Business news in brief

June 30, 2011
  • Lilisa Wright talks to Transportation Secretary Ray LaHood at a GM plant in Flint, Mich. During his visit Wednesday, he reassured industry and lawmakers about tougher fuel-economy standards and commended GM for adding a third shift of about 750 workers.

In the Region

N.J. pension savings seen in 2018

One of the nation's top credit-rating firms, Moody's Investors Service, said pension legislation signed by Gov. Christie on Tuesday would not result in material savings until 2018. Still, "the reforms are a critical step in managing the state's long-term liabilities," said Moody's vice president Baye Larsen, author of a report on New Jersey health and pension reform. The state faces $37.1 billion in unfunded liability in its pension system, making it the seventh-lowest-funded state system in the nation, Moody's said. - Bob Fernandez

Brokerage to buy back securities

Pennsylvania, six other states, and the federal government won an auction-rate securities settlement of about $300 million from Raymond James Financial Inc. The St. Petersburg, Fla., firm agreed to pay 100 percent of what investors paid for the securities, but it neither admitted nor denied allegations of dishonest or unethical conduct. Two company units were accused in part of falsely describing the investments as "cash equivalents," "the same as cash," and "highly liquid." They were none of those, Florida securities official Frank Widmann said. - AP

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Accenture awarded Air Force work

Accenture P.L.C., an Irish outsourcing and technology-management company with operations in the Philadelphia area, said

it was awarded a $17.2 million defense contract for software research and development. The project is geared toward supplying U.S. Air Force commanders with data for advanced planning and smarter battlefield management. The work will be done at Accenture offices in Camden, King of Prussia, and Joplin, Mo. - Bob Fernandez

Met-Pro wins $900,000 contract

Met-Pro Corp., Harleysville, said it received a $900,000 contract to make scrubber systems for an automotive-parts supplier. The systems control pollution by treating acid mists emitted from a plating on plastics operation. The buyer was not named. Met-Pro supplies tools for product recovery, pollution control, and fluid handling and filtration solutions. - Jingwen Hu

Hersha buying new N.Y.C. hotel

Hersha Hospitality Trust, Philadelphia and Harrisburg, said it agreed to buy the Hyatt Union Square Hotel in New York for $104.1 million. The 175-room hotel is under construction and is to open next year. The seller was not identified. Hersha is a real estate investment trust that owns stakes in 79 hotels from Boston to Washington. - Paul Schweizer

Destination Maternity expands in Asia

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