1675-1 Victor Hotel 05 V DOWN S&P 500 1,074.55 .
y STOCK INDEX -9.27
29 9,981.58 NASDAQ 1,652.17 BUSINESS
3 02 -122.68 STOCK INDEX -9.32
DOW BONDS 5.13 w w w . m i a m i . c o m w w w . b r o w a r d . corn
30 INDUSTRIALS U.S.10-YEAR NOTE -.01
arniva _ _ OON SOUTH BEACH
ANTHER BRAND 7111V g
,-._. a r
rira,,
• , .
. ,„
unit sale --.... I sta
.,
possible
,....„, ,,,.,
,,,,,,,
Disposal could . -. - sel
help bid for P&O ,
BY INA PAIVA CORDLE
icordlena herald.com
as L
Carnival Corp. said it would con-
sider disposing of P&O Cruises-UK— I
T e I e S c
the United Kingdom's largest pre-
mium cruise brand — if it has to
divest assets in Europe to win regula- sq u e e L
tory clearance for its proposed take-
over of P&O Princess Cruises.
At the same time, Miami-based BY PATRICK DAP
Carnival made it clear that it would `r j ' pdanner( herald.ca
not consider selling its premium and
luxury U.K.-based Cunard Line — Miramar-b;
operator of the Queen Elizabeth 2 and 11
an importer ar
Caronia lars and teles
Cunard has two new vessels under '( ', \ South Florid
construction: the Queen Mary 2,
scheduled to enter service in January Q owned busine
of liquidating
2004,will be the world's largest pas- x, Tasco tap!
senger ship and the first trans-Atlantic , ' fl ! '. James S.Feltm
liner built in more than three decades; v e. firm's assets a
•and an unnamed ship is scheduled for l interests.The
delivery in January 2005. ;, /1 a ,,k. r • . t . 0 ` seen by the B
"These two vessels represent a$1.2 f s �$ t #' Court.
billion investment in the future of t r
s • a I The comp;
Cunard Line and demonstrate Carni- : .; 4 `5 ' 1 production o
val's full commitment to growing this i i r`f, , manufacturer
world recognized brand," the com- , , k,k
pany said in a statement issued Mon- ✓ �f .' -?4;.,0":''
�.�� been searchi�
�: 1t selecting Felt;
day. j; �►� ` of its assets.
"Should Carnival be required to ; ,:1 } " ,,. a "While the
divest assets in Europe as a condition +/7'` ' • , erative,it was
of regulatory clearance for its pro- ;: r- i
e t ' i to preserve tl
posed bid to acquire P&O Princess, 14 4 j • a ;� ,� concern,"said
Carnival would not consider dispos- ; 's i
ing of Cunard Line." c' 1' ,31 ;1 a derd addedale lawye
Carnival's greatest interest in ty i
He it
4..7 . _ ,,, whether the cc
acquiring P&O Princess has been inin
RICHARD PATTERSON/FOR THE HERALD pieces.
the company's Princess line based in Gart said T
Los Angeles, said a source familiar 'A GREAT LOCATION AND A GREAT ADDRESS':The Victor Hotel on Ocean Drive first opened in 1938, vice the debt
with the deal. designed by L.Murray Dixon,who also fashioned the Tiffany Hotel,the Raleigh,the Tides and the Marlin. led by Heller
Carnival would choose to sacrifice
+ P&O Cruises because it believes Cun- uratic drop-o
Tasco went ir
and has stronger brand recognition, I ing facility, wi
the source said. million.
P&O Cruises-UK operates fourHyatt to reopen Victor Tasco still
ships: Oriana, Aurora, Arcadia and employees or
Victoria. Though the company does with the lit
not break down its profits by cruise expected to n
operator, analysts say P&O Cruis- Gart said.Twc
es-UK generates about$100 million in lory, senior vice president of official said
operating profit, or one-quarter of Hotel s chain s hotel development for the Chi- employees.
