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Less than two months after First
Interstate Bancorp withdrew its bold attempt to buy BankAmerica
Corp, Chairman Joseph Pinola is still looking for a good buy,
but he is also looking at ways to avoid being bought.
In a wide-ranging interview, Pinola said he's looking for
ways to improve profitability and capital between now and 1991,
"so as to resist any potential look at us...to maintain our
independence, if possible."
In 1991 federal regulatory changes will allow the major
East Coast banks to buy banks in California.
First Interstate, the fourth largest California bank, and
the nineth largest nationwide, owns 24 banks in 12 western
states and has franchise operations in four additional states.
Bank industry sources say it is an attractive target for
large U.S. or foreign banks, looking to quickly move into the
lucrative California market and the West Coast region.
While declining specifics on his corporate strategy, when
asked if acquisitions will be part of the plan, Pinola replied,
"That's undoubtedly a fair statement...it would be almost naive
not to think that."
Pinola characterized his acquisition strategy as
"opportunistic".
He said he will look for banks in management trouble that
he can get at a bargain, then add management to restore
profitability, or for banks in states where First Interstate
already operates, then cut costs by combining resources.
The exception, he said, would be Texas, where he said most
of the banks are already well managed, but might be purchased
at a discount because of the depressed regional economy.
Pinola declined comment on what circumstances might move
him to rekindle his bid for BankAmerica, saying only, "We
continue to monitor and look at a lot of things and a lot of
people continue to monitor and look at us."
Banking analysts, however, consider another First
Interstate bid at BankAmerica a long shot, not likely to happen
any time soon.
Pinola called his decision last month to withdraw his 3.25
billion dlr bid at the nation's second largest bank, "a very,
very difficult decision."
With that decision made, however, he acknowledged First
Interstate may now have a difficult time keeping its number
four position in the California banking community.
"The competition in this state is tough," he said, noting
CityBank's recent purchase of 50 financial service branches
from Sears Roebuck company. "CityBank is moving rapidly to move
us down to fifth and Wells Fargo down to fourth," he said.
Outside California, Pinola acknowledged that Security
Pacific Corp, with its recent acquisitions in Arizona,
Washington and Oregon, is quickly becoming a regional
competitor in areas where First Interstate has long dominated.
"Security is, has been and continues to be a highly
profitable and obviously well managed company," he said.
He added, however, First Interstate, at the moment, has the
advantages of having owned and managed regional banks longer
and has the recognition advantage of having given its regional
banks a common name.
Pinola said while its coastal state banks are in good
financial condition, First Interstate continues to sustain
serious loan losses in its Rocky Mountain states, where energy,
real estate and agriculture dominate the economy.
Asked if he thought loan losses in those areas had peaked,
he said, "I don't think it has bottomed out, because I think
most of the problems are real estate-related and the real
estate problems are going to be with us for several years."
Pinola said another failing economic sector, agriculture in
the Midwest, has slowed expansion of First Interstate's
franchise operation.
First Interstate has 42 franchise banks that offer First
Interstate financial services in ten states.
While a year ago he was considering taking his franchise
operation east of the Mississippi River, Pinola said because
most of the franchise banks are now in the West, expansion into
the Midwest must come first.
Calling the franchise system, "moderately profitable,"
Pinola said, "It is going to take a rejuvenation of the
agriculture sector for us to commence franchising at the speed
we were generating before the last year or two."
On the banking industry in general, Pinola said he thinks
1987 will be another bad year for loan losses, with only banks
with minimal holdings in real estate able to improve profits.
Reuter
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House of Fabrics Inc said
it expects growth in earnings and revenues as the current
fiscal year progresses.
It said it will open about 50 super stores this year.
House of Fabrics now operates 703 stores.
The company today reported earnings for the year ended
January 31 of 6,191,000 dlrs on sales of 316.4 mln dlrs, up
from prior year earnings of 4,257,000 dlrs on sales of 286.7
mln dlrs. The prior year earnings included a 2,100,000 dlr
charge for the disposition of Craft Showcase stores.
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Eastman Kodak Co said it has
reached an agreement to acquire new stock representing a 16 pct
interest in industrial biotechnology company <Genencor Inc> for
undisclosed terms.
Other Genencor shareholders include Staley Continental Inc
<STA>, Corning Glass Works <GLW> and Genentech Inc <GENE>.
The company said it has been granted options to increase
its equity stake during 1987. It said it has agreed to make a
multiyear, multimillion dollar commitment to Genecor research
products related to food additivies and pharmaceutical
intermediates.
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Shr 33 cts vs 30 cts
Net 13.0 mln vs 11.9 mln
Sales 330.8 mln vs 249.7 mln
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The Federal Reserve entered the U.S.
government securities market to arrange two billion dlrs of
customer repurchase agreements, a spokeswoman for the New York
Fed said.
Federal funds were trading at 6-3/16 pct at the time of the
indirect injection of temporary reserves.
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The Senate voted unanimously to seek
an expedited U.S. probe of Canadian tariffs on corn imports to
determine if the United States should retaliate.
By 99 to 0, the Senate went on record against the 84.9
cents per bushel tariff approved by the Canadian Import
Tribunal.
The non binding measure asked for a probe by the U.S. Trade
Representative to determine within 30 days whether the tariff
violates the General Agreement on Tariffs and Trade, and if so
recommend within 60 days to President Reagan retaliatory action
against Canada.
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Qtly div 25 cts vs 25 cts prior
Pay April 13
Record April Six
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Qtly div 12 cts vs 12 cts prior
Pay April 21
Record April Seven
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Shr loss six cts vs loss 18 cts
Net loss 89,478 vs loss 178,507
Revs 3,894,844 vs 1,964,141
Avg shrs 1,582,790 vs one mln
Year
Shr loss 43 cts vs loss 81 cts
Net loss 534,099 vs loss 811,836
Revs 12.2 mln vs 5,167,573
Avg shrs 1,251,337 vs one mln
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Shr 43 cts vs 52 cts
Shr diluted 41 cts vs 49 cts
Net 1,916,000 vs 2,281,000
Revs 32.6 mln vs 22.6 mln
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Rogers Corp said first quarter
earnings will be up significantly from earnings of 114,000 dlrs
or four cts share for the same quarter last year.
The company said it expects revenues for the first quarter
to be "somewhat higher" than revenues of 32.9 mln dlrs posted
for the year-ago quarter.
Rogers said it reached an agreement for the sale of its
molded switch circuit product line to a major supplier.
The sale, terms of which were not disclosed, will be
completed early in the second quarter, Rogers said.
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<Island
Telephone Co Ltd> said the previously announced two-for-one
common share split was approved by shareholders at the annual
meeting.
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Prime Minister Margaret Thatcher said
the U.K. Was growing more impatient with Japanese trade
barriers and warned that it would soon have new powers against
countries not offering reciprocal access to their markets.
She told Parliament that the bid by the U.K.'s Cable and
Wireless Plc <CAWL.L> to enter the Japanese telecommunications
market was being regarded by her government as a test case.
"I wrote to the prime minister of Japan, Mr Nakasone, on the
fourth of March to express our interest on the Cable and
Wireless bid. I have not yet had a reply. We see this as a test
on how open the Japanese market really is," Thatcher said.
Thatcher told Parliament that "shortly ... We shall have
more powers than we have now, when, for example the powers
under the Financial Services Act and the Banking Act become
available, then we shall be able to take action in cases where
other countries do not offer the same full access to financial
services as we do."
