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<Info-Data Inc> said it
will acquire <USA Outdoor Advertising Inc> of Jacksonville,
Fla., in exchange for stock.
USA Outdoor Advertising was acquired for 62.4 pct of the
outstanding shares of Info-Data Inc, the company said.
Info-Data said it plans to change its name to USA Outdoor
Advertising Inc to reflect the change in the company's
operations.
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President Reagan, preparing to depart
for the Venice economic summit on Wednesday, said the United
States and its allies must fulfill agreements on exchange rate
stability.
"Economic policy decisions made last year in Tokyo, and at
this year's meetings of Group of 7 Finance ministers in Paris
and in Washington, cannot be ignored or forgotten," he said.
"The commitments made at these meetings need to be
translated into action," Reagan said in a pre-summit speech
celebrating the 40th anniversary of the Marshall Plan.
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Uni Marts Inc said it acquired
seven <Gas-N-All Inc> convenience stores for an undisclosed
amount of cash.
The acquisition bring to 228 the number of convenience
stores owned by Uni-Marts, the company said.
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President Reagan said he would discuss
the Mideast Gulf situation with allied leaders at next week's
Venice economic summit and hinted he would seek their help in
preserving free navigation.
In a speech prepared for delivery as the United States made
plans to protect 11 Kuwaiti oil tankers from Iranian attack,
Reagan said the American people were aware that "it is not our
interests alone that are being protected."
Saying that allied dependence on gulf oil was no secret,
Reagan declared, "During the upcoming summit in Venice, we will
be discussing the common security interests shared by the
western democracies in the MIDEAST Gulf.
"The future belongs to the brave. Free men should not cower
before such challenges, and they should not expect to stand
alone."
Reagan will meet the leaders of Britain, France, West
Germany, Italy, Canada and Japan at the economic summit, which
will take place in Venice June 8-10.
The 13th annual top-level meeting of the major industrial
democracies will take place against a backdrop of rising
congressional concern over Reagan's plan to protect gulf
shipping and demands that the allies do more.
These concerns were heightened by the May 17 Iraqi missile
attack on the U.S. frigate Stark which killed 37 seamen.
"They died while guarding a chokepoint of freedom, deterring
aggression and reaffirming America's willingness to protect its
vital interests," Reagan said.
In a pre-summit speech celebrating the 40th anniversary of
the Marshall Plan, Reagan, who spoke to an audience of foreign
affairs experts, also pledged to push for economic expansion by
West Germany and Japan to bolster the world trading system.
"While the vibrancy of the U.S. economy has contributed
enormously to the world expansion, preserving a growing world
economy is the business of every member of the world trading
community," he said.
"It will be made clear, especially to our friends in Japan
and the Federal Republic of Germany, that growth-oriented
domestic policies are needed to bolster the world trading
system on which they depend."
Reagan coupled this appeal with a call for compliance with
allied accords on exchange rate stability.
"Economic policy decisions made last year in Tokyo and at
this year's meetings of Group of Seven finance ministers in
Paris and in Washington cannot be ignored or forgotten," he
said. "The commitments made at these meetings need to be
translated into action."
Reuter
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Shr 21 cts vs 20 cts
Net 965,000 vs 726,000
Revs 13.4 mln vs 11.8 mln
Avg shrs 4,606,242 vs 3,624,528
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Advanced Telecommunications Corp
said it reached an agreement in principle to purchase <Teltec
Savings Communications Co>, a long distance telephone service
in Florida.
The proposed acquisition price is approximately 17.5 mln
dlrs in cash, the company said.
Reuter
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Shr seven cts vs eight cts
Net 278,000 vs 340,000
Revs 11.4 mln vs 8,871,000
Year
Shr three cts vs one ct
Net 113,000 vs 33,000
Revs 39.7 mln vs 33.1 mln
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The Commodity Credit Corporation (CCC)
has reallocated 50.0 mln dlrs in credit guarantees from the
previously announced undesignated line to provide additional
guarantees for sales of feedgrains, oilseeds, and wheat to
South Korea, the U.S. Agriculture Department said.
The department said the action increases the feed grains
line by 23 mln dlrs to 63 mln, the oilseed line by seven mln
dlrs to 52 mln, and the wheat guarantee line by 20 mln to 165
mln dlrs.
The undesignated line is reduced to zero.
The commodities are for delivery during the current fiscal
year ending this September 30, it said.
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Interest rates on commodity loans
disbursed by the Commodity Credit Corporation (CCC) this month
will carry a 6-7/8 pct interest rate, the U.S. Agriculture
Department said.
That is up from the May rate of 6-1/4 pct and reflects the
interest rate charged the CCC by the U.S. Treasury in June,
USDA noted.
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Investor Paul Bilzerian said if Pay N'
Pak Stores Inc enters into a merger accord with him he will
immediately begin a tender offer for 7.5 mln shares for 20 dlrs
per share in cash.
Bilzerian told Reuters he believes his offer is superior to
a leveraged buyout proposal disclosed in an announcement by the
company this morning.
The company said it is evaluating both proposals.
Bilizerian said he was optimistic his offer will be accepted at
a meeting of the board of directors Wednesday. Officials of Pay
N' Pak did were not immediately available for comment.
Bilzerian said he has a pool of 150 mln dlrs raised by
Shearson Lehman Brothers Inc available for the tender and "we
may add a bank to that."
"We've submitted an agreement we're prepared to sign," he
said. Shares not accepted in Bilzerian's tender would be
exchangeable for 20 dlrs in convertible preferred stock.
Asked what would happen if the leveraged buyout group,
which the company did not identify, topped his offer between
now and the board meeting, Bilzerian said he expected an
opportunity to respond.
Pay N' Pak gave no details about the buyout group, but did
say the offer was contingent on financing and on an agrreement
regarding management's equity participation.
Bilzerian said it was his understanding that the management
particpation was "nominal."
Pay N' Pak fell 1-1/2 to 19. Arbitrageurs said there was
disappointment that neither of the offers topped 20 dlrs.
"We were expecting an offer north of (above) 21 or 22
dlrs," said one arbitrageur. The leveraged buyout plan was for
17.50 dlrs per share in cash and 2.50 dlrs in 13-1/2 pct
cumulative preferred stock.
Robert Cheadle, analyst at Montgomery Securities, said "you
have to ask yourself why no one in the industry made a bid."
Scott Drysdale, analyst at Birr Wilson Securities, said the
company has not made the best strategic moves over the years.
"They have not done the right things at the right time," he
said, and as a result earnings per share have steadily declined
since 1984. The 57 cts per share in earnings reported for the
fiscal year ended in February was lower than 1978's earnings,
he said. Earnings totaled 5.7 mln dlrs on revenue of 398.4 mln
dlrs.
Drysdale said Pay N' Pak has better trained sales people
than many competitors, but it competes on price even though
competitors have lower costs. The result is squeezed margins.
He noted that there have been no other publicly identified
bidders stepping forward since the company rejected an earlier
Bilzerian proposal in mid-April.
Another arbitrageur said it might not be too late for
another bidder to get in the game. He speculated that someone
in the same home improvement business might be able to offer a
deal for stock that would top both the buyout proposal and
Bilzerian's plan.
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PharmaControl Corp said it
acquired Private Formulations Inc from <Revco D.S. Inc> for six
mln dlrs in cash, a 13,550,000 dlr promissory note and warrants
to buy 200,000 PharmaControl common shares.
PharmaControl said the purchase price was financed, along
with one mln dlrs in working capital, through secured
institutional financing.
The company said betweenm 11,550,000 dlrs and 12,550,000
dlrs f the principal amount of the Revco note, plus accrued
interest, is payable June 30. The balance is payable over three
years.
PharmaControl said it expects to make the payment due to
Revco from proceeds of a proposed offering of units consisting
of convertible subordinated debenturers and common stock
currently on file with the Securities and Exchange Commission.
Upon closing of the public offering, the company said, it
expects the secured institutional financing to increase to a
total of 12 mln dlrs.
Private Formulations is primarily engaged in the
manufacture and distribution of vitamins and private label
over-the-counter pharmaceutical products.
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Fisher Foods Inc <FHR> said
<5300 Richmond Road Corp>, its largest shareholder, has not yet
reached a definitive decision about whether it will buy more
Fisher stock through a possible merger, tender offer or another
acquisition proposal.
5300 is a Delaware corporation formed by <American Seaways
Foods Inc>, <Rini Holding Co> and <Rego Companies> which owns
1.5 mln shares of Fisher, or about 44 pct of its outstanding
common stock.
Fisher said 5300 had announced on April 20 that they would
make a decision on June 1 about the move.
Fisher said 5300 also told it they will continue to explore
possible advantages and disadvantages of various acquisition
proposals.
5300 also said it is continuing to discuss with various
financial groups about possible financing for such a move, but
gave no indication of when any financing or proposal would be
finalized, Fisher said.
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Private exporters reported sales of
150,000 tonnes of barley to Saudi Arabia for delivery in the
1987/88 season, the U.S. Agriculture Deapartment said.
The 1987/88 season for barley begins today.
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U.S. Bancorp (Oregon) said it has
been advised orally that its application for the acquisition of
Old National Bancorp has been approved by the Board of
Governors of the Federal Reserve.
The company said it has also been advised that it has
received Fed approvals for its acquisition of Heritage Bank of
Camas, Wash., and for its conversion of its subsidiary, U.S.
Thrift and Loan of Salt Lake City, Utah, into a commercial
bank.
In January U.S. Bancorp and Old National reached a
definitive agreement covering the acquisition of all the stock
of Old National which it does not already own for 171 mln dlrs.
U.S. Bancorp currently owns 4.9 pct of Old National's
stock.
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Flooding in the Red River on the
Texas/Oklahoma border has shut down the Basin Pipeline, a
24-inch pipeline that transports as much as 300,000 barrels per
day of sweet and sour crudes from Texas to Cushing, Okla, a
Texaco Pipeline Co spokesman confirmed.
"The water is rushing by so fast that we can't get any
divers down to assess the damage but there is some possibility
that the pipeline could be up by the end of the week," a company
source said.
The pipeline transmits roughly two-thirds sour crude and
one-third sweet crude oil from the Midland, Texas region.
Texaco sources said that if the pipeline service is
restored by Friday there would be little problem in restoring
oil which has been lost to the flood.
"But if the pipeline is down more than 10 days it will be
difficult to make up without prorationing and we would not like
to proration this pipeline, if we don't have to."
The Basin Pipeline is jointly owned by Atlantic Richfield
Corp <ARC>, Shell Oil Co, a subsidiary of the Royal Dutch/Shell
Group <RD> and Texaco Inc <TX>, which is the pipeline's
operator.
