NEWS WATCH: FINAL TEST SHOWS NEGATIVE RESULTS FOR MAD COW...SHAREHOLDER SUIT AGAINST NASH FINCH DISMISSED...WINN-DIXIE DOUBLES REVOLVING CREDIT FACILITY 2004-07-05 (2)

FINAL TEST SHOWS NEGATIVE RESULTS FOR MAD COW

ative for bovine spongiform encephalopathy upon final screening at the U.S. Department of Agriculture's National Veterinary Service Laboratories, officials announced last week. The lab used the "gold standard" test for BSE, the immunohistochemistry test, to confirm the finding, officials said. Meanwhile, a second animal that triggered an inconclusive BSE test result will go through a final round of testing at the lab in Ames, Iowa. The inconclusive readings turned up on a rapid screening test used as part of the government's new, enhanced BSE surveillance program. Officials refused to comment on the location of the animals in question, and declined to specify the rate of false positives likely under the screening program.

SHAREHOLDER SUIT AGAINST NASH FINCH DISMISSED

MINNEAPOLIS -- Nash Finch here said yesterday the U.S. District Court for the District of Minnesota has dismissed the class-action shareholder lawsuit filed against the company and some of its executives last year. The suit had consolidated eight separate class-action suits that had been filed in late 2002 and early 2003. The suit alleged that Nash Finch issued false statements about its financial results in connection with vendor promotions. In addition, the company said the suits that were filed in Minnesota state court against its board of directors and certain officers have also been dismissed. Nash Finch had delayed filing its 2002 third- and fourth-quarter financial results for several months, while the Securities and Exchange Commission conducted an investigation of its accounting practices.

WINN-DIXIE DOUBLES REVOLVING CREDIT FACILITY

JACKSONVILLE, Fla. -- Winn-Dixie Stores here said last week it has entered into an agreement with its lenders to double its existing senior secured revolving credit facility from $300 million to $600 million. Frank Lazaran, president and chief executive officer, said the additional borrowing capacity will provide support "[for] the ongoing execution of our strategic initiatives designed to improve Winn-Dixie's competitive positioning." The new agreement provides a $400 million three-year revolving credit facility and a $200 million three-year standby letter-of-credit facility.

GENERAL MILLS TO CUT SKUS, REVAMP PRODUCT LINE

MINNEAPOLIS -- General Mills here said it would cut 20% of its product line in its 2005 fiscal year that started in June, while rolling out new products emphasizing health and convenience benefits. "We expect this rationalization to improve our sales mix and profitability over the long term," Stephen Sanger, chairman and chief executive officer, told the investment community during a fourth-quarter conference call last week. Sanger said that while low-carb dieting, which has impacted sales at the No. 2 cereal company, may have peaked, consumers are showing more interest in products that help them with portion control and sugar intake.

RALPHS INVESTIGATED FOR HIRING DURING LOCKOUT

COMPTON, Calif. -- Ralphs Grocery here, a division of Kroger, Cincinnati, said it is cooperating with the office of the U.S. Attorney for the central district of California, which has convened a grand jury to investigate hiring practices by the chain during the 19-week labor dispute in Southern California that ended in late February. According to a Securities and Exchange Commission filing by Kroger, the investigation involves allegations -- originally raised during the strike-lockout -- that federal criminal statutes may have been violated by certain Ralphs store managers who knowingly allowed some locked-out employees to work under false identities or false Social Security numbers, despite company policies forbidding such conduct. Kroger said it is too early to determine whether charges will be filed or what potential penalties might result.