Cable and Wireless is seeking a stake in the proposed
Japanese telecommunications rival to Kokusai Denshin Denwa.
But the Japanese minister for post and telecommunications
was reported as saying that he opposed Cable and Wireless
having a managerial role in the new company.
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Shr loss nil vs profit 19 cts
Net loss 3,175 vs profit 284,945
Revs 13.6 mln vs 10.6 mln
Year
Shr profit 13 cts vs profit 56 cts
Net profit 195,202 vs profit 857,006
Revs 47.5 mln vs 42.9 mln
Note: Current year net includes charge against discontinued
operations of 1,060,848 dlrs.
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Canadian oil exports rose 20 pct in 1986
over the previous year to 33.96 mln cubic meters, while oil
imports soared 25.2 pct to 20.58 mln cubic meters, Statistics
Canada said.
Production, meanwhile, was unchanged from the previous year
at 91.09 mln cubic feet.
Natural gas exports plunged 19.4 pct to 21.09 billion cubic
meters, while Canadian sales slipped 4.1 pct to 48.09 billion
cubic meters.
The federal agency said that in December oil production
fell 4.0 pct to 7.73 mln cubic meters, while exports rose 5.2
pct to 2.84 mln cubic meters and imports rose 12.3 pct to 2.1
mln cubic meters.
Natural gas exports fell 16.3 pct in the month 2.51 billion
cubic meters and Canadian sales eased 10.2 pct to 5.25 billion
cubic meters.
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Gould Inc said it has
completed the sale of its French battery business, Compagnie
Francaise D'Electro Chimie, to a group of investors including
the unit's employees and <GNB Inc> of Minnesota.
Gould did not disclose terms of the deal.
Gould said the move is part of its previously announced
plan to divest assets unrelated to its computer and electronics
businesses.
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Shr 51 cts vs 75 cts
Net 5,524,000 vs 8,094,000
Revs 142.4 mln vs 137.2 mln
NOTE: 1986 and 1985 year net includes loss 785,000 dlrs or
eight cts a share and 59,000 dlrs or one ct a share,
respectively, for discontinued operations.
1985 year ended December 28, 1985.
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First Wisconsin Corp said it
plans to acquire Shelard Bancshares Inc for about 25 mln dlrs
in cash, its first acquisition of a Minnesota-based bank.
First Wisconsin said Shelard is the holding company for two
banks with total assets of 168 mln dlrs.
First Wisconsin, which had assets at yearend of 7.1 billion
dlrs, said the Shelard purchase price is about 12 times the
1986 earnings of the bank.
It said the two Shelard banks have a total of five offices
in the Minneapolis-St. Paul area.
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Period ended Feb 28
Shr profit five cts vs profit four cts
Net profit 191,000 vs profit 108,000
Sales 6,561,000 vs 5,896,000
Nine mths
Shr loss 28 cts vs loss 40 cts
Net loss 871,000 vs loss 990,000
Sales 9,310,000 vs 8,894,000
Avg shrs 3,086,386 vs 2,465,996
NOTE: Full name is American Nursery Products Inc
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Shr loss six cts vs loss seven cts
Net loss 125,000 vs loss 140,000
Rev 2.4 mln vs 2.2 mln
Year
Shr loss 13 cts vs loss 14 cts
Net loss 271,000 vs loss 211,000
Rev 10.1 mln vs 8.2 mln
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Shr 11 cts vs 13 cts
Net 1,129,000 vs 1,301,000
Revs 83.2 mln vs 74.5 mln
Year
Shr 57 cts vs 82 cts
Net 5,686,000 vs 8,168,000
Revs 398.4 mln vs 333.8 mln
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Qtr ends Feb 28
Shr profit five cts vs profit four cts
Net profit 191,000 vs profit 108,000
Revs 6,561,000 vs 5,896,000
Avg shrs 3.6 mln vs 2.5 mln
Nine mths
Shr loss 28 cts vs loss 40 cts
Net loss 871,000 vs loss 990,000
Revs 9,310,000 vs 8,894,000
Avg shrs 3.1 mln vs 2.5 mln
NOTE: Full name American Nursery Products Inc.
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AB Volvo <VOLV.ST> said the weakening
dollar caused the drop in its 1986 profits, but company chief
executive Pehr Gyllenhammar said 1986 was one of Volvo's best
years ever.
In its final report released earlier, the company said the
group's 1986 profits before allocations and taxes was 7.53
billion crowns compared with 1985's 7.60 billion.
Despite the fall, Gyllenhammar said, "Sales of industrial
products have never been higher, and Volvo Cars and Volvo
Trucks were both completely sold out at year-end. Operating
income was slightly higher than a year earlier."
He said the company's financial strength gave it
exceptional opportunities to invest for the future.
Although industrial sales were up, the company's yearend
report said total sales were 84.09 billion crowns against
1985's 86.19 billion.
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<Meridian Energy Inc> and Castone
Development Corp, a privately-held company, jointly announced
that they have decided to terminate the letter of intent under
which Meridian would have acquired Castone.
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World seaborne iron ore imports will
fall sharply by the year 2000 with declining imports to the EC
and Japan only partially offset by increased demand from South
East Asia, a report by Ocean Shipping Consultants said.
The report predicts annual world seaborne iron ore imports
of 267.7 mln tonnes by 2000 versus 312.4 mln tonnes in 1985.
It estimates that total bulk shipping demand from the iron
ore sector will fall by almost 10 pct, or 200 billion tonne
miles, with shipping demand associated with the coking trade
down about 17 pct or 130 billion tonne miles.
The report sees EC imports falling to 91.7 mln tonnes in
2000 from 123.6 mln in 1985 with Japanese imports falling to 89
mln from 124.6 mln tonnes. Imports to South East Asia are seen
rising to 58.6 mln from 32.6 mln tonnes in 1985.
It predicts that EC steel production will fall to 109 mln
tonnes in 2000 from 135.7 mln in 1985 with Japanese production
falling to 92 mln from 105.3 mln.
South Korea and Taiwan are expected to double their output
to 40 mln tonnes with Chinese production increasing by 25 mln
tonnes to 80 mln, it added.
Reuter
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Shr loss four cts vs loss five cts
Net loss 527,065 vs loss 1,204,080
Revs 622,470 vs 613,205
Year
Shr profit four cts vs loss 13 cts
Net profit 1,099,778 vs loss 3,282,478
Revs 7,579,547 vs 6,068,254
NOTE: 1985 excludes loss from discontinued operations of
four cts per share in the quarter and loss 10 cts in the year.
1986 year excludes extraordinary gain of two cts a share.
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French Finance Minister Edouard Balladur
discussed the need to control public spending in talks here
today with British Chancellor of the Exchequer Nigel Lawson, a
Treasury spokesman said.
The spokesman said the ministers reviewed their economies,
and public spending, domestic and European Community-wide.
He declined to comment on whether the subject of concerted
action to shore up the dollar had arisen. The U.S. Currency
dipped sharply earlier this week after a month of relative
stability after an agreement by six major industrialised
nations in Paris on February 22 to stabilise their currencies.
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Federal Reserve Board Governor
Robert Heller said the banking system could be strengthened by
permitting formation of financial services holding companies
involved in areas like banking, insurance, real estate and
securities.
In a speech prepared for delivery in New York to the Bank
and Financial Analysts' Association, Heller said, "I believe
that increased diversification along geographic and product
lines is the key to strengthening the American banking system."
