Business briefs for December 31, 2003

Wednesday, Dec. 31, 2003 | 11:29 a.m.

Big tech contract awarded

SAN DIEGO -- Cisco Systems Inc., the world's largest maker of computer-networking gear, and No. 3 U.S. long-distance carrier Sprint Corp. on Tuesday won part of contract from the U.S. Defense Department to build a fast data network.

The project, known as Global Information Grid-Bandwidth Expansion or GIG-BE, was awarded to closely held research and engineering firm Science Applications International Corp., the Defense Department said in a statement e-mailed by Sprint. The contract may be worth $80 million to $100 million to Sprint over six years, said Sprint spokesman Steve Lunceford.

San Diego-based SAIC chose Cisco and Sprint as subcontractors, along with gear makers Ciena Corp., Sycamore Networks Inc. and Juniper Networks Inc., and long-distance provider Qwest Communications International Inc., the statement said.

Lehman and Starwood buy British hotel group

LONDON -- Lehman Brothers Holdings Inc. and Starwood Hotels & Resorts Worldwide Inc. said Tuesday they have taken control of British hotel group Le Meridien for less than $1.3 billion.

Lehman is taking over the 126-hotel chain's outstanding senior debt of $1.3 billion at a discount. Starwood is funding $200 million through a high-yield junior participation in the debt.

Primm store to close

Spiegel Inc., a store and catalog retailer that filed for Chapter 11 bankruptcy protection in March, said it plans to close 29 Eddie Bauer stores in Nevada and 16 other states next year.

The store to close in Southern Nevada is at the Fashion Outlet of Las Vegas in Primm, on the California-Nevada border. Two Eddie Bauer stores already have closed in the Las Vegas area during 2003 -- one at Galleria at Sunset mall in Henderson and the other at the Desert Passage mall at the Aladdin resort on the Strip.

Spiegel is closing 25 apparel stores and four outlets that sell lower-priced goods to improve profitability at the chain, the Downers Grove, Ill.-based retailer said in a statement.

The company didn't immediately provide information on job losses.