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Bankers Trust Co said it has raised its prime lending rate to 7-3/4 pct from 7-1/2 effective immediately. This move is the latest in a series of similar actions by leading U.S. money center banks including Citibank NA and Chase Manhattan Bank NA over the last 24 hours. AmeriTrust Corp of Ohio also raised its prime lending rate to 7-3/4 pct from 7-1/2 effective tomorrow. Reuter | BANKERS TRUST <BT> RAISES PRIME LENDING RATE |
Boatmens Bancshares said its Boatmens National Bank raised the prime rate to 7-3/4 pct from 7-1/2 pct effective immediately. Reuter | BOATMEN'S NATIONAL BANK <BOAT> RAISES PRIME |
Homestead Financial Corp said it began a public offering of 3500000 shares of its class A common at 10.875 dlrs per share through an underwriting group managed by Drexel Burnham Lambert Inc and Merrill Lynch Capital Markets. Reuter | HOMESTEAD <HFL> BEGINS PUBLIC SHARE OFFERING |
Standard and Poors Corp said it raised to B from CCC 268.9 mln dlrs of equipment trust certificates of Texas Air Corps Eastern Air Lines Inc unit. S and P cited its new policy on rating secured airline debt with special protection under Section 1110 of the Bankruptcy Code. But the agency cautioned this did not reflect a change in the units underlying credit strength. The certificates and 225.9 mln dlrs of CC subordinated debt remain on S/P creditwatch with positive implications. Eastern lost 130.8 mln dlrs in 1986 because of competition and customer uncertainty over its future S and P noted. Reuter | S/P UPGRADES TEXAS AIR <TEX> UNIT'S CERTIFICATES |
McDonnell Douglas Corp <MD> said Finnair the national airline of Finland will purchase two McDonnell Douglas MD-11 advanced long-range tri-jets with options for two more. Terms were not immediately disclosed. The first of the aircraft will be delivered in October 1990 and the second in May 1991. Reuter | FINNAIR TO BUY TWO MCDONNELL DOUGLAS AIRCRAFTS |
<Union Enterprises Ltd> said holders of 7.2 mln or 80 pct of its class A series one preferred shares requested to retract their shares under terms of the issue thus raising <Unicorp Canada Corp>s voting stake in Union to 58 pct from 50. Union said it paid about 90 mln dlrs on April 1 for the retraction using existing credit lines. Reuter | UNICORP VOTING STAKE HIKED IN UNION ENTERPRISES |
U.S. and Japanese negotiators will hold emergency meetings next week to try to resolve their row over semiconductors but a U.S. official said it was not likely the talks would delay the planned American sanctions. Officials said the talks which were announced yesterday by U.S. Trade Representative Clayton Yeutter were being held under the emergency provisions of the U.S.-Japanese semiconductor agreement. A spokesman for Yeutter said officials of the Japanese Ministry of International Trade and Industry (MITI) would hold technical talks with U.S. officials next Monday and Tuesday. The spokesman said that on Thursday and Friday Deputy U.S. Trade Representative Michael Smith would meet with MITI vice president Makoto Kuroda. Reuter | U.S., JAPAN CHIP TALKS TO START NEXT WEEK |
The following proposed securities offerings were filed recently with the Securities and Exchange Commission: Southeast Banking Corp <STB> - Offering of 50 mln dlrs of convertible subordinated capital notes due 1999 through Lazard Freres and Co. Burlington Industries Inc <BUR> - Offering of 100 mln dlrs of sinking fund debentures due 2017 through Kidder Peabody and Co Inc and an offering of 75 mln dlrs of convertible subordinated debentures due 2012 through an underwriting group led by Kidder Peabody. Reuter | PROPOSED OFFERINGS RECENTLY FILED WITH THE SEC |
American Motors Corp said it is extending and enhancing its buyer-incentive programs on Renault Alliance Encore and GTA models and Jeep Comanche Cherokee and Wagoneer to April 10. The incentives were to have expired March 31. New to the April program is the combination of a low-interest annual percentage financing program and 1986 and 1987 Renault vehicles and a 500 dlr rebate. It said buyers of 1986 and 1987 Jeep Cherokee Wagoneer and Comanche vehicles have a choice of the financing program or a rebate. Reuter | AMERICAN MOTORS<AMO> EXTENDS INCENTIVE PROGRAM |
Oper shr 20 cts vs eight cts Oper net 1869000 vs 957000 Revs 41.0 mln vs 22.9 mln Year Oper shr 52 cts vs 53 cts Oper net 5386000 vs 5147000 Revs 116.8 mln vs 98.3 mln Note: Oper excludes extraordinary reserves related to arbitration of Iranian claims of 2062000 vs 3200000 for qtr and year. Reuter | STARRETT HOUSING CORP <SHO> 4TH QTR NET |
Damson Oil Corp said that beginning today any holder of its 15 pct dual convertible mortgage bonds due 1997 has the right to convert up to one half of the principal amount into common stock during a 30-day special conversion period. The holder may convert the remaining half of the principal amount beginning May one at a conversion price calculated according to terms of the indenture Damson said. The company added that any holder choosing not to convert the bonds during either of the two special conversion periods will receive no interest on bonds still held after May one. Reuter | DAMSON OIL <DAM> CONVERTS MORTGAGE BONDS |
First Wisconsin National Bank said it has raised its prime rate to 7-3/4 pct from 7-1/2 pct effective today. Reuter | FIRST WISCONSIN NAT'L BANK<FWB> HIKES PRIME RATE |
Central and South West Corp said it Southwestern Electric Power Co subsidiary will redeem all 300000 shares outstanding of its 8.16 pct preferred stock par value 100 dlrs per share on May one. It said the redemption price is 103.72 dlrs a share plus accrued and unpaid dividends from April one to May one of 68 cts per share for a total of 194.40 dlrs a share paid to shareholders. Reuter | CENTRAL AND SOUTH <CSR> UNIT TO REDEEM STOCK |
Unit distribution one dlr vs 1.75 dlrs prior pay June one Record May one Note: Prior distribution declared in April 1986. Reuter | GAC LIQUIDATING TRUST <GACTZ> SETS CASH PAYOUT |
Shr loss 53 cts vs loss 55 cts Net loss 3865000 vs 3963000 Revs 24.2 mln vs 26.8 mln Year Shr loss 1.21 dlrs vs profit 56 cts Net loss 8758000 vs profit 4040000 Revs 108.5 mln vs 113.8 mln Note: Prior qtr figures include income from discontinued operations of 10000 dlrs gain on disposal of discontinued operations of 269000 dlrs or four cts per share and operating loss carryforward gain of 936000 dlrs or 13 cts per share. Prior year figures include income from discontinued operations of 164000 dlrs or two cts per share gain on disposal of discontinued operation of 3.9 mln dlrs or 54 cts per share and operating loss carryforward gain of 3.7 mln dlrs or 48 cts per share. Reuter | WRATHER CORP <WCO> 4TH QTR LOSS |
Kraft Inc said in its annual report it expects 1987 capital expenditures to be between 250 mln dlrs and 300 mln dlrs. The company said it invested 209 mln dlrs in property plant and equipment in 1986 up from 181 mln dlrs in 1985. Kraft also said its advertising expenditures for 1987 are expected to match the five-year compounded 15 pct rate of increase recorded in 1986 when such expenditures totaled 433 mln dlrs. Kraft said research and development expenditures rose 12 pct in 1986 to 66.7 mln dlrs and a greater increase in seen in 1987. It cited a continued emphasis on new product development advances in cheese and edible-oil technologies further adaptation of tamper-evident packaging and continued development of consumer battery technologies. Reuter | KRAFT <KRA> SEES HIGHER CAPITAL SPENDING |
The following import levies for white and raw sugar are effective tomorrow in European currency units (ecu) per 100 kilos. White sugar denatured and non-denatured 51.94 versus 51.36 previously. Raw sugar denatured and non-denatured 44.05 versus 43.69 previously. The rate for raws is based on 92 pct yield. Reuter | EC SUGAR IMPORT LEVIES |
Weatherford International Inc said it reached an agreement to restructure about 41 mln dlrs of debt held by bank and insurance company lenders. Under the agreement the oil drilling equipment and oil services company will pay reduced quarterly interest payments on part of its bank revolving credit loans and industrial revenue bonds. Remaining interest will be deferred until Jan 1 1991. Principal payments will be deferred with semi-annual payments of 1.75 mln dlrs to start on Dec 31 1989 and all remaining principal due Jan 1 1991. Additional interest and principal payments may be due on the bank revolving credit lines if the company generates more cash than it needs for operations. Term of the debt held by insurance company lenders will be extended by one year until December 1990 by reducing the principal due last year and this year. Otherwise interest and principal payments will continue to be made as scheduled in the existing agreements. The proposed restructuring will reduce Weatherfords cash requirements by about three mln dlrs in 1987 and 2.5 mln dlrs in 1988 it said. The company which is still in default said it expects to completed amended loan agreements during the next few months. The company also said the recently announced sale of a non-core production equipment unit and a Mexican subsidiary will not have a material impact on future revenues and will eliminate exposure to future losses. It has consolidated other U.S. and foreign manufacturing operations to reduce costs and written down certain inventories to better reflect their value it added. Reuter | WEATHERFORD INT'L <WII> GETS DEBT AGREEMENT |
Qtly div 25 cts vs 25 cts prior Pay June one Record May 15 Reuter | MURPHY OIL CORP <MUR> SETS REGULAR DIVIDEND |
Treasury Secretary James Baker said the administration backs the Federal Savings and Loan Insurance Corp (FSLIC) recapitalization bill approved by the House Banking Committee and opposes the Senate-passed version. Baker told a House Appropriations Subcommittee the 15 billion dlr recapitalization plan approved by the House panel was sufficient while the 7.5 billion dlr plan in the Senate-passed bill was inadequate. He also urged the House to reject loophole-closing provisions in the Senate bill that would restrict banking activities. Reuter | TREASURY'S BAKER BACKS HOUSE PANEL'S FSLIC BILL |
