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Show BUSINESS EDITOR: NANCY BLISS 344-2562 A13 THE ‘DAILY HERALD POSITIVE STRUGGLES THURSDAY, MAY [3.1999 Major shake-up at Franklin Covey New officers, stock deal announced ALT LAKE CITY (AP) — Covey Co. announced a major shake-up of its top executives Wednesday following an agreement to raise $75 million in new capital HARVEY MACKAY Copslove cop movies and TV shows, thoughthe cops | know claim it’s only to hoot at the howlers perpetrated by Hollywood's writers and actors, Myfavorite cop show usedto be Under terms of the deal, Franklin Coveywill issue $75 million worthof 10 percent preferred stock to Franklin co- Knowledge Capital, convertible into commonstock at $14 per share, After five years the stock, although it may not have matured, can be subject to Hyrum W. Smith and demand for payment under certain vice chairmen, Robert A. Whitman, CEO of Knowledge Capital Investment Group, will be the new Thestock agreement is expected to be completed next month Franklin Coveysaidit intends to chairman offer its existing shareholders the Franklin Covey CEO Jon H. Rowberry said the time management andcorporatetraining companyneeds to raise additional capital to better opportunity to buy up to the same amount, $75 million, under the same through a preferred stock deal with a Longshelf life requiresversatility, staying power electronic commerceandtheInternet private investment group. The deal calls for chairmen Stephen R. Coveyto step downto co- deliver its products and services via unspecified circumstances, terms as those offered Knowle Capital. The prospectus for that off Securities and Exchange Commission formedspecifically to do the Franklin approves a registration statement - Covey deal Franklin Quest, which makes Franklin Day Planners, and Covey Le adership Center, known for its ° even Habits of Highly Sucec People.” merged in January 1997 in a deal valued at the time at § 60 mil probably this summer. Rowberry said Smith and Covey's moves from chairmen to vice chairmen will have little if any impact on the company or their activities with the company. lion. The com iny’s name was then changedto F anklin Covey Co. At the time, it was seen as some “They spend a great deal of time on theroad talking to customers and prospective custom: Stephen is in Asia right nowdoing a presentation and oursales force then fol lows in their wake,” thing like a merger between Coke and Pepsi two companies offering Rowberry s id. similar products, competing for the same customers and each with a strong brand loyalty. Whitman was formerly a director of Franklin Quest and has been on the Franklin Cov board since Franklin Quest merged with Covey Leadership Center in 1997. He is Covey Leadership, then based in Provo, moved into new offices in Orem while the administrative head quarters of the new company remained at Franklin Que s offices in Salt Lake City. dge president of The Hampstead Group, a ring will be made once the US. Dallas-based group. equity investment Knowledge Capital “Hawaii 5-0,” which ranfor 12 years — the longest continuously-running cop show in TVhistory. I canstill recite the tag line: “Book ‘em, Danno,"but it takes a real trivia buff to remember that the part of Duke,oneof the Hawaiian detectives, was played by none other than Herman Wedemeyer. Herman who? His name probably hadn't beeninprint for a numberof years until several months ago, when Wedemeyer's obituary appearedin the papers. Anoutstanding running back, “Squirmin’ Herman” made the 1945 APAll-American team. He reinvented himself an actor, and then as a politician, getting elected to the HonoluluCity Council a Republican in 1968 and to the Hawaii House of Representativ 1970. Herm was a Democratin a two-wayplayer in moreplaces than the football field. NOT MANY ofu versatile as Herman. Careersin areas like ath- leties, entertainment andpolitics are notorious for chewing ‘em upandspitting ‘emout. Youdon’t have to look too hard to find a story about a Super Bowl ring that winds up ina pawn shop Last fall, a friend of mineordered annual cord offirewood from his sual supplier. They sent out a new employeeto deliverit. Since Mike's the cautious type and the newguy wastheslightlyseedytype, Mike kept a close eye on the proceedings as the wood was being stackedinhis garage. The