He said he supported the idea of financial services holding
companies advocated by the Association of Bank Holding
Companies in which regulation of various bank, thrift,
insurance, investment, securities and real estate subsidiaries
would be handled on functional lines.
"Limits would be placed on the extension of credit by the
bank to the associated institutions, and all transactions would
have to be on an arms-length basis," Heller said.
Measures would be necessary to avoid abuse of the banks'
special position by such holding companies or subsidiaries.
Heller said he "would require the holding company to serve
as a 'source of strength' to the bank by making a commitment to
maintain the bank's capital.
"In other words, the bank would not be allowed to fail as
long as the holding company has a positive net worth."
Heller also said commercial enterprises should be permitted
to own a financial services holding company, again with the
provision that capital would flow to the financial enterprise
if necessary.
Heller said the effects of these actions "would be banks
that are at least as strong as the corporations holding them" in
which customer deposits were assured while any incentive to
"loot the bank" was removed.
Such diversification would give access to national and
international financial services to corporations across the
United States.
Heller said that would mean "the steady decline of America's
banks in the world financial league tables would be arrested" by
permitting them to become more competitive.
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Gould Inc said it sold its
French Battery unit, Cie Francaise d'Electro Chimie, to a group
of investors including the unit's employees and <GNB Inc> of
Minnesota.
Terms of the sale were not disclosed. The unit had 1986
sales of 65 mln dlrs.
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Shr loss 30 cts vs loss 73 cts
Net loss 3,895,267 vs loss 8,250,222
Revs 3,237,235 vs 234,745
Note: 4th qtr data not available
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Federated Department Stores Inc said
it raised its quarterly common stock dividend to 74 cts a
share, from 67 cts, an increase of 10.5 pct.
The company said it also approved a two-for-one stock split
in the form of a 100 pct stock dividend.
At the same time, Federated said it will ask shareholders
to approve an increase in the number of authorized shares to
400 mln, from 200 mln.
Federated said the dividend is payable on a pre-split basis
on April 24 to shareholders of record April 10.
New shares from the stock split will be distributed May 11,
it said.
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Danzar Investment Group Inc said it
received 60 mln shares of <Commonwealth Capital Ltd> in
settlement of a debt and that it will distribute the shares to
its stockholders as a dividend.
Danzar said the dividend will also include 18,750,000
Commonwealth shares it already holds.
The dividend of 39.9 shares per Danzar share held will be
paid to shareholders of record April 15, the company said.
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Fidelity National Financial
Inc said its Fidelity National Title Insurance Co subsidiary
acquired the operations of Safeco Title Insurance Co in the
northern California counties of Alameda, Contra Costa and San
Mateo.
Terms of the acquisition were not disclosed.
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Qtly div nine cts
Pay April 30
Record April six
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Security Pacific Corp and
<Users Inc>, a credit union data processing concern, said they
have mutually agreed to withdraw from further merger
negotiations.
Users said that since it signed a letter of intent to merge
with Security in November, it has received a strong show of
support for continuing the credit union ownership of the
company with credit unions committing themselves to purchase
additional Users common.
Users also said it is in the strongest financial position
in its 24-year history.
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Entertainment Publications
Inc said it expects an after-tax loss of 31 cts a share in its
third quarter from the disposal of three units it closed.
The company said its board approved a plan to discontinue
the operations of three subsidiaries, which are primarily
involved in direct mail marketing.
"The discontinued units were not likely to meet the growth
and profit goals of the company in the future," Entertainment
Publications said.
The three units lost 900,000 dlrs, or 19 cts a share in the
six months ended December 31.
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Chris-Craft Industies Inc said it
declared a regular two pct stock dividend on both its common
stock and class B common stock, which is equal the two pct
stock dividends the company paid for the prior quarter.
The dividends are payable on April 20 to shareholders of
record April six.
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Dennison Manufacturing Co
said it has signed a letter of intent to sell its Dunn Paper Co
subsidiary to James River Corp <JR> for an undisclosed amount
of cash, resulting in a first quarter charge against earnings.
The company saiud the loss on the sale may be partly
reduced by contingent payments over the next five years and
will in the first quarter be more than offset by the gain from
the previously-announced sale of its Hygeia Sciences Inc
shares.
Dunn had sales last year of about 65 mln dlrs.
In Richmond, Va., James River said closing is expected by
the end of April, subject to approval by both boards and on the
reaching of satisfactory labor agreements.
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The Pillsbury Co said it
filed a registration statement with the Securities and Exchange
Commission for the sale of limited partnership interests in a
second master limited partnership of its Burger King unit's
restaurant properties.
Pillsbury said it expects the offering to yield 73-82 mln
dlrs, resulting in an after-tax gain of 20-23 mln dlrs.
A spokesman for Pillsbury said the company is aiming to get
this after-tax gain in the fourth fiscal quarter ending in May.
Pillsbury said the sale will occur as soon as practicable,
considering the business and legal contigencies.
The company said Burger King and another Pillsbury unit,
QSV Properties, will be the master limited partnership's
general partner.
Pillsbury said it expects the interests to be sold to
public investors and listed for trading on the New York Stock
Exchange.
Merrill Lynch will lead the underwriting, Pillsbury said.
Pillsbury first sold limited partnership interests in
Burger King Investors L.P. in February 1986.
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Qtly div 20 cts vs 19-1/2 cts prior
Pay June 20
Record June 5
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0,
0,
0,
0,
0,
0
]
|
[
0,
0,
0,
0,
0,
0,
1,
0,
0,
0
]
|
|
Qtly div 17-1/2 cts vs 17-1/2 cts prior
Pay June 5
Record May 22
Reuter
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British Petroleum Co Plc does not
intend to raise the price of its planned 70 dlr per share offer
for the publicly held 45 pct of Standard Oil Co, BP Managing
Director David Simon said.
"We don't seen this as any progressive bidding game," he
told reporters at a news conference. BP now owns 55 pct of
Standard's stock.
Simon said BP had carefully considered the amount of its
planned bid and he quoted an oil analyst, whom he would not
identify, as saying BP's careful evaluation means the company
is not going to raise its offer.
"I think that (an increase) would be totally wrong. I think
the price is very fair and it is much to early to speculate
about ligigation," he said. "Let's wait and see how the offer
runs."
Another official declined to speculate under what
circumstances BP might raise its bid.
The BP official said the 70 dlrs a share offer is 7.2 times
Standard's 1986 cash flow and 56 pct above an independent
evaluation of the company's assets, including the value of its
oil, natural gas liquids and natural gas reserves.
He said the price Royal Dutch/Shell Group <RD> <SC> paid
for publicly held Shell Oil Co shares in 1985 was 5.1 times
cash flow.
The BP official also said the 70 dlr bid is a 40 pct
premium over Standard's stock price over the past year.
BP Group Treasurer Rodney Chase said more than half to as
much as two-third's of the 7.4 billion dlrs BP needs for its
offer will come from existing sources. The rest will be
financed by new debt.
BP will draw in cash from its operating companies around
the world and is also arranging a five billion dlr line of
credit, he explained.
The company's debt to equity ratio will rise 11 or 12
percentage points from the current 33 pct if the offer is
completed, Chase said. But the ratio will be back below 40 pct
within 12 months, he added.
Chase also said 50 to 60 pct of Standard Oil's publicly
held shares are held by financial institutions.
Simon said Standard's board was informed of the offer on
March nine and has been considering it since that time.
He said BP does not expect any regulatory problems that
would delay completion of the acquisition. "We have informed
Washington of our intentions and we've already been an integral
part of ownership of U.S. oil reserves," he pointed out.
