Originally created 08/12/97

Business briefs



Stocks rebounding from previous losses

NEW YORK - The stock market ended mixed Monday, regaining some of its big pre-weekend decline, after bargain hunters descended in the final hour of trading and bailed the Dow Jones industrials out of a 66-point loss. The Dow Jones industrial average rose 30.89 to 8,062.11.

Union launches ad campaign

WASHINGTON - The AFL-CIO unveiled a $5 million campaign Monday using union members to describe what they see as advantages of belonging to organized labor.

The campaign features television ads in which a nurse, a construction worker, a food-service worker and a machinist discuss wages, benefits and having a voice on the job.

Saying the labor federation has not "been telling our story," President John Sweeney said the campaign was the AFL-CIO's newest effort to revitalize its organizing efforts.

Reader's Digest chief resigns

NEW YORK - James P. Schadt resigned abruptly after three disappointing years at the helm of The Readers Digest Association Inc. and the man he succeeded was brought out of retirement to replace him.

George Grune, 68, who presided over Reader's Digest for the decade that saw it become a publicly-owned company, said he was pleased to serve "during this interim period" while the company looks for a permanent successor.

The company offered no reason for the 59-year-old Mr. Schadt's resignation in an announcement Monday, other than to say it was a mutual decision by the former soft-drink executive and the Reader's Digest board. But analysts suspected he had been forced out.

The company's earnings have declined, its revenues have stagnated and its stock price has plummeted even as the overall market for stocks has climbed. Last month, the company halved its dividend.

Bank buys insurance company

ZURICH, Switzerland - Credit Suisse banking group said Monday it will buy Winterthur, Switzerland's second-biggest insurance company, for about $9 billion worth of stock to form one of the world's biggest financial services companies.

The group would manage funds totaling $465 billion - the third-highest worldwide, according to figures provided by the two companies. U.S.-based Fidelity leads with client funds of $520 billion.