Page 25 - ARUBA TODAY

BUSINESS Thursday 3 May 2018
A25

Gibson guitars could have future

under bankruptcy protection

By JONATHAN MATTISE In the hands of musicians vintage instrument store in
NASHVILLE, Tenn. (AP) — from Jimmy Page to Duane Nashville.
Gibson guitars have been Allman and Slash, Gibson's One of the only known
such a fixture in music histo- electric guitars have been photographs of iconic
ry that Chuck Berry was laid a foundational element of Delta blues pioneer Robert
to rest with his, B.B. King af- blues and rock. Johnson shows him with a
fectionately named his "Lu- Legendary jazz guitar play- Gibson L-1 guitar.
cille," and Eric Clapton bor- er Charlie Christian made And the folk revival of the
rowed one from George history playing a Gibson ES- 1950s and 1960s wouldn't
Harrison to play the solo on 150 — one of the first ever have sounded quite so mel- In this Aug. 25, 2011 file photo, Gibson Guitar CEO Henry Jusz-
the Beatles' "While My Gui- electric guitars — through low without battalions of kiewicz speaks at the plant in Nashville, Tenn. The maker of the
Gibson guitar, an omnipresent icon in American rock ‘n’ roll,
tar Gently Weeps." an amplifier with the Benny steel-string Gibson acoustic is filing for bankruptcy protection after wrestling for years with
The maker of the iconic in- Goodman orchestra. The guitars among the Martins burdensome debt
strument, a constant across later big-bodied Gibson and Guilds. Associated Press
generations of American jazz guitars have been in Elvis Presley didn't start out
music, filed for bankruptcy the arsenal of many great with a Gibson but he went ie favored the 1989 Gib- including more than 40 per-
protection Tuesday af- players since then, such as on to own and play many son L4 when he fronted Tin cent of all electric guitars
ter wrestling for years with Wes Montgomery and Joe of them, according to the Machine. Slash swears by that cost more than $2,000,
debt. The decision came Pass. website for Graceland, his them. Gibson, founded in according to a bankruptcy
with an assurance from "It's hard to name any guitar Memphis home. 1894 and based in Nash- filing. The pre-negotiated
Gibson that it will refocus players who play electric or And Jimmy Page, the leg- ville, Tennessee, has the top reorganization plan filed
on its specialty, musical in- steel-string acoustics who endary guitarist for blues market share in premium Tuesday will allow Gibson
struments, and move away don't own a Gibson," said rockers Led Zeppelin, was electric guitars. It sells more Brands Inc. to continue op-
from its debt-plagued push George Gruhn of Gruhn and remains a longtime than 170,000 guitars a year erations with $135 million in
to sell home electronics. Guitars, a world-famous Gibson loyalist. David Bow- in more than 80 countries, financing from lenders.q

CVS Health beats 1Q expectations, works to close Aetna deal

By TOM MURPHY, Wall Street hasn't shared since Dec. 1, the last trad-
CVS Health delivered so far the enthusiasm CVS ing day before the compa-
better-than-expected first Health executives have for nies announced the Aetna
quarter earnings as the the Aetna deal. Analysts deal. The broader S&P 500
drugstore chain and phar- have noted that the com- index slipped less than 1
macy benefit manager panies face big challenges percent in the same time
forged ahead with its buy- in combining and also ex- frame. In the first quarter,
out of the insurer Aetna, a panding care. CVS Health Corp. booked
deal the companies say will CVS Health shares dipped a $998 million profit, with
transform how customers more than 3 percent to adjusted earnings of $1.48
get care. $65.64 in midday trad- per share. Revenue grew
CVS Health announced ing Wednesday, after the 2.6 percent to $45.69 billion.
late last year that it would company released its first- Analysts expected, on av-
spend about $69 billion in quarter results and a favor- erage, earnings of $1.41
cash and stock on Aetna, able forecast for 2018. per share on $45.77 billion
the nation's third-largest CVS Health logo appears above a trading post on the floor of The stock had already fall- in revenue, according to
health insurer. CVS Health the New York Stock Exchange. en more than 9 percent FactSet.q
CEO Larry Merlo told ana-
lysts Wednesday that the problems like sinus infec- like high blood pressure,
deal gives CVS Health a tions to use less-expensive asthma or depression. It
chance to "rethink and re- options like drugstore clin- also wants to help others
invent health care in our ics. deemed high risk and peo-
country." CVS Health plans to ex- ple who leave a hospital
The companies are trying pand the services it offers but still need care at home.
to capitalize on a grow- through its nearly 10,000 re- "We know there are billions
ing push to take care be- tail locations, deliver more of unnecessary and avoid-
yond the occasional doc- care at home and get able health care dollars
tor visit in order to better more involved in helping being spent in these areas,
control medical spending customers with things like and we know that we can
and keep people healthy. staying on their medicines. and must do better," Merlo
Insurers and employers The company envisions said Wednesday.
who provide coverage turning some stores into Merlo said Wednesday that
want patients with chronic one-stop shops where a CVS Health and Aetna re-
conditions to monitor their customer with diabetes main on track to close their
health more frequently so could get her eyes and deal in the second half of
they stay out of expensive blood sugar checked, visit this year. Shareholders from
hospitals and emergency a nurse practitioner and fill both companies approved
rooms. a prescription. the proposed acquisition in
They also want people CVS Health is targeting the first quarter, but regula-
seeking help for low-grade patients with conditions tors are still reviewing it.