Aetna ending small group plans to curb losses
Aetna is discontinuing small group health insurance plans in Allegheny and 15 other Western Pennsylvania counties next year in a continuing effort by the Hartford, Conn.-based carrier to curb losses sustained in government-sponsored marketplaces. The cutbacks, which affect groups with fewer than 50 members, will include 10 counties in West Virginia.
Md. firm buying Canonsburg pharmacy software provider
Bowie, Md.-based health care analytics firm Inovalon has an agreement to acquire Creehan Holding Co. Inc. of Canonsburg for $105 million in a cash and stock deal. Creehan is the parent company of Creehan & Creehan, an independent provider of specialty pharmacy and medications management software-as-a-service platforms with annual revenues of about $27 million, according to an Inovalon release. The acquisition is expected to close near Oct. 1.
Covestro adds to leadership
Philipp Polenz was named head of commercial operations for Covestro’s North American polycarbonates business. He also was named to the North American Leadership Team and Polycarbonates Global Leadership Team. Germany-based Covestro’s North American headquarters is in Robinson. Mr. Polenz, 37, most recently was Covestro’s head of regional project management for polyurethanes in Hong Kong, and head of mergers and acquisitions based in Germany.
Third American Airlines regional carrier increases pilot pay
Piedmont Airlines said Thursday it will join PSA Airlines and Envoy Air, two other regional carriers for American Airlines, in boosting first-year pilot pay to $58,800 with a guaranteed job at American Airlines. Starting wages at the Salisbury, Md., carrier will increase from $29.38 to $38.80 an hour. Piedmont will offer new pilots a $15,000 signing bonus, and a $20,000 retention bonus paid in installments after one year of service. PSA Airlines and Envoy Air announced similar pilot wage increases last week in an effort to lure new aviators at a time when many senior pilots are near the mandatory retirement age of 65, and it’s more difficult and expensive to become a pilot. The three carriers operate short-haul or “express” flights for American and merger partner US Airways.
PPG to sell stake in fiberglass ventures
PPG said it will sell its 50 percent stake in two PFG Fiber Glass joint ventures located in Taiwan and China. Nan Ya Plastics, which owns the other 50 percent of each venture, will buy PPG’s shares. PPG and Nan Ya created PFG in 1987. Nan Ya is an affiliate of Formosa Plastics Group. PFG makes electronic yard fibers for circuit boards and fiberglass used in automotive parts.
Wal-Mart to face class action over alleged bribery
A U.S. judge is granting class action status to Wal-Mart investors suing the world’s largest retailer over allegations that it covered up a bribery scheme in Mexico. In a ruling this week, a U.S. District Judge in Fayetteville, Ark., dismissed Wal-Mart’s argument that the City of Pontiac General Employees’ Retirement System could not lead a class action suit because it suffered no related financial losses. Wal-Mart’s stance was based on a certain accounting method. But U.S. District Judge Susan Hickey ruled that the pension fund showed losses using another accounting method and that Wal-Mart failed to adequately explain why its accounting method is preferable. Investors said Wal-Mart knew about the bribery scheme as early as 2005, seven years before allegations were made public.
McDonald’s exec heads to Dunkin’ Donuts
A longtime McDonald’s executive who resigned abruptly last week has been named the president of Dunkin’ Donuts in the U.S. and Canada. David Hoffmann was the president of McDonald’s high-growth segment, which includes countries like China and Russia. The company announced his resignation in a filing with the Securities and Exchange Commission on Wednesday. McDonald’s, headquartered in suburban Chicago, said that Mr. Hoffmann failed “to satisfy certain conditions upon his departure, including execution of a noncompete agreement.” As a result, he will forfeit certain benefits, including all unvested cash and equity incentive awards, the company said in the filing.
Lennar, WCI join to create powerhouse in Florida
Lennar will spend $643 million to acquire luxury homebuilder WCI Communities Inc., tying up two of the largest home construction companies in Florida as the U.S. real estate market improves. Construction activity has accelerated for much this year. Builders are optimistic about sales growth, a reflection of how steady job gains are leading more Americans to purchase new houses and sign leases for new apartments.
U.S. home sales fell in August
Americans retreated from home-buying in August, as a worsening inventory shortage appears to be hurting sales and pushing prices higher. Sales of existing homes slipped 0.9 percent last month to a seasonally adjusted annual rate of 5.33 million, the second straight monthly decline, the National Association of Realtors said. The monthly setbacks happened after a period of steady gains that have lifted home sales up 3 percent so far this year. Historically low mortgage rates have combined with an improved job market to bolster demand from possible buyers. But drastically fewer sellers are coming into the market. The number of properties for sale is dwindling despite buyer enthusiasm. Inventory has collapsed 10.1 percent from a year ago to 2.04 million homes.
Date: September 23, 2016