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Show The Sait Lake Tribune BUSINESS DILBERT, B-8 @ UTAH BRIEFS, B-5 re | Market Page B-4 BUSINESS GLANCE, B-5 NOVEMBER3, 1999 Shareholders Approve Merger Between Qwest, US West | Indicators BY JON SARCHE NYSE THE ASSOCIATED PRESS DENVER and US West approved vice Commission, and otherstate regu two Denver-based companies hope to About 97 percent ofthe shares voted at Qwest's meeting in Denverwerecast in favorofthe acquisition of US West, the BabyBell phone company operating in Utah and 13 other 8, In a meeting in New York, 93 percent of the US West shares voted approved the deal pd at abou nillion in stock when the agreement was signed in August The Federal Trade Commission and year. The companies said they would announce similar services in other marets in January. ‘To obtain merger approval from the Federal Communications Comm: Qwest will need to sell its long-di complete the merger by the middle of operations in US We: next year BabyBell cannotsell long-distanceinits 14-state region until it shows that the local phone market is open to competition. The merger would unite the nation’s fourth-largest long-distance provider and a provider of local, wireless and million At thestatelevel, the two companies In tandem with Tuesday’s meetings, may face tough scrutiny. US West is under fire across its region for poorser- Internet services to 25 customers, the companies announced ajoint foray into California, the turf of BabyBell rival SBC Communications. ‘The newset of Internet, data andvoice services will be offered to business vice, and regulators m: ise that issue. They also may ask that somefinancial benefits from the merger be passed on to payers, Solomon Trujillo, chairman and chief executive of US West, has acknowledged many ofthe service problems. Last week, Trujillo said US West has begun making improvements and that much of the company’s record $4 billion capital spending budget this year is aimed at improving service throughout its territory Joseph Na io, chairman and CEO of Qwest, said his company is well awareof the service problems US West has had “We'vegot to deal with the questions at hand aboutservicelevels. US West has already stepped up to that,” Nacchio said. “Anytimepeople are unhappy with the servicelevel provided by your future partner, you've got to be concerned. But I'm optimistic this merger helps solve these problems.” Builder Bugging Out Of Utah fell back from a big early closedmixed on Tuesday, unable s advance amidcontinuing it interest rates, The dominated NasdaqStock t ground after early gains, but ie session with a thirdstraight Weak market for homes forces company to leave N.M. Attorney General Probing Malone Toyota BY LE THE LEY MITCHELL AL! LAKE TRIBUNE New Mexico Atty. Gen. Patricia Madrid singled out Karl Malone Toy: ota on Monday in saying heroffice California builder Kaufman and Broad, which last week said it was complaints against cardealers, Tuesdaysaidit is leaving thestate. will aggressively pursue consumer increasing its presence in Utah, on Madrid's office handles about 100 consumer complaints week She said her office filed a civil investigative demand (CID) on Malone ‘Toyota, which is owned by Utah Jazz. The company, whichbuilds homes costing $100,000 to $150,000, joins other regional and national builders that have left Utah or scaled back operations in recent years as the numberof CID seeks documents and records Last week, the company said it was trying to jump-start lagging home sales by auctioning more than 100 people movingto the state has waned. star Kar! Malone, afterherofficere: ceived 37 complaints against Malone’ dealership over a 24-year period. The fromthedealership ‘The dealership will cooperate with Madrid's demand within reason, said Karl Malone Toyo: ta’s general manager, “No wrongdoing has beenalleged, and I am not aware ofany basis for any action against ourdealership and do not believe we haveviolated any law,” he said Spe cee s complain ofhigh- pressuresalestactics, intimidation and misreprese! it ion by the Malone dealership, Madrid said in a written statement “Because of the volume and nature of the complaints against this dealer, I authorized my consumerprotection attorneys to issue {civil ir tigative demands] which would allowustoinvestigate the dealership's records to determine the validityof the complaints we received,” Madrid said. Sut she said Malonechallenged the CID. She said the information contained in the CIDs is normally confidential and cannotbe released bythe attorney genere ot But her news r “Karl Malone Toyota'scl hallenge to the va- lidity of the CID has madetheissue a matter of public record.” She said the dealershipis contend- ing that the CID is an unlawful intrusion into the company’s business. Her office is demandingthat the court order the dealership to produce the demanded documents and that the dealership's lawyer, Jason Kent, bedisciplined bythe court U., BYU Fellowships The University of Utah and Brigham Young University have joined to create an international fellowship program forexecutives. The Eccles International Fellowship program will be handled by the Center for International Business Education and Research, jointly adminis tered by the two institutions, The program, funded by a $440,000 grant from the GeorgeS. and Dolores DoreEccles Foundation,is designed to help about 20 master’s degree stu- dents a year attendingeither university. Rach fellow will receive a two- year scholarship of$10,000,a $5,000 stipend and $2,000 in travel expenses to serveaninternship abroad. To qualify, applicants must beac- cepted byeitherthe U's or BYU's MBAprogram, be fluentinatleast oneforeign language and be recom. mendedby the top management of a companyfor which they work. Appli- cation deadlineis March 15. Correction USWest will spend an additional $1.1 billion to upgradeits network this year and will hire an additional 2,400 people companywide. The company will not committo any additionalhiring or spendingonits network next year, The figures were in- correctly interpreted in a story in ‘Tuesday's Business section. i N ee TheBloomberg Utah index measuresthe stock performance of thestate's major publicly held companies lators in US West's 14-state region. The customers in Sacramento early next reese . tions Commission, the Utah Public