U.K. Chancellor of the Exchequer Nigel Lawson said he wanted sterling to stay roughly where it was specifying a rate of around 2.90 marks and 1.60 dlrs. He told the National Economic Development Council that the recent Paris meeting of major industrialised nations had agreed on the need for exchange rate stability. There was now a reasonable alignment of currencies and the U.K. Government intended to keep sterling at about its present level he said. That meant around 2.90 marks which is the single most important rate to concentrate on and 1.60 dlrs Lawson said. His disclosure of two of the key targets for sterling was highly unusual foreign exchange market analysts said. In the past he has preferred to be less definite about the Governments exchange rate policy lest it give foreign exchange markets set limits to test. Lawson told the committee which is a tripartite forum of government unions and industry that the pound would be kept near its present level by a mixture of interest rates and intervention in the foreign exchange markets. The pound finished trading here today at 1.6040/50 dlrs and 2.9210/45 marks. His disclosure of two of the key targets for sterling was highly unusual foreign exchange market analysts said. In the past he has preferred to be less definite about the Governments exchange rate policy lest it give foreign exchange markets set limits to test. Lawson told the committee which is a tripartite forum of government unions and industry that the pound would be kept near its present level by a mixture of interest rates and intervention in the foreign exchange markets. The pound finished trading here today at 1.6040/50 dlrs and 2.9210/45 marks. Reuter | LAWSON WANTS STERLING AROUND 1.60 DLRS, 2.90 MKS |
The new interest rate of 7/8 pct over Libor on Venezuelan public sector debt payments goes into effect today Finance Minister Manuel Azpurua said . Azpurua told reporters yesterday the reduction from the previous margin of 1-1/8 pct above Libor will save the country some 50 mln dollars in debt servicing. The new rate is among changes agreed last month to the 20.3 billion dlr public sector debt rescheduling. Under the new agreement Venezula was also able to extend the term from 12 to 14 years and to lower debt payments in the 1987-89 period by 64 pct. Azpurua said that according to the agreement the new interest rate will be retroactive to April 1 provided the accord is approved before October 1. He told reporters the term sheet detailing the changes in the rescheduling has already been endorsed by the 13-member debt steering committee and is now being sent to the countrys 460 creditor banks for their approval. The new agreement replaces a rescheduling accord signed in February 1986 which Venezuela asked to revise to reflect a 45 pct drop in oil revenues. REUTER | NEW VENEZUELA DEBT INTEREST RATE GOES INTO EFFECT |
Textron Incs Avco Lycoming Textron subsidiary said it finalized a 1.4 billion dlr five-year contract with the U.S. Army for M1 Abrams main battle tank gas turbine engines. Under the contract Avco said the army will procure 3299 installed engines plus spare engines and a combination of modules and gear boxes. It also said the agreement includes an initial purchase of 173 engines by the U.S. Marines under a program that will result in a fleet of 560 M1 tanks. Reuter | TEXTRON'S <TXT> 1.4 BILLION DLR CONTRACT FINAL |
MOODY'S DOWNGRADES NIAGARA MOHAWK'S 2.2 BILLION DLRS OF DEBT |
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SunTrust Banks said that Sun Banks in Florida and Trust Co banks in Georgia have raised their prime rate to 7-3/4 pct from 7-1/2 pct. The company said the action is effective immediately. Reuter | SUNTRUST BANKS <STI> RAISES PRIME TO 7-3/4 PCT |
American Telephone and Telegraph Co said it has a new version of docuFORUM a software product used to review revise and transfer documents electronically. The software if being offered for a one-time setup charge of 1000 dlrs. ATT also charges 40 dlrs per hour for on-line usage fees with a monthly minimum of 250 dlrs. More | ATT <T> OFFERS DOCUMENT SOFTWARE PRODUCT |
Horn and Hardart Co said it disposed of 33 Bojangles Chicken N Biscuits restaurants in Florida as part of its previously announced retrenchment of its Bojangles subsidiary. Terms were not disclosed. The company said the restaurants in Orlando Tampa and Jacksonville markets have incurred the majority of Bojangles operating losses over the last two years. Due to the transaction Horn and Hardart is projecting a positive cash flow for the unit for the remainder of fiscal 1987. A spokesman said the disposition consists of a combination of sale lease and re-franchise agreements. The transaction involves one-quarter of the company-owned Bojangles restaurants and is in accordance with its restructuring program announced in October 1986. A spokesman said the company is considering the sale or spinoff of the 91-company owned additional restaurants which are profitable. The company said the disposition will result in no profit or loss for the company because the costs were anticipated in a 34-mln-dlr reserve taken in the third quarter of 1986. The foodservice division which includes Burger King Arbys and Tony Romas had a pre-tax operating loss of 29.6 mln dlrs in 1986 including the 34.0 mln dlr charge to restructure Bojangles. Excluding Bojangles the group had revenues of 43.8 mln dlrs. The company said that pursuant to the restructuring it has cut general and administrative expenses attributable to Bojangle by 35 pct. Reuter | HORN/HARDART <HOR> UNIT DISPOSES 33 RESTAURANTS |
Qtly div 13 cts vs 13 cts prior Pay April 20 Record April 10 Reuter | MULTIBANK FINANCIAL CORP <MLTF> IN PAYOUT |
Frances Finance Ministry said it named Credit Commercial de France CCF and Goldman Sachs as its advisers in the privatisation of Societe Generale <SGEN.PA>. A Ministry statement said accountants Guy Barbier had been chosen to audit the Societe Generale accounts ahead of the privatision share offering later this year. State-owned Societe Generale one of the three leading french banks with a share capital of 1.375 billion francs and consolidated assets of 738 billion was added to the list of this years privatisations in February. CCF one of the top seven banks is also being sold by the government this year. Reuter | FRENCH GOVERNMENT NAMES ADVISERS FOR SOC GEN SHARE SALE |
Ehrlich Bober Financial Corp said its common stock has started trading on the <American Stock Exchange>. The stock had been traded on the NASDAQ system. Reuter | EHRLICH BOBER <EB> STARTS TRADING ON AMEX |
First Bank Minneaplois and First Bank Saint Paul both units of First Bank Systems Inc said they raised their reference rates to 7-3/4 pct from 7-1/2 pct. Reuter | FIRST BANK SYSTEMS <FBS> UNITS HIKE RATE |
Chemical Fabrics Corp said an agreement in principle under which OC Birdair Inc would have purchased assets related to the architectural structures business of Dow Corning corps ODC Inc division has been terminated. Under that agreement Chemical Fabrics would also have become distributor of Dow Cornings Vestar silicone-coated fiberglass architecural fabrics. OC Birdair is a joint venture of Chemical Fabrics and Owens Corning Fiberglas Corp <OCF> and Down Corning a venture of Dow Chemical Co <DOW> and Corning Glass Works <GLW>. Chemical Fabrics said once the current project backlog of Dow Cornings ODC division is completed Dow Corning plans to discontinue its design-engineering fabrication and installation services. Chemical Fabrics said the companies will cooperate on the development of new products for architectural and industrial applications and may supply architectural materials to each other. Reuter | CHEMICAL FABRICS <CMFB> AGREEMENT TERMINATED |
SIS Corp said it has completed the acquisition of its franchisor Sisters International Inc from Wendys International Inc for 14.5 mln dlrs in stock. It said the purchase includes 35 restaurants in Ohio operates by Sisters giving SIS a total of 55 restaurants and franchise relationships in six Midwestern and Southern states. Reuter | SIS <SISB> COMPLETES WENDY'S <WEN> UNIT BUY |
Moodys Investors Service Inc said it downgraded Niagara Mohawk Power Corps 2.2 billion dlrs of debt securities and preferred stock. Moodys cited cost increases at the utilitys Nine Mile Nuclear Unit 2 and an unfavorable rate decision by the New York Public Service Commission. Cut were the companys first mortgage bonds and secured pollution control issues to Baa-2 from Baa-1 and Eurobonds unsecured pollution control debt unsecured medium-term notes and preferred stock to Baa-3 from Baa-2. Niagara Mohawks Prime-2 commercial paper was left unchanged. Moodys said the rate decision last month by the Public Service Commission would significantly pressure Niagara Mohawks coverage of fixed charges. Moreover cost increases associated with the in-service delay of the 41 pct owned Nine Mile Unit 2 from September 1987 to early 1988 along with prospective delays are unlikely to be recovered under the cost-settlement agreement for the nuclear unit Moodys noted. The potential write-off would sharply reduce Niagara Mohawks common equity and may impair financial flexibility the agency said. Reuter | NIAGARA MOHAWK <NMK> DEBT DOWNGRADED BY MOODY'S |
Drilling of this years British sugar beet crop got off to a slow start due to poor weather conditions with only around one pct sown so far a spokesman for British Sugar Plc said. This compares with two pct at the same stage last year three pct in 1985 and 38 to 39 pct in 1984. There is little cause for concern with better weather forecast and the capacity available to drill the contracted area of around 200000 hectares in about 10 days. Seed beds look good and farmers are advised to wait for soil temperatures to rise the spokesman said. If the crop can be drilled by the third week in April we will be delighted he said. Last year a large proportion of the crop was not drilled until May but it still turned out to be the equal second largest on record. Reuter | BRITISH SUGAR SOWINGS OFF TO SLOW START |
