oct 2008 13:30 EDT

A new aviation maintenance facility is coming to the Columbia Metropolitan Airport and is expected to create 105 new jobs, the S.C. Department of Commerce announced today.

West Star Aviation is expected to invest about $9 million and operations are scheduled to begin in the second quarter of 2009, the Commerce Department said.

Read more in Tuesday’s editions of The State.

Ethanol facility to announce Chester location

Mon, 13 Oct 2008 15:09 EDT

East Coast Ethanol, LLC is expected to announce the construction of a new $230 million corn-based ethanol production facility near Chester.

The announcement is expected in a 10 a.m. conference at the Chester County War Memorial Building Tuesday, according to a press release.

The new plant is expected to produce 110-million gallons per year at the corn-based ethanol plant.

This grassroots U.S. based firm is expected to hire more than 40 employees locally and generate over $100,000,000 annually to the local economy.

-- The (Rock Hill) Herald

Former USC president takes new post at NYC firm

Mon, 13 Oct 2008 10:27 EDT

Former University of South Carolina President Andrew Sorensen has been named vice chairman of an executive search firm in New York City.

Sorensen, who retired as president in July, also remains a professor at USC’s School of Medicine.

In his new position at Loree Newmyer Sulkowicz LLC, Sorensen will direct the firm’s executive searches in the academic sector. He also will focus on board-level searches for public and private organizations.

The firm, which formed in May, also has office in Cleveland, Ohio, and Palm Beach, Fla.

Sorensen retired this summer after six years as USC president. Before taking the post at USC, Sorensen served as president of the University of Alabama and as provost at the University of Florida.

S.C. company tries to connect Air Force to pollution

Mon, 13 Oct 2008 12:32 EDT

A Myrtle Beach electronics component manufacturer says the U.S. military might be responsible for toxic contamination at its property and a surrounding neighborhood.

AVX Corp. makes the claim in documents filed in federal court in Florence.

The claim is refuted by environmental tests, state health officials, depositions and minutes of a government agency meeting.

The company also wants a federal judge to issue a protective order so the manufacturer’s employees won’t have to answer questions about how the contamination occurred. A ruling on that request could come as soon as Oct. 21.

John Gilbertson, president and chief executive of AVX, did not respond to a request for comments.

Pastides addresses economy's effects on USC

Mon, 13 Oct 2008 10:22 EDT

USC President Harris Pastides recently addressed the university's faculty, staff and students about the nation's economic crisis and its effects on the university.

Click here to read his letter in PDF format.

Federal regulators clear Wells Fargo-Wachovia deal

Fri, 10 Oct 2008 12:31 EDT

WASHINGTON — Federal antitrust regulators today cleared Wells Fargo’s $11.7 billion acquisition of Wachovia, capping a weeklong battle for the Charlotte-based bank.

The rapid approval comes a day after Citigroup walked away from its own efforts to buy Wachovia. Late Thursday, Citigroup broke off talks with Wells Fargo and federal regulators after the suitors failed to reach an agreement over how to split up the bank.

San Francisco-based Wells Fargo said Thursday it would proceed with the purchase and plans to complete the deal by the end of the fourth quarter. The acquisition still needs the approval of Wachovia shareholders.

The Federal Trade Commission included the deal on a list of transactions released today that received an “early termination” of their antitrust reviews. Early termination refers to the completion of a review by the FTC or Justice Department before the end of a 30-day period required under antitrust law.

Citigroup agreed last week to buy Wachovia’s banking operations for $2.1 billion in a deal brokered by the Federal Deposit Insurance Corp. Four days later, Wells Fargo stunned Citigroup by announcing that Wachovia’s board had agreed to an $11.7 billion all-stock offer. Originally, the deal was valued at $15.1 billion, or $7 a share, but Wells Fargo stock has declined since it was announced.

S.C. BJ’s Wholesale Club closing, cutting 60 jobs

Fri, 10 Oct 2008 10:41 EDT

GREENVILLE — BJ’s Wholesale Club of Massachusetts says it will close its store in Greenville, putting about 60 people out of work.

The company’s only South Carolina store will close Oct. 16.

Corporate spokeswoman Maria Fruci said the store was closed because it failed to meet expectations.

Fruci says the closing had been considered for some time and has nothing to do with the economy.

BJ’s currently has 178 wholesale clubs in 16 states. Fruci said there are no plans to close other clubs.

Former EPA chief Whitman discusses nuclear energy in S.C.

Fri, 10 Oct 2008 11:31 EDT

Electric utilities have to persuade the public that nuclear power is a safe and reliable alternative to coal-fired plants if they want to build more reactors, former New Jersey governor and federal environmental chief Christine Todd Whitman told about 100 South Carolina business leaders Thursday.

“The more information you give people about nuclear, the more accepting they are of nuclear,” said Whitman, an energy consultant and co-chairman with Greenpeace founder Patrick Moore of the Clean and Safe Energy Coalition.

