Business news in brief

QUOTE OF THE DAY “All five commissioners are very focused on these issues and are committed to making sure the market is fair and efficient and promoting capital formation.” Kara Stein, an SEC commissioner Article, 1D

Two meat trade groups announce merger

The American Meat Institute has announced it will merge with the North American Meat Association.

The consolidation, which will go into effect Jan. 1 has been approved by members of both trade groups. Talks of the merger began in September, and it was approved by the American Meat Institute on Wednesday and the North American Meat Association on March 22.

The American Meat Institute represents nearly 1,000 businesses in the poultry and red meat processing industries, covering 95 percent of the red meat and 70 percent of the turkey produced in the U.S. The North American Meat Association represents more than 600 companies, which include meat packers and processors, suppliers and affiliate members.

“Our two organizations now will create a transition committee to begin the process of merging our two organizations’ operations and governing structure,” American Meat Institute Chairman Greg Benedict said. “This is a positive development and one that stands to serve our industry well.”

Rates mixed in U.S. Treasury bill auction

WASHINGTON - Interest rates on short-term Treasury bills were mixed in Monday’s auction. Rates on three-month bills slipped, and rates on six-month bills were unchanged.

The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 0.030 percent, down from 0.035 percent last week. Another $23 billion in six-month bills was auctioned at a discount rate of 0.050 percent, unchanged from the auction of six-month bills last week.

The discount rates are a reflection of the bills selling for less than face value. For a $10,000 bill, the three-month price was $9,999.24 while a six-month bill sold for $9,997.47. That would equal an annualized rate of 0.030 percent for the three-month bills and 0.051 percent for the six-month bills.

Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, remained the same from the previous week at 0.10 percent.

L.A. port shipments up by most since ’07

Container shipments through the Port of Los Angeles climbed in March by the most in seven years as commerce rebounded after disruptions caused by the Chinese New Year and harsh winter weather in the U.S.

The combined number of loaded and empty 20-foot containers that entered and left Los Angeles increased 34 percent, the most since February 2007, to 675,274 from a year earlier, according to data posted on the port’s website. Shipments in the prior month dropped by the most for any February since 2009.

The pickup at the Port of Los Angeles, one of the leading gateways of trade between the U.S. and Asia, in part reflects the timing of multiweek Chinese New Year factory closings and severe weather in the U.S. Midwest and Northeast that disrupted warehousing. A bounceback at retail stores and factories combined with an advance in rail shipments indicate the world’s largest economy is set to gain momentum.

Hillshire picks up Van’s Natural Foods

Hillshire Brands Co., the maker of Jimmy Dean sausages and Ball Park hot dogs, agreed to buy Van’s Natural Foods from private-equity firm Catterton Partners for about $165 million to add healthy breakfast foods.

Van’s is expected to have net sales of $60 million this year, Chicago-based Hillshire and Greenwich, Conn.-based Catterton said Monday in a statement. The deal is expected to be completed next month.

Hillshire Chief Executive Officer Sean Connolly said last year that the company was focused on offering more healthy options for customers. Van’s, based in Phoenix, makes a range of wellness-oriented products, including frozen gluten-free pancakes and whole-grain waffles.

Hillshire shares fell 26 cents to close Monday at $35.85.

The shares have gained 8 percent this year through April 17, compared with a 0.9 percent increase for the Standard & Poor’s 500 Index.

  • Bloomberg News

Calpine sells 6 plants for $1.57 billion

NEW YORK - Calpine Corp. said Monday that it has agreed to sell six of its power plants to privately held LS Power Equity Advisors for $1.57 billion.

Houston-based Calpine plans to use the money to pay down debt, acquire other sites or buy back its stock, Chief Executive Officer Jack Fusco said.

Two of the plants are in Alabama, and the others are in Florida, Louisiana, Oklahoma and South Carolina.

Combined, they can generate nearly 3,500 megawatts of electricity.

Calpine owns about 94 power plants. It provides power to customers in 20 states and Canada.

New York-based LS Power is a developer and operator of power-generating sites.

Calpine shares rose 99 cents, or 4.6 percent, to close Monday at $22.36. Its shares have risen more than 9 percent so far this year.

  • Bloomberg News

Discovery unloads HowStuffWorks site

NEW YORK - The owner of cable networks Discovery Channel, TLC and Animal Planet said Monday that it has agreed to sell information website HowStuffWorks to Blucora Inc. for $45 million.

That’s far less than the $250 million that Discovery Communications Inc. paid for it in 2007.

HowStuffWorks publishes articles and videos that explain a wide variety of topics, including how chocolate eggs are made and whether carrots are good for your eyesight.

Discovery will continue to have access to HowStuff-Works videos after the deal closes and partner with Blucora to provide advertising services for the site.

Blucora, based in Bellevue, Wash., owns the search business InfoSpace.

The deal is expected to close in the second quarter.

Shares of Silver Spring, Md.-based Discovery slipped 38 cents to close Monday at $77.45. Blucora shares rose 6 cents to $19.25.

  • The Associated Press

Business, Pages 23 on 04/22/2014

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