Simon said there is a good chance that current world oil
prices of about 18 dlrs a barrel could be maintained, and that
the more stable market is due mostly to changes in policy in
Saudi Arabia and other OPEC members to control oil production.
"We think there are signals that current conditions are
more favorable than they have been for sometime," Simon said.
"We have hopes for greater stability, but we do not see
prices going much higher," he added.
Reuter
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British Petroleum Plc's plan to pay
7.4 billion dlrs for less than half of Standard Oil Co has
signalled higher values in the U.S. oil patch, analysts said.
"I think that BP's bid is a very strong affirmation and
clear signal that they have confidence in the U.S., and they
think the barrel of oil in the ground is going to go higher,"
said Sanford Margoshes of Shearson Lehman Brothers Inc.
BP earlier today said its U.S. unit planned to tender at 70
dlrs per share for the 45 pct of Standard it does not already
own.
"It's a 7.4 billion dlr price that (shows) OPEC has won the
war and oil prices are not going to crack," said Prescott, Ball
and Turben analyst Bruce Lazier.
"Behind that is a huge implication for the rest of the
energy issues out there in the stock market, particularly those
that are acquisition targets," Lazier said.
One of those mentioned by Lazier was USX Corp, an
energy-steel concern which had been courted by investor Carl
Icahn and drew the attention of Australian Robert Holmes a
Court last year. Rumors continue to swirl around its stock.
Margoshes said he does not foresee major U.S. oil firms
falling into takeover situations for several years, with the
exception of possibly Amerada Hess Corp <AHC>. He said most of
the majors found partners in the last round of matchmaking
which ended two years ago, and others restructured to the point
that they have become unattractive.
U.S. oil stocks rallied in response to the offer. Exxon
Corp <XON> rose 1-1/8 to 88-1/2. Chevron Corp <CHV> jumped
1-1/8 to 58-7/8, and Texaco <TX> climbed 1/4 to 37-3/4. Unocal
Corp <UCL> rose 1-3/4, while Occidental Petroleum Corp <OXY>
climbed 1-1/8 to 34-3/4. Amoco Corp <AN> rose 1-3/8 to 83-3/4.
Standard Oil's stock was up 6-1/4 in heavy trading to
71-1/8. Earlier in the session it had been at a high of 72-1/4.
Wall Street has speculated British Petroleum may boost its
offer by several dlrs per share, but the company maintained it
would not raise the 70 dlr bid.
British Petroleum stock rose 2-1/4 to 59-5/8.
Analysts said the fact British Petroleum made such a bid in
the first place indicates that the British oil giant has
changed its outlook for the oil industry.
Analysts said last year British Petroleum held one of the
more bearish positions on oil prices.
"They said the real price of oil would stay at 15 dlrs (a
barrel) for several years, and I think they beat a hasty
retreat from that point of view," Margoshes said.
"They are more appropriately today looking more
optimistically. I believe they are looking at 18 dlrs
(long-term)...also in their heart of hearts they believe that
will be exceeded," Margoshes said.
The U.S. benchmark crude West Texas Intermediate was
trading today around 18.60 dlrs per barrel.
Analysts said British Petroleum might have been able to buy
up the rest of Standard Oil for about 50 dlrs per share when
oil prices were falling last year.
They said Standard Oil's brightest asset is its slightly
more than 50 pct ownership of the Alaskan Prudhoe Bay oil
field. Analysts also said the company has other interests in
the Alaskan North Slope.
Analysts said the Standard investment is extremely
attractive to BP because the U.S. is the largest oil market and
has hard-to-replace reserves.
"I think it just fits in with their long-range plans to
increase their position in the U.S. market," Dean Witter
analyst Eugene Nowak said.
Analysts said it also raises BP's visibility ahead of the
British government's announced disposal of 31.7 pct of BP
stock. The U.K. government said it would dispose of the holding
sometime in the year beginning April one.
After acquiring all of Standard, most of BP's reserves
would be in the U.S., but only about six pct of its stock is
held in the U.S.
"The only way they can sell all that stock is to move it
into the United States. No other market can handle all that
stock," said L.F. rothschild analyst Rosario Ilacqua.
In 1986, Standard Oil had net losses of 345 mln dlrs on
revenues of 10.02 billion dlrs, compared to a profit the year
earlier of 308 mln dlrs on revenues of 13.82 billion dlrs.
Reuter
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Federal Reserve Board governor Robert
Heller said that the dollar's current level is appropriate but
declined to comment on widespread market reports of concerted
central bank intervention this week.
"The dollar is stable again... The current level is the
appropriate level," Heller told reporters after a speech to a
meeting of financial services analysts.
He said last month's six-nation currency accord in Paris
did not include target ranges for the dollar in an "academic
way."
Heller also said that it was too early to determine whether
the parties to the six-nation accord were taking appropriate
steps to carry out the longer-term economic adjustments agreed
to in Paris.
"Clearly, they've not been implemented yet... No one
expects implementation within a week or two," he said.
Earlier today, U.S. Treasury assistant secretary told a
Senate banking subcommittee that he did not believe that West
Germany and Japan have yet carried out their international
responsibilities.
Reuter
| [
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|
Shr loss 3.49 dlrs vs loss 15 cts
Net loss 10.8 mln vs loss 459,000
Revs 4,384,000 vs 2,542,000
Year
Shr loss 4.41 dlrs vs loss seven cts
Net loss 13.7 mln vs loss 218,000
Revs 13.9 mln vs 8,864,000
Note: net losses included extraordinary losses of 4,904,000
in 4th qtr vs 232,000 year ago and extraordinary losses for
year of 2,056,000 vs 460,000 a year ago.
Reuter
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Home Savings Bank said its board
declared an initial quarterly dividend of nine cts per share,
payable April 30, record April Six.
Reuter
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Louisiana-Pacific Corp said it
plans to sell its sawmill in Lakeview, Oregon and 18,000 acres
of timberland to Ostrander Construction Co.
The company said the transaciton shoould be finalized in
early April. Terms were not disclosed.
Reuter
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Suburban Bancorp Inc said it
received approval from the Federal Reserve Board to acquire
<Valley National Bank of Aurora> for an undisclosed price.
Suburban said it has received shareholder tenders for 100
pct of Valley National's stock.
Reuter
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Shr profit nil vs profit nine cts
Net profit 2,000 vs profit 195,000
Revs 2,623,000 vs 2,577,000
Year
Shr loss 21 cts vs profit 13 cts
Net loss 425,000 vs profit 278,000
Revs 15.4 mln vs 8,637,000
Note: Net includes capital gains of 63,000 vs 211,000 for
qtr and 304,000 vs 292,000 for year. Current year net includes
charge of 716,000 from contract obligation to former chairman.
Reuter
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Freedom Federal Savings Bank
said it will recognize in its first-quarter earnings a
previously deferred 1.5 mln dlr gain which resulted from the
sale of an apartment complex in 1983.
It said the recognition comes as a result of repayment of a
loan which was granted when the complex was sold.
Reuter
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Bank of England Governor Robin
Leigh-Pemberton said the Paris pact agreed between six leading
industrialised nations set no nominal exchange rate targets.
Leigh-Pemberton said in oral evidence to a select committee
that "we did not swap numbers - we reached an understanding" on
how to cooperate towards stabilizing currencies at around their
current levels.
