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New Jersey Bell wholly owned by Bell Atlantic Corp said the Federal Communications Commission will allow it to market its network service with equipment provided by Bell Atlanticom Systems an unregulated company also wholly owned by Bell Atlantic. New Jersey Bell said the FCC ruling gives it interim relief from current accounting restrictions until the companys plans for complying with new accounting rules are approved by the FCC. New Jersey Bell said the FCC ordered January one that telephone companies could offer equipment as long as they complied with new accounting rules that separate costs of regulated service from unregulated activities. New Jersey Bell said the joint marketing program between it and Bell Atlanticom Systems will apply initially to New Jersey Bells largest business customers. Reuter | BELL ATLANTIC <BEL> UNIT HAS MARKETING APPROVAL |
A senior Abu Dhabi oil official said in remarks published today the emirate largest producer in the United Arab Emirates (UAE) was succeeding in marketing its crude oil without breaching OPEC accords. Khalaf al-Oteiba Marketing Director at the Abu Dhabi National Oil Co (ADNOC) told the companys Petroleum Community magazine ADNOC was also keen to keep good customer relations. The company will maintain its dialogue with and care for its customers in accordance with market conditions...And take necessary steps to guarantee marketing its production he said. The present oil marketing policy of ADNOC is based on adherence to OPEC decisions of December 1986 to control production and establish a new pricing system in an attempt to stabilize the market he added. OPEC agreed last December to limit production to 15.8 mln bpd and return to fixed prices averaging 18 dlrs a barrel. Oteiba said stabilization of the oil market in the future depended on how much discipline OPEC showed. Oteiba said last year when world oil prices dropped was ADNOCs most difficult ever but a practical and flexible pricing policy was implemented to relate to the changed market environment. He said crude oil sales last year jumped to an average 609000 bpd of which 73 pct was exported. Refined product sales totalled eight mln metric tonnes of which 67 pct was exported. In 1985 ADNOC marketed a total of 476000 bpd of crude oil and 7.2 mln tonnes of refined products. Reuter | ABU DHABI MARKETING SAID NOT BREACHING OPEC PACT |
The Pratt and Whitney Government Products Division of United Technologies Corp <UTX> is being awarded a 502.1 mln dlr increase to an Air Force contract for alternate fighter engine and support equipment the Defense Department said. It said the contract which funds work related to F100-FW-220 engines combines purchases for the U.S. Air Force Korea Singapore Thailand Egypt and the Netherlands under the Foreign Military Sales program. Work on the contract is expected to be completed December 1988 the department said. Reuter | UNITED TECHNOLOGIES GETS 502.1 MLN DLR CONTRACT |
Lockheed Corps Lockheed Missiles and Space Co is being awarded a 275 mln dlr modification to a Navy contract for development and production of Trident II missiles the Defense Department said. It said work on the contract is expected to be completed in March 1990. Reuter | LOCKHEED <LK> UNIT GETS 275 MLN DLR CONTRACT |
Core-Mark International Inc said it was vigorously addressing its problems and would correct them in the near term. The packaged goods distributor said that its statement followed a number of apparently confusing statements concerning the company that may have given rise to uncertainty as to the companys current operative condition and future. Core-Mark previously said that former chief executive D.E. Gillespie resigned due to family problems and declining health and added that negotiations for sale of his majority stake to two unnamed investor groups were a growing possibility. Core-Marks interim chief executive Anthony Regensburg said the sudden earnings deterioration in late fourth quarter took everyone by surprise and directors along with management are urgently addressing these problems. Speculation as to the companys future has been less than helpful and has provoked and heightened anxieties and diverted managements time and attention to address them Regensburg said in a statement. Reuter | CORE-MARK <CMK.TO> SEES PROBLEM CORRECTION |
Shr 61 cts vs 55 cts Net 695252 vs 633329 Loans 125.2 mln vs 89.9 mln Deposits 209.2 mln vs 172.9 mln Assets 245.5 mln vs 207.5 mln Reuter | RHNB CORP <RHNB> 1ST QTR NET |
Kraft Inc said it completed the acquisition of Holleb and Co a foodservice distributor based in Bensenville Ill. Terms were withheld. It said Hollebs 1986 sales were about 85 mln dlrs. Reuter | KRAFT <KRA> COMPLETES ACQUISITION |
