P.M. Executive Briefing - Mar. 6
This Afternoon's Headlines:
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VW Likely to Bid Again for Scania If EU Rejects Merger With Volvo
Analysts say Volkswagen will probably put in a bid once more for Scania if the European Commission turns down the Volvo-Scania merger, but the company most likely to be an acquisition target if the merger is blocked would be Volvo.John Lawson of Salomon Brothers said that while it now looks very likely the EC will block the merger, there is still time before the March 14 deadline and things can change. Even if the deal is blocked, the companies involved will not likely go back to "the pre-deal status quo," he said. But analysts largely expect Volvo and the EU to negotiate to win approval.
VW has the cash to make fast acquisition moves despite its poor share price, while DaimlerChrysler, which earlier declined to purchase Scania because the price was too high, could also run into competition issues if it attempts to acquire Scania, said analysts. AFX European Focus (03/06/00)
U.S. Pipe Is Trimming Trucking Costs
In an effort to reduce transportation expenses 10 percent at its six plants in Alabama, New Jersey, Tennessee, and California,.S. Pipe is cutting the number of flatbed carriers it works with.
It is in negotiations now, largely with flatbed carriers; U.S. Pipe currently uses 128 trucking companies, for the most part delivering finished ductile pipe to customers.
In February, the company invited carriers to a seminar in Alabama, asking them to complete company profiles and submit proposals. It will take about three months to choose the flatbed carriers, said human resources director Darrell Witt, who added that the company has not decided precisely how many carriers to drop.
The company has also selected two carriers for its small proportion of LTL freight, but Witt did not give their names because the carriers had not yet been informed. Birmingham Business Journal Online (03/06/00); Nicholson, Gilbert
Funds Found for Customs NCAP Program
The Treasury Department wrote to congressional appropriations subcommittees that it identified $3 million that will allow the National Customs Automation Program to stay in operation this year. The agency believes Congress will quickly okay spending the funds on the Customs Service's land-border shipment-clearing prototype, which is being used to test parts of the Automated Commercial Environment project. Journal of Commerce Online (03/06/00)Food Lion Truck Drivers Upset Over Company Cutting Hours
Two Food Lion vice presidents and some 175 truckers from the company's distribution facility in Dunn, N.C., met Sunday regarding reports the grocery chain will cut the drivers' hours, according to WRAL-TV; the drivers, who were upset about the reported plans, will get together again Sunday to talk about options.Food Lion foresees growth in the state and so gave one of its other distribution centers some of the stores the Dunn facility served, while the Dunn facility will get more stores in coming months, a company spokeswoman said. She would not talk about hours for the truckers. Associated Press (03/06/00)
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