He said the accord had brought Britain into a form of joint
currency float - but one which let it still purse an
independent monetary policy. "I would concede that, since the
Louvre Accord, we are acting as if we are in something,"
Leigh-Pemberton said.
"The Louvre and Plaza accords show there is a very effective
role for the (Group of) seven central banks to operate together"
towards stabilising exchange rates," Leigh-Pemberton said.
He did not mention this week's intervention by central
banks to support the dollar, after markets decided to test the
accord.
Leigh-Pemberton said that "the effectiveness of this
(cooperation) is actually larger than many of us had thought in
the pre-Plaza days" before September 1985.
He did not indicate what exchange rate levels were broadly
sought by the six nations, and noted that "we are more effective
in our agreement if we can leave the markets guessing."
He did not indicate what exchange rate levels were broadly
sought by the six nations, and noted that "we are more effective
in our agreement if we can leave the markets guessing."
Leigh-Pemberton said that, in principle, the Bank of
England favoured full EMS membership for sterling, provided
such a move did not endanger U.K. Anti-inflation monetary
policy. Asked whether he wanted to see U.K. Interest rates
lower, he said "the two half point cuts (this month in banks'
base lending rates) have been appropriate up until now."
Leigh-Pemberton said he preferred a "cautious step-by-step
approach" to reducing short term interest rates, not least
because "we have a potential problem with inflation."
Underlying U.K. Inflation was currently around 4.0 pct, "one
of the highest" among industrialised nations, he added.
Leigh-Pemberton said the Bank of England had not wanted
base rates to fall before the unveiling of the 1987/88 budget
on March 17, but he said pressure from financial markets for
such a move had proved irresistible. Base rates are now at 10
pct.
Regarding sterling's relationship with oil, Leigh-Pemberton
said that the pound could be seen being undervalued overall.
He said the current oil price of some 18 dlrs a barrel
might suggest a level of 74 on the Bank of England's sterling
index, when compared with the index's level before oil prices
dropped from around the 30 dlr level. The index, base 1975,
closed here today at 72.1, unchanged from the previous close.
Reuter
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Qtly div 32 cts vs 30 cts prior
Pay April 29
Record April 10
Reuter
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Shr loss 28 cts vs loss six cts
Net loss 561,029 vs loss 114,712
Revs 3,464,269 vs 4,083,833
Nine mths
Shr loss 56 cts vs loss 13 cts
Net loss 1,104,472 vs loss 261,791
Revs 10.5 mln vs 11.6 mln
NOTE: Prior year net includes losses from discontinued
operations of 99,209 dlrs in quarter and 202,097 dlrs in nine
mths.
Reuter
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Quantech Electronics Corp said
it is investigating available means of raising additional funds
needed to finance continuing operations, but there is no
assurance that it will succeed.
The company said it continues to experience negative cash
flow. Today it reported a loss for the third quarter ended
December 31 of 561,029 dlrs, compared with a 114,712 dlr loss a
year before.
Quantech said it has received waivers from Marine Midland
Banks Inc <MM> through May 26 on covenants in its loan
agreement.
The company said Marine Midland has agreed to advance it an
additional working capital loan that will be personally
guaranteed by chairman Henry Ginsburg. Loans from Marine
Midland are secured by substantially all company assets.
Quantech also said Bernard Weinblatt has rsigned as
president and a director, and until a replacement is found,
Ginsberg will act as chief executive and Leonard N. Hecht,
formerly chief executive, will act as chief operating officer.
Reuter
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PDA Engineering said it has
temporarily deferred shipmetns of its PATRAN software for IBM
computers, due to a technical problem with the program.
The company said the deferral will reduce its thrid quarter
revenues and earnings.
PDA said it anticipates resuming shipments in the fourth
quarter.
Reuter
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Oper shr 16 cts vs 29 cts
Oper net 453,924 vs 726,816
Revs 12.0 mln vs 11.2 mln
Avg shrs 2,695,206 vs 2,562,160
Year
Oper shr 50 cts vs 50 cts
Oper net 1,365,655 vs 1,268,847
Revs 40.1 mln vs 33.1 mln
Avg shrs 2,695,206 vs 2,562,160
NOTE: Net excludes tax credits of 571,000 dlrs vs 496,000
dlrs in quarter and 1,347,000 dlrs vs 1,107,000 dlrs in year.
Share adjusted for one-for-five reverse split in October
1986.
Reuter
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Fair Lanes Inc said its shareholders
approved the previously announced merger with Maricorp Inc, a
unit of <Northern Pacific Corp>.
Under terms of the merger, Fair Lanes said each of its
shares of common stock will be converted into the right to
receive 1.3043 shares of <BTR Realty Inc>, which is owned by
Fair Lines.
Reuter
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Shr 63 cts vs 64 cts
Net 2,463,214 vs 2,509,832
Sales 34.4 mln vs 30.6 mln
NOTE: Backlog as of February 28 47.4 mln dlrs vs 34.9 mln
dlrs a year before.
Reuter
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CB and T Bancshares Inc said the
board of Carrolton State Bank of Carrolton, Ga., has approved a
merger into CB and T for an undisclosed amount of stock,
subject to approval by regulatory agencies and Carrolton
shareholders.
Carrolton has 26 mln dlrs in assets.
Reuter
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American Brands Inc said it expects
first quarter net earnings to exceed the record 118.7 mln dlrs
or 1.05 dlrs a share it earned for the year-ago quarter.
The company also said it believes sales in the first
quarter will surpass record sales of 2.1 billion dlrs last
year.
The company said unit sales of American Tobacco's Lucky
Strike Filter line rose 20 pct last year, which led to a gain
for he Lucky franchise.
American Brands said it will introduce a new low-priced
brand of cigarettes called Malibu.
The company's U.K.-based Gallaher Ltd unit had a strong
performance in 1986 and became the second-largest contributor
to operating earnings, American Brands said.
Reuter
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USX Corp chairman David Roderick said
the company had ended talks with British Petroleum Co Plc <BP>
about the possible sale of some energy assets and said USX has
no immediate restructuring plans for its oil businesses.
"We have terminated our discussions," Roderick told Reuters
after a speech to the Petroleum Equipment Suppliers Association
here. He said USX was not conducting talks with any other
possible buyer of its energy assets.
Earlier today, BP said it planned to offer 70 dlrs per
share for the Standard Oil Co's <SRD> publicly held stock.
USX said in December the company had held formal
discussions with BP about the potential sale of some of its
overseas oil assets and USX had received expressions of
interest from a half dozen other oil companies.
Roderick, in response to a question, said USX had no
immediate plans to restructure its Marathon Oil Co, or Texas
Oil and Gas Corp. He said USX also did not plan to sell any of
its 49 pct interest in the giant Yates Field in west Texas.
"We want to maintain our production in the Yates Field
during these difficult times," Roderick added.
In response to a question, Roderick also said he did not
know whether Australian investor Robert Holmes a Court was
accumulating USX stock. In recent days, traders have suggested
Holmes a Court was buying additional shares.
Roderick said Carl Ichan, who terminated an eight billion
dlr hostile takeover plan for USX in January, continued to hold
a sizable interest in the company. "Mr. Ichan still apparently
has 11.4 pct. He hasn't bought any more stock or sold any,"
Roderick said. "He's a very satisfied shareholder right now. I
talk with him monthly."
In his speech, Roderick predicted the fall in the value of
the dollar would set the stage for the U.S. to solve its trade
deficit problem which totaled 170 billion dlrs in 1986.