Peter Beutel, analyst at Elders Futures Inc, said crude
oil futures contracts on New York Mercantile Exchange rose to
new highs this afternoon following news of the pipeline break.
July crude futures of West Texas Intermediate traded up to
19.60 dlrs a barrel, a rise of more than 20 cts.
Cash market prices also firmed on the news with sellers of
WTI raising offers to 19.60 dlrs a barrel.
Sour crudes, which would be most affected by the pipeline
shutdown, however, were slow to react to the news with West
Texas Sour and Alaska North Slope holding 50 cts to one dlr a
barrel below WTI, respectively.
Dan Stevens, manager of public and government affairs at
Texaco, said the company hopes to fix the pipeline in five days
but that will depend on when the water level of the Red River
recedes. There is already evidence that the water level is
dropping and it appears the rain has stopped in the area
affecting the pipeline, Stevens said.
He said the segment of the pipeline that was damaged was
underground and at a distance from the Red River that flooded.
The pipeline runs over the Red River and under the subsoil
nearby, according to Stevens. He said some of this subsoil was
apparently washed away.
The potential for environmental damage is being downplayed
at this time despite the volume of oil that runs through this
line.
Texaco's Stevens said that aerial surveillance has not
found any crude on the water in the river or in Lake Texoma,
which is nearby.
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Shr loss 36 cts vs loss 57 cts
Net loss 4,589,000 vs loss 7,339,000
Revs 19.9 mln vs 19.6 mln
Avg shrs 14.7 mln vs 13.3 mln
NOTE: Company is a subsidiary of <British Land Co PLC>
Reuter
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<Forstman Little and Co> said it plans
to sell its Sybron Corp unit, a leading maker and marketer of
dental and laboratory products, for an undisclosed sum.
Forstmann Little said it acquired Sybron in February 1986
and since that time Sybron has been substantially restructured,
with new management, lower corporate overhead and a new
location in Saddle Brook, N.J.
Fortsmann Little said <Goldman Sachs and Co> will act as
its financial advisor for the move. It added that Sybron
expects revenues for the current fiscal year of 242 mln dlrs
with operating income of about 51 mln dlrs.
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E.F. Hutton Group Inc shares rose on
speculation the company would receive a takeover offer, traders
said.
Hutton's stock also was affected by a newspaper report that
First Boston Corp <FBC> accumulated almost five pct of Hutton's
stock on behalf of an outside client, traders said. Traders
said the story, which appeared in USA Today, added speculation
which began on the street last week. They said there were
rumors the stock was under accumulation and speculation
abounded the company would soon receive an offer. A Hutton
official declined comment. Hutton's stock rose 2-1/4 to 39-3/8.
Hutton several months ago rejected a buyout offer from
Shearson Lehman Brothers Inc <SHE>. The newspaper story
mentioned speculation American Express Co <AXP>, the parent of
Shearson, was a possible buyer. But traders said the rumors
today did not name buyers. First Boston officials were not
immediatley available for comment.
Prudential Bache analyst Larry Eckenfelder said he doubted
the speculation about American Express. He said he believed
Hutton, which is occassionally surrounded by rumors, moved up
today as a result of the newspaper article. "Hutton is still a
takeover candidate," said Eckenfelder.
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Industrial Equity (Pacific) Ltd, a
Hong Kong investment firm, said it raised its stake in Wrather
Corp to 2,025,850 shares, or 28.1 pct of the total outstanding
common stock, from 1,808,700 shares, or 25.1 pct.
In a filing with the Securities and Exchange Commission,
Industrial Equity, which is principally owned by Brierley
Investments Ltd, a publicly held New Zealand firm, said it
bought 217,150 Wrather common shares on May 28 and 29 at 20.00
dlrs a share, or 4.3 mln dlrs total.
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Rep. Mike Synar said today that while
President Reagan is ready to use military force to protect
Kuwait tankers in the Gulf, the United States is ill-prepared
at home to deal with a new energy crisis.
Synar, Democrat of Oklahoma, made his remarks in comments
on a study by the General Accounting Office (GAO) on the U.S.
participation in the 1985 test of the emergency oil sharing
program of the International Energy Agency.
The IEA, an alliance of 21 oil consuming countries, was
formed after the 1973-74 Arab oil embargo to find ways to deal
with any future oil cutoff.
Synar said, "the president is prepared to take military
action to protect Kuwaiti oil tankers but has been unwilling to
take less dangerous, equally-important action to prepare our
nation for the next energy crisis."
Reagan said the U.S. military would protect Kuwaiti oilers
to assure the West of a continuing supply of Middle East oil,
increasingly being threatened by the Iranian-Iraqi war. Synar,
who asked for the GAO report after criticism of U.S. action in
a previous IEA test, said the United States successfully
advocated a test limited to training participants in oil
sharing procedures and the system's mechanical aspects.
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Allied-Signal Inc said it
completed the sale of its MPB Corp unit to Bearing Acquisition
Corp for 145 mln dlrs plus assumption of certain MPB
liabilities.
Headquartered in Keene, N.H., MPB designs and makes
precision ball and roller bearings used in aerospace, ordnance
and computer applications. Allied-Signal said the unit had 1986
sales of over 90 mln dlrs.
It noted the sale to newly formed Bearing Acquisition was
announced May 18.
Allied-Signal said Bearing Acquisition is a newly-formed
corporation owned by an investors group organized by Harold S.
Geneen and Donaldson Lufkin and Jenrette Securities Corp.
Wells Fargo Bank provided senior debt financing to Bearing
Acquisition and Donaldson Lufkin and Jenrette provided bridge
financing in the form of subordinated notes, preferred stock
and common stock in an amount sufficient to fund the purchase
price, Allied-Signal added.
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An investor group led by members of
the Bass family of Fort Worth, Texas, said it lowered its stake
in National Distillers and Chemical Corp to 1,159,400 shares,
or 3.6 pct of the total common, from 1,727,200, or 5.3 pct.
In a filing with the Securities and Exchange Commission,
the Bass group said it sold 567,800 National Distillers common
shares between May 15 and 29 at prices ranging from 59.94 to
63.44 dlrs a share.
As long as the group's stake is below five pct, it is not
required to disclose its further dealings in National
Distillers' common stock.
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Republic American Corp told the
Securities and Exchange Commission it raised its stake in
Buckeye Partners L.P. to 963,200 limited partnership units, or
8.0 pct of the total, from 744,200 units, or 6.2 pct.
Republic, which is controlled by Cincinnati, Ohio,
financier Carl Lindner and his American Financial Corp, said it
bought 219,000 Buckeye units between May 14 and 22 at prices
ranging from 22.49 to 23.02 dlrs each, or about 5.0 mln dlrs
total.
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Kingsbridge Holdings Ltd, said it signed
a letter of intent for a merger with <Masco Sports Inc>.
The transaction calls for 230 mln sahres of Kingsbridge
common stock to be issued to shareholders of Masco.
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Period ended March 31
Oper shr profit four cts vs loss 17 cts
Oper net profit 584,000 vs loss 2,165,000
Revs 7,493,000 vs not given
SIX MTHS
Oper shr profit eight cts vs loss 14 cts
Oper net profit 1,177,000 vs loss 1,778,000
Revs 14.8 mln vs not given.
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Oper shr loss three cts vs loss one ct
Oper net loss 1,796,000 vs loss 381,000
Revs 2,501,000 vs 2,695,000
SIX MTHS
Oper shr loss eight cts vs loss four cts
Oper net loss 3,235,000 vs loss 1,123,000
Revs 4,850,000 vs 4,551,000
Note: 1987 net excludes 2nd qtr extraordinary gain of 87
mln dlrs or 1.54 dlrs shr from sale of 51 pct stake of Mascot
Gold Mines Ltd <MSG.TO>. Full name Royex Gold Mining Corp.
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Oper shr 74 cts vs 30 cts
Oper net 3,034,000 vs 1,225,000
NOTE: 1987 operating net excludes credits of 1,043,000 dlrs
or 25 cts a share.
1986 operating net excludes discontinued operations of
84,000 dlrs or two cts, and extraordinary charges of 1,119,000
dlrs or a loss of 27 cts.
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Wyse Technology said it agreed
in principle to acquire privately-held Link Technologies Inc in
exchange for an undisclosed amount of Wyse Technology shares.
Link Technologies develops and markets computer terminals,
Wyse also said.
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Shr 11 cts vs 13 cts
Net 234,326 vs 266,653
Revs 5.5 mln vs 5.8 mln
Six months
Shr 21 cts vs 31 cts
Net 445,509 vs 646,978
Revs 9.4 mln vs 10.8 mln
Reuter
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Shr 73 cts vs 60 cts
Net 4.6 mln vs 3.8 mln
Revs 112.8 mln vs 104.1 mln
NOTE:1987 includes lifo charge of 1.5 mln dlrs, pension
expenses declined by 879,000 dlrs due to change in accounting,
interest decreased by 382,000 dlrs.
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Dresser Industries Inc said it signed a
definitive agreement to sell its Reliance Standard Life
Insurance Co to RSL Holding Co Inc., a subsidiary of the
privately-held, New York-based investment firm of Rosenkranz
and Co.
Terms were not undisclosed. Philadelphia-based Reliance
earned 25.3 mln dlrs on sales of 201.6 mln dlrs in 1986.
Dresser said it will use the proceeds from the sale for
stock repurchases, debt reduction, and possibly complementary
acquisitions in the field of engineered products and services
for energy producers.
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Atcor Inc said that Roth-American Inc,
which had signed a letter of intent on May 1 to acquire its
Turco and Charmglow operations of its consumer products
segment, has decided against buying Charmglow.
While Roth-American said it is still interested in
acquiring Turco, Atcor said it is now reviewing its options
with other potential buyers who have expressed interest in its
consumer products businesses.
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Shr profit one cts vs loss three cts
Net profit 68,607 vs loss 183,893
Revs 4.2 mln vs 602,665
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share bid made last Wednesday by Union Pacific Corp (UNP),
analysts said.
"The offer is inadequate," said Douglas Augenthaler, an
analyst with E.F. Hutton, noting that it does not represent the
needed premium over the company's fundamental value based on
earnings estimates.
USPCI, which has 8.7 mln shares outstanding, was trading at
48-1/8, down 3/8.
USPCI vice president of finance Larry Shelton said he could
not comment on the adequacy of the offer or on when the board
would meet to consider it.
Augenthaler said that while USPCI was trading at only 34
dlrs a share at the time of the takeover bid, its announcement
that same day of higher earnings expectations changed its
value. USPCI said its second quarter earnings would exceed
analysts expectations of 24 to 30 cts a share.
At that price, USPCI could maintain a stock price in the
low 40s, Augenthaler said.
