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Central bank governor Jose Fernandez said the 10.3 billion dlr debt restructuring package he and Finance Secretary Jaime Ongpin negotiated with the Philippines commercial creditors was better than Mexicos. I think we got a better deal. It was really an enormous drop a reduction in rates and that to me is the critical element he told Reuters. He was reacting to comments by local economists who said Manilas debt accord was no better than Mexicos which was a 20-year repayment including a seven-year grace last year at 13/16 points over London interbank offered rates (Libor). The Philippines clinched a repayment of 17 years including a grace period of 7-1/2 years on 10.3 billion dlrs of its total debt of 27.8 billion. Reuter | PHILIPPINES SAYS DEBT PACT BETTER THAN MEXICO'S |
The U.S.-owned <Surinam Aluminum Company> (SURALCO) offered workers a lump sum and up to five months wages to quit the firm because jungle-based rebels have disrupted bauxite mining and alumina smelting ANP said. The Dutch news agency said SURALCO a subsidiary of the Aluminum Company of America(ALCOA) wanted to reduce its work force because it had been hard hit by guerrilla attacks that cut power lines to the area in January. All bauxite mining at Moengo ceased four months ago and SURALCOs Paranam alumina smelter is using imported bauxite. Reuter | SURALCO OFFERS CASH FOR WORKERS TO LEAVE |
At a time when Britain is threatening to revoke the license of Japanese banks in retaliation for restrictive trade practices Hong Kong is rolling out the welcome mat to Japan. The British colony last week issued a banking licence to the Bank of Fukuoka Ltd making it the 24th Japanese bank here. Japan has the largest banking contingent in Hong Kong followed by the U.S. With 22 banks. Eleven Japanese banks have representative offices here and Japanese institutions operate 34 deposit-taking companies (DTCs). Assistant banking commissioner K.K Wong told Reuters: There are no special favours towards the Japanese...But because of Japans strong economy and currency they easily meet our requirement on assets (14 billion U.S. Dlrs). The Japanese control the largest share of assets of the financial institutions here but incorporated elsewhere with 980.5 billion H.K. Dlrs at end-1986 or 57.5 pct of the total. Hong Kong authorities welcome Japanese banks said Haruo Kimura assistant general manager of the Bank of Tokyo. But the U.S. And Britain are unhappy with the slow liberalisation of the Tokyo financial market. Japanese bankers said Hong Kong offers good business opportunities especially in China trade to Japanese banks who are following their clients international expansion. As their clients become more international they have to keep up and follow them said Yutaka Toda Dai-Ichi Kangyo Banks general manager here. We can have access to local traders and regional corporations said Bank of Tokyos Kimura. We can also pick up business with China. Bankers said more Japanese banks are on the way. An influx of Japanese banks began in the late 1970s when the government lifted a moratorium on new licences. But newcomers are allowed one branch each and only the Bank of Tokyo Sanwa Bank and Sumitomo Bank have more than one branch. Because of this limitation Japanese banks have mostly concentrated on wholesale business. It is very difficult to compete with those giants such as the Hongkong Bank and the Bank of China said Kimura of the Bank of Tokyo. Bank of Tokyo has the largest Japanese bank network here with seven branches while Hongkong and Shanghai Banking Corp and the Bank of China groups each have hundreds of branches. To broaden their client and deposit base some Japanese banks have taken equity in local banks. The latest such move was Dai-Ichi Kangyos increase of its stake in Chekiang First Bank last year to 95 pct from 33 pct. Tokai Bank Fuji Bank and Mitsubishi Bank also have interests in small local banks. But Mitsubishi not content with its single-branch licence and a 25 pct stake in the small Liu Chong Hing Bank bought Mercantile Bank Ltds multi-branch licence early this year. We will open one more branch in (Hong Kongs district of) Kowloon soon to better serve our clients on the other side of the harbour said Mitsubishi Bank general manager Takeshi Tange. Their weakness in the retail market forces Japanese banks to rely on the interbank market for funding. Government data show that despite their large share of total assets Japanese banks had only 54.4 billion dlrs in deposits at end-1986 or 17.1 pct of deposits of banks in Hong Kong incorporated elsewhere. Most Japanese banks international lendings in the region are booked in Hong Kong said a Japanese banker who declined to be named. He said it is mainly for tax reasons adding that assets such as loans booked in Hong Kong are not subject to Japanese tax. Japanese banks are barred by the Tokyo government from issuing Eurobonds but their Hong Kong subsidiaries can tap the Euromarket and lend the funds to the parent. Bankers said this role could be undermined by a five pct capital adequacy ratio that goes into effect next year requiring many DTCs to increase their capital. Many Japanese banks are seeking special treatment for their largely offshore operations or a different risk calculation for their assets. I dont think this will stop them from coming here said a banker. But it may mean they have to conduct some of their offshore funding operations elsewhere. REUTER | JAPANESE BANKS EXPAND HONG KONG PRESENCE |
U.S. T-bond futures gained half a point in the few minutes after news that the U.S. Non-farm payroll rose more slowly than earlier believed over the last two months dealers said. June T-bonds were trading at 97-2/32 or 31/32 down on the day immediately before the figures. When the news came out they made session highs of 97-17/32 before slipping to 97- 12/32. The payroll rose by 164000 in March against analysts expectations of a 225000 gain while the Labour Department revised the February increase down to 236000 from 337000. REUTER | LIFFE T-BONDS GAIN ON JOBS DATA |
GENERAL PARTNERS WILLING TO PAY 110 DLRS/SHARE FOR GENCORP |
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The Bank of England said it has provided around 205 mln stg late assistance to the market bringing the total help today to 722 mln which compares with the Banks revised deficit forecast of 800 mln stg. REUTER | U.K. MONEY MARKET RECEIVES 205 MLN STG LATE HELP |
Belgian total money stock rose to 1140.4 billion francs at the end of 1986 from 1115.4 billion at the end of the third quarter of last year and 1055.0 billion at the end of 1985 Belgian National Bank figures showed. Paper money rose to 404.1 billion francs from 394.1 billion and 383.5 billion respectively other forms of privately held money to 679.5 billion from 652.7 billion and 616.0 billion. Money held by the public authorities fell to 56.8 billion francs from 68.6 billion at the end of the previous quarter but was above the 55.5 billion at the end of 1985 the bank said. The government does not set money supply targets arguing they are inappropriate to a small economy with major trading and monetary links with much larger trading countries. REUTER | BELGIAN MONEY SUPPLY RISES IN FOURTH QUARTER 1986 |
West German Finance Minister Gerhard Stoltenberg said the currency agreement reached in Paris in February had been successful and would be continued. Stoltenberg told journalists before he attends next weeks International Monetary Fund meeting in Washington that: The ... Strategy to stabilise currencies around current levels has proven its worth and will also determine future developments. Stoltenberg declined to comment specifically on what he would consider to be an undervalued dollar but said a dollar around 1.80 marks created problems for West Germanys exports. He said studies by international organisations had made it clear that especially in the U.S. And in Japan major efforts remained necessary to support adjustments in foreign trade balances via necessary corrections to economic policy. No-one would benefit if after years of over-valuation the U.S. Dollar fell into the other extreme that is strong under-valuation he said. Stoltenberg said West Germany had a keen interest in a swift agreement between the U.S. And Japan concerning the current trade dispute over semi-conductors. Asked whether he believed the markets would test the Paris currency accord Stoltenberg did not comment specifically but noted that much of what had been discussed in Paris had not been published. The Paris declaration did not state the levels at which central banks of the major industrialised countries would intervene. Stoltenberg said that everything had been carefully considered. He said he had nothing further to add. Reuter | STOLTENBERG SAYS PARIS ACCORD POLICY TO CONTINUE |
THE FOLLOWING RAINFALL WAS RECORDDD IN THE AREAS OVER THE PAST 24 HOURS PARANA STATE UMUARAMA 10.6 MILLIMETRES PARANAVAI 12.2 MM LONDRINA 6.0 MM MARINGA 8.0 MM. SAO PAULO STATE: PRESIDENZE PRUDENTE 1.0 MM VOTUPORANGA 26.0 MM FRANCA NIL CATANDUVA 0.1 MM SAO CARLOS NIL SAO SIMAO NIL. REUTER | BRAZILIAN COFFEE RAINFALL |
West German Finance Minister Gerhard Stoltenberg said international coordination of economic and financial policies as well as of economic indicators will be discussed at next weeks meeting of the International Monetary Fund in Washington. Stoltenberg told a news conference it had been decided at last years Tokyo summit of seven leading industrialised nations that the possibility of such coordination would be reviewed. Progress made by senior government officials in this sphere would be discussed at the IMF meeting and results would later be presented at this years economic summit in Venice. REUTER | DATA COORDINATION TO PLAY ROLE AT IMF, STOLTENBERG |
The conversion price on the 175 mln Australian dlr convertible eurobond for Bell Group NV has been set at 13.37 Australian dlrs per share lead manager Banque Paribas Capital Markets said. The 10-year bond which pays 10 pct and is priced at par is guaranteed by the parent company Bell Group Ltd whose shares closed in Australia today at 10.70 Australian dlrs. The conversion premium is 24.95 pct. REUTER | FINAL TERMS SET ON BELL GROUP CONVERTIBLE |