"I expect by the early 1990s the U.S. will be running a net
trade surplus," Roderick said. "I think the worst is over and
we can look forward to stability and upward movement ahead."
However, the USX chairman warned that European trading
partners may resist the turn in the U.S. trade deficit. "Some
economic discomfort must be transferred from the United States
to our friends, trading partners and allies."
Reuter
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Shr 20 cts vs six cts
Net 861,000 vs 266,000
Revs 10.2 mln vs 6,036,000
Note: 4th qtr data not given.
Reuter
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Qtly div 68 cts vs 68 cts in prior qtr
Payable May one
Record April 14
Reuter
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Transworld Liquidating Trust said it
will distribute proceeds from the sale of Hilton International
Co to UAL Inc <UAL> to its holders on April 8.
The deal is expected to close March 31, the day trading
ceases in the Liquidating Trust shares.
UAL will pay 632.5 mln dlrs cash, 2,564,000 shares of UAL
common stock and 200 mln dlrs worth of UAL debentures to
Transworld, but it may substitute cash for the securities. The
initial distribution will include all the cash, stock and
debentures received in connection with the sale, the company
said.
The shares in the Trust formerly represented shares of
Transworld Corp common stock.
The company said the balance of cash in the Trust will be
used to satisfy all liabilities and obligations of the Trust.
After satisfaction of the payments, the company will make a
second distribution around April 29, it said.
Reuter
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Electro-Sensors Inc said its board
voted an extraordinary cash dividend on its common stock of 10
cts a share payable May 15, record April 30.
The company paid an extraordinary dividend of 10 cts in May
1986.
Reuter
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U.S. Home Corp said its first quarter
ending March 31, 1987, will be its most profitable first
quarter since 1983.
The company said in 1983, it recorded a profit of 8,600,000
dlrs for its first quarter. The three following first quarters
resulted in losses of 3,200,000 dlrs, 3,500,000 dlrs and
1,800,000 dlrs, respectively, the company said.
U.S. Home declined to put a specific figure on what its net
earnings would be for the coming first quarter, but said it
would definitely record a profit.
In other news, U.S. Home said its shareholders approved an
amendment to its company's certificate of incorporation
relating to the liability of the company's directors.
Reuter
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Rockefeller Center Properties Inc said
it raised its quarterly dividend to 45 cts from 44 cts a share.
The dividend is payable April 27 to shareholders of record
April 7.
Reuter
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Shr seven cts vs 26 cts
Net 200,000 vs 450,000
Revs 7,291,000 vs 1,177,000
12 mths
Shr 37 cts vs 77 cts
Net 801,000 vs 1,329,000
Revs 26 mln vs 28.6 mln
NOTE: 1985 year includes extraordinary gain of 10 cts per
share.
Reuter
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China has switched purchases of U.S.
wheat totaling 60,000 tonnes from the 1986/87 season, which
began June 1, to 1987/88 season delivery, the U.S. Agriculture
Department said.
The department said outstanding wheat sales to China for
the current season amount to 90,000 tonnes and sales for
delivery in the 1987/88 season amount to 910,000 tonnes.
Total corn commitments for the 1986/87 season total
1,015,800 tonnes, the department said.
Reuter
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French Agricultural Minister
Francois Guillaume warned that France would flatly reject
proposed reforms of the European Community, EC, cereals, sugar
and oilseeds sectors, which he said would disrupt these
markets.
The EC Commission's proposals to shorten the intervention
period and lower monthly premiums for cereals and increase the
financial burden on the sugar producers will also result in
lower real prices for producers, he told farmers here.
"I give you my word that France, while it will not reject
technical adjustments or serious discussion, will simply reply
in the negative to these bad reforms," Guillaume told the annual
conference of the country's major farm union, FNSEA
(Federation Nationale des Syndicats Dexploitants Agricoles).
Community agricultural ministers are due to meet again
Monday to try and agree a package of reforms to curb spiralling
EC output and fix farm prices for 1987/88.
Relations between the government and farmers have become
strained in France in recent months.
There have been sporadic but frequent demonstrations by
farmers protesting over sharp falls in meat and pork prices and
further cutbacks in Community milk output.
But Guillaume's warning that he would reject reorganisation
of the EC cereal and sugar markets -- France being a major
producer of both crops -- won him warm applause from the
FNSEA's farmers.
His pledge to fight the EC proposals and push for the
complete dismantling of the system of cross border taxes
designed to smooth out currency differences known as Monetary
Compensatory Amounts, MCA's, however, are unlikely to avoid
further protests by producers.
Farm leader Raymond Lacombe said the union planned to go
ahead with a series of major protests both in France and abroad
against the EC Commission's proposals to overhaul the farm
sector.
"The Minister's proposals back up our determination to
organise union action in the coming weeks," he told reporters,
adding that this could also act in Guillaume's favour on a
ministerial level.
Guillaume was head of the FNSEA for many years before being
appointed farm minister last spring.
Lacombe refused to say whether the farmers felt that
Guillaume was doing a good job as farm minister.
There have been certain advances on cutting production
costs, reducing fiscal costs and awarding drought aid, but
there are still areas where more could be done such as on
farmers' indebtedness, he said.
Guillaume told the conference the government will make
available 2.4 billion francs (396 mln dlrs) to help producers
reduce milk output and to encourage older farmers to retire.
The government has already announced financial aid for the
milk sector and it was not clear how much of the package
announced today was new aid, Lacombe said.
Reuter
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First Financial Management Corp said it
acquired Confidata Corp, a unit of <North Ridge Bank>, paying
500,000 dlrs in cash and pledging a guarantee on a 500,000 dlr
Confidata note held by North Ridge.
First Financial, which provides data processing services to
community banks and other financial institutions, said the
acquisition will expand its customer base.
Reuter
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Combustion Engineering Inc said
its C-E Environmental Systems and Services Inc unit agreed in
principle to acquire <E.C. Jordan and Co>, a privately held
firm based in Portland, Me.
Terms of the acquisition were mot disclosed.
Combustion Engineering said C-E Environmental, which
provides environmental sciences and management services, had
1986 sales of about 24 mln dlrs.
Reuter
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Shr 49 cts vs 57 cts
Net 25.1 mln vs 28.9 mln
Revs 202.8 mln vs 220.9 mln
12 mths
Shr 4.05 dlrs vs 3.66 dlrs
Net 223.9 mln vs 186.4 mln
Revs 1.35 billion vs 1.34 billion
NOTE: Full name Potomac Electric Power Co
1987 year includes extraordinary gain of 21.7 mln, or 46
cts per share, for the June 1986 sale of the company's Virginia
service territory to Virginia Power.
Reuter
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VOLCKER REAFFIRMS G
-6 NEGOTIATING PROCESS
WASHINGTON, March 26 - Federal Reserve Board Chairman Paul
Volcker urged Congress to allow the government to continue its
flexible negotiations on exchange rates through procedures such
as the recent Paris meeting of industrialized countries.
In a letter to House Banking Committee chairman Fernand St.
Germain, Volcker said he opposed legislation to formalize
international negotiations on exchange rates and to require
Treasury Secretary James Baker to disclose plans for currency
intervention.
Volcker's letter was written March 24 in advance of the
committee's March 25 approval of the proposed legislation.
"The fundamental policy objectives of the United States can
best be implemented in a more flexible framework, such as
through the recent meeting in Paris of Finance Ministers and
Central Bank governors," Volcker said.
He recommended Congress not lock the administration into
formal procedures for international exchange rate negotiations
to achieve specific exchange rate goals.