Hutton revised its 1987 earnings estimate for the waste
management concern to 1.40 dlrs a share from 1.20 dlrs on the
announcment, he said. It lifted its 1988 projection to 1.90
dlrs a share from 1.70 dlrs.
In addition, analysts said the hazardous waste management
business holds significant growth potential. The industry has
grown from 16 to 35 pct over the last five years, based on
earnings per share, said Jeffrey Klein, an analyst with Kidder
Peabody and Co. The industry is expected to continue growing at
15 to 35 pct over the next five years, he said.
Augenthaler said the 43-dlr-a-share offer, or 375 mln dlrs
total, would be a bargain for Union Pacific. The transportation
and energy company would both gain entry into a profitable
business and win cost-control benefits, he said.
"Union Pacific has what are rumored to be some fairly
signficant environmmental problems of its own," he said.
Herb Mee Jr., president of Beard Oil Co (BEC), which holds
a 30.4 pct stake in USPCI, said last week Union Pacific's offer
was "grossly inadequate."
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Total Petroleum NA <TPN> shut down
several small crude oil pipelines operating near the
Texas/Oklahoma border last Friday as a precaution against
damage from local flooding, according to Gary Zollinger,
manager of operations.
Total shut a 12-inch line that runs across the Ouachita
River from Wynnewood to Ardmore with a capacity of 62,000 bpd
as well as several smaller pipelines a few inches wide with
capacities of several thousand bpd or less, Zollinger said.
The Basin Pipeline, a major pipeline running 300,000 bpd,
run by a consortium of other oil companies, was closed today.
One other small pipeline that Total also closed has a
capacity of 3,000 to 4,000 bpd and crosses the Red River in
Fargo, Texas, Zollinger said.
He said the closed pipelines run under river water and
could be damaged as the flooded rivers erode the river banks
and expose the piping.
Zollinger said Total is waiting for the river waters to
recede before they reactivate the pipelines.
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The Energy Department said it reached
proposed oil pricing settlements totaling 680,150 dlrs with the
operator and four working interest owners of A.D. LeBlanc No. 1
well, Vermillion Parish, La.
Trigon Exploration Co., Inc operated the well from June
1979 to January 1981 for D. Bryan Ferguson, C. William Rogers,
Omni Drilling Partnership No 1978-2 and Entex Inc.
DOE alleged Trigon caused overcharges of 624,208 dlrs by
improperly classifying its oil as "newly discovered crude," a
classification that allowed charging higher prices during a
period of price controls.
It said the proposed settlements would resolve disputes
over possible violations by the five parties. DOE added that in
agreeing to the settlements, the five did not admit any
violations or non-compliance with its regulations.
It said it would receive written comments on the
settlements before making it final.
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First of America Bank Corp said
it acquired (Keystone Bancshares Inc) for 25 mln dlrs.
Keystone shareholders will receive 45 dlrs per Keystone
share, payable in First of America convertible preferred stock
having a dividend rate of nine pct.
Keystone has two affiliates with combined assets of 205 mln
dlrs. First of America has 7.9 billion dlrs in assets.
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Fluorocarbon Co said it
completed the acquisition of Eaton Corp's <ETN> industrial
polymer division.
The company said it paid about 70 mln dlrs in cash for the
division, which will be renamed Samuel Moore Group.
Fluorocarbon also said the division should boost annual
sales to 165 mln dlrs from last year's 98 mln dlrs.
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Dekalb Corp said it sold its Heinold
Hog Market Inc to the unit's employees through an Employee
Stock Ownership Plan (ESOP).
Terms were not disclosed, but president Bruce Bickner said
the sale will have a positive, but not substantial, impact on
DeKalb as a whole.
The company said the hog marketing unit did not fit with
its strategy of investing in its core businesses.
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Shr 11 cts vs 21 cts
Net 563,000 vs 863,00
Revs 28.8 mln vs 32.5 mln
Avg shrs 5.0 mln vs 3.3 mln
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Financial Security Savings and
Loan Association said it signed a letter of intent for a
controlling interest to be acquired by an investor group led by
South Florida developer William Landa.
Terms were not disclosed.
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New York investor Asher Edelman and
Dominion Textile Inc <DTX.T>, who are currently seeking to
acquire Burlington Industries Inc in a hostile tender offer,
said they lowered their stake in the company.
In a filing with the Secruties and Exchange Commission, the
Edelman/Dominion group, known as Samjens Acqusition Corp, said
it sold options to buy 258,800 Burlington common shares,
reducing its stake in the company to 3,408,813 shares, or 12.33
pct, from 3,667,313 shares, or 13.3 pct.
The group said the sale, which represented all the
Burlington options it owned, was made May 28 for 8.7 mln dlrs.
The Edelman/Dominion group last week sweetened its hostile
tender offer to 77 dlrs a share, after Burlington agreed to a
leveraged buyout by a Morgan Stanley and Co-backed group for 76
dlrs a share.
But the Edelman/Dominion group, which has litigation
pending against Burlington, also said it has held talks with
Morgan Stanley about "the possibility of settlement of
outstanding matters among" it, Morgan Stanley and Burlington.
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A quickly growing Texas-based
distributor of electronics products offered 240 mln dlrs
for Crazy Eddie Inc <crzy>, the leading New York City
electronics retailer, or one dlr per share more than its
founder has bid.
The 8-dlr-a-share offer by Entertainment Marketing Inc <em>
for Crazy Eddie comes less than two weeks after founder Eddie
Antar and a firm controlled by the Belzbergs of Canada
announced a bid to take the 32-store Crazy Eddie chain private.
Analysts said Entertainment Marketing, whose revenues and
profits quadrupled in 1986, may be looking to break into the
highly competitive New York City retail market for consumer
electronics, the nation's biggest, at a time the fortunes of
electronics retailers have sagged.
The analysts questioned whether Houston-based Entertainment
Marketing, founded by a former electronics retailer but whose
present buinesses are primarily as wholesale distributors, had
the management expertise for retailing or was merely trying to
drive up the price of the Crazy Eddie shares it already owns.
"I have mixed feelings," said analyst Dennis Telzrow of
Eppler, Geurin and Turner, a Dallas brokerage. "On the one hand
it's probably a cheap price. On the other hand, does
Entertainment Marketing have the management talent to run it
and will the Crazy Eddie people leave?"
"It's a risky strategy for Entertainment Marketing," said
analyst Eliot Laurence of Wessels Arnold and Henderson, a
Minneapolis brokerage. "Electronics retailing is very management
concentrated; they'd want to keep Crazy Eddie's management in
place."
Laurence said that, since Entertainment Marketing already
owns 4.3 percent of Crazy Eddie's 31.3 million shares, it may
be trying to get the Antar-Belzberg group to increase its
7-dlr-a-share offer.
Shares of Crazy Eddie, which have jumped from the high
4-dlr range to above 7 dlrs since the Antar-Belzberg bid was
announced May 20, rose another 50 cents Monday to 8.375 a share
in over-the- counter trading.
Antar, the reclusive founder of the chain in the New York
City, Philadelphia and Connecticut areas, said last month that
his group controlled 14 percent of Crazy Eddie's shares.
A Crazy Eddie spokesman said the company's board has taken
no decision on the Antar-Belzberg offer, worth some 187 mln dlrs
since they own more shares than Entertainment Marketing. He
would not comment on the new offer.
Entertainment Marketing sells computer products such as
disk drives and other, often discounted electronics goods to
retailers, primarily in the southwest, and directly to
consumers by cable television.
In fiscal 1986, ending last January, its revenues rose to
87.9 mln dlrs from 21.3 mln dlrs the previous year. Net profit
went to 3.2 mln dlrs from 750,000 dlrs in 1985.
Entertainment Marketing, whose chief executive officer,
Elias Zinn, once ran an electronics retailing business, said in
a statement it had committed 50 mln dlrs toward the purchase
of Crazy Eddie and had retained Dean Witter Reynolds Inc to
assist in financing the balance.
Analyst Telzerow estimated that the company would have to
borrow about 100 mln dlrs to complete the proposed buyout since
Crazy Eddie has cash and other assets worth about the same
amount.
Shares of Entertainment Marketing were up 12.5 cents Monday
to 9.50.
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First Union Corp said it
completed the acquisition of two Florida-based banks, North
Port Bank, based in North Port, and City Commerical Bank, based
in Sarasota.
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4th qtr ended March 31.
Shr loss 24 cts vs loss 19 cts
Net loss 751,900 vs loss 569,000
Revs 497,500 vs 811,400
Year
Shr loss 1.13 dlrs vs loss 70 cts
Net loss 3,472,700 vs 1,990,300
Revs 2,484,100 vs 2,498,300
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The investor group that has agreed to
buy <Computerland Corp> will likely take the leading personal
computer retailer public or sell it to other investors,
industry analysts said.
"Now's a good time," said Joe Levy of International Data
Corp. "The personal computer industry has bottomed out and is
on the way up again," he said.
Earlier today, closely held Computerland, the largest PC
retailing chain in the country, said it agreed to be bought by
an investor group led by E.M. Warburg Pincus and Co, New York.
Neither Computerland, which is 96 pct owned by its founder,
William H. Millard, nor E.M. Warburg, a money management and
venture capital firm, would disclose the value of the
transaction.
Analysts estimated that Computerland, whose 800 stores
generated 1.4 billion dlrs in sales last year, would fetch 150
mln dlrs to 250 mln dlrs. Computerland franchise owners pay
royalties averaging 5.9 pct to the parent company.
Officials for E.M. Warburg referred all questions to
Computerland. Computerland officials could not immediately be
reached for comment.
E.M. Warburg currently manages 1.5 billion dlrs in venture
capital funds, and its past investments have included Mattel
Inc <MAT> and the Ingersoll newspaper chain. It is also a money
manager, with 3.5 billion dlrs under management.
Although the PC retailers are benefitting from the strong
upturn in PC sales, analysts said Computerland must make key
changes if it is to fend off advances from rivals like
Businessland Inc <BUSL.O> and Tandy Corp's <TAN> Radio Shack
stores. "The name of the game now is outbound sales forces,
customer service and customer support," said Levy of
International Data.
Relations between Computerland and its franchise owners
have mellowed recently after Millard was forced to give up
managment control of the company in 1985.
Ed Faber, who took over as chairman and chief executive
officer, revamped the company's royalty plan, which help quell
much of the franchisee dissent.
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Ladd Furniture Inc's Clayton-Marcus
Furniture subsidiary said it completed the previously announced
purchase of privately-held Colony House Furniture Inc
for an undisclosed amount of cash and notes.
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CIS Technologies Inc said that it
and the Swiss Reinsurance Co of Zurich, Switzerland agreed to a
second extension of two dates for the final part of their share
purchase agreement.
It said the June one election date has been extended to
June 15 and the June 30 closing date has been changed to July
31.
