Business briefs for August 7, 1998

A summary of the day's top financial news

Local

* LV ECONOMIC FORECASTING GAUGE SHOWS INCREASE -- UNLV's Southern Nevada Index of Leading Economic Indicators posted a gain of 0.24 percent in July. The UNLV Center for Business and Economic Research said its forecast is for the performance of the local economy in November and is based on May data. The data show declines in taxable sales and gross gaming revenue, but increases in residential and commercial construction and tourism indicators.

* KOREAN AIR CHARTER BRINGS JAPANESE TO LV -- The first of three August Korean Air charter flights arrived in Las Vegas this morning. The charter carried 350 Japanese tourists from Tokyo, Nagoya and Okayama. Myram Borders, a spokeswoman for the Las Vegas Convention and Visitors Authority, said the Korean Air flights could lead to regularly scheduled Korean Air service. "It gives their company and their private industry an opportunity to explore what kind of desire there is on the part of their customers to go to Las Vegas," Borders said. Increasing tourist travel from the Pacific Rim is especially important with 20,000 new hotel rooms coming on line, Borders said. "We have to have a lot more visitors in this town," she said. Japan provides Las Vegas the largest percentage of overseas tourists. Korea provides Las Vegas 122,000 tourists per year. The charter, a Boeing 747-400, will be followed by flights Aug. 11 and 15.

* NEVADA SMALL BUSINESS LENDING EFFORT RENEWED -- The U.S. Small Business Administration said it provided $750,000 in reauthorization funding to the Nevada MicroEnterprise Initiative. NMI offers loans of $100 to $25,000 to small businesses that have been denied traditional bank loans.

* PALACE STATION REPAIRS CONTINUE -- Station Casinos Inc. said more than 40 percent of the Palace Station casino has been reopened since a July 20 roof collapse and fire. The north valet casino entrance is to reopen today, while another 40 percent of the casino could reopen as early as next week. The main pit area and table game portion of the casino that sustained the most damage are to reopen in about 90 days. Station said total property damage estimates now range from $7 million to $15 million.

* BOYD WORKERS OK UNION DEAL -- Culinary Union Local 226 members at three Boyd Gaming Corp. properties ratified a new labor agreement this week that will see 2,263 workers get raises similar to those approved in agreements at major Strip properties last March. Stardust hotel-casino workers approved the agreement 725-1; Fremont workers approved it 288-0 and Main Street Station workers approved it 190-0. The contract calls for a $1.55 per hour raise over five years.

* AMERICA WEST BUYING BACK SHARES -- America West Holdings Corp. of Phoenix said Thursday it will buy back up to 5 million shares of its Class B stock and all of its 5.4 million outstanding publicly traded warrants. The stock buyback, which will take place through the end of next year, represents about 10 percent of America West's Class B stock outstanding. Companies use buybacks to increase earnings per share by reducing shares outstanding. America West Holdings is the holding company for America West Airlines.

* PRUDENTIAL DISCLOSES BIG SALE OF HILTON STOCK -- Jennison Associates LLC., recently the second-largest investor in Hilton Hotels Corp., cut its stake to less than 1 percent since March as shares of the third-largest U.S. hotel company went into a slide. Jennison, a unit of Prudential Insurance Co. of America, disclosed the sale of 14.8 million shares in a Securities & Exchange Commission filing. Before the sale, the fund manager held 6.8 percent of Hilton, which also is the largest U.S. casino-resort operator. In June, Hilton said it will spin off its casinos as a new gambling company that will buy three Mississippi resorts from Grand Casinos Inc. for $1.2 billion in stock and assumed debt. Hilton shares still have fallen 20 percent since the spinoff announcement on slowing profit growth in the lodging industry and concern that Hilton is overpaying for the Mississippi casino properties.

To contact Sun Business Editor Steve Green, call 259-4083 or e-mail [email protected]

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