The dollars recent decline despite massive central bank purchases is a forceful reminder that official intervention in the foreign exchanges can work only if it is well-timed to coincide with shifts in market fundamentals or sentiment dealers and analysts said. Central banks may succeed in slowing a trend but without accompanying policy changes they stand little chance of reversing the direction of an ever-growing global market in which more than 200 billion dlrs is traded every day the sources said. Timing and psychology are the key to successful intervention said Jim ONeill a financial markets economist with Marine Midland Banks Inc. The importance of complementary changes in economic fundamentals was underlined yesterday when a change in interest rates boosted the dollar instantly achieving what the central banks had tried in vain to do for a week through open market intervention. After Citibank raised its prime rate by a quarter-point to 7-3/4 pct the first change in the rate since last August the dollar started to advance and reached a high in Tokyo of 147.50 yen up two yen from Tuesdays New York low. By contrast monetary authorities spearheaded by the Bank of Japan are estimated to have bought as much as 10 billion dlrs in the last 10 days of March but could not prevent the dollar from skidding through 150 yen and plumbing a 40-year low Monday of 144.70 yen. Some experts worry the central banks have lost more than just a temporary battle to prop up the dollar. The market is wary of being caught wrong-footed by a central bank foray but is no longer mesmerized. Theyve lost their credibility. The market feels it can take on the central banks and win said Michael Snow head of treasury operations at Union Bank of Switzerland in New York. The relative failure of recent intervention stands in sharp contrast to the success that central banks scored when they joined forces to drive the dollar down following the September 22 1985 Plaza accord. Then however central banks had an easy time of it because the markets and the Treasuries of the major industrial powers were agreed that the dollar needed to head lower to redress massive worldwide trade imbalances. Now there is no such consensus. The market is saying that the dollar must fall further because the U.S. trade deficit is showing little sign of improvement while Japan is resisting in a bid to protect its export industries. For its part the United States is apparently content to let the dollar fall gradually further and is paying little more than lip service to the February Paris agreement of the Group of Five plus Canada to foster stability dealers say. Specifically they said the Feds dollar-buying intervention has been half-hearted designed more as a political gesture to Japan than to strike fear into the markets. Its been pro-forma intervention said Francoise Soares-Kemp chief corporate trader at Credit Lyonnais. Because of this discord and the markets momentum for a lower dollar analysts said intervention looks doomed to fail. Its going to take a lot more than the central banks to hold the dollar (at these levels) said Snow who predicts another 10 to 15 pct depreciation. There have to be structural changes that occur to make the market stop selling dollars added Buying six billion dollars in three weeks is not going to do it. Late last decade during the presidency of Jimmy Carter when the dollar was last under heavy speculative attack central banks sometimes intervened to the tune of six billion dlrs in a single day but still failed to stop the dollar falling to a record low of 1.70 marks analysts said. Snow said purchases on that scale now are unlikely. I dont think anybody has the stomach for it because they saw the futility of it in the seventies. Indeed because the market has grown in leaps and bound since then intervention on an even greater scale would probably be needed to impress the market. Trading volume in London New York and Tokyo alone last year averaged nearly 188 billion dlrs a day according to a joint central bank study about double the previous estimate made just two years earlier by the Group of Thirty private research group. There are signs that central banks too realize the futility of swimming against the tide. Bank of Japan sources told Reuters in Tokyo earlier this week that they believed the limits of currency market intervention are perhaps being reached and that other methods for bolstering the dollar such as invoking currency swap agreements with other central banks are being considered. In this era of financial liberalization its almost impossible to control the flow of capital in and out of Japan one senior official in Tokyo said. Reuter | CURRENCY INTERVENTION TIMING CRUCIAL - ANALYSTS |
Michaels Stores Inc said March sales were up 19.2 pct to 7823000 dlrs from 6564000 dlrs a year earlier with same-store sales up 2.7 pct. The company noted that Easter sales fell in March last year and are falling in April this year. Reuter | MICHAELS STORES <MKE> MARCH SALES RISE |
CTC Dealer Holdings Ltd said <Canadian Tire Corp Ltd> controlling shareholders Alfred David and Martha Billes did not extend an agreement expiring yesterday to tender their shares only to CTCs previously reported offer for 49 pct of Canadian Tire common shares. CTC which already holds 17.4 pct of Canadian Tire common said it would therefore not take up any shares tendered under its offer unless they totaled at least 1.1 mln or another 32.7 pct of Canadian Tire common. The Billes control 60 pct of Canadian Tire common. It added that it extended its offer to May 11 at a fixed price of 165.36 dlrs a share. CTC a group of Canadian Tire dealers said it expected to know by May 11 if it would obtain approval to appeal a previously reported Ontario court ruling upholding a regulatory decision to block CTCs offer. The dealers bid was previously blocked by the Ontario Securities Commission because the offer excluded holders of Canadian Tire class A non-voting shares which make up about 96 pct of company equity. Reuter | CANADIAN TIRE MAJOR HOLDERS NOT EXTENDING PACT |
HUTTON LBO EXTENDS EXPIRATION FOR 35 DLR/SHR OFFER FOR PUROLATOR TO APRIL 6 FROM TODAY |
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CONRAC SAYS IT IS MULLING RESTRUCTURING OR BUYOUT AS ALTERNATIVES |
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General Hydrocarbons Inc said claims aggregating over one mln dlrs related to liens and alleging title deficiencies have been made against the escrow fund holding its assets for distribution. It said the record date for the distribution will be delayed until the claims are resolved. The company said it believes many of the claims are overstated or without merit. It said the resolution may not occur before April 30. General Hydrocarbons assets now consist of cash and Montana Power Co <MTP> shares. Reuter | GENERAL HYDROCARBONS DISTRIBUTION DELAYED |
Morrison-Knudsen Corp said Black River Constructors a joint venture with Martin Eby and a subsidiary of Hunt Corp has received a 517-mln-dlr construction contract from the U.S. Army Corp of Engineers. The work includes the construction of more than 70 buildings and associated infrastructure to accommodate the Armys new 10th Mountain Division. In a press release Rep. David OB. Martin N.Y. said the awarding of the contract is subject to Congressional review. Morrison-Knudsen said the contract represents the largest Army construction in this country since World War II. Congress has authorized and appropriated 610 mln dlrs for the project the company said. If everything continues on schedule work on the Ft. Drum N.Y. site is expected to begin later this month and is scheduled for completion by early 1991 the company said. Martin said that an additional 50 mln dlrs in contracts to small and disadvantaged businesses will be announced later. Reuter | MORRISON-KNUDSEN <MRN> GETS ARMY CONTRACT |
President Reagans move to impose stiff tariffs on Japanese goods stems from deep U.S. frustration over Japans trade policy and he has no intention of calling off the sanctions trade analysts said. U.S. officials put down any idea of delaying imposing the 300 mln dlrs in tariffs despite seemingly contradictory comments by some Administration aides. And they add a visit here next week by Japanese trade officials and a visit to Tokyo by a senior State Department official will likely do nothing to change U.S. minds. Do not expect the problem to be resolved or the sanctions not to go into effect said a senior U.S. trade official. Reagan last Friday announced that on April 17 he would raise tariffs on certain Japanese exports to penalize Japan for breaking a 1986 pact governing trade in semiconductors. The United States says the Japanese have not lived up to their pledge to stop dumping semiconductors in third country markets at less than production costs or to open their home market to U.S. semiconductors. Semiconductors - tiny silicon memory chips - are integral components of modern electronic goods ranging from television sets and personal computers to guidance systems on aircraft. Some U.S. officials had hinted that the United States and Japan might come to terms on their semiconductor dispute in time to cancel the planned tariffs but this has now been dismissed by other senior officials. They noted that negotiations over compliance with the pact had been going on for several months with little success. Japanese firms this week announced plans to cut chip output and increase U.S. chip imports but U.S. officials said Japans move was too late to stave off the American tariffs. The tariffs are to be imposed after a period of public comment but Commerce Secretary Malcolm Baldrige and other officials have said neither the comment period or the U.S. and Japanese trade talks will serve to delay the tariffs. Baldrige predicted the dispute would be resolved but said Im sure the sanctions will go in before we work it out. White House spokesman Marlin Fitzwater said that while he hoped something could be done to hold off the sanctions it probably is not likely. And U.S. Trade Represenative Clayton Yeutter predicted that Japan would not be able to comply with the pact in time to hold off the new tariffs on goods including personal computers television sets power tools and electric motors. Trade analysts said that in any case the U.S.