Court ruling appealed on auto body shops

The Rhode Island Department of Business Regulation and the Property Casualty Insurers Association of America have appealed a recent court decision that would have required insurance companies in the state to conduct a labor-rate survey and use the data as the sole factor in determining rates for collision-repair shops. The Rhode Island Supreme Court will decide Oct. 23 whether or not to hear the appeal. In August, Rhode Island Superior Court Judge Netti C. Vogel ruled that state law requires that such a survey be used to determine rates. “PCI believes that the judge has committed several errors of law,” said Frank O’Brien, vice president and regional manager of the association. He said that Providence Mutual Fire Insurance, Amica Mutual, the National Association of Mutual Insurance Companies and the American Insurance Association have also filed briefs in the case “suggesting some constitutional problems and other issues.” The labor-rate statute requires that insurance companies with more than 1 percent of the market use a standardized form to survey body shop labor rates.

MetLife to raise capital and cut jobs

MetLife Inc., the biggest U.S. life insurer with headquarters for its auto and home unit in Warwick, says it plans to raise capital and cut jobs after reporting that third-quarter profit fell as much as 48 percent. MetLife is selling 75 million shares, valued at $2.8 billion at current prices, the New York-based company said. The insurer wants to assure investors it has liquidity to meet obligations and enable the company “to take advantage of potential opportunities,” chief executive officer Robert Henrikson said. He withdrew his full-year earnings forecast after falling equity markets hurt returns in the company’s annuity business and the housing slump pushed down the value of fixed-income investments.

Sovereign Bancorp pays interim CEO $700,000

Sovereign Bancorp Inc., the largest U.S. savings and loan institution and which has a number of branches in Rhode Island, will pay interim chief executive officer Kirk Walters $700,000 a year. Walters, the former chief financial officer who was promoted on Sept. 30, will initially receive a base salary of $550,000 for this year and be eligible for a bonus, the company said in a regulatory filing. In January, Paul Perrault, 57, the former CEO of Chittenden Corp. in Vermont, will become Sovereign CEO. He replaces Joseph Campanelli, who has already left the bank. Sovereign named Campanelli to replace Jay Sidhu in October 2006.

Proposed Mass. film studio earns praise

Financial consultants say a proposed $300-million movie studio in Plymouth, Mass., could generate thousands of jobs and millions of dollars in tax revenue while putting few strains on town services. Consultants yesterday presented their findings to town officials, who are trying to decide how much to give up in a property tax break to secure state funding for infrastructure improvements. Plymouth Rock Studios wants to build a movie and TV production facility on 240 acres in town. The project includes 14 sound stages, a back lot, a hotel and an education center. The consultants said the project would likely generate more than 3,000 jobs and $168 million in wages, although it could take several years for the studio to realize its full economic potential. Plymouth Rock had previously announced that it has registered its entire development project with the United States Green Building Council (USGBC) in order to pursue certification under Leadership in Energy and Environmental Design (LEED) standards. When completed, it would be the world’s first completely “green” studio complex.

KVH Industries expanding broadband service

Middletown-based KVH Industries, in a major step toward expanding availability of its broadband service, has signed a five-year agreement with GE International Holdings Inc., to lease capacity on its GE-23 satellite to provide coverage in the Pacific Ocean. Expected to go live in December, the new coverage area will include Alaska, the west coasts of Canada and the United States, Hawaii and extend into Asia. It represents a significant expansion in the availability of KVH’s increasingly popular Internet and voice service as well as a milestone in its effort to provide affordable mobile broadband connections around the globe. “The extension of mini-VSAT broadband coverage into the Pacific will allow us to support a significant portion of the world’s shipping lanes, including blue-water coverage between Asia and ports in the U.S. and Canada,” said Martin Kits van Heyningen, company chief executive officer. “Broadband connections at sea are essential for shipboard business activities, more efficient operations and compliance with increased regulatory requirements. In addition, affordable broadband Internet, e-mail and telephone services are vital as a means of improving the quality of life and the morale of the crew.”

Univision, General Mills planning sweepstakes

Univision Communications Inc., the nation’s leading Spanish-language media company that is predominantly owned by Providence-based Providence Equity Partners, has joined with General Mills Inc., a global manufacturer and marketer of consumer food products, to sponsor a sweepstakes that will allow five winners and their companions to celebrate an early Mother’s Day brunch in Miami, Fla., this May with Karla Martinez, cohost of Univision Network’s popular morning show, Despierta America (Wake Up America). General Mills is working with Univision to significantly increase their Hispanic marketing efforts with numerous brands across their portfolio.

Monitise Americase announces new COO

Monitise Americas, of Providence, has announced that Soren Bested has joined the company as chief operating officer. Soren, who was previously general manager of Monitise America’s sister service, Monilink, in the United Kingdom, will report directly to chief executive officer Lisa Stanton. He will be responsible for leading the teams focused on product development and delivery to financial-service companies across the United States and Canada. Monitise Americas provides multiple mobile banking and payment services to North American financial institutions over a single platform.

Webster Bank names executive vice president

Webster Bank, N.A., a subsidiary of Waterbury, Conn.-based Webster Financial Corp., has appointed Nitin J. Mhatre as executive vice president of consumer lending. He will oversee home equity business and secured and unsecured consumer lending activity and new products development. Mhatre joins Webster from CitiMortgage, where he was managing director for its home equity retail business. He has an MBA from Jamanalal Bajaj Institute of Management, Bombay University, India, and a bachelor of engineering degree from Conceicao Rodriguez College of Engineering in Bombay. Webster has branches in Barrington, Cranston, Middletown, Pawtucket, Providence, Warwick and East Providence.

Harvard alum donates $125 million to school

A Harvard Business School alumnus has given the university in Cambridge, Mass., its largest individual donation ever — $125 million to start a bioengineering institute. Hansjorg Wyss, an engineer and entrepreneur who earned an MBA from Harvard in 1965, said he felt humbled to be able to contribute to an effort he believes will change the course of science and medicine. The Hansjorg Wyss Institute for Biologically Inspired Engineering will attempt to discover the engineering principles nature uses to build living things, then use that information to create devices and technologies to meet medical needs. The new institute will bring together experts from numerous disciplines, including robotics, biology, computer science and surgery.