Borders delaying payment to some vendors
New York City — Borders Group is delaying payments to some of its vendors, a company spokeswoman said on Thursday. The news came just weeks after the company said it was trying to obtain new financing to avoid violating the terms of its credit agreements early next year.
"As part of this potential refinancing, Borders has determined that it is necessary to restructure its vendor financing arrangements and is delaying payments to certain of its vendors," Borders spokeswoman Mary Davis said by phone, in a Reuters report.
Borders has notified these vendors and will be working with them to restructure their arrangements with the company, she added. Davis did not give details on the vendors.
The company, however, said: "There can be no assurance that it will be successful in refinancing its senior credit facilities or restructuring its vendor financing arrangements."
CVS to acquire Universal American’s Medicare business for $1.25 billion
Woonsocket, R.I. — CVS Caremark Corp. said Friday it will pay $1.25 billion to buy Universal American Corp.’s Medicare prescription drug services unit. The deal will more than double the size of the chain’s Medicare drug business.
CVS said it pursued the deal because with the country’s population aging, a growing percentage of Americans will get their prescription drug coverage from Medicare.
Universal American serves about 1.9 million people in the Medicare Part D federally subsidized prescription benefit program for Medicare recipients, while CVS serves 1.2 million.
CVS said the deal is expected to close in second quarter 2011 and will add to its earnings per share within a year. The agreement is contingent on approval by Universal American shareholders.
Under the agreement, CVS will acquire all stock in Universal American and give Universal American’s shareholders 100% of a new public company that will own Universal American’s Medicare Advantage and traditional insurance businesses. The new company will have about $640 million in cash and no debt, Universal American said.
Target offers new way to welcome baby
MINNEAPOLIS – Target has created a new way for parents to share news about their new baby. The company last week announced the launch of its Big Baby Billboard, an interactive online experience that includes an outdoor presence in New York City and Los Angeles. For a limited time, parents can visit the Target Baby Facebook page to create a playful digital birth announcement that can be shared online with family and friends, the company reported. Target said it will then randomly select birth announcements for display in New York City’s Times Square (through Jan. 6) and on a larger-than-life magnetic board in Los Angeles (through Jan. 5).
"Technology plays an important role in how Target’s guests share and receive information and our Target Baby Facebook page serves as an excellent resource for new and expectant parents," said Will Setliff, VP marketing for Target. "We’re excited to tap into our guests’ online behaviors to provide them with a fun, relevant way to celebrate the birth of their child — whether that’s with friends and family, on an oversized magnetic billboard in Los Angeles or in the heart of our nation’s biggest city."