-Japanese semiconductor dispute was only one of many and trade frictions that will continue until Japan ended a policy of predatory pricing and opened its home market to foreign goods. Other disputes include Japanese prevention of U.S. firms from taking part in building a new eight billion dlr airport near Osaka and selling a wide variety of goods in Japan including many agriculture products. A new trade row has now arisen over a Japanese decision to limit foreign participation in its telecommunication market. U.S. officials have said the American telecommunications market is open to foreign firms and it was only fair trade to open the Japanese market to 33 per cent foreign participation as Japan had previously agreed. Britain has also protested the Japanese limitations. American and Japanese negotiators are meeting to try to resolve the issue officials said but there was no sign of any early settlement. Reuter | TALKS WILL NOT DELAY TRADE CURBS AGAINST JAPAN |
A and W Brands Inc said it filed a registration statement with the Securities and Exchange Commission for a proposed public offering of 3400000 shares of common. The company anticipates that the price of the offering will range between 13 dlrs and 15 dlrs a share. It said the offering is expected in mid May through a group of underwriters managed by First Boston Corp and Montgomery Securities. It said it will use the proceeds to repay its debt. Reuter | A AND W BRANDS FILES INITIAL PUBLIC OFFERING |
French Prime Minister Jacques Chirac said that on financial issues the United States and France had very close views and he said Treasury Secretary James Baker was determined to support the February 22 Paris agreement on stabilizing foreign exchange parities. I was very reassured by the determination of Mr. Baker to support this agreement he said. He described the dollars sharp fall against the yen at the start of the week as a passing incident and added Everyone is resolved to support the Paris accord. Questioned about his plan to help the worlds poorest countries Chirac said he did not envisage any large-scale debt write-offs. I dont think we can talk of write-offs - even the poorest countries have not asked for that he said. Chirac said he wanted commercial banks to give third world countries better terms in rescheduling their debts and for the International Monetary Fund to soften its conditions. One cannot pity the banks - they bear a lot of responsibility due to the encouragement they gave to these countries to take on debts. Now the banks are complaining but I do not weep for them. Reuter | CHIRAC SAYS FRANCE RESOLVED TO SUPPORT CURRENCY PACT |
Conrac Corp whose board has rejected a 25 dlr a share tender offer from Mark IV Industries Inc <IV> said it is exploring alternatives such as a restructuring leveraged buyout or takeover of the company. In a filing with the Securities and Exchange Commission Conrac said its board of directors authorized its financial and legal advisors to explore a several alternatives to the Mark IV offer which it said it considers inadequate. The alternatives being explored include a restructuring leveraged buyout or a takeover of the company by another company Conrac said. Conrac which said its board discussed the alternatives at special meetings on March 26 and 30 said that its decision on whether to adopt any of the alternatives would hinge on the future actions of Mark IV and its unsolicitied tender offer. Putting into effect any of the alternatives being explored could hurt or defeat the Mark IV offer it said. Board members were also instructed to keep confidential the terms of any transaction that might be entered into until it becomes final the company said. The board also took other defensive steps including granting severance agreements to some officers it said. At a board meeting yesterday Concacs directors deleted a provision allowing the holder of at least one-third of of all classes of its voting stock to call a special shareholders meeting and deleted another provision allowing shareholders to remove directors without cause the company said. The defensive moves were taken because Mark IV had said it planned to elect a majority of its designees as directors at a special holders meeting if it succeeded in acquring a majority of the companys common stock in the offer Conrac said. Conracs president vice president and treasurer were given severance agreements or golden parachutes it said. Under the agreements Conrac President Paul Graf would get a cash payment of twice his annual salary which was 209906 dlrs last year if there were a change of control in the company including acquisition of 30 pct or more of the companys voting stock Conrac said. Treasurer Joseph Smorada and Vice President Joseph ODonnell who made 143325 dlrs last year would get one-and-a-half times his salary if there were a change in control. Smoradas salary was not listed in the SEC filing. The executives would also get cash settlements of options plans and continuation of insurance and other benefits. Reuter | CONRAC <CAX> EXPLORING RESTRUCTURING, BUYOUT |
Chemical Bank the main bank subsidiary of Chemical New York Corp and Marine Midland Banks Inc said they were raising the prime lending rate to 7-3/4 pct from 7-1/2 pct effective immediately. In St Louis Mercantile Bancorp said its Mercantile Bank N.A. was also raising its prime rate to 7-3/4 pct from 7-1/2 pct effective immediately. The changes follow similar cuts yesterday by Citicorp and Chase Manhattan. Reuter | MORE U.S. BANKS JOIN IN PRIME RATE CUT |
Webcor Electronics Inc said its principal creditor its bank has demanded payment of all Webcor obligations to it. Webcor said as previously announced it has failed to make payments to the bank and is also in technical default of loan agreement covenants. It said to date it has been unable to restructure its obligations to the bank and is now evaluating its options. Webcor said the <American Stock Exchange> is evaluating Webcors continued listing eligibility. Reuter | WEBCOR <WER> SAYS BANK DEMANDS PAYMENT |
Shr loss 2.65 dlrs vs loss 2.31 dlrs Net loss 14.3 mln vs loss 12.5 mln Revs 2887000 vs 5321000 Year Shr loss 4.38 dlrs vs loss 2.50 dlrs Net loss 23.7 mln vs loss 13.5 mln Revs 13.2 mln vs 22.4 mln NOTE: 1986 net includes oil and natural gas writedowns of 12.1 mln dlrs in quarter and 19.0 mln dlrs in year. Reuter | CONVEST ENERGY PARTNERS LTD <CEP> 4TH QTR LOSS |
Shr 51 cts vs one dlr Net 25.1 mln vs 46.8 mln Sales 1.21 billion vs 1.08 billion Note: 1986 excludes extraordinary gain of 1.1 mln dlrs or two cts per share from public issue of affiliates shares. Reuter | <DYLEX LTD> YEAR JAN 31 NET |
Callon Petroleum Co said its auditors will qualify their opinion on 1986 financial statements due to questions about Callons ability to continue as a going concern. The company said negotiations to restructure its debt and allow for continued operations are proceeding. Today it reported a loss for 1986 of 4.20 dlrs per share compared with a year earlier loss of 4.71 dlrs. Reuter | CALLON PETROLEUM <CLNP> GETS QUALIFIED AUDIT |
The International Coffee Organization executive board meeting will end tomorrow without any move to reopen the debate on restoring coffee export quotas delegates said. Talks have focused on administrative matters and verification of stocks in producer countries they said. Producers met briefly today to exchange views on the market situation but there seems little chance discussion on quotas will begin much before the ICOs annual council session in September they said. Delegates earlier thought the meeting would end tonight but a further session is scheduled tomorrow at 1030 GMT to complete reports on stock verification. Meantime the executive board will meet May 12 to discuss possible action on the consultancy report on the ICO presented today to the board consumer delegates said. Reuter | ICO TALKS SET TO END WITH NO QUOTA DEBATE |
Oper shr 64 cts vs 97 cts Oper net 845000 vs 1285000 Revs 20.0 mln vs 23 mln NOTE: 1986 and 1985 oper net excludes gain of 315000 dlrs and 585000 dlrs respectively for extraordinary item. Reuter | INTERNATIONAL SEAWAY TRADING CORP <INS> YEAR |
Shr loss 40 cts vs loss 4.72 dlrs Net loss 3321000 vs loss 42.0 mln Revs 4002000 vs 7788000 Avg shrs 9168522 vs 8974355 Year Shr loss 4.20 dlrs vs loss 4.71 dlrs Net loss 37.2 mln vs loss 41.1 mln Revs 18.4 mln vs 34.1 mln Avg shrs 9168522 vs 8991184 Reuter | CALLON PETROLEUM CO <CLNP> 4TH QTR LOSS |
County Savings Bank said its board declared a five pct stock dividend payable April 10 to shareholders of record today. Reuter | COUNTY SAVINGS BANK <CSBA> SETS STOCK DIVIDEND |
