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FedEx to drop Kinko's name, take $891M charge

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MEMPHIS, Tenn. (AP) -- FedEx Corp. said Monday it plans to stop using the Kinko's name on its copy and office service stores and book an $891 million charge for the quarter that ended Saturday.

The charge relates to the value of the Kinko's name and a write-down of the value of its acquisition of the brand. The charge, which works out to $2.22 a share, was not part of FedEx's earnings forecast.

The company early last month cut its outlook to $1.45 to $1.50 per share, down from $1.60 to $1.80, because of increasing fuel costs. FedEx reports its financial results for the fiscal fourth quarter June 18.

The company said it will change the name of its FedEx Kinko's stores to FedEx Office over the next several years.

"The FedEx Office name better describes the wide range of services available at its retail centers and takes full advantage of the FedEx brand long recognized for excellent customer service, quality and reliability," spokesman Jess Bunn told The Associated Press.

The name change is among a series of recent moves the company has made since it acquired the Kinko's copy chain in 2004 for $2.4 billion.

Bunn didn't elaborate on them, but the company said in a news release that the FedEx Office changes are "designed to more sharply focus the division on profitable core revenue growth and incremental shipping volume, which contributes about $1 billion of revenues annually to FedEx Express and FedEx Ground."

Wachovia board forces out CEO Ken Thompson

Market News
CHARLOTTE, N.C. (AP) -- Less than a month after losing his chairman post, and more than two years after an ill-timed acquisition of California mortgage lender Golden West Financial Corp., Wachovia Corp. said Monday that board members have forced CEO Ken Thompson to retire from the nation's fourth-largest bank.

The board of the Charlotte-based bank said it asked Thompson to leave a few days ago, and acted Sunday to replace him on an interim basis with Chairman Lanty Smith. Smith replaced Thompson as chairman last month in a move the bank said "strengthens independent leadership" at the company.

But several analysts on Monday questioned if Thompson's ouster means more problems at Wachovia, a bank that has weathered a series of setbacks, including mounting losses and federal investigations, in recent months. They also speculated that Wachovia could be a takeover candidate, though the bank said Monday that it plans to remain independent.

"Golden West doesn't help," said Nancy Bush, an independent analyst with NAB Research LLC in Aiken, S.C. "Makes you wonder if there's more trouble or change ahead."

The high-priced deal gave Wachovia a means to expand aggressively into the booming home-lending business while also adding hundreds of branches on the West Coast. It also exposed the bank to

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