The average rate of discount at todays U.K. Treasury bill tender rose to 9.5195 pct from 9.3157 pct last week the Bank of England said. This weeks 100 mln stg offer of 91-day bills met applications of 327 mln stg the bank said. Applications for bills dated Monday to Friday at the top accepted rate of discount of 9.5261 pct were allotted about 81 pct. Next week 100 mln stg of Treasury bills will be offered replacing 100 mln stg of maturities. REUTER | AVERAGE DISCOUNT RATE AT UK BILL TENDER 9.5195 PCT |
Finance Ministry proposals for abolishing bourse transaction taxes for non-residents have been blocked in cabinet and will not be re-submitted for several weeks a Finance Ministry spokesman said. Government sources said the blockage would also delay an announcement of measures that would simplify the procedure for non-residents to recoup the 25 pct withholding tax levied on investment income in Belgium. Finance Minister Mark Eyskens told Reuters yesterday that he hoped the cabinet would approve the bourse transaction tax proposals today. Eyskens also said he would in the next few days announce plans to simplify and eventually stop the procedure for foreign investors to reclaim witholding tax. Financial analysts said the current procedure is so slow that it effectively acts as a barrier to foreign investment in Belgium especially in the bond market. They said the move to simplify it would be far more significant than the abolition for non-residents of the bourse transaction taxes. These are set at three rates -- 0.07 pct 0.14 pct and 0.35 pct -- according to the security transacted. Government sources said abolition of the bourse taxes for foreign investors had been held up by concern in the cabinet over the budgetary impact of the move put by the ministry spokesman at 125 mln francs a year. The sources said it was likely that this proposal and plans to simplify the witholding tax procedure would now be submitted together to the cabinet in several weeks. Eyskens said abolition of the transaction taxes for non-residents would make Brussels one of the few stock exchanges in the world where foreign investors were not subjected to such a tax. REUTER | BELGIAN BOURSE TAX MOVE BLOCKED IN CABINET |
Amid new concerns about inflation interest rate increases and trade confrontations finance ministers and central bankers meet next week to discuss a deteriorating global debt and economic situation. The meetings under the auspices of the International Monetary Fund and World Bank come as interest rates are turning higher and the already-weak dollar has sunk further upsetting bond and stock markets. Uncertainty is growing about the vitality of the global economy and whether the heavily-indebted countries can continue to carry the burden of their growing debt without vast new assistance. Monetary and diplomatic sources said there are no signs any new debt initiative of the sort that Treasury Secretary James Baker unveiled 18 months ago in Seoul is in the works. The strategy has drawn a serious challenge from Brazil which suspended interest payments on 67 billion dlrs of commercial bank debt last month. The Banks have responded by laying the groundwork for writing down Brazilian loans. Separately French Prime Minister Jacques Chirac in a visit earlier this week with President Reagan sounded out the administration on a plan to funnel worldwide grain surpluses to the very poorest states. The French plan is certain to be discussed by the ministers in detail during next weeks meetings and will undoubtedly be embraced by the developing countries. Theres interest on the part of some countries for looking at the support of the special problems of the very poorest countries because their position is so extreme a Reagan administration official said. He suggested Washington was open to disussing the issue. The meetings will also assess the success of the Baker debt initiative which called for new funding to help debtor countries grow out of their problems. The largest industrial countries have been attempting to coordinate economic policy in the hope of controlling the decline of the dollar U.S. trade and budget deficits and other problems. At the same time the industrial countries see little evidence of a strengthening of economic activity and the Fund forecasts they will grow 2.5 pct. The United States sees 3.2 pct growth for itself continuing its expansion for a fifth year and has asked other industrial countries to stimulate their economies. These issues directly affect the debt problem and the ability of the debtor countries to grow out of their difficulties. In recent years U.S. markets have absorbed the exports of developing country allowing them to earn critical foreign exchange. But the United States wants to cut its trade deficit running at a record 169.8 billion dlrs and is pressing others to import more from developing countries. The discussions from April six to 10 will be wide-ranging touching everything from interest rates to the impact of development loans on the environment according to monetary sources. The talks will include an examination of trade protectionist pressures in the wake of a decision by the Reagan administration to place some 300 mln dlrs in tariffs on microchip products from Japan the sources said. The move accelerated the dollars decline as financial markets grew alarmed that trade war was in the offing. There is concern that the action prompted by U.S. charges that Japan has been selling computer chip products below fair market value and has kept its own market closed to imports further undermining the international trading system. At the same time the ministers will discuss the fundamental price weakness in basic commodities the export mainstay of many developing countries. The so-called Group of Five industrial countries -- the United States Japan West Germany France and Britain -- will gather for the first time since their February talks in Paris where they agreed to keep the dollar from sliding further. The Five will be joined later by Italy and Canada for further debate on economic policy coordination. As part of the Paris accord surplus countries such as Japan agreed to stimulate their economies while America said it would reduce its federal budget deficit. Other major issues of the meetings include a U.S. bid to to have a larger say in approving loans of the Inter-American Development Bank strengthening the link between loans and economic policy changes in debtor nations. Washington is also pressing the World Bank to take more account of the environment when making loan for dams and other projects. The new head of the Bank Barber Conable has said this issue is being reviewed and will be part of a reorganization plan for the Bank now being prepared. Reuter | IMF, WORLD BANK TO MEET AMID NEW INFLATION FEARS |
Active timecharter fixing by Soviet operators to cover USSR grain imports featured the freight market ship brokers said. At least two fixtures were reported on Soviet account to lift EC grain with a 22000 tonner booked from Tilbury for a voyage via lower Baltic Sea and redelivery passing Skaw at 4000 dlrs daily and a 27000 tonner from Ceuta for a voyage via the U.K. And redelivery Skaw-Cape Passero at 4500 dlrs daily. The Soviets also secured a 34000 tonner from Gibraltar for a trans-Atlantic round trip at 4500 dlrs daily and a 61000 tonner for similar business at 6750 dlrs daily. Brokers said several other fixtures were also thought to be connected with Soviet grain including a 69000 tonner from Taranto for five to seven months at 6500 dlrs daily. Similar fixing was reported yesterday at 6000 dlrs. Other timecharter fixing included a 14000 tonner from Indonesia to the U.S. Gulf at 2800 dlrs daily and a combined carrier of 75000 tonnes dw from the U.S. Gulf to Italy at 9000 dlrs daily. Severel vessels were booked from Antwerp-Hamburg range including a 61000 tonner bound for Singapore-Japan at 7500 dlrs daily and a 16000 tonner destined for west coast India at 5000 dlrs. Grain fixing was much quieter out of the U.S. Gulf with no fresh business seen on the significant routes to the Continent or Japan although tonnage was secured for at least five small corn cargoes from the Gulf to Jamaica at between 21 and 25 dlrs. Wheat from the River Plate and Buenos Aires to Sri Lanka received 26 dlrs. Market talk suggested 11 dlrs had been paid for grain from the U.S. North Pacific to Japan but no confirmation was available. Fairly active grain fixing emerged out of the Continent however with maize covered from Nantes to Egypt at 15 dlrs and bagged flour from Greece to China at 27 dlrs. Barley cargoes were arranged from Immingham to the Red Sea at 17.25 dlrs and from Foynes to Jeddah at 17.25 dlrs. Reuter | LONDON FREIGHT MARKET FEATURES USSR TIMECHARTERS |
The Swiss canton of St Gallen is launching a 50 to 60 mln Swiss franc 4-1/4 pct maximum 12-year bond at 100-1/4 pct lead manager St Gallen Kantonalbank said. Subscriptions close April 15 and payment date is April 30. REUTER | ST GALLEN LAUNCHES 50 TO 60 MLN SWISS FRANC BOND |
Nerco Inc said it has agreed to acquire a 47 pct working interest in the Broussard Gas Field in southern Louisiana from privately-owned <Davis Oil Co> for about 22.5 mln dlrs in cash. Nerco said the interest being purchased will give it estimated proven oil and gas reserves equal to six billion cubic feet of natural gas. The property includes six gas wells one oil well two undeveloped drilling locations a central production facility and a gas gathering system. Nerco is 90 pct owned by PacifiCorp <PPW>. Reuter | NERCO <NER> TO ACQUIRE INTEREST IN GAS FILED |
Canrad Inc said it acquired the Measurement Systems Division of <Page-Wilson Corp> for an undisclosed amount of cash. Canrad said the acquisition is expected to increase its annual revenues by about 10 mln dlrs. Reuter | CANRAD <CNRD> ACQUIRES MEASUREMENT SYSTEMS |
