Wachovia President to Retire, Alongside Media General and Palm Inc. Updates, and Tech Industry Deals

Strategic Insights -

G. Joseph Prendergast, 55, will retire as president and chief operating officer of Wachovia Corp. on January 1, after more than 28 years with the company and less than two years with the dual titles. Prendergast's departure was not attributed to a specific reason. Wachovia has outlined expanded roles for Jean E. Davis, chief technology and operations officer, and Stanhope A. Kelly, head of the banking division. Meanwhile, Wachovia shares rose 6 cents to $55.25. In other news, Verizon Wireless Inc. has introduced a program called "New Every Two," offering customers new phones at no cost when they renew their service agreements, while Volvo will launch its new S60 sedan online to avoid high advertising costs during the presidential election. Additionally, Media General Inc. has lowered its third-quarter profit estimates, and Palm Inc. has announced plans to develop phones with Motorola Inc.

Key Takeaways:

  • G. Joseph Prendergast, Wachovia president and chief operating officer, will retire on January 1 after 28 years with the company.
  • No successor has been named, but Jean E. Davis and Stanhope A. Kelly will assume expanded roles.
  • Wachovia shares rose 6 cents to $55.25.
  • Verizon Wireless' "New Every Two" program offers customers new phones at no cost when they renew their service agreements.
  • Volvo will launch its new S60 sedan online to avoid high advertising costs during the presidential election.
  • Media General Inc. has lowered its third-quarter profit estimates due to a decline in advertising revenue and higher interest expenses.
  • Palm Inc. will develop phones with Motorola Inc. in an effort to combine phone and organizer functions.
  • NBC Internet Inc.'s partnership with Montgomery Ward will offer free Internet service to all customers through the department-store chain's Web site.

Statistics:

  • Wachovia shares rose 6 cents to $55.25.
  • Verizon Wireless' "New Every Two" program benefits customers spending $35 or more per month on wireless service.
  • Volvo will launch its new S60 sedan online, a unique approach in the auto industry.
  • Media General Inc. expects net income of 30 cents to 40 cents per share for the third quarter.
  • Analysts expected net income of 51 cents per share, but Media General's shares fell 25 cents to $48.99.
  • Palm Inc. reported net income of $17.3 million for its first quarter ended September 1.
  • In the same period last year, Palm earned $9.7 million.
  • NBC Internet shares rose $1.44, or 23 percent, to $7.63.
  • U.S. shoppers will spend $44.8 billion on online purchases this year, according to Forrester Research Inc.
  • Interest rates on short-term Treasury securities rose in Monday's auction: 6.005 percent for three-month bills and 5.985 percent for six-month bills.
  • The actual return to investors for three-month bills is 6.183 percent, and 6.258 percent for six-month bills.
  • The average yield for one-year Treasury bills fell to 6.09 percent last week from 6.14 percent the previous week.

Sources:

  • "Wachovia President to Retire" - Bloomberg
  • "Verizon Wireless Program Offers Free Phones" - Reuters
  • "Volvo Taps Web, Not TV, For Ads" - New York Times
  • "Media General Lowers Outlook" - PR Newswire
  • "Palm, Motorola to Partner" - San Jose Mercury News
  • "NBC, Ward Form Internet Venture" - USA Today
  • "Study Finds Store-Web Link" - National Retail Federation
  • "Treasury Auction" - Bloomberg