Nextlink changes pricing, name to XO Communications

Nextlink changes pricing, name to XO Communications

NEW YORK-- Nextlink Communications, the phone company that bought Internet access provider Concentric Network, said it adopted the name XO Communications and is changing the way it charges customers to boost sales. Its shares rose $5.13, or 18 percent, to $33 yesterday.

The company will offer small-business customers local and long-distance calls with Concentric's Web-site access and management services on one bill for a flat fee. Customers will save 10 percent to 40 percent, the company said. Other communications companies charge customers based on usage.

The shares of McLean, Va.-based Nextlink have fallen by half from a high of $66.25 in March, as many telecommunications stocks declined. Analysts attributed the industry's decline in part to falling prices for services, such as long distance.

XO, controlled by Seattle-area cellular-phone pioneer Craig McCaw, competes with local-phone companies like New York-based Verizon. Nextlink had 627,200 phone lines in June. It was founded in 1994.

Korea Aerospace denies end of Boeing-BAE negotiations

SEOUL--Korea Aerospace Industries, Korea's biggest aerospace company, today denied a report that talks to raise $178 million through the sale of a stake to Boeing and BAE Systems have failed.

"We are still discussing with our major shareholders and government regulators whether to accept requests from the foreign companies," said Kim Nam Young, spokesman for Korea's biggest aerospace company. Kim was responding to a report in the Chosun Ilbo newspaper that the company had "tentatively" decided to scrap the talks after failing to agree on terms for the sale of as much as a 35 percent stake. A main barrier is how much involvement in management the Korean company will grant the foreign investors.

Boeing and BAE Systems want to appoint three out of seven directors in exchange for their investment, the Federation of Korean Industries said earlier this month.

KAI is a joint venture formed last year from the merger of the aviation units of the Samsung, Daewoo and Hyundai Groups in a government-arranged restructuring of the industry.

Lucent hits low amid rumors about results, chairman

NEW YORK--Lucent Technologies shares hit a two-year low yesterday as market rumors resurfaced that the telecommunications-equipment maker may miss its profit and revenue targets for the fourth quarter and its chairman may be forced to resign, analysts and traders said.

In heavy trading, Lucent's stock lost $1.56 to close at $30.88, a price not seen since October 1998. Lucent's stock has lost nearly 59 percent this year.

"The word is that they are going to miss the quarter and that (Lucent Chairman Rich) McGinn is on the street and they've hired (executive-search firm) Korn Ferry to find a replacement," said one industry analyst who declined to be named.

Lucent declined to comment. Korn Ferry did not return calls seeking comment.

Lucent stock has been weak since January when the company said it had been unable to manufacture new-generation networking products fast enough to keep up with robust customer demand.

Del Webb spurns takeover offer from rival J.F. Shea

PHOENIX--Del Webb, builder of the Sun City retirement communities, said it received an offer from J.F. Shea Co. to be acquired for $30 a share, the latest attempt from a competitor to purchase the company.

Phoenix-based Del Webb shares rose $4.94, or 22 percent, to close at $27.25 yesterday. The $30-a-share offer represents a 35 percent premium to Del Webb's closing price Friday.

The company is the largest U.S. builder of retirement communities.

Walnut, Calif.-based Shea may also nominate three people, including President and Chief Executive John Shea and the head of its retirement-housing unit, to the Del Webb board at the company's annual meeting in November.

Two other shareholder groups have taken steps to boost Del Webb's lagging stock price. Real-estate developer Avatar Holdings said earlier this month it considered a merger with Del Webb last year.

Avatar holds a 5.1 percent stake in Del Webb. And investment firm Pacific Partners, which owns a 5.5 percent stake, nominated three candidates for election to Del Webb's board.

Del Webb spokeswoman Lynne Reaves said the company has no plans to sell itself, as 76 million baby boomers in the U.S. are getting closer to retirement age.

Survey: Dot-com job cuts total 4,805 in September

WASHINGTON--U.S. Internet companies cut 4,805 jobs in September as commercial Web sites, from services to retailing, tried to reduce costs, according to a survey released yesterday.

That was 14.6 percent more than the 4,193 dot-com jobs cut in August and more than double the 2,194 in July, according to the statistics compiled by employment firm Challenger, Gray & Christmas of Chicago.

Dot-com founders "started the business with an exit strategy, either by an IPO or selling the company outright," said John Challenger, the firm's president. "Companies are now struggling to control costs through job cuts."

Since December, there have been 5,054 cuts among service providers on the Internet, followed by 4,563 in retail, 1,670 in portal businesses, 1,430 in entertainment and 1,052 in health and fitness, the survey said.

On Aug. 30, Drkoop.com, a money-losing health Web site that changed management, dismissed one-third of its work force to reduce costs.

- Seattle Times news services