"The achievement of a sustainable pattern of U.S.
international transactions and more stability in exchange rates
are ones with which I remain sympathetic," he said.
The Banking Committee's bill directs the administration to
to start negotiations to reach a competitive exchange rate for
the U.S. dollar "runs the risk of build up potentially
destabilizing market expectations," Volcker said.
A requirement that Baker disclose his intervention policy
could reduce the usefulness of intervention as a tool to deal
with exchange rate volatility, Volcker added.
Baker has also opposed the legislation which will be
wrapped into a major trade bill for consideration in the House
in late April. The Senate will consider its version of the
trade bill in May.
Reuter

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Sources close to Italy's <Gruppo
Ferruzzi> said <European Sugar (France)>, a French company
owned by Ferruzzi, would take over control of <CPC Industrial
Division>, the corn wet milling business acquired by the
Italian group earlier this week from CPC International Inc
<CPC>.
The sources told Reuters that European Sugar, owned by
Ferruzzi subsidiary Eridania Zuccherifici Nazionali SpA
<ERDI.MI>, planned to seek a listing on the Paris bourse and
make a share offering there.
CPC International announced Tuesday it had agreed in
principle to sell its European corn wet millng business to
Ferruzzi. The deal is worth 630 mln dlrs.
Reuter
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Decision Industries Corp said it
expects to report an operating loss of 19-24 cts a share for
the first quarter ending March 31 mainly due to lower profit
margins and higher sales and marketing costs.
In the 1st quarter of last year, when the company's quarter
ended Feb 28, 1986, it earned 957,000 dlrs or 10 cts a share on
revenues of 45 mln dlrs.
Decision also said it entered into an agreement to sell its
International Computerized Telemarketing Inc subsidiary to an
investor group headed by the unit's senior management. Terms
were not disclosed.
Decision also said it consolidated its Decision Development
Corp subsidiary into Decision Data Computer Corp, the unit
which designs, manufactures and sells its System/3X peripheral
products.
It said this restructuring will adversely affect its first
quarter earnings, but it said it expects to realize a
"significant savings" in operating expenses through the
remainder of the year.
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Lomak Petroleum Inc and Strata
Corp, based in Columbus, Ohio, jointly said they entered into a
merger agreement for Strata to become a wholly owned subsidiary
of Lomak.
Under the merger's terms, Strata shareholders will receive
5.7 cts per share of Strata common and warrants to buy about
.06 shares of Lomak common at 37.5 cts per share on or before
December 31, 1990, for each Strata common share.
The merger is subject to approval by the companies' boards
and shareholders and agreement of certain Strata creditors,
among other things, said the companies.
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The eight major New York City banks
did not borrow from the Federal Reserve in the week ended
Wednesday March 25, a Fed spokesman said.
It was the second half of a two-week bank statement period
that ended on Wednesday. The banks did not borrow in the first
week of the period.
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Americanture Inc said it has
purchased American Adventure Inc <GOAQC> for cash, the
assumption of liabilities and the issuance of American
Adventure Inc common and preferred stock to creditors,
shareholders and members.
The acquisition was pursuant of a Chapter 11 reorganization
plan of American Adventure.
The company said the transaction involved assets valued at
more than 83 mln dlrs.
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Qtly div 36 cts vs 36 cts
Pay April 30
Record April 7
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Qtly div 30 cts vs 30 cts prior
Pay June one
Record May eight
NOTE: Current dividend is equivalent to previous quarterly
dividend of 45 cts per share, after giving effect to 3-for-2
stock split effective March 3, 1987.
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Oper shr loss one cts vs loss five cts
Oper net loss 15,000 vs loss 79,000
Revs 6,244,000 vs 8,148,000
Avg shrs 1,912,000 vs 1,537,000
Nine mths
Oper shr profit 19 cts vs profit 22 cts
Oper net profit 347,000 vs profit 341,000
Revs 22.6 mln vs 28.5 mln
Avg shrs 1,840,000 vs 1,537,000
Note: Oper excludes tax losses of 13,000 vs 85,000 for qtr
and tax credits of 258,000 vs 235,000 for nine mths.
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British Petroleum Co PLC may have to
raise its planned 70 dlrs a share tender offer for the publicly
traded shares of Standard Oil Co <SRD>, analysts said.
"There's a lot of speculation here that someway or other
they would be forced to come up with another bid," said Rosario
Ilaqua of L.F. Rothschild.
And despite BP managing director David Simon's denial today
that BP would raise the offer, the analysts said that remained
a distinct possibility.
Analysts said they base their thinking on Royal Dutch/Shell
Group's <RD> <SC> bid to buy the outstanding stake of Shell Oil
Co in 1984 and 1985. Royal Dutch/Shell eventually raised its
initial 55 dlrs a share offer to 60 dlrs a share, after
lawsuits by minority shareholders.
"I think they're going to have to go a little higher
eventually, just as Royal Dutch/Shell had to go a little higher
for the Shell Oil minority shares," Bruce Lazier of Prescott
Ball and Turben said. He estimated a price of 75 dlrs a share.
Royal Dutch/Shell offered 55 dlrs a share for the 30.5 pct
of Shell Oil it did not already own in January of 1984. After
objections from minority shareholders about the price, Royal
Dutch/Shell raised its bid and began a 58 dlrs a share tender
offer in April 1984.
But shareholders sued and a court blocked completion of the
offer. After months of wrangling over the worth of Shell Oil,
Royal Dutch/Shell agreed to another two dlrs increase.
It ended up paying 5.67 billion dlrs for the outstanding
Shell Oil stake, a significant premium to its original bid of
about 5.2 billion dlrs.
The analysts made their comments before Simon's remarks at
a BP press conference in New York this afternoon.
Sanford Margoshes of Shearson Lehman Brothers Inc told
clients this morning that a sweetened offer was possible. The
analyst said the bid could be raised by two dlrs a share.
Analysts do not expect regulatory hurdles because of the
Royal Dutch/Shell group precedent. But there may be shareholder
lawsuits for the same reason, they said.
Goldman Sachs and Co, BP's investment advisor, advised the
Shell Oil board in 1984 and 1985.
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Viacom International Inc said it set
April 6 as the record date for shareholders entitled to vote at
a special meeting to be held to vote on the proposed merger of
Arsenal Acquiring Corp, a wholly-owned subsidiary of <Arsenal
Holdings Inc> into Viacom.
It said the date of the special meeting has not yet been
determined.
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There were no shipments of U.S.
grain or soybeans to the Soviet Union in the week ended March
19, according to the U.S. Agriculture Department's latest
Export Sales report.
The USSR has purchased 2.40 mln tonnes of U.S. corn for
delivery in the fourth year of the U.S.-USSR grain agreement.
Total shipments in the third year of the U.S.-USSR grains
agreement, which ended September 30, amounted to 152,600 tonnes
of wheat, 6,808,100 tonnes of corn and 1,518,700 tonnes of
soybeans.
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Courier Corp said it expects to
report a small loss for the second fiscal quarter against a
profit of 828,000 dlrs a year ago.
The company attributed the loss to competitive pressures
which have cut gross margins. In addition, it said it is
incurring significant expenses from management programs aimed
at reducing costs and boosting productivity.
It said its Murray Printing Co unit has undertaken a
program of extended work hours, and salary and job cuts which
will save more than 1.5 mln dlrs annually.