Panteras Corp said it closed on its agreement to acquire ten pizza restaurant locations in southeastern Colorado. It said the purchase price was 1250000 dlrs which was paid by cash and stock. Reuter | PANTERA'S <PANT> ACQUIRES 10 RESTAURANTS |
Harlyn Products Inc said its Paramount Wedding Ring division has received an order of more than one mln dlrs from a major department store chain. The company did not identify the department store. Reuter | HARLYN PRODUCTS <HRLN> WINS CONTRACT |
West German Finance Minister Gerhard Stoltenberg said he foresaw no problem about Italian participation in talks held by Group of Seven (G-7) Finance Ministers and central bankers ahead of the International Monetary Fund (IMF) meeting next week. Italy refused to join a G-7 meeting in Paris in February angered at not being invited to a prior working dinner of the G-5 countries - U.S. U.K. West Germany France and Japan. Stoltenberg told a news conference he saw no difficulties about Italy joining the G-7 Washington talks which he said would be preceded by other informal and bilateral talks. REUTER | STOLTENBERG SEES NO "ITALIAN PROBLEM" AT G-7 |
West German Finance Minister Gerhard Stoltenberg said international coordination of economic and financial policies as well as of economic indicators will be discussed at next weeks meeting of the International Monetary Fund in Washington. Stoltenberg told a news conference it had been decided at last years Tokyo summit of seven leading industrialised nations that the possibility of such coordination would be reviewed. Progress made by senior government officials in this sphere would be discussed at the IMF meeting and results would later be presented at this years economic summit in Venice. Reuter | DATA COORDINATION TO BE DISCUSSEED AT IMF |
<Noranda Inc> said a copper mine fire that killed one miner and trapped 44 others for nearly a day caused an estimated 10 mln Canadian dlrs in damage. The fire which started Wednesday and burned for more than 24 hours destroyed the mines three-year-old conveyor system officials said. Michel Lefebvre vice president of operations said Noranda will operate the mine at about one third of its normal 72000 short ton annual finished capacity using above ground reserves until it decides whether to keep the mine open. The events we sustained yesterday and the day before are a very serious setback for Gaspe Mines operations Lefebvre said. Gaspe Mines is the name of the Noranda division that operates the Murdochville mine. He said it would take four or five months to bring operations up to full capacity if the company decides to do so adding that he believes there is a good chance Noranda will fully reopen the mine. Reuter | NORANDA SAYS FIRE CAUSED 10 MLN DLRS IN DAMAGE |
<General Partners> said it was prepared to raise its bid for GenCorp Inc to 110 dlrs cash per share from 100 dlrs per share. In a letter from General Partners to A. William Reynolds chairman and chief executive officer of GenCorp the company stated that if GenCorp could prove the company was worth more General Partners would be willing to consider an even higher price. General Partners also left open the possibility of an alternative to an all-cash offer. General Partners told GenCorp if it believed shareholders would be better served by a smaller cash price with a security representing a continuing long-term interest in GenCorps prospects it would be willing to discuss an alternative. Specifically General Partners said it was prepared to discuss an acquisition giving shareholders a continuing interest in Aerojet General a valued business of GenCorp. Reuter | GENERAL PARTNERS TO RAISE BID FOR GENCORP <GY> |
Black miners rebelling against the loneliness of men-only hostels have brought wives and children to live with them at seven South African coal mines a union leader said today. Cyril Ramaphosa told a news conference about 600 wives and children moved into the hostels last weekend in defiance of single-sex regulations. About 350 left after the weekend but the others stayed on. The time has come for them (miners and families) to start living naturally said Ramaphosa who is president of the National Union of Mineworkers (NUM). A spokesman for Anglo-American the giant corporation which owns the mines affected said negotiations were being held with the NUM on the issue. Reuter | S. AFRICA MINERS DEFY SINGLE-SEX RULE IN HOSTELS |
Oper shr loss 6.07 vs loss 7.64 dlrs Oper net loss 6235000 vs loss 4801000 Sales 70.1 mln vs 60.6 mln Avg shrs 1028000 vs 629000 NOTE: 1986 earnings exclude a gain on restructuring of 3143000 dlrs or 3.01 dlrs a share Reuter | MANGOOD CORP <MAB> YEAR OPER LOSS |
<Noranda Inc> said a copper mine fire that killed one miner and trapped 44 others for nearly a day caused an estimated 10 mln Canadian dlrs in damage. The fire which started Wednesday and burned for more than 24 hours destroyed the mines three-year-old conveyor system officials said. Michel Lefebvre vice president of operations said Noranda will operate the mine at about one-third of its normal 72000 metric ton annual finished capacity using above ground reserves until it decides whether to keep the mine open. The events we sustained yesterday and the day before are a very serious setback for Gaspe Mines operations Lefebvre said. Gaspe Mines is the name of the Noranda division that operates the Murdochville mine. He said it would take four or five months to bring operations up to full capacity if the company decides to do so adding that he believes there is a good chance Noranda will fully reopen the mine. Reuter | NORANDA COPPER MINE FIRE CAUSED HEAVY DAMAGE |
Net 90501 vs 56960 Assets 42.0 mln vs 34.9 mln Deposits 35.9 mln Loans 27.6 mln vs 23.9 mln NOTE: earnings per share and 1985 deposits figure not supplied by company. Reuter | <AMERICAN WEST BANK> FIRST QTR NET |
<Belmoral Mines Ltd> said it agreed to sell 5250000 common shares and 2625000 purchase warrants for 24.9 mln dlrs to McCarthy Securities Ltd for private placements to European and Canadian investors. The agreement provides for the sale of preferred and common shares of Belmoral held by Continental Illinois Bank (Canada) according to a prior agreement which gave Belmoral the right to designate a purchaser for the banks stock. Belmoral said it will redeem the first preferred shares. The transactions are subject to regulatoral approvals. Reuter | BELMORAL MINES TO ISSUE 24.9 MLN DLRS STOCK |
Bell South Corps South Central Bell operating company plans to purchase 600000 lines of digital central office equipment by the end of the decade from a subsidiary of <Plessey Co Ltd> Plessey said. Plesseys subsidiary Stromberg-Carlson said the value of the purchase will be between 100 mln dlrs and 200 mln dlrs. It said it received the notification of the purchase following the conclusion of a digital switch study performed by BellSouth Services. Reuter | BELL SOUTH <BLS> UNIT TO BUY 600,000 LINES |
British Petroleum Co Plcs proposed capitalization share issue announced earlier today in London will result in each of the companys ADRs representing 12 ordinary shares up from the current four a BP North America Inc spokesman said. He explained that the proposed capitalization share issue which is subject to the approval of shareholders at an extraordinary general meeting to be held April 30 immediately following the annual general meeting is effectively a three-for-one stock split. Reuter | BP <BP> ADR'S TO REPRESENT MORE ORDINARY SHARES |
R.R. Donnelly and Sons Co said it reached an agreement with Adams-Russell Co Inc <AAR> to sell Adams its Rockford Ill. cable system for an undisclosed price. R.R. Donnelly said it expects the deal to close in about 120 days subject to regulatory approvals and other conditions. The cable system serves about 51000 subscribers in the communities of Rockford Loves Park Machesney Park Cherry Valley Morristown and Winnebago County Ill. R.R. Donnelly said. Reuter | R.R. DONNELLY <DNY> TO SELL CABLE SYSTEM |
Digital Communications Associates said the new personal computers announced yesterday by International Business Machines Corp <IBM> are expected to have little near-term effect on Digital Communications. The company said some product modifications will be required but they appear to be straight forward and do not represent major development challenges. The company said it will pursue two prime areas -- the configuration of its products for use with Mocrosoft Corps <MSFT> new operating system which has been adopted for use in the IBM products and changes requried by the use of a new bus architecture in certain IBM products. Reuter | DIGITAL COMMUNICATIONS <DCAI> SEES LITTLE IMPACT |
American Precision Industries Inc said members of United Auto Workers Local 1416 and the companys Delevan and Deltran divisions reached agreement on a three-year contract. The company provided no details other than the contract is effective from March 29 1987 through March 31 1990. Reuter | AMERICAN PRECISION <APR>, WORKERS HAVE AGREEMENT |
Shr 18 cts vs 13 cts Net 2133000 vs 1384000 Revs 14.1 mln vs 11.7 mln Nine mths Shr 49 cts vs 36 cts Net 5657000 vs 3728000 Revs 39.7 mln vs 31.8 mln Reuter | BIOMET INC <BMET> 3RD QTR FEB 28 NET |
EAC Industries Inc said it entered a new loan and security agreement with its banks raising sufficient funds to completely retire its existing bank debt. It said the loan agreement provides for up to 30 mln dlrs of borrowing power. After repayment of existing bank debt and providing for certain letters of credit 4.3 mln dlrs remains for future needs the company said. EAC said the new lending arrangement will allow it to focus attention on improving the companys basic business. It added that it anticipates the fiscal year that began Feb 1 1987 will be a significant improvement over the year ended January 31. It said the loans mature in March 1990. Reuter | EAC INDUSTRIES <EAC> ENTERS NEW LOAN AGREEMENT |
Nynex Corp said its Nynex Business Centers on Monday will start marketing International Business Machine Corps new line of personal computers. The company said the computers will be available for businesses to test. Nynex Business Centers a unit of the Nynex Business Information Systems Co operates nearly 100 centers in 33 states. The centers market computers from IBM Apple Computer Inc <AAPL> and Compaq Computer Corp <CPQ> as well as software peripherals telephone systems and typewriters. Reuter | NYNEX <NYN> TO SELL NEW IBM <IBM> COMPUTERS |