P&O Princess Cruises'total earnings. cago-based Hyatt Hotels. "We Tasco ran]
Peter McMullin, an analyst with s m al I e s t in U.S. 4 ram-. were also interested in the bou- cantly thinned
tique segment. We just didn't George Rosen
in March 19
PLEASE SEE CARNIVAL,4C know how to approach it."
BY CARA BUCKLEY ,
The Victor has been shut- employed 160
cbuckley®a herald.com { tered since 1984, long before and as many
' South Beach's renaissance, an the state of W;
Lenders allege The Victor Hotel,which sits ' 9 eyesore on the reinvigorated nue was about
next to Miami Beach's Versace a�X Ocean Drive. ZOM, specialists sale closed,he
mansion and has lain near ruint -" "f+ in Florida's real estate market, Reached '
for 18 years, will become a 91- %. C. became interested in South lamented the c
fraud in sale
room,$60 million Hyatt.Owned Beach's hot hotel market while started in 1954
by Orlando-based ZOM Devel- l p• building the Waverly apart- "The fact tl
of SunC ruz opment,the hotel will be Hyatt's ments on West Avenue in company I bt
first foray into South Beach and RANDY JUSTER/ Miami Beach. painful,"Rose
its smallest domestic hotel. REDISCOVERING ART DECO U.S.A. ZOM paid $11.75 million for control it.We
"We had always been looking SHUTTERED SINCE 1984:The the Victor in 2000,but the dried that I was ve:
BY PATRICK DANNER for the right opportunity in lobby of the Victor Hotel on
pdannerPerald.com South Beach," said Kevin Mal- Ocean Drive in Miami Beach. D PLEASE SEE VICTOR,3C
SunCruz Casinos'primary lenders
allege they were defrauded in the
2000 sale of the floating gambling
empire by representatives for seller Disney hotels hit by strike Tr�
Gus Boulis and the A14FIt
buyers, led by t,W A R LOCAL, �� SQA` •ERS n U I.0� I
qui-N `TR! SON" pi41at1
Adam Kidan. owned by Tishman Hotel and 41 1 if T ■�/
From Herald Staff and Wire Reports g y 1.1#V A i ," STRIKE,n + SIR,KE 0 N g i p
The lenders managed b Starwood Hotels&
-Fill
contend they were LAKE BUENA VISTA — Resorts Worldwide. 1 0 A444i A &
duped into loaning Hundreds of workers at two Treva Marshall, a spokes- R K i16
NW Hf�i rto ep"° ""�$T6
q �.
$54.5 million to hotels on Walt Disney World woman for the hotels, couldn't :r.,,�:."uu
IOWA ug• ,.. i aurae ASA
1,000- now-defunct Duke&Co.secu-
:ch during rities firm was sentenced joins oto seene
Tuesday to 221/2 years in
Hyatt
cents prison for running a crooked
$1.16. company that cheated inves-
tors
nves tors out of$650 million. VICTOR,FROM 1C I
I n keeping with
Victor Wang,38,was sen
■ tenced on his August 1999 up financing market, com- Miami Beach�S
' guilty plea to state corruption pounded by the recession and
i. ��/9
ES charges.He must serve 71/2 September tragedies, stalled 111-1r i' ,# • i` r''Y� strict historic
years in prison before he is eli- construction plans. Lending I/ -L • r ' > >
' L gible for parole. for the $48 million refurbish �� EU �_ it �'"`a guidelines, Hyatt
HEI)said Wang of Sarasota stayed ment was finally secured from w� .r ffi Q� iii---------,- i%
ht Support out of jail for the past 21/2 ING Bank of the Netherlands. ; Z 4W A I:... C!=i ., • ..- ,, 'Y _ tki' ,,,,,+ lig ` isn't expecting to
into a stra- years because he agreed to Milton Construction is set to 1400 l l --
_, 1 . 1 -r
th cooperate with investigators. break round this week and 1tiny, W �' `"` .. . see its sign on the
(UAL)to But Assistant District ZOM is aimingto open bylate ., J .- """""
P f1, 1/T s" +i il ' ,__ -i , . Victor.