Reuter
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Shr four cts vs two cts
Net 59,700 vs 27,300
Revs 3,123,900 vs 1,911,900
12 mths
Shr six cts vs nine cts
Net 94,100 vs 81,600
Revs 9,802,000 vs 5,922,000
NOTE: qtr 1986 and qtr prior includes tax gain 9,000 and
1,900, respectively; and year 1986 and year prior includes tax
gain 18,000 and 21,000, respectively.
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Corn sales of 2,806,300 tonnes in
the week ended March 19 were the highest level since
mid-November, 1979, the U.S. Agriculture Department said.
The department said the USSR dominated the week's activity
with purchases of 1.4 mln tonnes (which were earlier reported
under the daily reporting system). Other large increaes were
posted for Japan and unknown destinations, it said.
Taiwan purchased 296,300 tonnes for the 1986/87 season and
170,000 tonnes for the 1987/88 season, it said.
Wheat sales of 317,200 tonnes for the current season and
125,000 tonnes for the 1987/88 season were down about one-third
from the preceding week and the four-week average.
Wheat sales to China of 60,000 tonnes were switched from
1986/87 to the 1987/88 season, it noted.
Soybean sales of 483,100 tonnes were 11 pct above the prior
week and two-thirds above the four-week average.
Japan, the Netherlands, Mexico and Portugal were the main
buyers, the department said.
Soybean cake and meal sales of 289,400 tonnes were
two-thirds above the previous week and the largest of the
marketing year, with Venezuela the dominant purchaser.
Sales activity in soybean oil resulted in decreases of
4,400 tonnes, as reductions for unknown destinations more than
offset increases for Canada, the Dominican Republic and Panama,
the department said.
Cotton sales of 57,900 running bales -- 43,800 bales for
the current year and 14,200 bales for the 1987/88 season --
were off 25 pct from the previous week and 50 pct from the
four-week average.
Turkey, Thailand, South Korea and Canada were the major
buyers for the current season, while Thailand, Britain and
Japan were the major purchasers from the upcoming season, the
department said.
Sorghum sales of 178,800 tonnes were two-thirds above the
prior week and 75 pct over the four-week average.
Venezuela was the leading buyer it said.
Sales of 41,800 tonnes of barley were 10 times the previous
week and 10 pct greater than the four-week average. Israel,
Cyprus and Saudi Arabia were the main buyers, it said.
Reuter
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Valley Federal Savings and
Loan Association said its board declared a two-for-one stock
split for its common stock.
The split will be effected in the form of a 100 pct stock
dividend, to be issued April 30 to stockholders of record March
31.
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Atcor Inc said it cut its
quarterly dividend to three cts per share from 12 cts because
of depressed earnings.
The dividend is payable April 15 to holders of record April
6.
It said it will continue to review the dividend on a
quarterly basis.
Reuter
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Oper shr profit 12 cts vs loss 1.15 dlrs
Oper net profit 300,286 vs loss 2,855,887
Revs 2,456,616 mln vs 2,979,206
Avg shrs 2,527,720 vs 2,482,197
NOTE: 1986 earnings exclude extraordinary gain from
forgiveness of debt through reorganization under Chapter 11 of
280,505 dlrs, or 11 cts a share
Reuter
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Qtly div three cts vs 12 cts prior
Pay April 15
Record April 6
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Standard Oil Co expects the sale of
assets and federal tax refunds resulting from last year's loss
to add about one billion dlrs to its normal cash flows from
operations in 1987, its annual report said.
Last year, the report noted, the cash flow from operations
dropped to 1.8 billion dlrs from 3.5 billion dlrs in 1985 and
3.2 billion dlrs in 1984 due principally to lower oil prices.
The report, prepared before British Petroleum Co Plc <BP>
disclosed plans to seek the rest of Standard's stock, put 1987
capital spending at 1.6 billion dlrs, down from the 1.7 billion
dlrs projected in January.
Standard's capital spending totaled 1.77 billion dlrs in
1986.
The report showed a decline in proven oil reserves to 2.41
billion barrels at the end of 1986 from 2.65 billion barrels a
year earlier as discoveries and other additions dropped to 11.4
mln barrels last year from 23.2 mln in 1985.
But it said gas reeserves rose to 7.31 trillion cubic feet
from 7.22 trillion at the end of 1985 despite a 30.9 mln cubic
feet downward revision in previous reserve estimates during
1986. Discoveries and other additions totaled 200.5 billion
cubic feet last year, up from 175.9 billion in 1985, it added.
Standard said both oil and gas production increased last
year -- to 726,600 barrels per day from 719,700 barrels the
previous day and to 154.4 mln cubic feet daily from 10.1 mln in
1985.
But the average sales price of both dropped -- to 13.83
dlrs per barrel from 26.43 dlrs for oil in 1985 and to 1.49
dlrs per thousand cubic feet from 2.18 dlrs a year earlier.
Standard said its refined product sales also rose last
year, to 644,500 barrels per day from 604,200 barrels daily in
1985.
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The former chief currency
dealer of Herstatt Bank, which collapsed in 1974 on foreign
exchange speculation in West Germany's biggest banking crash,
can stand trial for damages, a court ruled.
The court overturned a claim by Danny Dattel that a case
for damages should not be allowed after such a long interval.
Herstatt creditors are seeking 12.5 mln marks from Dattel,
whom they accuse of causing losses at the bank of over 500 mln
marks by manipulating forward foreign exchange contracts.
The crash of the private Herstatt bank with losses of over
one billion marks stunned West Germany's business community,
and led to a tightening of banking regulations.
The losses were even greater than the 480 mln marks
announced recently by Volkswagen as a result of fraud in
currency transactions.
Ivan Herstatt, managing director of the bank when it
collapsed, was sentenced to four and a half years in prison in
1984 but appealed. Six other people associated with the bank
were jailed in 1983.
But Dattel was freed from prosecution after he produced
medical evidence of paranoia caused by Nazi persecution during
his childhood, which might have led him to take his own life.
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Energy and Mines Minister Arturo
Hernandez Grisanti today told a meeting of regional oil
exporters the next few months will be critical to efforts to
achieve price recovery and stabilize the market.
Hernandez said while OPEC and non-OPEC nations have
already made some strides in their efforts to strengthen the
market, the danger of a reversal is always present.
"March and the next two or three months will be a really
critical period," Hernandez said. He said, "We will be able to
define a movement, either towards market stability and price
recovery or, depending on the market, a reversal."
Earlier this week, Hernandez said Venezuela's oil price has
averaged just above 16 dlrs a barrel for the year to date. If
OPEC achieves its stated goal of an 18 dlrs a barrel average
price, he said, Venezuela's should move up to 16.50 dlrs.
Hernandez spoke today at the opening of the fifth
ministerial meeting of the informal group of Latin American and
Caribbean oil exporters, formed in 1983.
Ministers from member states Ecuador, Mexico,
Trinidad-Tobago and Venezuela are attending the two day
conference, while Colombia is present for the first time as an
observer.
Hernandez defined the meeting as an informal exchange of
ideas about the oil market. However, the members will also
discuss ways to combat proposals for a tax on imported oil
currently before the U.S. Congress.
Following the opening session, the group of ministers met
with President Jaime Lusinchi at Miraflores, the presidential
palace. The delegations to the conference are headed by
Hernandez of Venezuela, Energy Minister Javier Espinosa of
Ecuador, Energy Minister Kelvin Ramnath of Trinidad-Tobago,
Jose Luis Alcudiai, assistant energy secretary of Mexico and
Energy Minister Guilermno Perry Rubio of Colombia.
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