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Waste Management Inc said its
directors approved a May 10 accord with Modulaire Industries
<MODX.O> under which Waste Management would acquire Modulaire.
Under the agreement, Modulaire stockholders would receive
16 dlrs in Waste Management stock for each Modulaire share.
Modulaire has scheduled a special shareholders meeting for
July 15 to vote on the merger. Waste Management said it has
received proxies from holders of 49.6 pct of Modulaire's common
stock that could be voted in favor of the merger.
The Hart-Scott-Roding waiting period on the takeover will
expire June 17.
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U.S. District Court Judge Eugene
A. Gordon said he plans to issue a decision tomorrow on
Burlington Industries Inc's request for an injunction to stop
Samjens Acquisition Corp's takeover bid for the company.
Wall Street sources have said the outcome of the case could
be pivotal in determining the winner in the fierce takeover
battle for Burlington, the largest u.s. textile maker.
Gordon presided over six hours of argument today by lawyers
for Burlington and Samjens, a partnership formed by Dominion
Textile Inc and New York investor Asher Edelman.
Hearings are scheduled to continue tomorrow. A preliminary
injunction would hold up Samjens 2.47 billion dlr offer until
the case is decided.
Burlington had previously agreed to a 2.44 billion dlr
buyout from Morgan Stanley Group Inc <MS>, one dlr per share
lower than a sweetened 77 dlr per share bid made by Samjens
last week. Burlington has not responded to the new Samjens
offer.
Burlington has alleged in its lawsuit that Edelman and
Dominion used illegally obtained confidential information about
the company in making their takeover attempt.
That information, Burlington said, was provided by James
Ammeen, a former Burlington executive, through PaineWebber
Group Inc <PWJ>. Ammeen, who had worked for Burlington for 23
years, had as many as 12 divisions with 50 pct of Burlington's
sales reporting to him. When he left Burlington in November,
1985, Burlington said he signed a contract promising never to
divulge inside information about the company.
Burlington lawyers said shortly after he left he began
working with a PaineWebber employee on a hostile plan to
"takeover the company, dismember the company and displace its
management," Burlington lawyer Hubert Humphrey said.
Samjens lawyers acknowledged it received information from
PaineWebber, but argued the information was public information
and could be obtained either from texitle industry analysts or
Burlington's public financial statements.
Burlington lawyers said PaineWebber and Ammeen met with
Edelman and Dominion in November and continued to meet with
them until a couple of days before Edelman and Dominion went
public April 24 with their intention to take over the company.
Burlington lawyers claim Dominion's board decided to attempt a
takeover of Burlington after Ammeen met with the board in
February.
Burlington lawyers said Edelman and Dominion held
discussions with PaineWebber and Ammeen about acting as
financial advisers to Samjens. But they allege talks broke off
because Painewebber and Ammeen could not satisfy Edelman and
dominion with a written statement that they did not provide
inside information.
Lawyers for Samjens contended that Painewebber and Ammeen
withdrew as potential advisers because Burlington chairman
Frank Greenberg had called a PaineWebber executive and
threatened legal action if PaineWebber got involved in an
effort to takeover Burlilgnton.
"The ultimate question is not the price per share or the
profit, but rather the permissable standards of conduct for
those who would takeover an American company," said burlington
lawyer Humphrey.
Burlington lawyers also contended that Burlington, as the
largest manufacturer of denim in the United States, would be in
violation of anti-trust laws if it acquired Dominion, Canada's
largest textile maker. Dominion has denim manufacturing plants
in Georgia, which would reduce competition in the denim market,
the lawyers said.
Samjens' lawyers discounted the concern. They said the
market for denim is more fragmented than Burlington contends
and that Burlington has the ability to switch between light
weight and heavy weight denim production as demand and price
dictate.
Samjens lawyers also pointed to a lawsuit filed by
Burlington in Canada, in which it said it was considering a bid
for Dominion. "Surely, what would have been sauce for the goose
would have been sauce for the gander," said Sidney Rosdeitcher,
a Samjens lawyer.
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A tender offer of Asher Edelman and
Dominion Textile Ltd <DTX.TO> for Burlington Idustries Inc is
not affected by the investors' sale of options to buy
Burlington stock, according to an associate of Edelman.
Noting that "our tender offer is definitely in place" the
aide said the investors are prohibited by Securities and
Exchange Commission regulations from exercising options as long
as a tender offer is open. The options are due to expire at the
end of June.
He said the May 28 sale of options to buy 258,800
Burlington shares was thus a "non-event."
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Continental Materials Corp said its
directors decided not to give further consideration to
"business combination" proposed by a stockholder group that
holds 5.2 pct of Continental Materials stock.
Continental Materials said the offer had been received from
Continental Associates, a group of St. Louis businessmen.
According to Continental Materials, the group said May 11 it
might boost its stake in Continental Materials. But the group
also said in a letter last week to the company that the group
had no financing. The board "did not consider it an official
offer," a Continental Materials spokeswoman said.
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Ameribanc Investors Group and
Cardinal Savings and Loan Association jointly announced that
the proposed acquisition of Cardinal by Ameribanc has been
terminated by mutual agreement.
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The dollar's recent signs of stability
have raised hopes that its 27-month decline may be nearly over,
but most currency analysts refuse to commit themselves until
after the June 12 release of U.S. trade data for April.
"The trade data will be a deciding factor to see if the
dollar has bottomed out," said Jim McGroarty of Discount Corp.
Since February 1985, the dollar has nearly halved its value
against the yen and the mark as part of an officially
orchestrated campaign to make U.S. goods more competitive on
world markets and redress gaping world trade imbalances.
On April 27, the dollar fell to a 40-year low of 137.25 yen
but has enjoyed a modest recovery over the last few weeks,
topping 145 yen today for the first time in nearly two months.
Many economists now believe that the dollar has fallen far
enough to ease the trade deficit's drag on the U.S. economy.
The U.S. trade gap narrowed to 13.6 billion dlrs in March
from 15.1 billion in February and is expected to show continued
improvement in April in volume, if not in real, terms.
Keiichi Udagawa of Bank of Tokyo in New York said that if
further progress is reported, the dollar would head back up
towards 150 yen.
"There is growing consensus that the dollar has bottomed
out for the medium term," added Tom Campbell of First National
Bank of Chicago.
Other factors supporting this bullish view were growing
expectations that Federal Reserve Chairman Paul Volcker would
be reappointed for a third four-year term in August, Japan's
larger-than-expected economic stimulus package last week and
more favorably technical chart signals, analysts said.
The dollar was also aided by Japan's moves to dampen
speculative selling in Tokyo and by reports of active central
bank intervention to support the dollar.
The Federal Reserve Bank of New York said last week that
the U.S. monetary authorities bought more than four billion
dlrs during the February-April period -- the largest amount
since the dollar crisis of the late 1970's.
Discount Corp's McGroarty described the Fed's intervention
volume as "impressive".
James O'Neill of Marine Midland Bank was not so positive,
however: "the dollar has not yet bottomed out. After the trade
data are released, the dollar could fall towards 1.77 marks and
140 yen."
Similarly, Natsuo Okada of Sumitomo Bank in New York
warned, "I don't think the dollar has bottomed out yet."
Although the dollar could rise as high as 146.50 yen, Okada
said market impatience about the painstakingly slow decline of
the U.S. trade deficit may lead to renewed pressure.
Currency analysts also warned about an unfavorable reaction
to the seven-nation economic Summit on June 8 to 10 in Venice,
which is likely to focus on the implementation of previous
commitments rather than yield any fresh initiatives.
President Reagan said today, "economic policy decisions
made last year in Tokyo and at this year's meetings of Group of
Seven finance ministers in Paris and Washington cannot be
ignored or forgotten."
"The commitments made at these meetings need to be
translated into action," he added in a speech, celebrating the
40th anniversary of the Marshall aid plan for Europe.
Now that Tokyo has unveiled its fiscal stimulus package,
analysts expected Bonn and the dollar/mark rate to bear the
brunt of U.S. calls for further action.
Marine Midland's O'Neill said, "pressure will build up on
Germany to take stimulative action like Japan."
Some Japanese bank dealers warned that although the dollar
could hold above 145 yen for some months it could also come
under attack again if it seems the latest economic package is
not having much impact on Japan's economy and its trade
surplus. Reflecting a longer-term uncertainty, some some trust
banks and Japanese insurers are keeping their short dollar
positons hedged against exchange losses in their foreign
portfolios, while some others have started covering those short
positions, Japanese bank dealers said.
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Bank Building and Equipment Corp of
America said the Delaware Chancery Court denied a stockholder's
request for a preliminary injunction against an
offer for Bank Building stock made by the company and its
employee stock ownership plan and trust.
Bank Building said the joint offer is for 780,300 shares of
Bank Building stock at 14 dlrs a share. The offer is scheduled
to expire midnight (EDT) on June 2.
Bank Building also said its board set July 30 as the date
of the company's annual meeting, with a record date of July
six.
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Holders of convertible subordinated
debentures of Harcourt Brace Jovanovich Inc threatened to sue
the company if they do not get more information about how their
investment will be affected by the company's proposed
recapitalization plan.
The holders, none of whom was willing to be identified,
said although Harcourt has urged that they convert their shares
to common stock by the June eight record date for a special
dividend, they were unable to determine if it might be better
for them to continue holding the debentures.
"There are rumors that various houses will bring litigation
if we don't get answers," said a Wall Street source. Officials
of Harcourt declined to comment, citing a suit brought by
British publisher Robert Maxwell whose has been trying to
acquire Harcourt.
Executives of First Boston Inc, Harcourt's financial
adviser, did not return a telephone call seeking comment.
When it announced its recapitalization May 26 Harcourt
advised holders of the 6-3/8 pct convertible subordinated
debentures due 2011 to convert into common by the June eight
record date for the company's special dividend.
Harcourt's special dividend pays 40 dlrs per share in cash
plus a security worth 10 dlrs. Holders would also retain stock
in the recapitalized firm.
The debentures had been convertible at 34 dlrs per share.
Harcourt's May 26 announcement said the conversion price would
be adjusted according to the indenture covering the securities.
Arbitrageurs said the conversion formula yielded a "negative
number" and thus they needed further information from the
company.
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South Korea has increased its duty on crude
oil imports to 4.29 dlrs a barrel from 3.29 dlrs, effective
today, the energy ministry said.
The duty, to raise funds for special energy projects, was
adjusted after average crude import prices rose to 16.85 dlrs a
barrel in April, from 16.65 dlrs in March and 13.08 dlrs in
April 1986, ministry officials said.
A separate 24.5 pct import tax on crude oil is unchanged.