of Federal Attorney Arthur Middlemiss 2003. 7' a i t _ ) ei a _ r.
tion-ap- said Wang refused to help, Hyatt operates 202 hotels '-I I j i 11 ��raii
T F.. _1/I utiIscrE 11', i
engine calling him an"utterly unre- and resorts internationally and l ,= ' �r ' 3)fin - , I',
pentant"liar who should get a has been eyeing the South Y :'� „. r -li_, ea, L,, . f._-_......'1 -fe
�__ i `1,, , - _ i,c , --,----r ,� expecting to see its sign on the
v 11
is stiff sentence because he Beach market for years. The 'GA. ___ x �� f Victor.Hyatt is the third major
to$100 "grew rich and flaunted his chain backed a failed bid by to 6 M uti.-;_ , fSER;j —, = ,..'-..-,. 17.4 chain to operate on Ocean
in of reve- lifestyle to his brokers to develop the region's first Afri-
space over encourage them to talk faster, can-American-owned hotel, ARTIST'S RENDERING:The Victor Hotel on Ocean Drive Drive: Hilton runs the Cres-
, to sell more falsely priced but lost to Don Peebles' transformed into a 91-room,$60 million Hyatt. cent ae tal4th Sand and Ocean,
timeshare
dual stock,to lie,to cheat,to steal Crowne Plaza team.The refur- and Marriott runs a property
illywood in his name." bished Victor will include a
filar part- Wang's lawyer,Lawrence new five-story adjoining struc- man Nick Pritzker's pitch. 1938, designed by architect L. near Second Street and Ocean.
swith Luft- Carra,said his client"admit- ture,shops,a restaurant and a "Hyatt seemed very sensi- Murray Dixon,who also fash- After nearly two decades,
Airlines. ted his culpability and 6,000-square-foot spa. Its low tive to the difference,the indi- ioned the Tiffany Hotel, the almost an eternity by South
ement with expressed genuine remorse." room count will be an anomaly vidualism that people expect Raleigh, the Tides and the Beach standards,Miami Beach
as agreed for Hyatt,whose average U.S. in a boutique hotel," Patterson Marlin.From 1992 to 2000, the preservationists cheered at
developed hotel has 400 rooms. said. The smallest Hyatt is its hotel lay dormant under the word of the Victor's long
Heico �11R�
"It's a great location and a 86-room Regency Madeleine ownership of Chris Blackwell, awaited overhaul.
•nt FAA-op- �N great address,right in the heart in Paris. "They seemed to get owner of Island Outpost hotels "It's welcome that they're
+uct line,on South Beach," said Scott Ber- it." and Island Records, and about to do something," said
from Heico. man,an analyst with Pricewa- The giant's global reserva- DACRA, run by developer Mitch Novick, chair of the
1 BURGER KING terhouseCoopers."It's curious tion system didn't hurt either. Craig Robins.The pair got the Miami Beach Historic Preser-
thatHIRES LOBBYIST they would pursue a hotel The Victor will be marketed city's nod to revamp the hotel, vation Board. "It's interesting
of that size and scale." internationally as an upscale but abandoned plans after that this one wasn't done
Burger King Corp.has Nor was ZOM initially boutique, with rooms from their partnership dissolved. sooner,and the Victor was cer-
•rsen has a hired Julie Idelkope for the interested in a major flag. But $365 to $800 for 700-square- In keeping with Miami tainly a blight to the area. I
•xtraneous recently re-created position of Steve Patterson, ZOM's CEO, foot oceanfront suites. Beach's strict historic guide- don't think any city likes
ents partly director of government affairs was won over by Hyatt Chair- The Victor first opened in lines,lMallory said Hyatt isn't closed buildings."