Greece has agreed to buy between 27000 and 33000 tonnes of Spanish corn a spokesman for Cargills Spanish unit Compania Industrial y de Abastecimiento S.A. (CINDASA) said. He told Reuters the sale price was around 28.95 pesetas per kilo but that the final quantity and delivery date has not yet been set. The corn will be shipped in the coming days from Valencia. He said CINDASA will also ship 6000 to 7000 tonnes of Spanish corn to Italy in the second half of this month. The CINDASA spokesman said other corn shipments this month will include between 15000 and 30000 tonnes bound initially for Rotterdam and Ghent and destined for unspecified northern European countries. He said shipments of 35000 to 50000 tonnes of low specific gravity barley were also expected this month and added that Greece the Netherlands Ireland and Belgium were considering imports of Spanish flour for milling. Market sources said the corn exports the absence of imports from the rest of the EC and the delay in shipments of corn from the U.S. Had pushed domestic corn prices up by around 0.25 pesetas a kilo today compared with yesterday. Reuter | SPAIN AGREES SALE OF CORN TO GREECE |
Newmont Gold Co is offering five mln common shares at 31 dlrs apiece co-managing underwriters Kidder Peabody and Co Lazard Freres and Co and Salomon Brothers Inc said. All shares are being issued and offered by the company. The underwriters have been granted an option to buy up to 500000 more shares to cover over-allotments. Proceeds will be used to repay long-term debt owed to Newmont Mining Corp <NEM> which will own over 90 pct of Newmont Gold after the offer. Proceeds will also be used for general purposes the gold production company said. Reuter | NEWMONT GOLD <NGC> OFFERS SHARES |
Period ended Jan 31 Oper shr loss 66 cts vs loss 1.29 dlrs Oper net loss 1309000 vs loss 2522000 Sales 25.1 mln vs 19.9 mln Year Oper shr loss 65 cts vs loss 97 cts Oper net loss 1287000 vs loss 1882000 Sales 113.4 mln vs 76.6 mln NOTE: Earnings exclude a loss on sale of discontinued operations of 17000 dlrs or one ct a share vs a gain of 1383000 dlrs or 70 cts a share in the quarter and gains of 300000 dlrs or 15 cts a share vs 1941000 dlrs or 1.00 dlr a share for the year Reuter | EAC INDUSTRIES INC <EAC> 4TH QTR OPER LOSS |
The Bundesbanks gross currency reserves rose 300 mln marks in the last week of March to 104.9 billion marks the Bundesbank said in a statement. At the same time its foreign liabilities rose 100 mln to 22.8 billion producing a rise in net reserves of 200 mln to 82.2 billion on March 31. The Bundesbank provided banks with liquidity in the fourth March week by disbursing funds in the money market via government-owned banks. Banks took up the Bundesbanks standing offer of treasury bills to place excess liquidity. Banks received more liquidity through routine month-end payments by public authorities as well as expansionary market factors than was lost through the 2.3 billion mark rise in cash in circulation to 122.3 billion the Bundesbank said. But banks had to draw heavily on the Lombard emergency financing facility due to month-end tightness borrowing 5.3 billion marks. Overall banks holdings at the Bundesbank rose 10.2 billion marks to 58.5 billion at the end of the month averaging 50.9 billion in the whole of March. The minimum reserve requirement for March before deduction of banks cash holdings was set at 61 billion marks. Public authorities net holdings at the Bundesbank fell to 2.2 billion marks in the last March week from 4.4 billion the week before. The federal states holdings fell 2.6 billion to 2.4 billion. The federal governments holdings rose 700 mln marks to 5.1 billion. REUTER | BUNDESBANK GROSS RESERVES RISE AT MARCH CLOSE |
Overseas securities firms are spending millions of dollars to set up operations in Tokyo but many will end up losing money industry sources said. For banks and securities firms eager to establish themselves as international players building a presence in Japan has become an imperative. Thirty-six are already licensed to trade securities on the Tokyo Stock Exchange the worlds second largest. More than 50 are expected by year-end. But as deregulation erodes brokers profits and the global share-buying spree is predicted to subside only those securities traders with first-class financial muscle will survive the sources said. There will be foreigners fallout. They come in here with too glib ideas about how they can survive said David Miller director and general manager of Jardine Fleming (Securities) Ltds Tokyo branch. Despite soaring share prices sharp falls in commissions on stock transactions have hurt even brokerages that came to Tokyo early. Japanese equities are no longer a very profitable business. The margins are nothing like they were two or three years ago. Things are not as rosy as they may seem Miller said. Publicly reported earnings of foreign securities houses in Japan for the half-year ended September 30 1986 showed Salomon Brothers Asia Ltd on top with profits of 1.7 billion yen. Most other firms reported hefty gains over the year before. But industry sources say the figures do not fully reveal the costs of running an international brokerage in the worlds most expensive city. Salary packages with free housing for novice analysts routinely run more than 100000 dlrs a year. Miller whose firm had earnings of 1.4 billion yen for the half-year to September 1986 said costs for an operation strong enough to endure are 10 to 15 mln dlrs a year. Id be surprised if more than two or three were making money if they honestly accounted for their costs he said. To bring commissions closer to world rates the Finance Ministry slashed fixed brokerage fees last year especially on large-lot deals. In a few years all rates may be negotiated as they are in New York and London industry sources said. Since last Octobers Big Bang deregulation of Londons financial markets at least half the equity trading deals there have generated no commission income at all. Stockbroking firms are unlikely to make money until some are forced out of business analysts said. The first foreign firms to set up here especially the six admitted as members in February 1986 have an advantage over the latecomers they said. The six are <Merrill Lynch Japan Inc> <Goldman Sachs International Corp> <Morgan Stanley International Inc> <Vickers Da Costa Ltd> <Jardine Fleming Securities Ltd> and <S.G. Warburg and Co (Japan) Ltd>. The memberships which cost about five mln dlrs allow firms to execute their own trades and unlike houses with branch status avoid paying away 27 pct of their commissions to have member firms place trades. Members can also communicate instantly with the exchange floor a vital source of information in a market that tends to follow the leader. Sources said seven to 10 more seats on the exchange are likely to open up sometime in 1988. For non-member firms wrestling away market share from tenacious Japanese and foreign firms is costly and intangibles sometimes prove even more important than exchange membership. Your name is better known if youre a member of the right club Miller said. Its easier to hire ... New people. To inaugurate its Japan operation <SBCI Securities (Asia) Ltd> flew out the Basel Ballet last January for receptions in Tokyo and Osaka. The firm 50 pct owned by <Swiss Bank Corp> gave guests gifts of Swiss chocolates and Swatch watches. Its expensive but a party like that is a token of the serious way we regard our development in Tokyo SBCIs Tokyo branch manager Gregory Shenkman said. To establish its position quickly SBCI hired a 26-strong research unit from <W.I. Carr (Overseas) Ltd>s Tokyo office. I was very lucky Shenkman said. I was anticipating a considerable struggle to organically develop a research team. I am not particularly optimistic for the prospects in the Japanese equity market for continental European banks who have little experience in equities outside their domestic equity market he said. But the prospect of closing down operations may be worse. One would be ill-advised to open here and close and then decide to open again two or three years later. Im not sure the Japansese community would respond well to that sort of attitude he said. REUTER | ECONOMIC SPOTLIGHT - TOKYO HARD ON FOREIGN TRADERS |
Turkeys Central Bank set a lira/dollar rate for April 6 of 781.95/785.86 to the dollar up from 782.50/786.41. It set a lira/D-mark rate of 430.15/432.30 to the mark down from 428.30/430.44. REUTER | TURKISH CENTRAL BANK SETS LIRA/DOLLAR, DM RATES |