twogot to talking. “I don’t usually do this kind of work,” said the deliveryguy. “I mostly drive a school bus, but I gotlaidoff “Ummmm.” “Before that, | had a band.” “Obhhh.” “Yeah, we even hada million-seller record.” Hetold Mike the nameofthe song Hamill, Lewis, Yamaguchi join Olympic campaign By DAVID GOODMA\ sion “no matter how much bungling people in suits are AssociatedPress Write guiltyof.” Ten International Olympic Committee members have resigned or been expelled in the ndal over fayors and payments to win the 2002 Winter Games for Salt Lake DETROIT —. As somecorporations back awayfrom the Olympics becauseofthe Salt Lake ndal, General Motors called on seven gold medalists this week to help kick off $1 billion Olympic City. Johnson & Johnson broke off U.S. Olympic sponsorship negotiations after the scandal broke, and other business interest has slackened. “Certainly it slowed down the saleof our sponsorships,” said John Krimsky, the U.S. sponsorship. Skaters Dorothy Hamill andKristi Yamaguchi, track ars Carl Lewis, Evelyn hford and Bob Mathias, swimmer Pablo Morales and basketball player Grant Hill will help GM and the United Auto Workersaid families of U.S. Olympic hopefuls. The world’ No. 1 automaker will launch 17 months of ads for the 2000 Olympic Committee's deputy secretary general and marketing chief. “But I will tell you that we have put that behindus.” NBC sports head Dick Ebersol denied the network has felt any heat from the ndal. Summer Games during next month's NBA Finals, GM vice president and marketing chief Phil Guarascio said. “We've been pretty much “Nothing quite captures center stage like the Olympics,” Guarascio said. ‘The early ad launch is a way of“avoiding the Olympieclutter with other sponsors — be there where theyain't. It’s also a good business deal. GM gets exclusive rights to use U.S. Olympic symbols and athletes in its ads for the next five Olympics - through 2008. GM pulledout all stops at CARLOS OSORIOTheAssociated Press The Big Names: United States Olympic gold medalists from left, Carl Lewis, Dorothy Hamill and Bob Mathiasthrow out caps during a news conferencein Detroit where General Motors kicked off its own $1 billion Olympic sponsorship program. a newsconference to show its continued confidence — and playoff series with Atlanta — it hired NBC sportscaster investment Bob Costas as masterof ceremonies. NBC holds the U.S. — in the Olympics. In addition to bringing in Olympic TV rights through six Olympic gold medalists ill was absent because of his Detroit Pistons’ NBA 2008. “The Olympics have taken someshots of late. Some of those shots are deserved,” Costas said. “But what endures about the Olympics is the athletes.” Hesaid those whostrive to be the world’s best before a worldwide audience of billions makea lasting impres- untouched,” he said. Certainly, GM’s solid and substantial support — much ofit going to buy ad spots on NBC — shouldgo a long way to shore up US. corporate backing of the Olympics. GM’s 10-year, $1 billion sponsorship agreement buys it rights as the official vehi- cle-makerto the U.S. team. It also will be the only domestic automaker advertising dur- ing NBC’s 2000 Olympiccov. erage. andofhis group. Mike remembered them. Here was someone whose music hehad enjoyedlistening to, and now the fellowwas a drifter. Not everyonerealizes that the good gig they have now mayhave a short shelf-life. I'm notjust talking about athletes or entertainers. ” THEY'REIN a special class, and these days many ofthem haveprofes sional advisers to makesurethey're well takencare ofafter the cheering stops. Stocks take Rubin’s exit in stride By PATRICIA LAMIELL APBusiness Writer NEW YORK — prices were Wednesday as blue recovered most of a drop Therest of us might do well to following Stock mixed chips sharp Treasury Secretary Robert Rubin's res- recall that a lot of hot concepts that were going to provide lifetimeof security havefaded away: drive-in restaurants, miniature golf, corner ignation, and the broader market rose on strength in technology issues. At thecloseoftrading, the grocery stores, Dow Jones industrial average was down 25.78 at 11,000.37, mom-and-pop pharma- cies andappliance shops. The only time you someof them nowis whenyougo to the video store and rent “American Graffiti.” Ruleone: Save for a rainy dé I don’t