be used out to manage local,state and fed- -- -
Ad
against the eral government issues.Most
an Ander- recently she was deputy com o su re a outdeals
i ed Tues- missioner of Minnesotae pp •1 a a s o n •1 s C
Department of Trade and Eco-
-I,North nomic Development and was
e director Gov.Jesse Ventura's liaison to BY DAVID B.CARUSO Stock Exchange. funds with cash from Rigas John Rigas,who founded the
.sed government officials. Associated Press The drop followed the corn- family ventures. company with his brother in
..id casual ldelkope,31,who is based pony's filing late Friday of doc- .The special committee 1952, resigned as chief execu-
other docu- in Miami,also was director of PHILADELPHIA — Adel- uments showing it had loaned appointed by the company to tive and gave up his seat on
:terial to government affairs for the phia Communications stock the Rigas family at least$3.1 bil- investigate the Rigas dealings Adelphia's board of directors
should be Minnesota Twins and the man- dropped nearly 28 percent lion to purchase cable systems, said many of the transactions last week. His three sons also
irdance with ager of state and local govern- Tuesday as the market to get a controlling interest in were not approved by Adel- quit high-level posts in the
ent reten- ment affairs for Northwest responded to the company's the Buffalo Sabres professional phia's board of directors. company and resigned board
Airlines. disclosure that it had engaged hockey team and to acquire Additionally, Adelphia said seats.
rnst& in a series of questionable busi- Adelphia stock. it is looking into the Rigas fami- Adelphia's stock was trading
.day it 1 T-BILL RATES ness deals with the family of its The Securities and Exchange ly's use of company-owned jets at $20.39 before it began dis-
,2workers founder, John Rigas. Commission filing also said and apartments and a deal in closing information March 2''
ARE MIXED
dersen Shares of Adelphia fell 77 Adelphia had maintained an which the company paid $26.5 about its dealings with the
Interest rates on short- cents,or 27.8 percent,to close unusual cash management sys- million to acquire timber rights Rigas family. It was at $42.97
AX(IVX), term Treasury securities were Tuesday at $2 on the Nasdaq tem that co-mingled company on land owned by the family. last June.
aceutical mixed in Tuesday's auction.
ced its The Treasury Department s has sold t o bison in trate-monthoe majoritysta e
r Ander- bills at a discount rate of 1.730togive U tpan 's tubi unchanged from lastrust
y percent,
nst& week.An additional$15 billion
was sold in six-month bills at a PANAMA CITY, Fla. — 58 percent of St. Joe, plans to from the trust,further diluting the Nemours Foundation,
rate of 1.890 percent,down (AP) — A trust fund that sup- sell seven million shares to the the trust's control of the com- which operates children's hos-
EO pitals and clinics primarilyin
from 1.900 percent. ports medical care for children public,according to documents pany.
The six-month rate was the plans to give up its majority filed Friday with the U.S. Secu- St. Joe officials wrote in an Delaware and in Flo-;da.
'W N
lowest since May 13,when the ownership of The St. Joe Co., rities and Exchange Commis- SEC registration statement that The stock sale wi►iI t e spread
.ling amid rate was 1.870 percent. Florida's largest private land- sion. the trust is selling its stock to over an undiscloset t ime this
possible owner and the Panhandle's big- The trust will own 49.3 per- diversify its assets and may sell year,and the SEC tF.niporarily
negy(DYN) From Herald Staff, gest developer. cent of the Jacksonville-based more in the future. barred St.Joe officials from dis-
esignation of wire reports and Bloom- The Alfred I.duPont Testa- company's shares after the sale. Alfred I. duPont, St. Joe's cussing it.
e Tuesday in berg News more than 46 millionlshareslor million worth lofitts own s stock that bears his bname to benefit Tuesdayst tcloseJoe
atfol
$32.87 ents