Dutch dairy and general foods manufacturer Koninklijke Wessanen NV <WESS.AS> said it is planning further world-wide acquisitions and forsees strong profit growth over the next 10 years. Company chairman Gerrit van Driel told journalists at the presentation of Wessanens 1986 report he already expected 1987 first quarter profits to show an increase. The company last month reported a 16 pct increase in 1986 net profits to 72.7 mln guilders after 62.3 mln in 1985. This was achieved despite a 25 pct drop in the dollars guilder value van Driel said. Van Driel said profits would have been nine mln guilders higher if the US currency had remained at its average 1985 level of 3.20 guilders. Turnover at 3.7 billion guilders in 1986 was 450 mln guilders down because of the lower dollar and lower raw material prices. Total 1985 turnover was 4.2 billion guilders. US activities accounted for 34 pct of 1986 turnover compared with 22 pct in 1982. Wessanen now has 15 separate businesses in the US out of a total of 62 world-wide. Van Driel said the company would continue an active takeover policy in the US but would be wary about paying more than its current price/earnings ratio of 17 times net profit. He added that Wessanen teams were seeking acquisition possibilities in Brazil Taiwan Thailand and China. He said the company had an ample cashflow of 100 mln guilders and would if necessary make new share issues. Van Driel said he expected a 1987 US turnover of 700 mln dlrs. He said <Balanced Foods> and <Greens Dairy> taken over late last year have a combined annual turnover of 126 mln dlrs which was not included in the 1986 account. All sectors saw strong growth in 1986 resulting in a 13 pct increase in operating income to 120 mln guilders. Key to this growth was the successful introduction of new products which were greatly enhanced by a number of consumer-oriented US acquisitions van Driel said. Consumer products represented 50 pct of total 1986 turnover compared with 35 pct in 1982 van Driel said. The company which is already listed on the London Zurich Basle and Geneva stock exchanges as well as Amsterdam aims to be quoted in Frankfurt and Dusseldorf in May van Driel said. Van Driel stressed that while these listings would not be accompanied by new share issues they provided easy vehicles for the company to raise capital for future expansion. He estimated that 33 pct of the companys shares were in foreign hands. The companys 1986 US turnover of about 750 mln dlrs made a listing on one of the New York exchanges a logical next step van Driel said without elaborating. Despite EC dairy restrictions Wessanen which produces around 10 pct of all Dutch cheese saw good growth prospects for its dairy sector within Europe van Driel said. REUTER | WESSANEN FORESEES STRONG PROFIT GROWTH |
Fear of social instability and inflation has forced China to put the brakes on one of its most important economic reforms -- overhauling a pricing system which often bears no relation to production costs. The price clampdown has occurred during a conservative backlash following the resignation in January of reformist Communist Party leader Hu Yaobang Western diplomats and Chinese sources say. In recent years prices have not only been rising but the rate of increase is getting faster and faster the Peoples Daily said in a major article this week. In future price changes should be only in small steps. Despite pledges last year that price changes were essential to get the economy on the right track the government has repeatedly said no major change will happen this year. Price changes in the last two years have aroused great public discontent especially in the cities a Western diplomat said. Chinese were used to stable prices for 30 years from 1949 when the Communists took over. On a recent visit to two major cities the refrain from all the officials was the need to preserve social stability he said. A Chinese journalist said the reformers had underestimated the extent to which the public would tolerate price changes. A major review of all economic reforms is under way the biggest since the reforms began in 1979 because many things are not going well -- a large budget deficit too rapid price increases and no major improvement in productivity of state firms he said. The reformers think it vital to change a system under which prices often bear no relation to production costs. Sugar is an example. An official newspaper said earlier this year that more than 40 pct of Chinas sugar mills were losing money or had closed because producing sugar was so unprofitable. This was because the selling price of sugar has not changed for 20 years while the mills production costs have risen sharply over the period. The economic masterplan for the 1986-90 period published in April last year said China would work steadily to establish a pricing system which better reflects value and the relation between supply and demand. The Peoples Daily said that in recent years wage increases had been too high and too much currency printed resulting in too much money chasing too few goods and causing price hikes and inflation. The review of the reforms coincides with a national campaign against bourgeois liberalism meaning Western political ideas blamed for causing student protests last December. The journalist said the review was in part due to political factors. Economics and politics are inseparable in China. But the Western media is wrong to classify the leadership into reformers and conservatives. All the leaders agree on the main direction -- economic reform and the open-door he said. But there are differences of opinion on the pace of reform and on specific policies. No one is advocating a return to how things were before 1979. The diplomat said what China feared as a backlash against price rises was not so much rioting in the streets which he said it had the means to control. The bottom line is how such protests would be used by those in the power struggle. A foreign lawyer said he believed the cause of the crisis earlier this year was that the Communist Party leadership had feared due to the student demonstrations that it was losing control. The leadership here is a self-perpetuating oligarchy. There is no way that it is going to give up power he said. Reuter | CHINA PUTS BRAKE ON KEY REFORM GOAL |
The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY NEW RATE OLD RATE MATURITY 30-273 days 5.00 pct 5.00 pct 30-89 days 274-294 days 5.92 pct 5.83 pct 90-100 days 295-344 days 5.00 pct 5.00 pct 101-181 days 345-360 days 5.93 pct 5.82 pct 182-195 days 5.00 pct 196-274 days 5.90 pct 275-295 days 5.00 pct 296-360 days Reuter | FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES |
<Algoma Steel Corp Ltd> said there were no specific developments to explain the recent increase in its share price and there were no announcements planned or anticipated. The company said it made the statement at the request of the Toronto Stock Exchange. Algoma said it continues to achieve cost reductions and there is a limited improvement in market demand for the companys steel products. Algoma common closed yesterday in Toronto at 18-1/2 up 2-3/4 and was trading today at 18-1/4 down 1/4. Reuter | ALGOMA STEEL HAS NO REASON FOR SHARE PRICE RISE |
 MONEY RATES - INTERNATIONAL SUMMARY - APR 3 U.S. Fed funds 5-15/16 Broker loan 7.50-7.25 30 60 90 T-bills 5.40/38 5.40/38 5.44/43 Cds dir 5.95 6.00 6.00 Comm paper dir 6.15 6.15 6.09 INTERNATIONAL CALL 1 MONTH 3 MONTH Ldn 10 9-7/8 10 9-15/16 10 9-7/8Fft 3.60/70 3.80/90 3.85/95 Par unav unav unav Zur 7/8 1-1/8 3-1/8 1/4 3-1/2 5/8 Ams 5-5/16 7/16 5-3/8 1/2 5-3/8 1/2 Tok 3.7500 8125 3.8750 9375 4.0000 0625  | |
K mart Corp said it agreed to sell most of the U.S. Kresge and Jupiter stores to McCrory Corp a subsidiary of privately held Rapid American Corp. It said the agreement covers 76 stores in 21 states including inventory and fixtures. The price depends on the amount of the inventory that will be in the stores on the closing date. K mart said it will continue to operate the stores until early June when McCrory will take over with no interruption of service. The newly acquired Kresge and Jupiter stores will be renamed McCrory 5 and 10. McCrory currently operates 1250 stores in 38 states. Reuter | K MART <KM> SELLING KRESGE TO MCCRORY |
The latest Belgian state loan subscriptions for which closed today raised a total of 168.8 billion francs a finance ministry spokesman said. The eight-year eight pct domestic loan which was priced at par was originally expected by the ministry to raise 150 billion francs. REUTER | BELGIAN STATE LOAN RAISES 168.8 BILLION FRANCS |
Tandy Corp said consolidated sales and operating revenues for the third quarter ended March 31 totaled nearly 776.0 mln dlrs up 12 pct from 693.4 mln dlrs last year. The company said third quarter earnings will be released in the latter part of April. Tandy said March sales and oprating revenues totaled 164.4 mln dlrs up 11 pct from March 1986s 238.8 mln dlrs. It said U.S. retail operations revenues rose to 225.8 mln dlrs last month from 202.7 mln dlrs a year earlier. Sales of U.S. stores in existence more than one year increased 10 pct. Reuter | TANDY <TAN> 3RD QUARTER REVENUES UP 12 PCT |
The stock of Philip Morris Cos rose today following recommendations by First Boston Corp and Morgan Stanley and Co traders said. Philip Morris gained 1-3/4 to 88-1/4. First Bostons analyst was unavailable for comment. Morgan Stanleys David Hill said he just assumed coverage of Philip Morris and placed it on his recommended list becasue of its attractive earnings growth and because the stock is selling at a discount to the market based on Morgans figures. Hill expects Morris to earn 7.75 dlrs a share this year and 9.50 dlrs in 1988. In 1986 Morris earned 6.20 dlrs a share. Reuter | PHILIP MORRIS <MO> UP ON RECOMMENDATIONS |
Pakistan is not emerging as a major wheat exporter as world market prospects are not good enough Sartaj Aziz Special Assistant on Food and Agriculture to the Pakistani Prime Minister said in an interview. No exports are planned for the next 12 months or so and plans last year to sell one mln tonnes to Iran came to nothing because they could not agree a price he said. Aziz forecast that Pakistan may have exportable surpluses of one mln tonnes or a half mln tonnes over the next few harvests in years when the weather is favourable. The government does not wish to increase output much above this because of low world prices and the land would be better used for other crops. Aziz said the Pakistani government does not want area sown to wheat to increase from the current seven mln hectares. Some 10 pct of that area which gives low yields could be switched to more profitable crops such as oilseeds. The aim is to concentrate on raising yields from the current 1.8 to 1.9 tonnes per ha to at least 2.5 tonnes per ha over the next five to seven years he said. Aziz said the current 1986/87 crop harvesting of which is just beginning is expected to yield around a record 14.5 mln tonnes. This compares with a target of 14.7 mln and last years yield of 14.0 mln. He said rains some six weeks ago helped the crop but more recent rains reduced prospects slightly. The long-term wheat production target is for some 17 mln tonnes by mid-1993 taking into account Pakistans annual population growth rate of more than three pct. Current consumption is some 12.5 mln tonnes. The current wheat reserve is 2.5 mln tonnes Aziz said. This compares with a minimum reserve commitment of one mln tonnes which