Business briefly
Published 9:00 pm Tuesday, June 21, 2005
Bothell-based AMS Services, which develops software and services for independent insurance and other distributors of insurance and financial services, has acquired InStar Corp. of Kennewick. Euan Menzies, president of AMS, said InStar’s technology for the insurance industry helps strengthen the combined company’s place in the market. Financial terms between the two privately held firms were not disclosed.
Kroger profits, stock improve
Kroger Co., which owns regional chains Fred Meyer and QFC, said Tuesday that lower prices and improving customer service helped drive first-quarter earnings up 12 percent against strong competition from Wal-Mart and other grocers. The results beat Wall Street estimates. Kroger shares rose Tuesday by 10 percent, or $1.78, to $19.47, above the stock’s previous 52-week high of $18.36.
Maytag studies buyout proposals
Shares of Maytag Corp. rose Tuesday after the appliance maker said it will review a $1.28 billion buyout offer from two private equity firms and a rival Chinese manufacturer, a month after Maytag agreed to be acquired by an investor group that wants to take the company private. Shares of Maytag rose 83 cents, or 5.4 percent, to close at $16.06 Tuesday.
New fund rules to be reviewed
Post-scandal rules that could reshape the mutual fund industry, designed to protect investors from abuses, were thrown into doubt Tuesday by a federal appeals court ruling that they must get new scrutiny from regulators. In a 3-0 ruling, the appeals court said the regulations requiring the chairmen of mutual funds to be independent from the companies managing the funds must be re-examined by the Securities and Exchange Commission, both for costs and alternatives.
Oil production talk countered
Global oil production is not likely to peak anytime soon, contrary to talk that has helped propel prices close to $60 a barrel, although lower prices may still be several years away, a prominent energy consultancy said Tuesday. Cambridge Energy Research Associates said that, instead of a crest being reached sometime this decade, an inflection point in world oil output will occur sometime beyond 2020, after which production will plateau for several decades.
From Herald staff
and news services
