Here is a look at more of Thursday's top business stories:
Laboratory Corp. of America buys Dynacare Inc.
BURLINGTON, N.C., May 9 (UPI) -- Laboratory Corp. of America Holdings, a clinical laboratory services provider, said it has entered into a definitive agreement to acquire Dynacare Inc. in a cash and stock deal valued at approximately $480 million.
The company also said it would assume approximately $205 million of Dynacare debt.
LabCorp said the deal values Dynacare at $23 a share.
Under terms of the deal each outstanding share of Dynacare common stock will be exchanged for $11.50 cash and 0.1164 share of Laboratory Corp. of America common stock.
LabCorp said it will issue about 2.4 million shares in the deal and that values Dynacare at $23 a share. Dynacare has about 20.9 million shares outstanding.
Dynacare said that it would take a second-quarter after tax charge of $4.7 million for the termination of joint ventures in Pittsburgh and Schenectady, N.Y.
Dynacare said the deal will not affect its partnerships with four Canadian laboratories.
Thomas P. Mac Mahon, LabCorp chairman and chief executive officer, said, "This transaction will enable LabCorp to provide more physicians and their patients with improved access to an expanded menu of leading-edge testing technologies. The merger will also expand our ability to service managed care and hospital customers and to achieve greater operating efficiencies. Clearly, the combination with Dynacare will help us achieve these objectives."
Dynacare President and Chief Executive Harvey Shapiro said the deal will give Dynacare access to advanced technologies and strengthen its services and growth prospects.
Dynacare operates 24 central laboratories, two esoteric laboratories, 115 rapid response labs and 302 patient service centers and provides clinical laboratory testing services in 21 states and two Canadian provinces.
Medtronic cuts 800 jobs in reorganization
MINNEAPOLIS, May 9 (UPI) -- Medical devices maker Medtronic Inc. said it is consolidating its global vascular products business, and will cut about 800 jobs as a result of the reorganization.
The company aims to create and "advanced technology center" in Santa Rosa, Calif., and close its PercuSurge and World Medical facilities in Sunnyvale, Calif.; and Sunrise, Fla.
All the current Medtronic Vascular products will continue to be manufactured and marketed, the company said.
PercuSurge manufactures distal protection devices, which are used in coronary angioplasty procedures in diseased vein grafts, and World Medical makes the Talent Stent Graft System for treatment of abdominal aortic aneurysms.
Bill Hawkins, president of Medtronic Vascular, said "This consolidation will position Medtronic to move quickly and decisively to introduce new technologies, while improving overall efficiencies.
"We remain highly committed to the Vascular market and will continue to focus on new research and development activities that will elevate our leadership profile in the industry," he said.
The company said approximately 435 manufacturing and professional positions in Santa Rosa are being eliminated, along with a total of 270 positions at World Medical and 95 positions at PercuSurge.
The company said the PercuSurge and World Medical facilities will begin closing immediately. However, the consolidation and realignment of operations, including the transfer of manufacturing activities, will continue through the third quarter of fiscal year 2003. Some Medtronic employees will be offered relocation opportunities.
"Medtronic is sensitive to the impact of this consolidation on California communities affected by its earlier workforce restructuring decisions and those of other companies," Hawkins said.
"Accordingly, Medtronic has arranged to contribute to the transitional needs of the entire Sonoma County community with financial support that will be provided in addition to severance packages and outplacement services for displaced Medtronic employees," he added.
Sales rise 9 percent at Pier 1
FORT WORTH, Texas (UPI) -- Pier 1 Imports Inc. said its April sales at stores open at least a year rose a better-than-expected 9 percent on strong demand for home furnishings.
The retailer also raised its earnings outlook.
Pier 1 said its total sales for the 4-week selling period that ended last Saturday rose nearly 18 percent to $114.8 million from $97.5 million during the same period last year.
As a result of the strong sales performance, Pier 1 also raised its first-quarter earnings target.
The company said it now expects to post a net income of 20 to 21 cents a share, up from previously raised guidance of 18 to 20 cents a share.
Analysts on Wall Street were expecting the company to post a net income of 19 cents a share, according to Thomson Financial/First Call.
Marvin J. Girouard, chairman and chief executive officer, said, "We were pleased with sales in April. Comp-store sales continue to be strong and our new stores are outperforming projections. We are experiencing a very good mix of regular and promotional items sold as well as increases in traffic throughout the United States and Canada."
Sales decline at Claire's Stores
PEMBROKE PINES, Fla., May 9 (UPI) -- Jewelry and accessories retailer Claire's Stores Inc. said its April sales at stores open at least a year, or same-store sales, declined 7 percent.
But, the retailer also forecast that first-quarter earnings would exceed its previous estimates.
The company said it expects earnings from continuing operations in the first quarter, ended May 4, to exceed prior guidance of 12 cents a share because lower inventory levels allowed for fewer markdowns and boosted margins.
The company said its April same store sales were lower because Easter fell in March this year and April last year.
For the 4-week selling period ended May 4, the company said its total sales fell 6 percent to $67.9 million from $72.3 million during the same period last year.
For the first quarter, same-store sales fell 2 percent, and overall sales fell 1 percent, to $210.5 million from $212.9 million a year earlier.
Rowland Schaefer, chairman and chief executive officer, said, "We expected April same store sales to be negative due to the shift in Easter and in fact, sales for the month and the first quarter were ahead of plan.
"Our strategy of maintaining lean inventory levels and therefore controlling markdowns, resulted in better than expected margin results," he said.
Claire's Stores currently operates more than 3,000 stores in the United States, the Caribbean, Puerto Rico, Canada, the United Kingdom, Ireland, Switzerland, Austria, Germany and France.
Limited posts flat sales
COLUMBUS, Ohio, May 9 (UPI) -- Apparel retailer Limited Inc. said its April sales at stores open at least one year were flat from a year earlier, as customer traffic was hurt by the timing of the Easter holiday.
The retailer, which operates stores under names including Express, Limited and Structure, said its total sales for the 4-week selling period that ended last Saturday rose 4 percent, to $620.4 million from an adjusted $594.1 million a year ago.
Easter weekend, which generally has a favorable effect on sales, occurred in March this year and was in April last year.
Adjusted sales in 2001 exclude sales from the Lane Bryant operation, which was sold to Charming Shoppes Inc. in August.
Net sales for the year-earlier period were $674.7 million including Lane Bryant.
For the quarter ended May 4, the company said its same store sales rose 4 percent. Net sales rose 7 percent to $2.03 billion from adjusted $1.89 billion a year ago. Year-earlier sales including Lane Bryant were $2.13 billion.
Limited, through Victoria's Secret, Bath & Body Works, Express, Express Men's, Lerner New York, Limited Stores, White Barn Candle Co. and Henri Bendel, operates 4,602 specialty stores.