meanput it all in thes market. As any good financial planner will tell you, your first obligation is to see that yourfamily’s financial foundationis secure. “The promptness of his appointment and well-orchestrated transition calmed the markets very quickly.” just as President Clintonformally announced Rubin's resignation and the nomination of Lawrence Summers ashis successor, The Dow openedslightly lower but plunged as much as 213 points after word of Rubin's resignation first crossed news wires 20 minutes later. It made back most of its losses within thefirst hour oftrading. Broader stock indicators, which also fell on the Rubin news, climbed quickly back into positive territory. The Standard & Poor's 500 index closed up 8,39at 1,364.00, and the Nasdaq composite index gained 39.86 to 2,606.54 Summers will need to be confirmed by the Senate. Market analysts warned that any delay on Capitol You needa worst-case scenario game plan, Businesses fold. Companies could send the stock and bond markets lower. Ned Riley, chief invest- By Andrew Zajac Chicago Tribune happens to yourjob. Rule three Harvey Mackay is the chairmanand CEOof Mackay Envelope Corp. andcan be contacted at harvey@mackay.com. ‘POOR COPY' APBusiness Writer NedRiley, ment officer at BankBoston, BankBoston said the choice of Summe taken the latest step in the helped the market regainits ongoing battle between the VVER — US West has footing. “The promptness of cable and telephone indus The market wasinitially his appointment and welltries for subscribe worried that new leadership at the Treasury might meana change in the administration's approach to the economy, hrivedsince Rubin stalled in 1995, But es experts said Rubin's resignation had long been expected and that the White House had madea good move in choosing Summers, his deputy, as a successor. orchestrated calmed the transition markets very quickly,” Riley said. Along with Federal Reserve Chairman Greenspan, Rubin is seen as having played akey role in the stock market'shis: toric eight-year advance, although Summers is also well respected for his intellec- announcing plans to expand its high-speed Internet access service while also cut ting the price by 25 percent “We want to try to drive the market nowbefore the cable competitors get a foothold,” Joe Zell, president of US We data network and commandof ing unit, said Tuesday. Cable and phone compaeconomicissues. tual prowess nies are focused on getting Motorola sells semiconductor groupin $1.6 billion deal tage of yourskills no matter what leave — they havestaying power. By SANDY SHORE high-speed Internet capabilityin place at anaffordable downsize. Be prepared to take advan Rereadrules oneand two. Mackay’s Moral: Success stories comeandgo, but smart comers never access service Hill Rule two: Throw yourselfinto your present position, but think long-term. US West cuts price of Web PHOENIX — Oncecriti- cized for trying to develop too management buyout consor. tium led by the Texas Pacific Group investment fund. Thesale of the semiconduc tor components group low end the narrowed its focus significantly by selling a chunk ofits struggling semiconductor Motorola’s Products Sector — will allow the company to concentrate on more complex andprofitable embed- busi ded microprocessors used in manydifferent kinds of prod- of ucts, Motorola Inc. on Tuesday Semiconductor for $1.6billion to a networking, automobiles and in the growing market for portable computing devices. “This enables us to focus on higher-end, higher valueadded products,” said Charles White, vice president and director of industry relations for Motorola’s SPSdivision. In a conference call with analysts, Motorola Chief Operating Officer Robert price. Both offer Internet access at speedsat least five times faster than a typical computer modem Growney said the agreement “Our wholeobjective is to by the company’s board. The semiconductor components group will remain headquartered in greater Phoenix and be run by Steve consumerpricelevel as fast as we can,” Zell said in a telephone interview from New York. “The more that we're able to drive the cost of the service down, the more viable it becomes as entertainment in the home.” already had been approved Hanson, a Motorola senior vice president and the current head ofthe unit. drive the price down to a |