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<Equiticorp Tasman Ltd> (ETL) said it will
offer 4.15 dlrs a share cash for all the issued capital of
Monier Ltd <MNRA.S>, currently the subject of a 3.80 dlrs a
share bid by CSR Ltd <CSRA.S>.
Alternatively, ETL will offer three shares plus 82 cents
cash for each Monier share, it said in a statement.
As previously reported, ETL moved into the market for
Monier shares last week, taking its stake to 13.7 pct by
Friday.
It now holds 14.99 pct, the maximum allowed without Foreign
Investment Review Board (FIRB) approval. ETL is classified as
foreign because of its New Zealand base.
The ETL cash offer values Monier's issued capital of 156.28
mln shares at 649 mln dlrs, against 593 mln for the CSR bid.
Based on the current price of ETL shares of 1.05 dlrs, the
alternative is worth 3.97 dlrs per share, but ETL said the
value placed on its shares for the offer aproximates to the
diluted asset backing of ETL as at March 31.
ETL said the offer will have no minimum acceptance
conditions and will be subject to Australian foreign investment
and U.S. Hart-Scott-Rodino anti-trust clearances.
ETL chairman Allan Hawkins said in the statement that the
shareholding in Monier was a long term investment.
ETL and its <Feltex International Ltd> associate have
targetted the building products sector as an area of expansion
and Monier fits well with this aim, he added.
Monier chairman Bill Locke said in a separate statement
that the independent directors of Monier intend to recommend
acceptance of the ETL bid in the absence of a higher bid.
He also said Monier will not now proceed with the
one-for-two bonus issue announced with its interim results on
March 19 in view of the proposed takeover bids.
As previously reported, the CSR offer involves a complex
put and call option deal with Monier's major shareholder,
Redland Plc <RDLD.L>, which gives Redland the choice of
accepting the CSR offer for its 49.8 pct stake or moving to
50.1 pct within six months of the bid closing.
CSR officials have made it clear that they see Redland
taking the second option, resulting in the two companies
running Monier as a joint venture.
CSR officials have also said they had no intention of
raising the company's bid for Monier after ETL's intervention
became public last week.
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Venezuela's central bank has ordered
Venezuelan banks and exchange houses to cease foreign exchange
operations with brokers based outside the country, according to
a copy of a central bank telex made available to Reuters.
The measure, confirmed by a brokerage firm here, has
effectively cut off all foreign participation in Venezuela's
volatile currency market.
The telex, issued on May 19, was signed by Carlos Hernandez
Delfino, manager of the bank's department of international
operations.
The telex said the restriction on business with foreign
brokers is in line with an earlier measure prohibiting foreign
exchange houses from selling dollars or other foreign
currencies to anyone living outside Venezuela.
In recent weeks the Venezuelan government has denied
rumours that it intends to impose foreign exchange controls to
prop up the weakening bolivar.
But brokers said the central bank's move is seen as a de
facto currency control. "It is definitely a control in the sense
that there's no longer complete freedom to operate," one broker
here said.
"Gradually they're imposing restrictions and the direction
is towards complete control," the broker said.
The broker, who requested anonymity, said virtually all his
Venezuelan customers had stopped doing business with him since
the central bank issued the telex and followed it up with
telephone calls.
He said that before the restriction was imposed the volume
of his firm's transactions with Venezuela was about 10 mln dlrs
a day. "It was a frenetic market, it was really quite active," he
said.
The broker said he saw no logical explanation for the
prohibition because his firm only acted act as an intermediary
between Venezuelan brokers, exchange houses and banks.
"We weren't buying dollars from Venezuelans, that's
ridiculous," he said. "They've been on a rampage against
foreigners."
The broker noted that two months ago Venezuela's central
bank quietly announced that banks doing foreign exchange
business outside Venezuela would have to respect a new 200 pct
reserve requirement.
In February, the central bank also prohibited trading in
bolivar futures, the broker said.
"We used to have a forward market," he said. "For a small
currency it was miraculous."
He said the bolivar, which averaged 20.29 to the U.S.
Dollar in 1986, would continue to slip from its current range
of 28.35 to 28.50 because the central bank was rapidly running
out of foreign reserves to support the currency on the free
market.
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Bundesbank vice president Helmut
Schlesinger said he saw no reason to lower interest rates now.
With money supply growth showing no sign of slowing down in
May and the dollar stable or even rising against the mark,
Schlesinger told Reuters that he was not convinced that a
further cut in interest rates was needed.
The economy is picking up, after contracting by a
seasonally adjusted 1/2 to one pct in the first quarter from
the fourth, he added. "We may have an increase in gnp starting
in the second quarter," he said in an interview.
Concerned by the first quarter downturn, the U.S. Has been
pressing West Germany to pump up its economy and boost its
imports, either through fiscal or monetary policy.
Schlesinger said the contraction in the first quarter was
mainly due to adverse weather conditions, just as occured in
1986. Year-on-year growth was thus about two pct.
He estimated that economic growth for the year as a whole
would probably be between one and two pct.
"It is not a question of monetary conditions if domestic
demand does not grow strongly," he said, noting that interest
rates are at historically low levels and funds are ample.
Schlesinger said he saw no signs that central bank money
stock growth was slowing down from its recent year-on-year pace
of 7-1/2 to eight pct, well above the Bundesbank's three to six
pct target.
He said the target could still be achieved but much will
depend on the direction of long-term capital flows. Heavy
inflows, particularly in January around the time of the EMS
revaluation, boosted domestic money supply.
"There is still a certain hope that the net inflow of
foreign money can be diminished or can even be a little bit
reversed," Schlesinger said.
A major reason for the inflows was the market's conviction
that the mark was headed higher. "As we can see from the market,
expectations for a further revaluation of the deutschemark have
diminished," Schlesinger said.
The recent widening of interest rate differentials, the
fact that the dollar has fallen sharply in a very short period
and an improvement in real trade balances have all combined
towards stabilizing the dollar, he said.
Asked if central banks might act to prevent a sharp dollar
rise, as the U.S. Did in March when the dollar rose above 1.87
marks, he said this would depend on the circumstances.
At midday here, the dollar stood at 1.8340/45 marks.
"Central banks are always in contact about these
fluctuations but I cannot give any answer how they would react,"
Schelsinger said.
"One has to look at how it (the market) is moving," he said,
adding, "It is not only our own case, it is also the American
case."
He said that the West German export industry has been hit
hard by the dollar's sharp fall and would probably like to see
some correction now. "But it wouldn't be good to have short-term
fluctuations," he said. "Let us wait and see."
"It is mainly the strength of the (dollar) fall in a very
short period which was a little bit of a shock, than the level
(of rates) as such," Schlesinger said.
The sharp rise of the mark, coupled with weak prices of
such key commodities as oil, had a favourable impact on West
German inflation down year.
Although there have recently been signs of inflation
picking up, he said that this was due to changes in key
commodity prices. The underlying inflation rate this year would
be unchanged, at about one to 1-1/2 pct, he said.
Schlesinger said the problem of rapid money supply growth
was longer term, in that the economy was building up the
potential for a possible eventual resurgence of inflation.
The above-target growth of money supply over the past 16
months had prompted some discussion of the usefulness of
targets themselves, a matter which might be taken up at the
mid-year meeting of the Bundesbank's council, Schlesigner said.
But he added: "I don't see any great pressure to go away
from it."
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Deregulation of Japan's oil industry could
mean hardship for smaller firms and lead to their merging into
bigger refining and marketing groups, industry sources said.
They said the relaxation of controls was now under review
by the Petroleum Council, an advisory panel to the Ministry of
International Trade and Industry (MITI).
A spokesman for a major firm said, "Deregulation would bring
about a reorganization. If it's a by-product of freer
competition, we have no choice but to accept it."
The Council is due to close its discussions on June 12.
The sources said the Council was likely to tell MITI it
should end its 50 year-old protection of the industry. It
should cut capacity to 3.8 mln barrels per day, about 75 pct of
current capacity. Quotas should end for crude throughput and
gasoline output, and oil tariffs should be abolished.
They said deregulation was vital to promote more
competition and efficiency, and most saw it as inevitable.
"Deregulation is taking place everywhere. Now it's our turn
to see if we can survive cut-throat competition," said a source
at one major Japanese oil company.
A spokesman for a smaller refiner said, "We'll have a hard
time surviving, but that's something we must go through."
"In addition to our streamlining and efficiency programs for
the oil division, we will exert efforts towards branching out
further into other lines such as real estate and travel
agencies," he said.
Larger companies are also streamlining. Nippon Oil Co Ltd
which had the largest share of refined products sales in the
Japanese market in fiscal 1985, cut nine pct of its refining
capacity in fiscal 1986.
Cosmo Oil Co Ltd, the third largest seller of oil products
in 1985, cut its workforce by some 20 pct last year, a
spokesman for the company said.
Between 1984 and 1986, on the recommendation of the
Council, 13 oil companies were integrated into 11 companies
within seven refining and marketing groups to improve the
efficiency of the industry.
Oil industry sources said this structure was now likely to
be streamlined further into five refining groups.
"MITI means business. It will urge the major seven groups to
merge into five to build up their muscles," a source said.
A MITI official told Reuters he did not rule out the
possibility of further mergers within the Japanese oil industry
in the event of the relaxation of oil controls.
He declined to officially confirm or deny that the
Petroleum Council had recommended deregulatory measures but
said that in principal MITI would encourage a move towards
deregulation.
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Group shr - 13.56 yen vs 27.06
Net - 21.61 billion vs 38.93 billion
Current - 37.66 billion vs 46.70 billion
Operating - 57.37 billion vs 79.91 billion
Sales - 1,789 billion vs 1,692 billion
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Japan was ready to use diplomacy to help
maintain the security of the Gulf, Prime Minister Yasuhiro
Nakasone said.
But he told reporters Japan should not cut its lines of
communication with Iran and Iraq because its policy was to take
a broad political stance. Officials of the foreign ministry
said Japan had maintained good relations with both Iran and
Iraq, which have been at war since September 1980.
Last week Nakasone ruled out Japanese military or financial
help to patrol the waters of the Gulf. About 60 pct of Japan's
crude oil passes through the waterway.
President Reagan said yesterday the threat to oil routes in
the Gulf from attacks by Iran and Iraq was high on the agenda
for next week's G-7 summit in Venice.
Reagan has approved plans for the United States to step up
its naval presence in the Gulf despite congressional
expressions of concern and he has called on U.S. Allies to help
maintain freedom of navigation.
Japan's constitution prevents its armed forces from being
deployed overseas. Nakasone has said that Washington
understands this problem.
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Oman has granted term crude oil
customers retroactive discounts from official prices of 30 to
38 cents per barrel on liftings made during February, March and
April, the weekly newsletter Middle East Economic Survey (MEES)
said.