E.F. Hutton Groups E.F. Hutton LBO Inc unit said it extended the expiration date for its 35 dlr per share tender offer for Purolator Courier corp to midnight EST April six from midnight April one. E.F. Hutton lbo inc said its wholly owned PC Acquisition Inc subsidiary which is the entity making the offer extended both expiration date and the withdrawal rights period for its pending tender for 6.3 mln shares or 83 pct of Purolator common. Huttons offer was topped today by a 40 dlr per share bid for 83 pct of the stock from Emery Air Frieght Corp <EAF.> Both offers would pay shareholders a package of securities for the balance of their shares valued at the respective tender offer prices. Hutton said as of the end of the day yesterday about 880000 shares of Purolator common stock repesenting 11.5 pct of outstanding shares had been validly tendered and not withdrawn. Manhattan supreme court justice Lewis Grossman today adjourned until Monday a hearing on a stockholder suit seeking to block the Hutton LBO transaction. The judge told attorneys he needed time to hear other cases. Plaintiffs cited their belief that a superior offer would be forthcoming however one company mentioned in an affadavit Interlink Express plc denied that it was interested. Yesterday Frank Hoenemeyer a retired vice chairman of Prudential Insurance Co and currently a Purolator board member said an initial offer from Hutton was rejected by the board of directors February third. Hoenemeyer testified that by the next meeting of the board February 17 Hutton submitted a revised proposal which was accepted. He also testified a committee of directors had hired Goldman Sachs and Co to consider alternatives to the Hutton offer and also to consider a discussion of possible mergers with other companies including Emery and Federal Express Corp <FDX>. Reuter | E.F.HUTTON <EFH> EXTENDS PUROLATOR <PCC> OFFER |
<Bank of Nova Scotia> said it would apply for a common share listing on the Tokyo Stock Exchange. The bank Canadas fourth largest said it expected its listing to occur later this year. It said Nomura Securities Co Ltd of Tokyo would sponsor its application. Reuter | BANK OF NOVA SCOTIA TO APPLY FOR TOKYO LISTING |
U.S. farmers who reorganize their operations to circumvent a cap on federal payments could add 2.3 billion dlrs to the cost of the governments agricultural programs by 1989 the General Accounting Office GAO said. We estimate that should the trend in farm reorganizations continue reorganizations since 1984 could be adding almost 900 mln dlrs annually to program costs by 1989 GAO Senior Associate Director Brian Crowley said. Cumulative costs for the six-year period 1984 to 1989 could approach 2.3 billion dlrs he said. Between 1984 and 1986 reorganizations added almost 9000 new persons to U.S. Agriculture Department payment rolls Crowley told the House Agriculture Subcommittee on Wheat Soybeans and Feedgrains. The GAO said at least part of the recent proliferation of reorganizations was attributable to farmers efforts to avoid payment limits although exactly how many subdivisions were prompted by that concern were impossible to determine. Crowley said the two areas of primary concern were the formation of corporations and the renting of farmland for cash by individuals partnerships or joint ventures with a large number of participants. Subcommittee Chairman Dan Glickman D-Kan. said evidence that a few bad apples were using imaginative techniques to skirt the payment limit jeopardized the political credibility of U.S. farm programs. Without elaborating Glickman said the committee would consider legislation to ensure than no one is tarnishing the good name and the political support and popular support which American agriculture so richly deserves. To improve the effectiveness of payment caps Congress could require that payments made to corporations limited partnerships or trusts be attributed to the individual payment limitation of persons who are shareholders members or beneficiaries of those entities Crowley said. Attribution could be made at some specified level of ownership interest such as five or ten pct Crowley said. Currently such entities qualify for an individual 50000 dlr payment as long as no stockholder owns or controls more than 50 pct of the stock. Crowley also suggested that payments could be restricted to persons actively engaged in farming in some manner other than just supplying financing. The Reagan administration proposed similar changes in legislation it sent to Congress last month. Crowley said the GAO investigation uncovered problems with USDAs administration of the payment limitation that contributed to the creation of new persons through reorganization that are of questionable validity. Specifically USDA county offices have inconsistently applied a regulation requiring a reorganization to involve a substantive change in the farming operation in order for any new persons to qualify for payments. In addition GAO found USDA officials in California were incorrectly interpreting regulations relating to financing of general partnership operations. Crowley also reported that in 401 U.S. counties having about 90 pct of all foreign-owned cropland for all major crops total farm payments to foreign owners were 6.2 mln dlrs in 1984 and 7.7 mln in 1985. However payments in 1985 represented only about 0.4 pct of all payments made in the 401 counties he said. Reuter | U.S. FARM REORGANIZATIONS PROVING COSTLY - GAO |
BankAmerica Corp said it completed the sale of its Consumer Trust Services division to Well Fargo and Co <WFC> a transaction that will result in a second quarter pre-tax gain of more than 75 mln dlrs. The sale will not affect the services the bank will continue providing to institutional customers through its Employee Benefit Trust Services Division BankAmerica also said. In a separate announcement Wells Fargo said the acquisition will increase the amount of personal trust assets it administers to 25 billion dlrs. Last December BankAmerica and Wells Fargo announced a definitive agreement on the sale at a price of about 100 mln dlrs subject to adjustment. Reuter | BANKAMERICA <BAC> TO POST GAIN ON UNIT SALE |
Fresh heavy rains caused further damage to the Argentine 1986/87 coarse grains crop in the week to yesterday particularly in Buenos Aires province trade sources said. They said the sunflower maize soybean and sorghum crops were damaged and yield estimates affected. New production forecasts were made for all these crops. The rains over the weekend and up to yesterday registered more than 200 mm on average in western Buenos Aires and worsened the flooding in various parts of the province. The weather bureau said the rains which in Buenos Aires have surpassed 750 mm in the last 30 days could continue. The northeast of the country was also hit by heavy rains. In Corrientes province the rains also passed an average of 200 mm in some parts notably the Paso de los Libres area bordering on Uruguay. In Santa Fe and Entre Rios provinces they were over 100 mm in places in Misiones and San Luis 90 mm and in Cordoba 80 mm. The rains were less intense in Chaco and Formosa. Harvesting in areas not actually under water could also be further delayed due to dampness in the earth the sources said. The excessive humidity might also produce rotting of the crops further dimishing the yield the sources added. Sunflower harvesting before the weekend rains reached 26 to 30 pct of the area sown in Santa Fe Cordoba La Pampa and Buenos Aires provinces. The production forecast for 1986/87 sunflowerseed has been lowered to between 2.2 and 2.4 mln tonnes against 2.3 to 2.6 mln tonnes the previous week making it 41.5 to 46.3 pct lower than the record 4.1 mln tonnes produced last season. The area sown was two to 2.2 mln hectares down 29.9 to 36.3 pct on the record 3.14 mln hectares in 1985/86. The maize harvest advanced to within 26 to 28 pct of the area sown in Cordoba Santa Fe and northern Buenos Aires. It will begin in La Pampa within about 10 days weather permitting. Maize yield this season is now estimated at 9.6 to 9.9 mln tonnes against last weeks 9.9 to 10.1 mln tonnes down 21.4 to 22.6 pct on the 12.4 to 12.6 mln tonnes at which private producers put 1985/86 production. The new forecast is 22.7 to 25 pct down on the official figure of 12.8 mln tonnes for last seasons production. The grain sorghum harvest reached 17 to 19 pct of growers targets against 14 to 16 pct the previous week. The production forecast was reduced to between three and 3.3 mln tonnes against 3.2 to 3.5 mln tonnes last week 21.4 to 26.8 pct down on last seasons 4.1 to 4.2 mln tonnes. The area sown with sorghum in 1986/87 was 1.23 to 1.30 mln hectares down 10.3 to 15.2 pct on the 1.45 mln in 1985/86. The forecast for soybean yield this season was the least changed in relation to last week. It was put at a record 7.5 to 7.7 mln tonnes against the previous 7.5 to 7.8 mln tonnes. These figures are 4.2 to 5.5 pct higher than last seasons record of 7.2 to 7.3 mln tonnes according to private sources and 5.6 to 8.5 pct up on the official 7.1 mln tonnes. The adjustment to the production forecast is due to the rains and overcast conditions which have greatly reduced the sunlight needed for this crop sources said. Producers fear estimates may yet have to be adjusted down further. The humidity could induce rotting and growers are still finding more empty pods due to excessively dry weather earlier in the season. Soybean harvesting is due to start in mid-April in southern Cordoba and Santa Fe and northern Buenos Aires. Reuter | HEAVY RAINS DAMAGE ARGENTINE COARSE GRAINS CROP |
Rio Grande/Azores and Leixoes 26000 mt hss 14 dlrs basis one to two 4000/1500 Azores and 3500 Leixoes 25/4-5/5. Paranagua/one-two ports Spanish Med 35000 mt hss 11.50 dlrs basis one to one 10 days all purposes 20-30/4. USG/Taiwan 54000 mt hss 10000 shex/4000 shex 20/4-5/5. USG/ARA-Ghent option Seaforth 40000/45000 long tons hss 10 days all purposes 9-15/4 try later. Dieppe/one-two ports Italian Adriatic 9500/11000 mt bulk wheat 3000/2000 6-12/4. St Lawrence/one-three ports Marseilles-Manfredonia range 20000/35000 mt bulk wheat 5000/222500 10-15/4. Chimbote/Kaohsiung 9500 mt bulk/bagged fishmeal 250 ph/200 ph 20/4-5/5. Immingham or Foynes/Red Sea 25000 mt bulk barley 4000/3000 10-15/4 alternatively try t/c. USG/Maracaibo 10000 mt wheat (three grades) three days/1000 1-15/4. Reuter | LONDON GRAIN FREIGHT ENQUIRIES |
Rotterdam/Karachi 20000/21000 mt shredded scrap 7000/1100 15-30/4. Bin Qasim/Shanghai 25000 mt pig iron 1500 fhex/1200 shex 1-10/4. Chungjin/Manila 4200 mt steel coils 800/liner discharge 23-30/4. Bilbao/one port Vietnam 5000 mt steels fio 1000/500 end April Singapore/Mizushima 6000/10000 mt steel scrap fiot 1200/300 2-12/4. Reuter | LONDON METAL FREIGHTS |
