In Business This Week: HEADLINER: JESSE JACKSON
FROM SELMA TO MORGAN STANLEY
Watch out, Wall Street. To shift the focus of the civil-rights movement from the statehouse to the "seat of capital," the Reverend Jesse Jackson on Jan. 15 announced that his Rainbow/PUSH Coalition will open an office at 40 Wall St. by mid-February. The office will try to get the Street to hire and promote more women and minorities. "Our struggle never quite made it directly to Wall Street before," he says.
Jackson also announced a pact with Mitsubishi that will end a boycott against the Japanese carmaker backed by Rainbow/PUSH and the National Organization for Women. The boycott began in the wake of sexual-harrassment allegations at the company's Normal (Ill.) plant. Mitsubishi says it will ensure that 15% of its dealerships have minority or female ownership within five years and that it will start talks to rehire the women who are suing the company. (The lawsuits and a federal probe continue.)
Jackson plans a similar strategy with Street firms. His group has already met with employees at Morgan Stanley who claim to have been discriminated against.By Catherine Arnst EDITED BY THANE PETERSONReturn to top
INTEL: NOWHERE TO GO BUT DOWN?
IT ISN'T EASY BEING INTEL. On Jan. 14, the company reported a record-shattering 1996 fourth quarter, with profits of $1.9 billion, more than double the same period in 1995, on 41% revenue growth to $6.4 billion. But Intel shares fell 3% the next day, to 142, after the company warned that revenues likely will be flat in the first quarter of 1997 and that gross margins will fall below the giddy 63% level of the fourth quarter. The problem: The first three months of the year are historically the chip industry's slowest, and the costs of ramping up production of the company's new MMX chips will dampen margins. Growth for all of 1997 should be good: Dataquest figures Intel's sales of 32-bit processors will jump 40% to 92 million units.EDITED BY THANE PETERSONReturn to top
A PARTING OF THE WAYS AT TANDY
A TANDY BOARD MEMBER has resigned in disgust over the company's performance--at least that's the way he tells the story. On Jan. 15, Jesse Upchurch, stepson of Tandy founder Charles Tandy and the company's largest noninstitutional investor, quit Tandy's board, citing an "ongoing impasse" with other directors over how to rate the performance of Tandy CEO John Roach. "With the right leadership, I believe Tandy/RadioShack can again be a market leader," says Upchurch, whose family owns about 2.5% of the company's stock. However, Upchurch also admits the company told him he would not be renominated for a directorship. Tandy could not be reached for comment.EDITED BY THANE PETERSONReturn to top
PLACER DOME GOES FOR THE GOLD
CALL IT A DISPUTE AMONG gold bugs. On Jan. 14, Placer Dome proposed a $5 billion merger with Bre-X Minerals, the tiny Canadian firm that discovered the Busang gold deposit in Indonesia, perhaps the world's largest. In December, Bre-X--on instructions from the Indonesian government--proposed to develop Busang with Barrick Gold, under a plan that would give Barrick 67.5% of a mine estimated to be worth over $20 billion. Placer is attempting to upset that plan, partly by offering to give Indonesian interests up to 40% of the mine, vs. 10% under the Barrick-Bre-X deal. Barrick says it doesn't consider Placer's bid "serious" and predicts that the government soon will O.K. its Bre-X deal.EDITED BY THANE PETERSONReturn to top