Pakistan will maintain at all costs and a strategic reserve target of two mln tonnes. Despite the fact that stocks are a half-mln tonnes over target the surplus will not be exported at present he said. The government wants to keep an extra safety margin until it sees what effect the abolition of a 44-year-old wheat rationing system will have on domestic consumption. New exports will be considered only in about a years time when the 1987/88 crop can be gauged as well he said. The new domestic policy introduced on March 15 is for the government to supply unlimited quantities of wheat at two rupees per kilo. With other costs this means a price in Pakistani markets of between 2.30 and 2.50 rupees per kilo. Under the old system introduced during World War Two and due to be phased out by April 15 some 50 mln ration cards were issued enabling poor people to buy wheat cheaply. Aziz said following the introduction of a government support price in the 1970s the system become so corrupted that only 20 to 25 pct of subsidised wheat was actually reaching the consumer the rest being diverted illicitly to the mills. The ration system had also not had the stabilising effect on the internal wheat market that was intended Aziz said. Prices have already begun to fall with the introduction of the new system. The wheat price in Karachi the most expensive Pakistani city had dropped from 3.11 rupees per kilo on March 1 to 2.85 rupees on March 30. Aziz said he does not expect the change in system to have a major effect on total consumption but it may encourage better use of side-products such as bran. Reuter | PAKISTAN NOT SEEN AS MAJOR WHEAT EXPORTER |
<Kleer-Vu Industries> said the companys board authorized the sale of its Neslemur Co its cosmetic and toiletries company. The company said it is evaluating two separate proposals and will complete the sale within 10 days. Reuter | KLEER-VU INDUSTRIES TO SELL COSMETICS UNIT |
Memory Protection Devices Inc said it completed its acquisition of the assets and liabilities of Bogen a division of <Lear/Siegler> for 9200000 dlrs in cash. Under the newly-structured company Memory said it expects to report consolidated sales of 18 mln dlrs to 20 mln dlrs and should be profitable before allowing for extraordinary items related to the acquisition. Reuter | MEMORY PROTECTION <MPDI> COMPLETES ACQUISITION |
Du Pont Co said it agreed to sell its Cleveland chemical plant the oldest site currently operated by the company to two employees. Terms were not disclosed. Closing is expected in the second quarter following approval of definitive agreements. Products made at the plant represent less than 1/10 of one pct of Du Ponts annual sales it said. Quilon chrome complexes and Volan bonding agents will be supplied by the plant to Du Pont under contract. Established in 1866 the plant was acquired by Du Pont in 1928. The plant no longer fits the companys long-term strategy Du Pont said Reuter | DU PONT <DD> TO SELL CLEVELAND PLANT |
The Bank of Spain said it raised its rate for overnight call money to 14.5 pct from 14 pct with immediate effect at todays daily auction for assistance funds. The move followed comments yesterday by central bank governor Mariano Rubio who said money supply growth was too fast. The bank said later that it was leaving its rate for special assistance funds from its second window unchanged at 16 pct surprising operators who had expected an increase there too. REUTER | SPAIN RAISES CALL MONEY RATE TO 14.5 PCT |
Volkswagen of America Inc the U.S. arm of Volkswagen AG said its domestic car sales for late March fell to 2145 vehicles from 3342 vehicles for the same period in 1986. Volkswagen added that for the month of March it sold 4324 vehicles down from 6198 last year. For the year-to-date Volkswagen said it sold 10951 vehicles versus 18392 last year-to-date. Reuter | VOLKSWAGEN LATE MARCH U.S. SALES LOWER |
Shr 1.00 dlr vs 34 cts Net 16.9 mln vs 5696000 Revs 371.3 mln vs 303.2 mln Avg shrs 16.9 mln vs 16.3 mln Nine mths Shr 3.55 dlrs vs 1.66 dlrs Net 59.3 mln vs 27.1 mln Revs 1.02 billion vs 912.8 mln Avg shrs 16.7 mln vs 16.3 mln Reuter | FEDERAL CO <FFF> 3RD QTR FEB 28 NET |
American Motors Corp said it will ask Jeep dealers to inspect about 20000 Cherokee Wagoneer and Comanche vehicles equipped with 4.0-liter 6-cylinder engines to determine whether the air control valve for the fuel injection system is out of design tolerance. The company said it will seek about 5000 affected vehicles all 1987 models manufactured between Jan 15 and March 3 1987. It said the out-of-tolerance air valves may prevent the engine speed from returning to idle when the accelerator pedal is released the company said. Reuter | AMC <AMO> TO INSPECT 20,000 VEHICLES |
Deutsche Babcock AG <DBCG.F> said it agreed to cooperate with BASF AG <BASF.F> and the Japanese firm Kawasaki Heavy Industries Ltd <KAWH.T> KHI in the field of technology designed to protect the environment. Deutsche Babcock Anlagen AG would work with BASF to develop plants which would treat and burn industrial waste. Another Babcock subsidary Vereinigte Kesselwerke AG VKW had struck an accord with KHI which would later be transformed into a licencing agreement. The agreement with KHI involves construction and marketing by the Japanese company of an environmentally-safe system developed by VKW for burners in power station boilers Deutsche Babcock said. No financial details of the cooperation were released. REUTER | GERMAN, JAPANESE FIRMS WORK ON WASTE PLANT |
Synthetic Industries is offering 110 mln dlrs of senior subordinated debentures due 1999 yielding 11-5/8 pct said sole manager Merrill Lynch Capital Markets. The debentures have an 11-1/2 pct coupon and were priced at 99. Non-callable for five years the issue is rated B-3 by Moodys Investors Service Inc and B-minus by Standard and Poors Corp. The issue was increased from an initial offering of 100 mln dlrs. Reuter | SYNTHETIC INDUSTRIES OFFERS DEBENTURES |
Qtly div 14-1/2 cts vs 14 cts prior Pay May 4 Record April 17 Reuter | FLOWERS INDUSTRIES INC <FLO> HIKES PAYOUT |
Shr three cts vs three cts Net 141224 vs 118192 Sales 5849695 vs 3717794 Avg shrs 4975000 vs 4925000 Year Shr 15 cts vs 10 cts Net 720126 vs 474879 Sales 18.2 mln vs 11.5 mln Avg shrs 4959932 vs 4902778 NOTE: 1985 year net includes gain of 58000 dlrs or one cent a share from tax loss carryforward Reuter | FINE ART ACQUISITIONS LTD <FAAA> 4TH QTR NET |
Damon Corp said its Damon Clinical Laboratories division has agreed to manage theday-to-day operations of the clinical laboratory at Suburban Hospital in Hinsdale Ill. Reuter | DAMON <DMN> UNIT TO MANAGE CLINICAL LAB |
Gerber Products Co said it has given management of its CWT Inc trucking subsidiary 60 days to pursue a leveraged buyout of the subsidiary. It said CWT Inc which has operations in the Midwest and Southeast has annual revenues of approximately 135 mln dlrs. Reuter | GERBER <GEB> SETS DEADLINE FOR UNIT'S BUYOUT |
Shr 31 cts vs 31 cts Net 226000 vs 173000 Assets 73.1 mln vs 62.5 mln Deposits 54.6 mln vs 51.5 mln NOTE: earnings per share for 1987 affected by issuance of 166750 shares of common stock in December 1986. Reuter | <ANCHOR FINANCIAL CORP> 1ST QTR NET |
Deluxe Check Printers Inc said that due to increased manufacturing costs it is hiking the prices on most of its product lines effective June 1. The company estimates that the net effect of the price increases equals a 3.5 pct increase in total sales. Reuter | DELUXE CHECK PRINTERS <DLX> RAISES PRICES |
Praxis Pharmaceuticals Inc which owns worldwide licensing rights to the promising AIDS treatment AL721 said large scale tests of the drug are planned for this summer in the United States. Arnold Lippa Praxis president said Praxis will test the drug in a few hundred patients with full-blown AIDS in those with AIDS-related complex a precursor to AIDS and in more patients with swollen lymph glands but no other AIDS symptoms. Praxis reported a net loss of 2186000 dlrs for the year ended June 30 1986. Lippa said the firm has about two mln dlrs left from its public offering in January 1985. But Lippa expects to easily spend five to 10 mln dlrs in these new clinical trials. He said the Beverly-Hills Calif.-based company is preparing a private offering and discussing ventures with other pharmaceutical firms to help finance the cost of the trials. As another mark of the interest in AL721 Anthony S. Fauci who heads the National Institute of Allergy and Infectious Disease said the government will begin testing AL721 in its AIDS treatment evaluation units in June. A spokeswoman said the study will be small and will establish the drugs toxicity. She said the study will be expedited to allow the next phase of testing to proceed rapidly. These plans follow the completion of a small-scale test of the drugs effectiveness in eight patients with AIDS-related lymphadenopathy--swollen lymph glands at St. Lukes/Roosevelt Hospital in New York and another study of 14 AIDS patients in Israel where the drug was developed. Reuter | PRAXIS <PRAX> AIDS DRUG TO GO INTO WIDER TESTS |
Shr seven cts vs four cts Net 161000 vs 107000 Revs 5852000 vs 4794000 Nine mths Shr 23 cts vs 24 cts Net 553000 vs 610000 Revs 18.2 mln vs 14.2 mln Reuter | TSR INC <TSRI> 3RD QTR FEB 28 NET |
N.J. Nicholas Jr. president and chief operating officer of Time Inc told security analysts the company is now engaged in talks to join a consortium of cable companies that will invest in Cable News Network. Nicholas declined to give any details but said an announcement might be ready in a few days. He also declined to say whether the investment would be made by Time Inc or American Television and Communications Corp a public company in which Time owns a majority stake. Cable News Network is owned by Turner Broadcasting System <TBS>. Reuter | TIME <TL> IN TALKS ON CABLE NEWS CONSORTIUM |
<Roy F. Weston Inc> said it received a 9.9 mln dlr contract from the U.S. Air Force for assistance with site investigations and remedial studies at Air Force bases throughout the nation. The contract covers four years and its Westons fourth major contract with the Air Forces occupational environmental health laboratory. The company said it will test air soils ground and surface waters site assessments and other areas. Reuter | WESTON GETS U.S. AIR FORCE CONTRACT |