Ser the planned merger between the tele: communications companies in separate meetings 1 | scrutinized by the Federal Communica Shareholders of Qwest Communications | Utah's Top‘Performers Justice Department have cleared the mel but the deal still needs to be unsold homesandvacantlots in sub‘At Hartmann/TheSalt LakeTribune Paul Jacobs, an lomegaofficial, holds a Clik! storage device, the product the company hopeswill improve earnings. lomega won a Utah 100 awardfor the largest revenueincreaseinthelastfive years, but profits were hard to comeby. Revenue Kings Honored Utah 100 singles out companies with best growth in the past five years BY PHIL SAHM THESALT LAKETRIBUNE, Revenuedoes not guaranteeprofits. Roy-based Iomega Corp., the strug: gling companythat makes data-storage ranked No. 5 in dollar increase in revenues. The rankingis based on the five-year periodfrom 1994 through 1998. Iomega and Powerquest each won their respective categories last year as devices, demonstrates that Tomega logged the largest revenue increasein termsof dollars among Utah well companies the past five years in an annual competition spon: d by the Mountain West Venture Group, a nonprofit organization that promotes the workers and losing its new president. Executive Vice President Phil Husby acknowledged the company’s difficul ties, but in accepting the award said he expects [omega to turn a profit in the fourth quarter, traditionally lomega’s formation of Utah-based companies. Orem-based Powerquest, which makes storage-management software, experienced the fastest percent growthin revenuein thestate during the sameperiod Tuesday, the two companies and oth. ers were recognized at Mountain West Venture’s fifth-annual Utah 100 awards at Little Americain Salt LakeCity. Although large companies regularly appear on the Mountain West also tries to recognize smallerbusinesses that have achieved significant revenue growth, said Scott Nixon, a partner in Price Waterhouse Coopersand president of Mountain West. The Top 10 Utah Corporations in Dollar Revenue Growth: jomega But Iomega, a public company, expe: rienced trouble this year, laying off strongest periodof theyear. “Ourbiggest challenge is converting our revenue growth into net income.” said Husby, who came to Iomega from a New York corporation two months ago. In 1994, Iomega had $141 million in revenue, compared to $1.69billion in 1998 old increase. a Yet, in 1994, the companylost $1.9 million, In 1998,it lost almost $55 million. Nonetheless, Husby said, lomega’s revenue base is solid enough for the aN to move forward now that it has c s through measures that inc’hued laying off hundredsof workers, The company is looking to its Clik! Companieson this year's list ranged from Best Friends Animal Sanctuary in Kanab — No. 83 in percentage growth storage device, used in digital cameras, panythat makes exercise equipment and See UTAH 100,Page B-5 to Icon Health & Fitness, a Logan com- divisions in which it had planned to build. Kaufman and Broadsold 55 homes in the auction Saturday but “there wasnointerestin thelots,” said Pete Peterson, president of the company’s Utah operations. He said a corporate review of the company’s Utah opera- tions found that its Utah division “is not a substantial asset builder”for the company. See HOME BUILDER,Page B-5 ‘Digital State’ Breaks Ground For Rural Utah @iomega Corp. Roy manutacturor of personal computerstorage solutions. @ First Security Corp. Salt Lake City financial servicesorganization and mortgage company. © Zions Bancorporation Sali LakeCity commercial and mortgage banking and financial company, Franklin Covey Co. WestValley City provider of training products and services to improve corporate productivity @ Icon Health & Fitness Logan manufacturer of home exercise equipment. @ Academy Mortgage Corp. Salt Lake City independent mortgage banker. Qo oryWest inc. St. George-based regional oO Cl.England Inc. WestValley City trucking company Great Basin Cos. West Valley City companythat provides a regional network of trucking centers, @ Layton Construction Co, Sandy construction company. WRronacommuere UST, SEE: warw.sttrib.com SeanNoyce/ TheSalt Lake Tribune BY JUDY FAHYS THE SALT LAKETRIBUNE State regulators have paved the way for bulldozers to begin work on Utah’s stretch of the Information Superhighway. The state Departmentof ''ranspor tation told utilities what they must do to use the strip of land alongside Utah’s interstate highways for their high-tech pipelines. The regulation says the privilege will cost them an averageof$2,228 per mile each year In effect, the regulation breaks ground on Gov. MikeLeavitt's “Digi tal State” idea for speedingto eventhe most remote parts of Utah such high i t Internet, telecon ferencing andonline commerce. It meansallowingutilities to use taxpayer-owned assets the valuable rights-of-way along interstate high ways in exchange for the latest telecommunications services, or for cash. It will cost companies roughly $67 See DIGITAL STATE,Page B-5 Demo Leaders Recommending Veto For Republican Minimum-WageBill BY TOM RAUM ‘THEASSOCIATED PRESS WASHINGTON Another major piece of Republican-supported iogiata tion drawing a vetothreat, this one a bill to raise the hourly minimum wage by $1 over three years while cushioning the impact on businesses with $30 billion in selected tax cuts Treasury Secretary Lawrence Sum mers and Labor Secretary Alexis Hermantold House Speaker Dennis Hastert, R-IIL, in a letter Monday that they and other senior advisers to President Clinton would recommenda veto if the legislationisn't modified drastically. 4 The Housecould take upthe measure in coming days, but Majority Leader Dick Armey, R-Texas, told reporters ‘Tuesday that the votes aren't yet there to pass it. “Wearen't going to put it on the The History of Minimum Wage 1998 $5.15 — Proposals before Congress would increase the minimum wagebyatleast $1 by 2001 or 2002. floorif it doesn’t” havethe votes, he said, The two Cabinet members madeit clear they prefer Clinton’s versionof a higher minimum wage, which would raise the $5.15-an-hour rate by the same $1, but over two years instead of three. Andit wouldn't include the tax breaks for businesses, The GOP version headedfor expected House consideration is sponsored by See MINUMUM WAGE,Page B-8 4 —~ $0 ‘90 ‘00 Gannett NewsService ee | Dow | Industrials |