Shr loss three cts vs profit 16 cts Net loss 119000 vs profit 637000 Revs 17.5 mln vs 15.8 mln Reuter | CIRO INC <CIRI> YEAR |
South Africa/Salvador Brazil 15000 long tons manganese ore 2500/1500 end April. Callao/Crotone 5000 mt minerals 4000/2000 spot. Geraldton/Tampico 13500 mt bulk mineral sands fio 10000/2000 1-10/5. Itea/Dunkirk 20000 mt bauxite seven days all purposes 10-13/4. Tampico/North Spain 15000 mt ore two days shinc/3000 shex 5-25/4. One port German North Sea/USG 10500 mt bulk ore 2500/4000 7-13/4. Reuter | LONDON ORE ENQUIRIES/FIXTURES |
NP Energy Corp said its bankruptcy court will appoint a trustee to oversee the companys two-year-old bankruptcy proceedings. A spokesman for the company said the trustee who has yet to be named will also look into the conflict of interest problems that have arisen during the proceedings. He said both NP Energy and its unsecured creditors had request that a trustee be appointed. In addition the spokesman said the company had put into production an oil well in the Altamont Bluebell Field Utah. The well is producing 300 barrels a day he said. Reuter | COURT TO APPOINT TRUSTEE FOR NP ENERGY <NPEEQ> |
Oper shr loss two cts vs loss 13 cts Oper net loss 236000 vs loss 1131000 Revs 26.6 mln vs 26.3 mln Year Oper shr profit two cts vs loss 15 cts Oper net profit 286000 vs loss 1292000 Revs 105.3 mln vs 95.3 mln NOTE: Net excludes discontinued operations gain 20000 dlrs vs loss 1291000 dlrs in quarter and gain 60000 dlrs vs loss 1590000 dlrs in year. Net excludes extraordinary loss 38000 dlrs vs gain 1941000 dlrs in quarter and gains 162000 dlrs vs 1941000 dlrs in year. 1986 net both periods includes writedowns of 290000 dlrs of oil-related seismic data. Reuter | HELM RESOURCES INC <H> 4TH QTR LOSS |
Aydin Corp said it has received a five-year 54 mln dlr contract from the U.S. Air Force for production of nine An/MST-T1A Multiple Threat Emitter System ground-based emitter simulators. It said if all options are exercised the contract will be worth a total of 78 mln dlrs. Reuter | AYDIN <AYD> GETS AIR FORCE CONTRACT |
Sarlen and Associates Inc said it completed its private placement of 12.5 mln dlrs of five-year eight pct senior subordinated notes with warrants to purchase common and 2.5 mln dlrs of 12 pct series A preferred with warrants to purchase common. It said a portion of the proceeds was used to finance its acquisition of Gleason Security Services Inc and Gleason Plant Security Inc. Reuter | SARLEN <SALNU> COMPLETES PRIVATE PLACEMENT |
Shr loss eight cts vs profit four cts Net loss 365430 vs profit 165508 Revs 5577244 vs 4643803 NOTE: 1986 net includes nonrecurring expenses of 408518 dlrs. Reuter | <SASCO PRODUCTS INC> YEAR LOSS |
Nuclear Metals Inc said it has received a 6300000 dlr U.S. Army contract for 105 millimeter depleted uranium penetrators used as ammunition for the M-1 tank. Reuter | NUCLEAR METALS <NUCM> GETS ARMY CONTRACT |
Ausimont Compo NV said it has sold the assets of its Equipment and Machinery Division for about six mln dlrs to an investment group including the units management resulting in a modest pretax gain that will be included in first quarter results. The unit had sales of five mln dlrs in 1986. Reuter | AUSIMONT COMPO <AUS> SELLS UNIT |
Atlantic Research corp said it has completed the acquisition of professional services firm ORI Group for 1414313 common shares on a pooling of interests basis. Reuter | ATLANTIC RESEARCH <ATRC> COMPLETES ACQUISITION |
<Peabody Holding Co Inc> said it has completed its acquisition of substantially all Eastern Gas and Fuel Associates <EFU> coal properties for 15.01 pct of Peabody Holdings stock. Peabody said the purchase includes seven underground mines and seven coal preparation plants currently operated by Eastern as well as coal properties being mined by several contractors in West Virginia. The acquisition also involves about 800 mln tons of coal reserves mostly in West Va. and includes Easterns coal reserves and inactive Powderhorn operations near Palisade Colo Peabody said. Peabody added that it expects to announce within the next week how it will staff and operate the properties and offices it has acquired from Eastern. Reuter | PEABODY HOLDING COMPLETES ACQUISITION |
Delfzyl/India 14700 mt bagged sugar about 30 dlrs 750/1000 ppt a/c Benham. Antwerp/Lagos 12000 mt bagged sugar 750/750 try liner discharge 5-20/4 a/c E D and F Man. T/C single or tweendecker 16000/19000 tonnes dw del Queensland mid-April/early-May for trip with bulk sugar redel China duration about 30 to 40 days a/c Kawasaki. One port A-H range/Dubai 6800 mt bagged sugar 750/750 10-15/4 a/c unnamed charterer. enquiries - Rouen-Hamburg/India 14000 mt bagged sugar 750/1000 15-25/4 a/c Woodhouse Drake and Carey. Flushing/Hodeidah and Mokha 16800 mt bagged sugar 750/750 9-15/4 Genoc. Santos/Hodeidah 10000 mt bagged sugar about 30 dlrs 750/750 20-30/4 a/c Dutch charterer. Cargill is reported to have withdrawn its enquiries for cargoes from South Korea to India from Constanza to India and from Buenaventura to the U.S. Reuter | LONDON SUGAR FREIGHTS |
U.S. Labor Secretary William Brock said he expects to see healthy employment growth through the beginning of next year. I expect well have continued strong job creation through 1987 and into early 1988 Brock told reporters prior to a speech here. Brock cited yesterdays strong rise in the February index of leading economic indicators as a signal for further strong employment gains. January non-farm payroll jobs grew by 319000 and February was up 337000 jobs. March data will be released Friday. Reuter | U.S. LABOR SECRETARY SEES STRONG JOB GROWTH |
Shr loss six cts vs loss 76 cts Net loss 343748 vs loss 4.0 mln Revs 5.1 mln vs 4.8 mln Year Shr profit 12 cts vs loss 1.45 dlr Net profit 611784 vs loss 7.7 mln Revs 21.6 mln vs 19.7 mln Reuter | PENTA SYSTEMS INTERNATIONAL INC <PSLI> 4TH QTR |
FED SAYS IT BUYS 550 MLN DLRS OF BILLS FOR CUSTOMER, MAY THROUGH SEPT 24 MATURITY |
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French Prime Minister Jacques Chirac told U.S. congressmen France would announce a decision in two to three weeks on which group is to control its second largest communications firm Compagnie Generale de Construction Telphoniques French sources said. They said Chirac promised that Frances decision would be based on financial economic and technical criteria and not on political grounds. U.S. and German companies are the leading contenders to take control of CGCT. The Reagan administration has warned France and Germany that it may retaliate if control of the company is awarded on political grounds. Jacques Delors President of the European Communitys Executive Commission called last month for control to go to West Germanys Siemens AG in order to strengthen European industry. The other leading contender is a consortium of American Telephone and Telegraph Co <T> with Philips NV of the Netherlands. Chirac said France would make public its reasons for awarding control the sources said. He was asked about the companys fate on two occasions in meetings with leaders of the Senate and House of Representatives. Reuter | CHIRAC SEES QUICK DECISION ON CGCT |
The Panama Canal Commission a U.S. government agency said in its daily operations report that there was a backlog of 41 ships waiting to enter the canal early today. Over the next two days it expects -- 4/01 4/02 Due: 34 34 Scheduled to Transit: 41 39 End-Day Backlog: 34 29 Average waiting time tomorrow -- Super Tankers Regular Vessels North End: 25 hrs 11 hrs South End: 24 hrs 31 hrs Reuter | AGENCY REPORTS 41 SHIPS WAITING AT PANAMA CANAL |
The Australian Stock Exchange Ltd (ASX) today took up the responsibility for administering a new coordinated market made up of Australias six former exchanges now operating as subsidiary trading floors. At the same time rules prohibiting corporations and non-stock-exchange members from holding more than 50 pct of Australias 101 brokerage firms were abolished leaving brokers exposed to greater deregulation. Industry sources said the moves will smooth the changeover to screen-based trading and give the equities market one voice. Westpac Banking Corp <WSTP.S> was one of the first to take advantage of the changes by announcing today it would double its stake in the Sydney firm <Ord Minnett Ltd> to 100 pct. Brokers have been introduced to creeping deregulation over the past three years after legislation passed in 1984 to end restrictive trade practices forced the traditional partnerships to open themselves at first to partial ownership by outside institutions and eventually to full ownership. The phase-in period has ended and several major banks and offshore financial institutions are investigating taking larger stakes in Australian broking houses industry sources said. Though deregulation was all but forced on brokers most now acknowledge that the influx of capital and contacts from non-member shareholders has benefited the industry they said. Deregulation has brought an infusion of additional capital and a broader base of products ASX chairman Ian Roach told Reuters. Roach said fears that major bank shareholders would impose a restrictive and conservative bank culture on the dynamic sharebroking industry were unfounded. So far the banks have been mindful of the importance of preserving the entrepreneurial aspect of sharebroking he said. But some brokers said others are sceptical and expect that the expiration of golden handcuff pacts which tied partners to their firms for a period after incorporation could cause a massive talent drain. Several leading brokers have already announced plans to leave their firms and establish new private client businesses while others plan public floats. While bank shareholders have enjoyed dabbling in broking during Australias record two-and-a-half year bull run they could find themselves without the expertise they need during more