Abnormally high levels of radiation were found in Soviet tea and hazelnuts more than nine months after the Chernobyl nuclear accident West German residents in Moscow were advised this week. In a letter to the West German community here Ambassador Joerg Kastl said laboratory tests on food samples bought in Moscow in February had shown elevated levels of caesium-134 and -137 in tea from Azerbaijan and Ukrainian hazelnuts. Other food samples sent for testing at Cologne University including honey fruit vegetables pork milk and butter were found to be free of radiation it said. Data in the letter showed the tea and hazelnuts contained caesium levels far in excess of ceilings recommended by the United Nations Food and Agriculture Organisation (FAO). The letter said people who had consumed the tea faced no particular health danger as most of the caesium remained in the tea leaves but it warned against eating the hazelnuts. The products sent for testing were bought in state shops and private farmers markets in Moscow it added. Other Western embassies in Moscow said they had discontinued laboratory testing of Soviet food late last year because no abnormal radiation levels were detected. We didnt find anything so we stopped doing it a U.S. Embassy spokesman said. A British spokesman said radiation-monitoring equipment remained in the embassy waiting room for British residents in Moscow who wanted to check their food but laboratory tests had not been conducted for several months. Earlier we sent some food back to Britain as a precautionary measure but we stopped in the absence of any alarming signals he said. If the tests had shown abnormal readings they would have been resumed. Reuter | ABNORMAL RADIATION FOUND IN SOVIET TEA/HAZELNUTS |
The Student Loan Marketing Association said its rates on short-term discount notes were as follows: MATURITY NEW RATE OLD RATE MATURITY 5-14 days 5.65 pct 5.60 pct 5-14 days 15-78 days 5.00 pct 5.00 pct 15-81 days 79-85 days 5.83 pct 5.75 pct 82-88 days 89-360 days 5.00 pct 5.00 pct 89-174 days 5.85 pct 175-180 days 5.00 pct 181-360 days Reuter | SALLIE MAE ADJUSTS SHORT-TERM DISCOUNT NOTE RATES |
The European Community wants to eliminate all obstacles to free movement of goods services and people by 1992 a laudable goal that has sent shivers down the spines of its closest trading neighbours. Europes outsiders -- the six members of the European Free Trade Association (EFTA) and other small states -- fear the growing power of the 12 EC member countries a market of 320 mln people one and a half times as big as the whole U.S. And as the Community celebrates its 30th anniversary in non-EC countries from Ankara to Oslo an attitude is emerging which says If you cant beat them join them. In June 1985 the Community adopted a plan to create an internal market without restrictions which included new goals on everything from tourism to the rules of bank accounting. The plan is so extensive that even the EFTA countries -- Switzerland Austria Sweden Norway Finland and Iceland -- with decades of close trade ties find it hard to adopt a joint position. Last month Turkey formally requested EC membership receiving a polite reply from Brussels that the time was not ripe. In Austria where its 1955 charter of neutrality forbids joining political alliances the government is looking for ways to become a de facto EC member. And in Norway where membership was rejected in a 1972 referendum government officials are wondering whether the political climate has changed. But nowhere has the debate been more existential than in Switzerland which has resisted all alliances for 700 years. The Swiss are a microcosm of Europe living geographically in the very heart of Europe and speaking the languages of the three big economies -- Germany France and Italy. Swiss neutrality which has kept the country out of the United Nations and the International Monetary Fund would seem to preclude membership in the Community given the ECs loose link with the Western defence alliance NATO. But an opinion poll late last year held in the French-speaking part of the country showed a majority favoured joining the Community. Since then government officials have stressed that while membership was impossible Switzerland should do everything possible not to be locked out when the trade barriers inside the EC come down. State secretary for foreign trade Franz Blankart said it is inconceivable the whole Swiss nation -- including the more conservative German-speaking majority -- would vote for membership. But Switzerland must be more than just a satellite he said now that the enlarged Community is extending itself into areas omitted by the founding Treaty of Rome. These areas including pharmaceutical research and technological development are the key to the economic future of Switzerland and the Community alike he adds. We cannot permit ourselves the luxury of passively following the Communitys new dynamic of integration he says. The Swiss economy ministry has drawn up a detailed analysis of the EC White Paper on the internal market outlining the Swiss response to each point. While some refer to a collective EFTA stance officials admit that on many issues Switzerland may have act alone. The new EC plans on transport for example would have a severe impact on Switzerland and Austria whose roads carry most of the traffic between Italy and its EC partners. But rules such as the volume of petrol buses are allowed to carry across a border have much less importance to Sweden or Finland. Switzerland wants to work out ways to help people crossing its borders with West Germany France and Italy. But it is afraid the liberal border controls Denmark an EC member has with the non-EC Nordic countries might pose a threat to security. And pin the fields of banking and insurance -- the very lifeblood of Switzerlands service sector -- Swiss interests could prove directly opposite to its EFTA partners with their pppppppnarrow and tightly protected financial markets. The biggest danger ahead EFTA members have said would be that their divided interests might leave the EC free to set whatever guidelines and standards it wanted and force them on other European states that wanted to trade. REUTER | ECONOMIC SPOTLIGHT - EFTA FEARS EC MARKET PLANS |
Cyprus Minerals Company said it is decreasing its electrolytic copper cathode price by one cent to 66.0 cents a pound effective immediately. Reuter | CYPRUS LOWERS COPPER PRICE ONE CT TO 66 CTS |
Enserch Corp said that it has called for redemption on May four all its outstanding 16-3/8 pct sinking fund debentures due 2007 pursuant to the optional redemption provision of the indenture at 111.981 pct of par. Reuter | ENSERCH <ENS> TO REDEEM DEBENTURES |
The Federal Home Loan Mortgage Corp adjusted the rates on its short-term discount notes as follows: MATURITY RATE OLD RATE MATURITY 31 days 5.95 pct 6.00 pct 32 days Reuter | FREDDIE MAC ADJUSTS SHORT-TERM DISCOUNT RATES |
The Trans World Corp Liquidating Trust said it will permanently close its books of record and transfer on April seven. Beneficial interest in the trust ceased trading on the New York Stock Exchange on March 31 it noted. Reuter | TRANS WORLD LIQUIDATING TRUST TO CLOSE BOOKS |
Ended Jan 31 Shr loss 50 cts vs loss one ct Net loss 2475739 vs loss 68691 Revs 3689770 vs 3292733 Year Shr loss 50 cts vs loss two cts net loss 2472582 vs loss 112936 Revs 14.8 mln vs 13.2 mln NOTE: Current periods include charge of 2.25 mln dlrs or 45 cts for restaurant closings. Reuter | MAVERICK RESTAURANT CORP <MAVR> 4TH QTR LOSS |
Ended Jan 31 Shr nine cts vs eight cts Net 246000 vs 369000 Revs 20.4 mln vs 11.2 mln Avg shrs 2123000 vs 1882000 NOTE: 1985 restated. Reuter | GRAPHIC MEDIA INC <GMED> YEAR NET |
White House Budget Chief James Miller said he was irritated by the Senate Budget Committees failure to meet an April 1 deadline for completing action on its budget blueprint for the coming fiscal year. Im terribly upset that theyve missed their deadline he told reporters after a speech commemorating the 100th anniversary of the Interstate Commerce Commission (ICC). Senate Budget Chairman Lawton Chiles (D-Fla.) is obviously having trouble getting a majority (of his committee) to agree to his budget Miller said. The panel late Wednesday defeated Chiles budget plan and will try again next week. The House Budget Committee meanwhile approved Wednesday a trillion-dlr spending plan for the governments year beginning Oct. 1 paving the way for a House vote. Miller also told reporters President Regan remains opposed to any tax increases other than those he himself has proposed. Were not going to go along with a tax increase he said. Miller told a few hundred current and former ICC officials attending the birthday party that he was an unusual choice to speak at the event as he favored the agencys abolition. Let it die with dignity--and then well all get together again for a fantastic wake he said to mild applause. Reuter | MISSED SENATE DEADLINE UPSETS U.S. BUDGET CHIEF |
