Zapata Hires Advisor for Internet Plans

Zapata Corp., a fish-oil and meat-casings business trying to break into cyberspace, said it hired Salomon Smith Barney to evaluate its financial alternatives related to its Internet business. Houston-based Zapata has agreed to acquire 31 Internet sites and e-commerce businesses since May, when it grabbed attention with a $1.68-billion offer to buy No. 2 Internet search directory Excite Inc., which Excite promptly rejected. Zapata has disclosed none of the terms for the deals it has signed. The company also said last month it planned to split into two publicly traded companies. The company was founded in 1953 by former President Bush to pump oil but has shifted from the energy business. Bush sold his interest in 1966. Zapata now owns 40% of Envirodyne Industries Inc., which makes meat casings, and 60% of Omega Protein Corp., a fish-meal and fish-oil producer. Zapata shares fell 38 cents to close at $11.63 on the NYSE after the announcement. The shares have fallen 49% from their closing high of $22.81 on July 16, but still have more than doubled in the last year.