difficult times some brokers said. Rene Rivkin head of Sydney brokerage house <Rivkin James Capel Ltd> said many brokers will resist anything that restricts their individuality and entrepreneurial spirit and this could leave new entrants into the business short-staffed. If I were a bank Im not sure I would have gone into broking.... Whats going to happen when a lot of these golden handcuffs come to an end? Rivkin said. Only then will the banks know what theyve got he said. Rivkins firm is 50 pct owned by Hongkong and Shanghai Banking Corp <HKBH.HK> unit <Wardley Australia Ltd> and plans a public float of between 25 and 30 pct. My relationship with the Hong Kong bank is wonderful. They leave me alone and give me all the support I need.... Maybe if we werent doing so well there wouldnt be that support but that hasnt happened he said. Other firms might not be so lucky he said and they could find it difficult to preserve their independence when the bull market ends. In the last two years the value of the Australian sharemarket has leapt 118 pct with turnover value up 152 pct to 31.24 billion dlrs in the year to June 30 1986. That growth put existing trading systems and clearing houses under pressure and unification of the six sovereign exchanges should accelerate the development of screen-based trading and a single clearing house industry sources said. From July this year 30 leading stocks will be traded in a pilot of the ASXs screen trading system which depending on its reception by brokers is expected to replace trading floors over the next four years industry sources said. REUTER | AUSTRALIA STOCK EXCHANGES ENTER NEW ERA |
Pacific Gas and Electric Cos plan to change its accounting methods for nuclear plant revenues together with the prospect of higher higher domestic interest rates helped push the companys stock price down 2-1/8 to 22 utility analysts and company executives said. Pacific Gas said yesterday that a change in the method for accounting for its Diablo Canyon Nuclear power plant revenues will result in a 470 mln dlr reduction in 1987 earnings. The company also said it intends to continue paying its common stock dividend at the current annual rate of 1.92 dlrs per share. But the move also means that the company is not likely to increase its dividend for perhaps as long as three years said Mark Luftig an analyst at Salomon Brothers Inc. Anybody looking for a dividend increase has been dissapointed (by the announcement) Luftig said. Pacific Gas has raised its common stock dividend on a regular basis for the past 10 years a company spokeswoman said. In addition she also pointed out that prospects for higher interest rates may also be affecting Pacific Gas trading activity. Citicorp <CCI> and Chase Manhattan Corp <CMB> yesterday increased their prime lending rates to 7-3/4 pct from 7-1/2 pct. It was the first rate increase by the big banks in nearly three years. Utility earnings are sensitive to interest rate increases because of the high levels of borrowings needed to finance ongoing construction projects. Despite the market reaction First Boston Corp analyst Arlene Barnes applauded the Pacific Gas decision. This is a very prudent move on managements part said Barnes. Rather than using accounting tools to reflect income it is not taking in the company will now account for only the 40 pct of the cost of owning and operating the plant that regulators are allowing in the form of interim rate relief Barnes said. Pacific Gas had been carrying the other 60 pct as a deferred cash receivable and accounted for the non-cash item as income. Theyll take the hit this year but at least well be looking at an honest earnings picture Barnes also said. Reuter | WALL STREET STOCKS/PACIFIC GAS <PCG> |
Shr loss five cts vs profit eight cts Net loss 152000 vs profit 214000 Revs 6.2 mln vs 2.4 mln Year Shr profit 22 cts vs profit 33 cts Net profit 809000 vs 853000 Revs 22.4 mln vs 7.9 mln Reuter | CONTROL RESOURCE INDUSTRIES INC <CRIX> 4TH QTR |
The Federal Reserve bought about 550 mln dlrs of U.S. Treasury bills for a customer a spokeswoman said. She said the Fed bought bills maturing from May through September 24 for regular delivery tomorrow. Federal funds were trading at 6-3/16 pct when the Fed announced the operation. Reuter | FED BUYS 550 MLN DLRS OF BILLS FOR CUSTOMER |
Qtly div 32 cts vs 32 cts prior Pay May 15 Record May One Reuter | AMERICAN WATER WORKS CO INC <AWK> SETS PAYOUT |
Qtrly div 11 cts vs 11 cts Pay April 21 Record April 10 Reuter | HUNT MANUFACTURING CO <HUN> SETS PAYOUT |
Itel Corp said it has completed the previously-announced acquisition of the container fleet and related assets of Castle and Cooke Incs Flexi-Van Leasing Inc subsidiary for about 130 mln dlrs in cash and marketable securities 30 mln dlrs in notes three mln common shares and the assumption of liabilities. The company said it has obtained 150 mln dlrs in financing from a bank group for the deal and the common shares are subject to a 10-year restriction on their sale and voting. Reuter | ITEL <ITEL> BUYS CASTLE/COOKE <CKE> UNIT ASSETS |
4th qtr Shr 14 cts vs 14 cts Net 210000 vs 211000 Revs 230000 vs 229000 Year Shr 56 cts vs 56 cts Net 838000 vs 841000 Revs 919000 vs 919000 Reuter | PITTSBURGH AND WEST VIRGINIA RAILROAD <PW> NET |
President Reagans move to impose stiff tariffs on Japanese goods stems from deep U.S. frustration over Japans trade policy and he has no intention of calling off the sanctions trade analysts said. U.S. officials put down any idea of delaying imposing the 300 mln dlrs in tariffs despite seemingly contradictory comments by some Administration aides. A visit here next week by Japanese trade officials and a visit to Tokyo by a senior State Department official will likely do nothing to change the U.S. decision they added. Do not expect the problem to be resolved or the sanctions not to go into effect said a senior U.S. trade official. Reagan last Friday announced that on April 17 he would raise tariffs on certain Japanese exports to penalize Japan for breaking a 1986 pact governing trade in semiconductors. Some U.S. officials had hinted the United States and Japan might settle their dispute in time to hold off the tariffs but this has now been dismissed by other senior officials. They noted that negotiations over compliance with the pact had been going on for several months with little success. Japanese firms this week announced plans to cut chip output and increase U.S. chip imports but U.S. officials said Japans move was too late to stave off the American tariffs. The tariffs are to be imposed after a period of public comment but Commerce Secretary Malcolm Baldrige said any settlement would probably come too late to delay the tariffs. U.S. Trade Represenative Clayton Yeutter predicted Japan would not be able to comply with the pact in time to hold off the new tariffs on goods including personal computers television sets power tools and electric motors. Trade analysts said that in any case the U.S.-Japanese semiconductor dispute was only one of many and trade frictions will continue until Japan ended a policy of predatory pricing and opened its home market to foreign goods. Other disputes include Japanese prevention of U.S. firms from taking part in building a new eight billion dlr airport near Osaka and selling a wide variety of goods in Japan including an array of agricultural products. A new row has now arisen over Japans decision to severely limit foreign participation in its telecommunication market. U.S. officials have said the American telecommunications market is open to foreign firms and it was only fair trade to open the Japanese market to 33 pct foreign participation as Japan had previously agreed. Britain has also protested the Japanese limitations. Reuter | U.S.-JAPAN TALKS SEEN NO DELAY TO TARIFFS |
Topps Co Inc said it has filed for an initial public offering of 4500000 common shares including 3500000 shares to be sold by shareholders. It said lead underwriters are <Goldman Sachs and Co> and Alex. Brown and Sons Inc <ABSB> and the underwriting group has been granted an option to buy up to 675000 more shares to cover overallotments. The initial offering price is expected to be 15 to 18 dlrs a share and proceeds will be used for debt reduction it said. Topps had been public once before but went private in a leveraged buyout in 1984. Reuter | <TOPPS CO INC> FILES FOR INITIAL OFFERING |
Digital Communications Associates Inc said the U.S. District Court issued a ruling prohibiting <Softklone Distributing Corp> from selling a software product that Digital claimed violates one of its copyrights. The company said no damages were set in the courts ruling. The court has validated our contention that the user interface and the appearnace of a product is a vital element of the product and is protectable by U.S. copyright law the company said. Digital said the ruling involved a copyright infringement suit filed against Softklone by Microstuf Inc which Digital acquired in October 1986. The suit charged that Softklones Mirror software product violated the copyright of Microstufs CrossTalk program Digital said. Reuter | DIGITAL COMM <DCAI> WINS FAVORABLE RULING |
Dynalectron Corp said it purchased certain assets of Standard Aero Inc including leasehold rights to its aircraft modification and maintenance facility in Phoenix Ariz. Terms were not released. The facility consists of 285000 square feet of hangar and shop space. Dynalectron will operate the plan as Dynair Tech Inc and is offering continued employment to about 460 former standard Aero employees. Reuter | DYNALECTRON <DYN> BUYS AVIATION FACILITY |