Time Incs chief financial officer Thayer Bigelow told security analysts the company is comfortable with Wall Street estimates that 1987 earnings will be in a range of 3.75 dlrs to 4.25 dlrs per share. In 1986 Time reported earnings of 5.95 dlrs per share including a number of special items. Bigelow said in adjusting the 1986 results for the special items and also removing the earnings of American Television and Communications Corp <ATCMA> Time earned 2.35 dlrs per share in 1986. Turner Broadcasting System Inc said the investment by the cable consortium would be in Turner Broadcasting not directly in CNN. The consortium would infuse up to 550 mln dlrs in Turner Broadcasting in return for a 35 pct equity interest. Ted Turner Chairman would retain a 51 pct interest a Turner Broadcasting spokesman said. Bigelow said the company is continuing its previously announced 10 mln share repurchase program and has bought back 4.1 mln of its own shares. He said 700000 shares were purchased in the first quarter of 1987 at an average price of 81 dlrs per share. Bigelow said the company will always have a share buyback program in place whenever it believes it is a better long-term investment than starting or acquring a business. But he did not give any specifics on further repurchases beyond the 10 mln shares already announced. On the subject of acquisitions Richard Munro chairman and chief executive said the company is not interested in investing in over-the-air broadcasting but continues to look at all areas in which it is currently engaged. Munro said book publishing is an area that interested Time. In 1986 the company purchased Scott and Foresman its biggest acquisition ever. N.J. Nicholas president and chief operating officer said the company might be interested in a relatively small book business. He said following the recent agreement for the sale of Harper and Row to the News Corp Ltd <NWS> there may be pieces that Murdoch doesnt want referring to News Corp chairman Rupert Murdoch. Asked if the companys SAMI business is for sale Munro said it is a delicate subject and were looking at all the options. SAMI is a marketing information service for the food industry. Published reports have stated it could be worth as much as 500 mln dlrs. Bigelow said that Times Home Box Office added subscribers last year and the trend is continuing in the first quarter of 1987. However he said HBOs results in the quarter will be down slightly but in the first quarter of 1986 there was a special gain in the HBO unit. Nicholas said that HBO and Cinemax had combined subscriber growth of 800000 for last year. He also said the tax rate in 1987 will remain at just under 50 pct because of the repeal of investment tax credits and higher state and local taxes. He said he sees a decrease in the tax rate in 1988 of five or six percentage points. Munro said the company does not plan to increase its dividend. Trygve Myhren chairman and chief executive of American Television and Communications said the unit is looking at getting involved in the home shopping video area. It would be foolish not to be a player there he said. He said the company had talks with Home Shopping Network Inc <HSN> prior to that companys public offering last year but nothing came of the talks. Reuter | TIME <TL> 1987 EARNINGS MAY BE 4.25 DLRS SHARE |
OWENS-ILLINOIS FILES WITH SEC FOR 2.05 BILLION DLR DEBT OFFERING |
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The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY NEW RATE OLD RATE MATURITY 30-273 days 5.00 pct 5.00 pct 30-273 days 274-294 days 5.90 pct 5.92 pct 274-294 days 295-344 days 5.00 pct 5.00 pct 295-344 days 345-360 days 5.93 pct 5.93 pct 345-360 days Reuter | FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES |
AEL Industires Inc a major supplier of defense electronic systems said it projects a 15 pct hike in sales for the fiscal year ended Feb 27 1988 based on its current backlog of 169 mln dlrs and new contracts awarded in the first quarter. For the year ended Feb 27 1987 AEL reported net income of 3321000 or 74 cts a share including an aftertax charge of 818000 on revenues of 108 mln dlrs. Reuter | AEL <AELNA> SEES 15 PCT SALES HIKE THIS YEAR |
FRENCH GOVERNMENT SETS SHARE PRICE OF BANQUE DU BATIMENT ET DES TRAVAUX PUBLICS AT 130 FRANCS - OFFICIAL |
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Ford Motor Co said domestic car sales rose 29.5 pct in the March 20 to March 31 period compared with the late-March period a year ago. There were nine selling days in both periods. The nations second largest auto maker said it sold 79249 vehicles compared with 61169 a year ago. For the month of March sales rose 17.8 pct to 197328 vehicles verses 167490 in March 1986. Year-to-date sales declined 0.2 pct to 462629 units compared with 463768 for the first three months of 1986 it said. Ford said sales of trucks for the late-March period were up 28.1 pct to 50305 vehicles verses 39269 a year ago. Truck sales for all of last month increased 23.1 pct to 136767 compared to 111066 last year. Year-to-date sales rose 8.7 pct to 332461 verses 305781 for the first three months of 1986. Reuter | FORD <F> LATE-MARCH SALES UP 29.5 PCT |
The Federal Reserve is expected to take no reserve-management action in the U.S. Government securities market during its usual intervention period economists said. They said that if the Fed does act it will likely add temporary reserves indirectly by arranging one to 1.5 billion dlrs of customer repurchase agreements. Federal funds which averaged 6.14 pct yesterday opened at 5-15/16 pct and remained there in early trading. Analysts believe this probably is about where the Fed wants the funds rate to be. Reuter | FED EXPECTED TO TAKE NO MONEY MARKET ACTION |
The Panama Canal Commission a U.S. government agency said in its daily operations report that there was a backlog of 30 ships waiting to enter the canal early today. Over the next two days it expects -- 4/03 4/04 Due: 36 28 Scheduled to Transit: 38 38 End-Day Backlog: 28 18 Average waiting time tomorrow -- Super Tankers Regular Vessels North End: 19 hrs 8 hrs South End: 20 hrs 16 hrs Reuter | AGENCY REPORTS 30 SHIPS WAITING AT PANAMA CANAL |
Ownes-Illinois Holdings Corp filed with the Securities and Exchange Commission for debt offerings with principal amounts totalling 2.05 billion dlrs. The company which is the successor to Ownens-Illinois Inc said it plans to offer 250 mln dlrs of senior subordinated notes due 1996 500 mln dlrs of subordinated debentures due 1999 and 1.3 billion dlrs of junior subordinated discount debentures due 2003. Proceeds from the offering together with about 50 mln dlrs in bank borrowings will be used to repay or redeem financing incurred in connection with the takeover it said. Owens-Illinois which was taken over by a group led by Kohlberg Kravis Roberts and Co said financing incurred in the takeover includes a 550 mln dlr bridge loan provided by a bank group 200 mln dlrs provided by two common stock partnerships and 600 mln dlrs of junior subordinated notes due Sept 17 1988 which were sold to an affiliated of Morgan Stanley and Co Inc. Other proceeds will be used to pay underwriting costs the company said. Morgan Stanley is the underwriter it said. Reuter | OWENS-ILLINOIS <OI> FILES 2.05 BILLION DLR OFFER |
<Noranda Inc> said a total of 57 miners were trapped in a copper mine yesterday by a fire that burned for 24 hours and killed one miner. Earlier the company had said 44 miners were trapped. Some of the miners suffered smoke inhalation but the 56 who emerged safely are out of danger the company said. Noranda estimated that the fire caused 10 mln Canadian dlrs in damage. Reuter | NORANDA REVISES NUMBER OF MINERS WHO WERE TRAPPED |
Piedmont Aviation Group Incs Piedmont Airlines said its load factor rose to 63.40 pct last month from 61.12 pct in March 1986. The airline said it flew 987.7 mln revenue passenger miles last month up 15.6 pct from 854.0 mln a year earlier while its available seat miles rose 11.5 pct to 1.56 billion from 1.40 billion in March 1986. Piedmont said its first quarter load factor was 57.33 pct up from 54.89 pct a year earlier. First quarter revenue passenger miles rose 16.3 pct to 2.66 billion and available seat miles were up 11.4 pct to 4.46 billion. Reuter | PIEDMONT <PIE> MARCH LOAD FACTOR WAS 63.4 PCT |
<Range Rover of North America Inc> said that for the month of March it sold 79 vehicles versus nil for March 1986. The company said that year to date it sold 79 vehicles versus nil year-to-date last year. The British luxury sport-utility vehicle officially went on sale March 16 Range Rover said. Reuter | RANGE ROVER OF NORTH AMERICA INC MARCH SALES. |
Lands End Inc said its board declared a dividend of 10 cts a share payable April 30 record April 13. It is the companys first dividend since it became a public entity last October. Reuter | LAND'S END INC <LEYS> VOTES INITIAL PAYOUT |
Hadson Corp said it is offering four mln new shares of its common par value 10 cts a share at 8-1/2 dlrs a shares. It had previously announced it would offer 3750000 shares in a filing with the Securities and Exchange Commission. Hadson said proceeds will be used for expansion of its existing businesses and energy-related acquisitions and for general corporate purposes. Shearson Lehman Brothers Inc and Painwebber Inc are the managing underwriters. Reuter | HADSON <HADS> TO OFFER FOUR MLN SHARES |
California Energy Co said it received 3.5 mln dlrs in private financing from a European investment group to support further development by China Lake Joint Venture of geothermal energy resources located on lands at China Lake Calif. Reuter | CALIFORNIA ENERGY <CECI> GETS FINANCING |
Aequitron Medical Inc said that <Vantage Properties Inc> has exercised its option to buy 15.3 acres of land from Aequitron for 1.8 mln dlrs. Aequitron orginally gave Vantage the option in May 1986 in exchange for a 100000 dlr letter of credit which will be forfeit if Vantage does not close the deal by April 30 Aequitron said. Aequitron added it expects the deal to close on or before April 30 its fiscal year-end. The company said it could realize a gain of about 300000 dlrs on the sale which will be used to reduce short term debt. Reuter | AEQUITRON <AQTN> SELLS LAND FOR 1.8 MLN DLRS |
Allwaste Inc said it agreed in principle to acquire all outstanding stock of a company in the industrial service business for 1.98 mln dlrs in common stock. It did not identify the company to be acquired. Reuter | ALLWASTE <ALWS> TO ACQUIRE SERVICE FIRM |
USAir Group Inc said March load factor rose to 66.5 pct from 62.9 pct in March 1986. Revenue passenger miles rose 17.2 pct in March to 1.10 billion from 942.6 mln and 18 pct year-to-date to 2.90 billion from 2.46 billion the company said. Available seat miles grew 10.8 pct in March to 1.66 billion from 1.50 billion and 10 pct in the three months to 4.72 billion from 4.29 billion. Year-to-date load factor rose to 61.5 pct from 57.4 pct. Reuter | USAIR GROUP <U> MARCH LOAD FACTOR RISES |
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