Deutsche Post, FedEx Reportedly Discuss DHL Deal

FedEx Corp. reportedly is in talks to buy all or part of Deutsche Post AG’s DHL delivery business in the U.S. in a deal that would help it challenge larger rival United Parcel Service Inc. Seeking to cut losses in the competitive fast-delivery business, Deutsche Post may move to trim its DHL business in the U.S., without abandoning it completely, according to published reports Friday. Deutsche Post Chief Financial Officer John Allan was quoted by Frankfurter Allgemeine Zeitung, a German newspaper, as saying that a total sale of DHL in the U.S. is “very, very unlikely.” A deal could be in the works by May at the latest, according to the report. “We don’t comment on corporate development,” FedEx spokesman Jess Bunn told The Associated Press.

Morgan Stanley tapped

Investment bank Morgan Stanley will manage the sale of Mittal Steel Co. NV’s Sparrows Point steel mill near Baltimore, a court- appointed trustee said Friday. The Wall Street firm has begun the process of soliciting bids from prospective buyers of the plant, said Joseph G. Krauss, a Washington lawyer who was appointed by a federal judge in August to oversee the sale. Krauss wouldn’t provide a timetable for the transaction. Mittal agreed in February to sell Sparrows Point to resolve U.S. Justice Department antitrust concerns that its $41 billion takeover of Arcelor SA would give the new company too much market power over the production of tin-plated steel.

PR awards given

Terrence J. Murphy of Columbia Gas of Pennsylvania and Maryland won the CEO Communicator of the Year honor at Thursday night’s Renaissance Awards sponsored by the Pittsburgh chapter of the Public Relations Society of America. Donna Durno of the Allegheny Intermediate Unit won the same award for a not-for-profit organization. Tom Hoffman of Consol Energy was named Communicator of the Year; Pat Mangus of Forge Communications LLC won the Renaissance Hall of Fame Award and Bryson W. Thornton of Del Monte Foods received the Rising Star Award. Jack Horner Communications won Best in Show for its “Is Your Guest Room Ready” campaign for PPG’s Olympic Paints and Stains division.

Earnings:

• Parkvale Financial Corp., the savings bank company based on Monroeville, reported net income rose 3.2 percent to nearly $3.6 million, or 64 cents a share, for the fiscal second quarter ended Dec. 31. Higher net interest income and other income offset higher noninterest expenses and a year-ago gain on the sale of assets. Total assets dipped less than 1 percent to about $1.83 billion.

• First Commonwealth Financial Corp. in Indiana, Pa., reported 2007 net income of $46.3 million, or 63 cents per share, down from $53 million, or 74 cents, one year ago. First Commonwealth reported fourth quarter net income of $11.6 million, or 16 cents a share, down from $12.4 million, or 17 cents, one year ago. First Commonwealth Bank operates 112 branches in 15 counties in Western and Central Pennsylvania.

• Commercial National Financial Corp., the Latrobe-based parent of Commercial Bank & Trust, reported 2007 net income of $3 million, or $1.01 per share, up from $2.9 million, or 95 cents a share, one year ago. Fourth quarter net income was $892,000, or 29 cents a share, up from $833,000, or 27 cents, one year ago.

Other business news:

• Wabtec Corp. of Wilmerding has signed a contract with Atlanta-based power company Southern Co. to supply its electronically controlled pneumatic braking equipment for 300 railroad coal cars. Terms were not disclosed. The Wabtec braking system is designed to improve train control safety through shorter stopping distances, lower derailment risks and improved brake system monitoring.

• Tollgrade Communications Inc. of Cheswick has joined the GridWise Alliance, a consortium of utilities, information technology companies, equipment vendors and technology providers to collaborate on improving electric utilities’ performance.

Originally published by staff and wire reports.

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