MEES said the price adjustments, arrived at through
negotiations between the Omani oil ministry and companies
concerned, are designed to compensate for the difference
between market-related prices and the official price of 17.63
dlrs per barrel adopted by non-OPEC Oman since February.
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The Bundesbank set a new tender for a
28-day securities repurchase agreement, offering banks
liquidity aid at a minimum bid rate of 3.50 pct, a central bank
spokesman said.
Banks must make their bids by 1400 GMT today and funds
allocated will be credited to accounts tomorrow. Banks must
repurchase securities pledged on July 1.
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53 weeks to April 4, 1987
Share - basic 22.2p vs 21.6p
- fully-diluted 21.6p vs 19.9p
Final dividend 6.3p vs 5.7p, making 8.6p vs 7.7p
Pretax profits 129.2 mln stg vs 116.0 mln
Turnover 1,088.1 mln stg vs 968.4 mln
Profit from retail operations 133.3 mln stg vs 115.6 mln
Tax 40.1 mln stg vs 36.5 mln
Profit after tax 89.1 mln stg vs 79.5 mln
Extraordinary items debit 0.7 mln stg vs debit 24 mln
NOTE - full name is Storehouse Plc <STHL.L>
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Year to March 31
Shr 28.0p vs 21.4p
Final dividend 9p vs 6.5p making 12p vs 9.3p
Pretax profit 53.16 mln stg vs 45.12 mln
Turnover 641.1 mln stg vs 639.7 mln
Group operating profit 57.63 mln stg vs 49.06 mln
Share of associates' profits 1.33 mln stg vs 3.87 mln
Investment income 1.59 mln stg vs 2.19 mln
Interest payable 7.38 mln stg vs 10.01 mln
Tax 16.48 mln stg vs 17.60 mln
Leaving 36.68 mln vs 27.51
Minorities debit 1.58 mln stg vs debit 1.39 mln
Extraordinary items credit 2.95 mln stg vs debit 8.12 mln
Operating profits breakdown, by class of business,
- building materials manufacture 23.7 mln stg vs 20.9 mln
- distribution 10.1 mln stg vs 7.5 mln
- specialist print and pack 12.6 mln stg vs 9.6 mln
- international 6.0 mln stg vs 5.6 mln
- head office and property 4.6 mln stg vs 3.6 mln
- discontinued, sold businesses 589,000 stg vs 2.4 mln
Operating profits, geographic breakdown:
- Britain 51.4 mln stg vs 43.3 mln
- Africa 3.3 mln stg vs 3.4 mln
- Australasia 1.4 mln stg vs 854,000 stg
- North America 1.5 mln stg vs 1.6 mln
NOTE - full name is Norcros Plc <NCRO.L>.
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Dutch insurer Stad Rotterdam Anno 1720
N.V. <ASRN.AS> said from July 1 it will own 20 pct of the
shares of <Europeesche Verzekering Maatschappij N.V.>, a
fully-owned unit of Swiss insurer <Union
Rueckversicherungs-Gesellschaft>.
Stad Rotterdam chairman Lucas van Leeuwen told Reuters it
may raise its stake to a majority interest if the two companies
are found to be sufficiently compatible.
Van Leeuwen said that due partly to the fact Europeesche
made losses in 1985 and 1986, the 20 pct stake was obtained at
below the shares' intrinsic value. He gave no precise sum.
The Europeesche, which specialises in travel and recreation
insurance, had a premium income of 150 mln guilders in 1986.
Stad Rotterdam's premium income in 1986 was 1.17 billion
guilders, making it the fifth largest Dutch insurer.
Europeesche made a loss of nine mln guilders in 1985, which
narrowed to 4.5 mln guilders in 1986, van Leeuwen said.
He said the company was on course for independent recovery
and was expected to reduce its losses further in 1987.
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French industrial gas group <Duffour et
Igon> has decided to back the takeover bid by Swedish
industrial gases group Aga AB <AGA.ST>, ending a lengthy battle
between rival bidders from France, Spain and West Germany,
Duffour et Igon Chairman Jean Igon said.
The board agreed late last night to back the Aga bid and
advise its shareholders to accept the Swedish group's latest
offer of 4,410 francs per share, he told Reuters.
The other main bidders were Union Carbide Corp's <UK.>
French subsidiary <Union Carbide France> and West Germany's
Linde AG <LING.F>.
Aga topped rival bids for the gases distribution group in
May by raising its offer to 4,410 francs from 4,000 francs.
This was accepted by Spain's <Carburos Metalicos SA> which
sold Aga six pct of Duffour et Igon's stock and the right of
first refusal on the remaining nine pct of stock it holds. It
also won over the French Midi-Pyrenees development authority
which agreed to sell Aga its 20 pct stake in Duffour et Igon.
Under Aga's offer, shareholders can either accept a cash
bid or exchange one share in Duffour et Igon for one bond of a
nominal value of 4,410 francs with a 10 pct coupon issue by Aga
France SA. The bond issue is guaranteed by the parent Aga AB.
The takeover battle for the Toulouse-based company, which
controls eight pct of the French industrial gas distribution
market, began on April 2 with an offer of 2,100 francs per
share from Union Carbide France <UK>.
Aga's offer, which puts a price of 587 mln francs on the
company, closes on June 24 and the results will be announced on
July 21.
Duffour et Igon shares were quoted yesterday at 4,410
francs, with no buyers, after a series of suspensions during
the takeover tussle. They traded at 856 francs on January 9
before the first suspension.
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Santos Ltd <STOS.S> said it would buy
<Total Exploration Australia Pty Ltd> from <Total Holdings
(Australia) Pty Ltd, a wholly-owned subsidiary of Total-Cie
Francaise des Petroles <TPN.PA>.
Total Exploration had interests ranging from 18.75 to 25
pct in four blocks in permit ATP259P in south-west Queensland,
Santos said in a statement.
The Santos group stakes will rise to between 52.5 and 70
pct of the four ATP259P blocks as a result of the purchase. The
price was not disclosed.
Santos said a number of oil and gas fields have been
discovered in the Total Exploration areas and that it regards
them as having very good prospects for further discoveries.
Total's reserves amount to 75 billion cubic feet of gas and
5.5 mln barrels of oil and condensate, it said.
It said it will promote a vigorous exploration program in
the areas for the rest of 1987 and in the future.
The acquisition is the latest in a series by Santos as part
of a program to expand from its origins in the South Australian
Cooper Basin.
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For currency dealers Karl Otto Poehl is
the scourge of speculators, for bankers he is the man who has
played a key role in shaping the world's financial destiny for
the last seven years, and for Germans he is the guardian of the
mark.
President of the powerful and independent West German
central bank, the Bundesbank, Poehl is likely to have his
contract renewed for another eight years when it expires at the
end of this year, government officials say.
(Index of economic spotlights, see page ECRA)
But no official announcement has yet been made, raising
eyebrows in West Germany's business community.
The ebullient Poehl spent seven years in Bonn in top
ministerial posts under the Social Democrats, now in
opposition, before he moved to the Bundesbank.
There has been speculation that Chancellor Helmut Kohl
would try to replace Poehl with a man closer to his own
Christian Democrats. But officials noted that Poehl has worked
closely and successfully with Finance Minister Gerhard
Stoltenberg since Kohl's government took office in 1982.
Poehl, the most senior central banker apart from Paul
Volcker of the United States, enjoys a strong international
reputation which it would take a newcomer years to build up.
Given these circumstances, Kohl will probably overlook
Poehl's past as an adviser to former Social Democrat Chancellor
Willy Brandt, and top aide to Helmut Schmidt when he was
Finance Minister, bankers said. It was Schmidt who, as
Chancellor, appointed Poehl to his present job in 1980.
In recent months, with the mark's strong rise against the
dollar, Poehl has made exchange rates the central concern of
the Bundesbank's council, a highly conservative institution
which has doggedly pursued monetary policies to prevent
inflation catching hold. Older Germans can remember two bouts
of galloping inflation this century.
But with consumer prices falling for much of 1986, and
inflation negligible so far this year, Poehl thinks it is safe
to relax the monetary reins a little and concentrate on the
dangers to the German economy of a bloated exchange rate.
"I am of the opinion that efforts to stabilise the
dollar/mark rate have reached a high priority, also for the
Bundesbank, because a further massive revaluation of the mark
would endanger the economy in West Germany," he told business
journalists in Frankfurt recently.
Ute Geipel, head of research at Citibank AG, says that
Poehl's reappointment would guarantee flexible monetary policy.
"Poehl's policy has always been a policy which does not
focus so rigidly on domestic factors, but also on the external
economy," she said.
An economist at a German bank, who declined to be
identified, said "If Poehl is confirmed in his post, it will
certainly be a plus for the pragmatic course which is not so
rigidly oriented towards money supply."
One of Poehl's great struggles recently has been to
persuade the United States to stop "talking down" the dollar. For
Poehl, the significance of the February Louvre Accord was that
the United States agreed to join efforts to stabilise
currencies.
The Louvre Accord was greeted with scepticism by currency
dealers who said they would soon put it to the test. But in
fact the dollar has been relatively stable since the pact.
"This is because the markets know - or perhaps because they
don't know - what the central banks can do," Poehl says of
intervention in currency markets which can quickly turn rates
round, making a speculator's position worthless.
Poehl was born in 1929 and worked as a financial journalist
in the 1960s before starting his ministerial career.
A relaxed sun-tanned figure who enjoys cracking jokes over
a glass of beer, he is hardly a stereotype central banker.
He is also a keen sportsman who likes to watch football and
play golf.
Poehl says currency market intervention cannot substitute
for correct economic policies if exchange rates are imbalanced.
"But you can achieve an enormous effect with a small amount
if you strike at the right moment," he said. Bundesbank dealers
are very professional and skilled. "They've burnt the fingers of
many people," he said. And unlike the speculators, Poehl notes,
the Bundesbank dealers usually make a profit.
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Year ended March 31, 1987
Fin div 9.25p making 12p vs 10.74p
Shr 28.3p vs 27.5p
Pretax profit 55.63 mln stg vs 49.36 mln
Net 38.80 mln vs 33.64 mln
Turnover 444.10 mln vs 309.85 mln
Net interest payable 3.50 mln vs 3.79 mln
Profit share of related companies 7.62 mln vs 9.64 mln
Note - The De La Rue Co. Plc <DLAR.L> proposes to offer
ordinary shareholders the opportunity to receive their
dividends in the form of new shares as an alternative to cash.
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The United Arab Emirates recorded a
1986 trade surplus of 12.2 billion dirhams, narrowing from 30.2
billion in 1985, the central bank's latest bulletin shows.