“As the idea of having new nuclear reactors come online in this state moves forward, you’re going to see more push-back and that’s where we need responsible, intelligent, thinking people to stand up and say ‘Wait a minute, let’s hear about the other side,’” she said.

Environmentalist Tom Clements, regional campaign coordinator for nuclear power watchdog group Friends of the Earth, said the Clean and Safe Energy Coalition “is just a front for the nuclear industry.”

The group’s members include companies involved in building and operating nuclear power plants as well as other industries, labor unions and cities and towns.

S.C. rural institute gets $99,000 work force education grant

Wed, 08 Oct 2008 11:56 EDT

GREENWOOD — Two rural South Carolina communities will share a $99,000 federal grant to improve work force education.

U.S. Department of Agriculture Rural Development is awarding the grants to the Rural Crossroads Institute today in Greenwood County.

The USDA says the grant will help community empowerment centers in Greenwood and Marlboro counties provide technical assistance and training to place people in local jobs.

Fed, central banks cut rates to aid world economy

Wed, 08 Oct 2008 14:06 EDT

The Federal Reserve and six other major central banks from around the world slashed interest rates Wednesday in an attempt to prevent a mushrooming financial crisis from becoming a global economic meltdown.

The Fed reduced its key rate from 2 percent to 1.5 percent. In Europe, which also has been hard hit by the financial crisis, the Bank of England cut its rate by half a point to 4.5 percent and the European Central Bank sliced its rate by half a point to 3.75 percent.

Also cutting rates were the central banks of China, Canada, Sweden, and Switzerland. The Bank of Japan said it strongly supported the actions.

"The recent intensification of the financial crisis has augmented the downside risks to growth," the Fed said in explaining the coordinated action.

The Fed action will reduce borrowing costs almost immediately for U.S. bank customers whose home equity and other floating-rate loans are tied to the prime interest rate. Bank of America, Wells Fargo and other banks cut their prime rate by half a point to 4.5 percent after the Fed announcement.

Stocks fluctuate after Fed lays out corporate debt plan

Tue, 07 Oct 2008 12:33 EDT

Stocks fluctuated in quiet trading Tuesday as investors appeared to adopt a wait-and-see approach to the range of options the Federal Reserve has laid out to inject the sluggish credit markets with a dose of much-needed confidence. Trading remained fractious, and the major indexes alternated between gains and losses a day after the market suffered another huge drop.

Investors appeared heartened if still cautious following the Federal Reserve's announcement that it plans to buy massive amounts of corporate debt in order to jump-start lending in the markets where many companies turn for short-term loans. The evaporation of faith the loans will be repaid has lenders weary and made it more difficult and expensive for businesses and consumers alike to borrow money.

Credit markets showed some signs of easing. The market seized up after Lehman Brothers Holdings Inc. declared bankruptcy and after the government helped rescue insurer American International Group Inc. Banks have become fearful about lending to each other. That paralyzed borrowing, and its effects have been felt by companies and consumers alike.

The Fed's latest move is designed to lubricate the lurching market whose troubles have spread to other parts of the economy though the measure stops short of a broad interest rate reduction that some traders have been calling for.

But the stock market was still extremely fractious

Trading in Wachovia stock resumes after pause

Mon, 06 Oct 2008 13:56 EDT

Updated 1:14 p.m.
After a brief halt, Wachovia Corp. shares resumed trading this afternoon.

As of 12:41 p.m., the Charlotte bank's shares were down nearly 10 percent to $5.59.

Citigroup and Wells Fargo are in a battle to buy Wachovia, and federal regulators also are involved in the situation.

After Wachovia decided to accept a merger offer from Wells on Friday, Citi is fighting back in court, saying Wachovia did not have a right to talk to Wells after signing an “exclusivity agreement” on Monday that barred it from entering into another deal. Wachovia has filed its own suit, saying a provision in the federal bailout legislation allowed it to talk to Wells. A hearing is scheduled for Tuesday in New York on that case.

Citigroup said in a complaint filed today that it is seeking $60 billion in damages from Wells Fargo, alleging that Wells Fargo wrongly interfered with Citi’s agreement to buy Wachovia.

Appeals Court Judge Wilkins joins Columbia firm

Mon, 06 Oct 2008 13:56 EDT

Former 4th U.S. Circuit Court of Appeals Chief Judge Williams Wilkins is joining Columbia law firm Nexsen Pruet as a partner.

Nexsen Pruet board chairman Leighton Lord said today that Wilkins will work in the firm’s Greenville office, Wilkins’ hometown.

Lord said Wilkins will work in the firm’s white collar crime, appellate advocacy and corporate compliance and crisis management groups.

Wilkins was chief judge of the appeals court in Richmond, Va., from 2003 until he went on senior status in July of last year. Wilkins had been named to the court in 1986. Wilkins served as a U.S. District judge from 1981 until 1986.

Nexsen Pruet also has offices in Charleston, Hilton Head Island, Myrtle Beach and Charlotte and Greensboro, N.C.