U.S. farmers who reorganize their operations to circumvent a cap on federal payments could add 2.3 billion dlrs to the cost of the governments agricultural programs by 1989 the General Accounting Office GAO said. We estimate that should the trend in farm reorganizations continue reorganizations since 1984 could be adding almost 900 mln dlrs annually to program costs by 1989 GAO Senior Associate Director Brian Crowley said. Cumulative costs for the six-year period 1984 to 1989 could approach 2.3 billion dlrs he said. Between 1984 and 1986 reorganizations added almost 9000 new persons to U.S. Agriculture Department payment rolls Crowley told the House Agriculture Subcommittee on Wheat Soybeans and Feedgrains. Reuter | U.S. FARM REORGANIZATIONS PROVING COSTLY - GAO |
Chevron Corps domestic oil and gas unit Chevron USA said it will honor American Express cards at all of the companys Chevron outlets but only some of its Gulf branded outlets. Chevron USA with more than 15000 Chevron and Gulf outlets nationwide predicted all of its independent dealers will elect to honor the cards. Because of recent divestitures Chevron USA said the agreement does not cover Gulf brand outlets in Alabama Florida Georgia Kentucky Mississippi North Carolina South Carolina and Tennessee as well as Delaware New Jersey New York Pennsylvania and New England. Reuter | CHEVRON <CHV> UNIT ACCEPTS AMERICAN EXPRESS |
U.S. Attorney for Manhattan Rudolph Giuliani who has been leading a major probe into government corruption and the Mafia said he was offered a top job at the Securities and Exchange Commission. But added he had no plans to take that job. Newspaper reports have said Giuliani was offered the chairmanship of the SEC but he declined to say what position he was offered at the federal agency. Speaking to reporters after a press conference called to announce the corruption indictment of a former city official Giuliani said he had talks at the White House with chief of staff Howard Baker last month about the SEC. Right now I am still here. I have no intention of leaving....This is not a good time for me to leave. I have a few more months of work to do and I dont think they should hold a job open for me Giuliani said in a reference to the ongoing probes his office is conducting into New York city corruption and the Mafia. He added that he also had feelers from two people as to whether he would be interested in the FBI directors post and said he informed them that he was not interested. Reuter | U.S. ATTORNEY GIULIANI SAYS HE OFFERED SEC POST |
Emery Air Freight Corp topped a leveraged buyout offer for Purolator Courier Corp by about 40 mln dlrs but Wall Street is reacting as though another offer may surface. Purolators stock climbed 5-3/8 today to 40-1/8 1/4 over Emerys 40 dlr per share offer. Emery topped a 35 dlr per share or 268 mln dlr offer from E.F. Hutton LBO Inc. Some analysts said the latest 306 mln dlr offer for Purolator exceeded their expectations. Several analysts previously had said they saw takeover values for the package delivery company in the 35 dlr per share range. At least one however estimated the company could be taken over in a range of 38 to 42 dlrs per share. Analysts today would not venture to say whether another offer could be made but some arbitragers still held to the belief that the bidding could go higher. They have no choice to seek out the best possible offer. Emery has shown the courage to go forth said one arbitrager who speculated other courier companies may also emerge as bidders. It makes sense said James Parker of Robinson Humphrey. But It wont make out as well as they think. They wont get a 100 pct of the synergies. Analysts said the acquisition could cost Emery earnings in the short term but long term after eliminating redundancies and selling other Purolator assets it should boost Emerys profitability. Parker said a combined Purolator and Emery would rival United Parcel Service as the second largest U.S. package delivery company after Federal Express Corp <FDX> which has 47 pct of the market. Parker speculated that the combined Emery-Purolator would have about 24 pct of the six to seven billion dlr delivery business. This will make Emery a bigger factor in the light weight (delivery) business but it will not make them a power house said Douglas Arthur of Kidder Peabody and Co. Purolator today declined comment on the Emery offer and its chairman Nicholas Brady did not return a phone call. E.F.Hutton LBO also declined comment on the Emery offer but said it extended the expiration and withdrawal period on its offer to April six at midnight from today at midnight EST. One analyst speculated the extension makes it more likely Hutton will attempt another offer. However he was skeptical a company outside the package delivery industry would want to outbid 40 dlrs per share because it would not have the same synergies as a courier company. Since Purolator agreed in late February to a buyout by some of its management and the E.F. Hutton Group <EFH> subsidiary speculation has arisen that more bidding was to come. The buyout was surrounded by controversy since a Purolator board member Doresy Gardner resigned in March. Gardner said he believed a better offer could be made by another entity. A spokesman for Gardner today said the former director had no contact with Emery nor did he have any other buyers lined up for Purolator. Purolators deal with Hutton was also called into question by a shareholder suit filed earlier this week which attempted to stop the tender offer to allow another bidder to come forth. Hearings in a New York state court were delayed until Monday. Arbitragers had said they believed the Hutton offer could be bettered because the Wall Street firm was not planning to keep its cash tied up in Purolator. Hutton is providing a 279 mln dlr bridge loan that would later be replaced with other debt. Hutton would maintain a majority interest in Purolator. Hutton sources have said the firm was in fact facing risk n its investment since it did not know when it could reclaim its 279 mln dlr loan. Emery last year lost 5.4 mln dlrs on revenues of 887.5 mln dlrs. Purolator lost 57.6 mln dlrs on 841.4 mln dlrs in revenues. Reuter | TALKING POINT/PUROLATOR COURIER <PCC> |
Aid donors have promised Senegal 1.8 billion dlrs in soft loans over the next three years to be split between project investment and balance of payment requirements the World Bank said in a statement. The aid was to support the second phase running to mid-1990 of Senegals courageous and far-reaching medium and long-term adjustment programme. Senegals Plan and Cooperation Minister Cheikh Hamidou Kane said the country achieved positive growth of 4.2 pct over the last two years against negative growth of four pct in 1984 liquidated its debt arrears and laid the basis of a sound recovery strategy. Aims over the coming years include giving the private sector a more dynamic role in the economy and rationalising public sector enterprises. He said Senegalese businessmen would make three regional trips to Saudi Arabia the United States and Paris to discuss the Senegals new environment with western investors. Finance Minister Mamoudou Toure said Senegals global foreign debt excluding short-term commercial debt came to 800 billion francs cfa (2.67 billion dlrs). Citing figures for the budgetary year ending mid-1987 he deplored the fact debt servicing absorbed 50 pct of Senegals budgetary resources and 27 pct of export revenues. Reuter | SENEGAL PROMISED 1.8 BILLION DLRS AID |
<Canadian Imperial Bank of Commerce> said it was lowering the interest rate on its Visa credit card to 15.9 pct from 18.6 pct effective with the May billing statement. The bank said it was also halving its yearly Visa card user fee to six dlrs but would retain its 15 ct fee for each transaction. A bank spokesman said the previously reported call by the Canadian Parliaments finance committee on March 20 for a substantial cut in credit card rates was a factor in the move but he would not elaborate. Canadas minister of state for finance Thomas Hockin had threatened legislation to reduce the rates which apply to unpaid balances if the financial institutions did not voluntarily act. The Canadian Imperial Bank spokesman said the bank card market is a very competitive one and we have to move to stay competitive. Canadian Imperials new rates match those of <Toronto Dominion Bank> which lowered its rates before the finance committee report. Canadian Imperial Bank added that cardholders will be allowed to choose between the 15 ct transaction fee or the six dlr yearly card fee. It will also eliminate the 50 ct minimum monthly transaction fee it said. Minister of State for Finance Tom Hockin said in the House of Commons today he was delighted with the banks cut in its credit card rate. I would hope retail stores and other financial institutions will look to their rates as well Hockin said during the daily question period. Reuter | CANADIAN IMPERIAL BANK LOWERING VISA RATES |
First Boston Corp acting as sole manager said it placed 29.4 mln dlrs of taxable power revenue bonds due 2005 of Platte River Power Authority of Colorado. First Boston won the bonds in competitive bidding. It bid them at an 8-3/8 pct coupon. As the bonds will not be publicly offered First Boston declined to give their price and yield. The bonds have an average life of 11.5 years and are rated A-1 by Moodys and A by S/P. Underwriters said 22 firms bid for them far more than the number of managers who typically bid for corporate debt as Wall Street houses are trying to boost their share of the young taxable municipal debt market. Reuter | PLATTE RIVER AUTHORITY SELLS TAXABLE MUNI BONDS |
This weeks Quebec government auction of 85 mln dlrs worth of 91-day treasury bills yielded an average 7.03 pct up from 6.85 pct last week a finance department spokesman said. The average price was 98.277. This months government auction of 50 mln dlrs worth of six-month treasury bills yielded an average 7.32 pct down from 7.56 pct last month the spokesman said. The average price was 97.480. Reuter | QUEBEC 91-DAY T-BILL YIELD RISES |
Telecom Plus International Inc said it has received all regulatory approvals needed to change its name to TPI Enterprises Inc. Reuter | TELECOM PLUS <TELE> TO CHANGE NAME |
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