IN BRIEF
Convention authority prevails in slogan case
The Las Vegas Convention and Visitors Authority won a ruling in U.S. District Court on Thursday protecting its trademark slogan “What Happens Here Stays Here.”
Judge Larry Hicks denied a request to stay his ruling from last month, when he ordered the cancellation of a trademark registration by Dorothy Tovar and Adrenaline Sports of the slogan “What Happens in Vegas Stays in Vegas.”
Tovar argued she and the clothing company would suffer irreparable harm if her trademarks were canceled before her appeal was resolved. The court rejected the argument and said an appeal would likely fail.
Hicks ruled in August that Tovar’s slogan infringed on the trademark of the Las Vegas Convention and Visitors Authority. Last month, he ordered her and the company to pay $114,487 in damages and legal costs and pull merchandise bearing the motto from shelves.
ATLANTIC CITY
Atlantic City casino profits dip 54 percent
Net income at Atlantic City’s 11 casinos fell 54 percent in the first quarter compared to a year ago, the latest evidence that new slots parlors in Pennsylvania and New York are hurting business.
The industry could have its first down year since legalized gambling started in Atlantic City in 1978.
Net revenue fell 3.1 percent, and gross operating profit fell 5.8 percent for the quarter, state gambling regulators said Thursday.
Gross operating profit, which excludes interest, taxes, depreciation and other charges, is considered a better comparison between casino properties than net income.
The 11 casinos had gross operating profit of $297.4 million for the three months ending March 31, compared with $315.6 million a year earlier, the state Casino Control Commission reported.
MILWAUKEE
Trio of retailers report higher earnings
Retailers J.C. Penney Co. Inc., Kohl’s Corp. and Nordstrom posted strong first-quarter profits Thursday, beating analyst expectations.
J.C. Penney posted a 13 percent increase in profits, Nordstrom’s grew 19 percent and Kohl’s rose nearly 25 percent for the three months ended May 5.
Plano, Texas-based Penney announced Thursday that first-quarter earnings were $238 million, or $1.04 per share, up from $210 million, or 89 cents per share, during the same period a year ago. Revenue rose 3.1 percent to $4.35 billion from $4.22 billion.
Kohl’s posted net income of $209 million, or 64 cents per share, up from $167.2 million, or 48 cents per share, a year ago. Revenue rose 12.5 percent to $3.6 billion from $3.2 billion.
Kohl’s earnings climbed to $156.8 million, or 60 cents per share, from $131.2 million, or 48 cents per share, last year. Revenue rose 8.9 percent to $1.95 billion from $1.79 billion.
Trump Entertainment considers buyout bids
Trump Entertainment Resorts, the casino company founded by real estate developer Donald Trump, is considering takeover offers received in the two months since putting itself up for sale.
The company, which hired Merrill Lynch & Co. on March 12 to explore options for its three casinos, said in a statement that it formed a committee to evaluate proposals.
Trump Entertainment, which has a stock market value of $406 million, hasn’t been profitable since exiting bankruptcy in May 2005. Two of its properties are located on the Atlantic City boardwalk and may be attractive to casino operators seeking to enter the second-largest U.S. gambling market behind Las Vegas.
NEW YORK
WPP Group will buy 24/7 Real Media
WPP Group PLC, the world’s second-largest marketing conglomerate, is buying online advertising company 24/7 Real Media for $649 million in the latest deal to plunge media and technology companies further into the Internet advertising boom.
The deal announced Thursday came fast on the heels of Internet search leader Google’s $3.1 billion acquisition of DoubleClick in mid-April, a move that gave Google a major foothold in online display advertising.
Yahoo, meanwhile, agreed last month to buy the rest of privately held online ad exchange Right Media that it didn’t already own for $680 million.
DALLAS
Alliance Data shares surge on buyout news
Shares of credit card services provider Alliance Data Systems Corp. shot up nearly 25 percent Thursday after the company announced it was being acquired by private equity firm Blackstone Group in a deal valued at $6.43 billion.
Blackstone Capital Partners V LP agreed to pay $81.75 per share in cash for Alliance Data, representing a 30 percent premium to the stock’s Wednesday closing price of $62.96. Based on Alliance Data’s 78.7 million outstanding shares as of May 1, the deal is valued at $6.43 billion.
Alliance Data shares rose $15.50, or 24.62 percent, Thursday to close at $78.46.
Northwest plan opposed by unions
Labor unions opposed Northwest Airlines Corp.’s bankruptcy reorganization plan Thursday, arguing that a part of the plan that awards nearly $300 million in stock and options to top managers shows a lack of business judgment.
U.S. Bankruptcy Judge Allan Gropper heard the arguments in a hearing on whether the company’s restructuring plan should be approved. Northwest expects to emerge from Chapter 11 protection next month if the plan is approved.
Gropper said he would rule on the plan today.
NEW YORK
Bond prices decline on employment news
U.S. Treasury bond prices fell Thursday after a fifth consecutive drop in weekly jobless claims discouraged investors hoping to see more signs of weakness in the U.S. economy.
At 5 p.m. EDT, the 10-year Treasury note was down $3.44 per $1,000 in face value, or 0.35 points, from its level at 5 p.m. Wednesday. Its yield, which moves in the opposite direction, rose to 4.76 percent from 4.71 percent.