The central bank said the lower surplus was mainly due to
the decline in the value of exports and re-exports to 37.2
billion dirhams from 54.2 billion in 1985. This reflected the
decline in oil prices last year and difficulties in marketing
UAE oil, the central bank added.
The surplus on the current account narrowed to 6.8 billion
dirhams from 25.5 billion in 1985. The overall balance showed a
surplus of 4.8 billion after 2.6 billion in 1985.
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Kuwait, a target of Iranian anger over the
emirate's backing for Iraq in the Gulf war, today rejected
charges that fishing vessels seized recently by Iran were spy
boats.
"There are no bases of truth to the contents of the Iranian
accusation on the nature of the operations of the vessels
recently taken into custody by Iran. These vessels were out
fishing," the Foreign Ministry said in a statement.
It said Iranian Charge d'Affaires Mohammad Baqeri was
summoned by the Ministry yesterday to confer with Foreign
Undersecretary Suleiman Majed al-Shaheen.
The Iranian News Agency IRNA said on Sunday Iran had seized
seven Kuwaiti speed boats and detained their crew, who
confessed to spying for Iraq under the cover of fishing.
It said the boats were intercepted in the Khur Abdullah
waterway which separates Kuwait and Iraq's Faw peninsula at the
head of the Gulf, captured by Iran last year.
The Kuwaiti response came as Iranian envoys toured Gulf
Arab states saying responsibility for security and stability in
the waterway was a regional matter. A U.S. Senate team was
scheduled today to meet Kuwait's Crown Prince and Prime
Minister Sheikh Saad al-Abdulla al-Sabah and the defence and
oil ministers.
Today's Foreign Ministry statement, carried by the Kuwait
News Agency KUNA, said the recent detention of Kuwaiti fishing
vessels by Iran was not the first.
Tehran in the past had held back a number of vessels Kuwait
had sought to release through diplomatic contacts, it said.
"However, Kuwait is perplexed that this time the Iranian
charges are accompanied by accusations that the vessels were
undertaking espionage activities," it said.
Shaheen condemned the detentions and accusations, and asked
Tehran to free all fishing boats and sailors held by Iran, the
statement said.
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The United Arab Emirates (UAE) recorded
a 1986 trade surplus of 12.2 billion dirhams, narrowing from
30.2 billion in 1985, the central bank's latest bulletin shows.
The central bank said the lower surplus was mainly due to
the decline in the value of exports and reexports to 37.2
billion dirhams from 54.2 billion in 1985. This reflected the
decline in oil prices last year and difficulties in marketing
UAE oil, the central bank added.
The surplus on the current account narrowed to 6.8 billion
dirhams from 25.5 billion in 1985. The overall balance showed a
surplus of 4.8 billion after 2.6 billion in 1985.
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Saudi Arabia's Oil Minister Hisham Nazer
said Riyadh would not agree to a cut in oil prices and would
not accept a "mad" increase that would drive consumers away.
He told al-Riyadh newspaper, "Saudi Arabia follows a
balanced petroleum policy. It does not approve of a decrease in
prices from current levels and it also does not accept a mad
increase that would drive consumers away and make them try and
find alternative sources (for energy)."
OPEC agreed last December to cut production after world
prices hit new lows in 1986. They agreed on a pricing system
aimed to stabilise the market around 18 dlrs a barrel.
OPEC is scheduled to meet in Vienna on June 25, where it
will review its current oil price and production policy.
Saudi Arabia's King Fahd said last month that he wanted oil
prices to remain stable for the next two years.
Saudi Arabia is the architect of the current pricing and
production pact, which is backed by Kuwait and the UAE. The
current pact set a production ceiling for first half 1987 of
15.8 mln bpd, and implemented fixed prices based on an 18 dlrs
a barrel average.
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Taiwan's central bank announced that as
from today the overseas foreign exchange borrowings of local
and foreign banks would be frozen at the level they reached at
the end of May.
The central bank's statement added that the measure would
be effective until the end of July.
Bankers said the measure is designed to curb the inflow of
foreign exchange and slow the growth of money supply. They
added that the move, which sparked a record single day plunge
of the local stock market, would limit their ability to lend
foreign exchange to importers and exporters.
Foreign exchange borrowings by local and foreign banks
reached almost 12 billion U.S. Dlrs by the end of April,
according to official statistics.
Last week the central bank said that from today it would
reduce its purchase of forward U.S. Dollars from banks to 40
pct from 90 pct of the value of the contract. It said the move
was needed because of "distortions" in the foreign exchange
market.
Exporters, nervous about the appreciating Taiwan dollar,
have been heavily selling forward U.S. Dollars on the interbank
market to avoid exchange rate losses.
Official figures show that forward U.S. Dollar sales in May
reached a record of almost six billion U.S. Dlrs against 5.9
billion in April.
All Taiwan's foreign exchange earnings must be converted
into local dollars, boosting money supply at a time of booming
exports. Money supply rose a seasonally adjusted 51.86 pct in
the year to end-April, raising fears of higher inflation.
In March the central bank clamped tight restrictions on
remittances of foreign exchange by companies and individuals to
Taiwan in a move to curb inflows of speculative money.
Economists and bankers estimate that the rising value of
the local dollar has attracted about ten billion U.S. Dlrs of
speculative money into Taiwan since early last year. It has
flowed in mainly from Hong Kong, Japan and the U.S..
Since September 1985 the Taiwan dollar has risen by about
22 pct against the U.S. Dollar.
Bankers said the government's efforts to stabilise the
foreign exchange market were a prelude to lifting all curbs on
capital outflows. The central bank has said the controls will
be dropped by the end of July or early August.
Foreign exchange dealers said today's announcement caused
jitters in the market with foreign and local banks making heavy
purchases of U.S. Dollars. They said the central bank sold
about 30 mln U.S. Dlrs.
Taiwan's stock market plunged a record 75.53 points to
close at 1,803.08.
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Prime Minister Yasuhiro Nakasone today
agreed with Bank of Japan governor Satoshi Sumita that a
further cut in the discount rate was not appropriate at
present, central bank sources said.
They told Reuters the two discussed the subject at a
routine meeting.
Sumita told Nakasone he did not feel a rate cut was
appropriate and Nakasone expressed his understanding, the
sources said.
Currency dealers have speculated that Japan and West
Germany might come under pressure at next week's Venice summit
to cut interest rates to boost their economies.
Nakasone, but not Sumita, is due to attend the summit.
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Japan is disappointed at the recent threats
of trade retaliation from the European Community (EC) just as
the trade situation between the two is improving, Japanese
Trade and Industry Minister Hajime Tamura said.
"I am deeply concerned that the EC has moved to take a
harsher line toward Japan despite this tangible improvement," he
said in a speech prepared for delivery at the opening of a new
centre designed to improve understanding between the two sides.
Last week, foreign ministers of the 12 EC nations agreed to
impose tariffs on a range of unspecified Japanese electrical
goods unless Tokyo opened its markets more to EC exports.
Tamura referred to a 55 pct rise in Japanese imports of EC
manufactured goods in the year ended March 31.
"I feel this is a strong step on the road to balance through
expansion."
"While I do not deny the existence of the trade deficit
between Japan and the EC, I believe it should be rectified not
by reducing trade through import restrictions or export
restraints, but by expanding the (overall) trade," Tamura said.
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Glynwed International Plc <GLYN.L> said it
had bought all the issued shares of two companies belonging to
Gallaher Ltd, a subsidiary of American Brands Inc <AMB>, in a
deal worth around 14 mln stg.
The full names of the companies purchased from Gallaher are
<Formatura Iniezione Polimeri Spa>, Genoa and <FIP U.K. Ltd>,
Weybridge.
Consideration for the purchases, which will be based on the
net asset values per share of the companies, has yet to be
finalised but some nine mln stg of the total represents debt
assumed by Glynwed.
FIP is a manufacturer of valves and other pressure pipe
fittings in thermoplastics. Its products are complementary to
those of Glynwed subsidiaries, Durapipe U.K. And Philmac.
The acquisitions appreciably develop and strengthen
Glynwed's strategic position in the thermoplastic pipework
systems market.
The sale by Gallaher reflects a decision to dispose of more
peripheral businesses. Proceeds of the sale will be used in the
continuing expansion of the Gallaher group. Glynwed shares were
up 5p to 494 after the announcement. Gallaher is not quoted on
the London Stock Exchange.
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Interest rates on Kuwaiti dinar deposits
held firm in scattered trading despite a Central Bank decision
to revive limited funding lines, dealers said.
The Central Bank, which last Tuesday shut a daily aid
window through which it lent funds of up to one year, reopened
the facility for three month money, which was available at
seven pct, they said.
It offered one month funds at seven pct through swap
facilities, dealers said.
Today's Central Bank action, combined with sales of dollars
by some banks, helped ease a recent credit squeeze engineered
by the monetary authority to stem a rush for the U.S. Currency
arising from attractive U.S. Interest rates and Gulf tension,
dealers said.
However, as one dealer noted: "The market is still
unsettled."
Overnight funds, bid at 20 pct at the outset of business,
traded up to 30 pct before easing as liquidity dragged offers
down to 10 pct by the close. Tomorrow-next, for which buy/sell
quotes started at 30, 20 pct, ended at 14, eight.
Spot-next was indicated at 8-1/2, seven after opening bids
of 10. Dealers quoted one-week at eight, seven against an early
9-1/2, 7-1/2.
One month rates were at the same level after trade at eight
then 8-1/2. Dealers quoted three months at seven, 6-3/4 pct and
six-month to one year funds at seven, six pct. They reported
offshore offers of overnight at 10, tomorrow-next at eight and
one year at 6-1/2 pct towards the close.
The Central Bank fixed its dinar exchange rate steady at
0.27933/67 to the dollar, against yesterday's 0.27939/73. The
spot dinar was 0.27930/40.
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The French ship Capitaine Wallis, 13,847
dwt, berthed at the port of Geelong in Victoria today to load
8,000 tonnes of urgently needed wheat for Fiji after Australian
port unions partly lifted a trade embargo, shipping sources
said.
The wheat is expected to be loaded tomorrow, an Australian
Wheat Board spokesman said.
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Boeing co said it has started the 37 dlr
per share tender offer for all shares of ARGOSystems Inc that
it announced yesterday morning.
In a newspaper advertisement, the company said the offer,
withdrawal rights and proration deadline all expire June 30
unless extended.
The offer is not conditioned on receipt of any minimum
number of shares, Boeing said. If at least 90 pct of
ARGOSystems' shares are tendered, it said it will buy all
shares, but if less than 90 pct are tendered, it said it plans
to buy only 49 pct in the offer.
Boeing said if less than 90 pct of ARGOSystems' shares are
tendered, but the purchase of all shares tendered along with
the exercise of options it holds would give it over 90 pct of
ARGOSystems, Boeing may buy all shares tendered.
ARGOSystems has granted Boeing an option to buy up to
1,238,311 new shares or a 15.6 pct interest at 37 dlrs each,
and shareholders have granted Boeing an option to purchase up
to 597,885 shares at the same price, or about 8.9 pct of those
now outstanding, without taking the company option into
consideration. A merger at the tender price that has been
approved by the ARGOSystems board is to follow the offer.
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Dumez Investments Inc said it is
accepting and paying for 478,125 shares of United Westburne
Industries Ltd in response to its 25 dlr per share tender offer
and it has extended the offer until June 26.
Dumez, 70 pct owned by Dumez SA <DUMP.PA> and 30 pct by
Unicorp Canada Corp <UNIA.TO>, said the 478,125 shares
represent 81.6 pct of those not controlled by Westburne
International Ltd, which Dumez previously acquired in a tender.
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State oil firm Agip Petroli Spa said it has
acquired a 50 pct stake in Steuart Petroleum Co, an independent
U.S. Oil products company. Financial terms were not disclosed.
Agip Petroli, a subsidiary of state energy concern Ente
Nazionali Idrocarburi, said in a statement that the remaining
50 pct of the U.S. Firm is owned by Steuart Investment Co, a
holding company that also operates in the sectors of
transportation, hotels and insurance.
The Italian firm said Steuart Petroleum operates primarily
on the East Coast.
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Lieberman Enterprises Inc said
Carolco Pictures Inc is negotiating for the acquisition of the
50 pct of Lieberman shares held by the families of chairman
David Lieberman and president Harold Okinow at 20.50 dlrs each,
and if the deal were concluded, public shareholders would be
offered the same price for their shares.
Lieberman said the Carolco bid to its public shareholders
would be in cash or shareholders could be offered securities as
an alternative. The offer would occur within about 90 days
after the closing of the sale of the initial 50 pct stake, the
company said.
The company said a final agreement has not yet been reached
on the first transaction, but negotiations are expected to be
concluded in early June. Present management is expected to
continue to operate Lieberman, the company said. Lieberman
distributes prerecorded music, video movies and other products.
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Fiji today welcomed the ending of a trade
ban imposed by Australian labor unions as supporters of the
country's ousted prime minister Timoci Bavadra renewed pressure
for his reinstatement with strikes and shop closures.
The government welcomed a decision by the Australian
Waterside Workers' Federation to lift its ban on shipments to
Fiji, imposed in support of Bavadra, whose newly-elected
government was overthrown in a military coup on May 14.
The ban had threatened food shortages of imported wheat,
fresh vegetables and medicines. A direct result of the union
decision would be the immediate shipment of 9,000 tons of rice
and wheat from an Australian port, the government said.
Shops in Nadi and Lautoka, center of the country's sugar
industry, closed again today in support of Bavadra.
In Nadi two bomb threats forced evacuation of the
Australian Westpac bank, but police said they turned out to be
a hoax. Bavadra has launched a campaign of civil disobedience
to press for his reinstatement.
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Saudi Arabia's Oil Minister Hisham Nazer
said Riyadh would not agree to a cut in oil prices and would
not accept a "mad" increase that would drive consumers away.
He told al-Riyadh newspaper, "Saudi Arabia follows a
balanced petroleum policy. It does not approve of a decrease in
prices from current levels and it also does not accept a mad
increase that would drive consumers away and make them try and
find alternative sources (for energy)."
OPEC agreed last December to cut production after world
prices hit new lows in 1986. They agreed on a pricing system
aimed to stabilize the market around 18 dlrs a barrel.
OPEC is scheduled to meet in Vienna on June 25, where it
will review its current oil price and production policy.
Saudi Arabia's King Fahd said last month that he wanted oil
prices to remain stable for the next two years.
Saudi Arabia is the architect of the current pricing and
production pact, which is backed by Kuwait and the UAE. The
current pact set a production ceiling for first half 1987 of
15.8 mln bpd, and implemented fixed prices based on an 18 dlrs
a barrel average.
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Six months ended March 31, 1987
Share 6.0p vs 4.1p, diluted
Interim dividend 1.4p vs 1.05p
Pre-tax profit 312 mln stg vs 158 mln
Net profit 234 mln vs 114 mln
Sales 3.47 billion vs 1.55 billion
Operating profit 296 mln vs 164 mln
Interest and other income less central expenses credit 16
mln vs debit six mln
Company's full name is Hanson Trust Plc <HNSN.L>.
U.K. Operating profit by sector -
Consumer goods 123 mln stg vs 32 mln
Building products 31 mln vs 26 mln
Industrial 14 mln vs same
Food 20 mln vs nil.
U.S. Sectors -
Consumer goods 25 mln stg vs 20 mln
Building products 29 mln vs 25 mln
Food seven mln vs two mln
Businesses owned in 1986 and sold during 1987 nil vs nine
mln.
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April 30 end
Oper shr 20 cts vs 19 cts
Oper net 4,625,000 vs 6,781,000
Sales 250.2 mln vs 150.9 mln
Orders 351.5 mln vs 122.5 mln
1st half
Oper shr 29 cts vs 26 cts
Oper net 7,453,000 vs 12.0 mln
Sales 441.1 mln vs 255.6 mln
Orders 576.6 mln vs 221.1 mln
Backlog 848.3 mln vs 459.2 mln
NOTE: Prior year net excludes losses from discontinued
operations of 32.9 mln dlrs in quarter and 35.7 mln dlrs in
half.
Net excludes tax credit 2,540,000 dlrs vs credit reversal
2,300,000 dlrs in quarter, credit 5,500,000 dlrs vs nil half.
Results include Syscom Corp from December 30, 1986 purchase
and Beloit Corp from March 31, 1986 purchase. Orders exclude
253.6 mln dlrs acquired with Syscon acquisition.
Backlog at January 31 747 mln dlrs.
Average shares 21.5 mln vs 13.3 mln in quarter and 18.9 mln
vs 13.3 mln in half.
Income tax provisions 2,200,000 dlrs vs 3,450,000 dlrs in
quarter and 6,200,000 dlrs vs 7,225,000 dlrs in half. Current
quarter tax rate of 27.5 pct benefited from Wisconsin
Department of Revenue Decision, the company said.
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The record 4.9 billion dlrs rise in U.K.
Reserves in May to a total 34.7 billion has lifted hopes for a
further cut in bank base lending rates after the June 11
general election, market analysts said.
Sterling would have risen on the much better than expected
number but for market nerves about the poll outcome, they said.
But the weight of foreign currency and gold reserves now
available to the authorities to support the pound should curb
any market tendency to panic if U.K. Opinion polls show the
ruling Conservative Party's lead slipping, they added.
"We have been intervening to a very much greater extent than
we have done hitherto," Chancellor of the Exchequer Nigel Lawson
said at a news conference today, commenting on the news of the
record reserves rise.
He put the U.K. Intervention in the context of the Louvre
accord between leading industrial nations to stabilise the
dollar, partly through direct intervention on foreign
exchanges. "We have been playing a very full part ourselves," he
said.
But market analysts see the recent upward pressure on
sterling, and consequent need for official sales to damp down
its rise, more in the light of local factors.
Steven Bell, chief economist at Morgan Grenfell Securities,
said that corporate money has been flowing back into Britain
amid hopes of another Conservative government, after fears last
autumn of a Labour election victory sent it flooding out.
U.K. Portfolio investment is also returning, while foreign
buyers see U.K. Growth propects and high bond yields as
attractive. They will be strong buyers of U.K. Assets, notably
equities, once the election is out of the way, Bell said.
Analysts see this pressure as the main hope for lower
interest rates, as the government is expected to try to reverse
the loss of export competitiveness caused by a strong pound.
Today, however, the pound hardly moved on the reserves
news, dipping on its trade-weighted index against a basket of
currencies from 73.1 pct of its 1975 value at 1000 GMT to 73.0
pct at 1100 GMT, half an hour after the figures were released.
"The market doesn't want to do anything because of the
election," commented an economist at a big U.S. Investment bank.
Several dealers and analysts added that market forecasts of
a rise in reserves of between one and three billion dlrs had
overestimated the amount of pound sales that were likely to
have been disguised by swap arrangements or transactions on the
forward market.
The market also seemed to have overestimated the amount of
sterling the Bank of England bought at the end of May to smooth
the pound's sudden downturn, while some of the intervention
reported in May probably occurred in April, they said.
The key three months interbank money market rates eased
about 1/8 point, reflecting cautious hopes that the downtrend
in U.K. Interest rates will be revived following the reserves
news, analysts said.
Government bond prices initially firmed, but the market was
muted as traders worried about the funding implications of
another huge rise in reserves, they added.
Morgan Grenfell's Bell forecast a half point base rate cut
from the current nine pct level soon after the election, so
long as poll projections of another Conservative victory prove
accurate, with another half point later.
Justin Silverton, equity economist at Credit Suisse
Buckmaster and Moore, said a full point reduction might be
possible. "Sterling will be held down by interest rate cuts in
future, rather than this active intervention," he predicted.
Kevin Boakes of Greenwell Montagu Gilt-Edged cautioned
against over-optimistic forecasts, but agreed a half point cut
looked likely.
A cut before the election has been virtually ruled out.
"The Bank (of England) is both worried about the political
problem of cutting rates during an election campaign ... And
has signalled some worry about broad money (growth)," said Robin
Marshall, chief U.K. Economist at Chase Manhattan Securities.
He said the 10 billion dlrs increase in total reserves in
the past seven months may foreshadow full U.K. Entry into the
European Monetary System.
But Bell said the authorities would like to see another 10
or 15 billion dlrs in the reserves before joining, if they did
so. But, unlike many analysts, he doubted the U.K. Will go in.
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Shr profit 29 cts vs loss six cts
Net profit 645,000 vs loss 118,000
Sales 7,802,000 vs 4,330,000
1st half
Shr profit 58 cts vs profit 10 cts
Net profit 1,255,000 vs profit 212,000
Sales 14.5 mln vs 8,912,000
Avg shrs 2,183,150 vs 2,072,779
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A subsidiary of state energy concern Ente
Nazionali Idrocarburi <ENTN.MI> (ENI) said it has acquired a 50
pct stake in <Steuart Petroleum Co>, an independent U.S. Oil
products company. Financial terms were not disclosed.
Agip Petroli Spa said in a statement that the remaining 50
pct of the U.S. Firm is owned by <Steuart Investment Co>, a
holding company which also has interests transportation, hotels
and insurance.
The Italian firm said Steuart Petroleum operates primarily
on the East Coast of the U.S.
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1st qtr
Shr seven cts vs nine cts
Net 166,000 vs 201,000
Revs 801,000 vs 687,000
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