Shr 1.12 dlrs vs 1.27 dlrs Net 15000000 vs 11900000 Avg shrs 9642403 vs 8322245 Loans 4.57 billion vs 3.29 billion Deposits 6.80 billion vs 4.75 billion Assets 7.75 billion vs 5.37 billion Reuter | FIRST OF AMERICA BANK INC <FABK.O> 1ST QTR NET |
Shr loss 10 cts vs loss 19 cts Net loss 1348000 vs loss 2410000 Revs 11.2 mln vs 22.3 mln Acg shrs 13.8 mln vs 12.9 mln Reuter | LOMAK PETROLEUM INC <LOMK.O> YEAR LOSS |
U.S. SELLS 3-MO BILLS AT 5.98 PCT, STOP 5.99 PCT, 6-MO 6.08 PCT, STOP 6.10 PCT |
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Newmont Mining Corp held 5250376 Du Pont Co shares or about 2.2 pct of those outstanding at the end of 1986 down from the 5970141 shares or 2.5 pct of those outstanding it held a year earlier Newmonts annual report said. --Corrects March 30 item to show holdings decreased. Reuter | NEWMONT <NEM> STAKE IN DU PONT <DD> DECLINES |
Shr 35 cts vs 29 cts Net 3732000 vs 3131000 Assets 1.09 billion vs 861.2 mln Deposits 817.7 mlnvs 705.7 mln Loans 704.1 mln vs 553.4 mln Note: 1986 results restated to reflect acquisition of United Banks Corp. Reuter | BANKEAST CORP <BENH.O> 1ST QTR NET |
General Motors Corp is being awarded a 97 mln dlr Air Force contract for 176 turboprop engines in three separate designs the Defense Department said. It said the contract which combines purchases for the U.S. Navy the U.S. Air Force Reserves Japan and Norway under the Foreign Military Sales program is expected to be completed in December 1987. Reuter | GENERAL MOTORS <GM> GETS 97 MLN DLR CONTRACT |
Shr 41 cts vs 31 cts Net 4568656 vs 3461674 Assets 1.7 billion vs 1.4 billion Deposits 1.46 billion vs 1.19 billion Note: 1986 results restated to reflect a 100 pct stock dividend. Reuter | UST CORP <UTSB.O> 1ST QTR NET |
Domestic sales of farm wheel tractors in March declined 9.2 pct to 7654 units from 8434 in the same year-ago period the Farm and Industrial Equipment Institute said. Year to date it said sales declined 16.9 pct to 18003 from 21665 in the same 1986 period. It said in the two-wheel drive 40 horsepower and under segment 4747 vehicles were sold in March compared to 5473 a year ago. In the 40 and under to 100 horsepower 2238 vehicles were sold up from 1995 the previous March. Reuter | FARM EQUIPMENT SALES DECLINE IN MARCH |
Shr 28 cts vs 29 cts Net 10978000 vs 11916000 Revs 153.5 mln vs 163.4 mln NOTE: Full name is Central Illinois Public Service Co Per-share results reflect payment of preferred dividends Reuter | CENTRAL ILL PUBLIC SERVICE <CIP> 1ST QTR NET |
Versar Inc said it received a four year contract from the U.S. Air Force with a maximum value of 9.5 mln dlrs for carrying out work including radioactive and toxic contamination studies. Versar said work under the contract with the Air Force Occupational Health Laboratory Aerospace Medical Division at Brooks Air Force Base in Texas will be done in and around air force installations worldwide. Reuter | VERSAR <VSR> HAS U.S. AIR FORCE CONTRACT |
Brascan Ltd said it planned to redeem on May 15 all outstanding 1981 series A preferred shares at 26 dlrs a share plus accrued and unpaid dividends. Reuter | BRASCAN LTD <BRS.A.> TO REDEEM PREFERREDS |
Thera-Care Inc said it agreed to acquire Cushing and Associates of Glendale Calif. in exchange for 1480000 Thera-Care shares. Reuter | <THERA-CARE INC> TO ACQUIRE CUSHING |
Interco Inc said its shareholders and those of Lane Co approved a merger of the two companies at special meetings. As previously announced Lanes shareholders will receive 1.5 shares of Interco common stock for each share of Lane stock held. Interco said the merger becomes effective April 14. Reuter | INTERCO <ISS> COMPLETES LANE<LANE> ACQUISITION |
HMO America Inc said it signed a letter of intent with Mount Sinai Medical Center here and an affiliate providing that all of its common and preferred stock be acquired by a new not-for-profit company to be controlled by Mount Sinai and other Chicago area not-for-profit hospitals who may elect to participate in the acquisition. The form of the transaction has not yet been determined it said. According to terms HMOs shareholders would receive a combination of cash and debt securities to be issued by the buyer in exchange for their outstanding shares of common and preferred stock it said. The amount of cash per share has not yet been determined it added. Arrangements for financing have not yet been made and there can be no assurance that any financing will be received HMO said. Closing of the proposed transaction if it is completed is expected on or before November 2 1987 it said. Reuter | HMO AMERICA <HMOA> AGREES TO BE ACQUIRED |
Shr five cts vs five cts prior qtr Pay May 15 Record April 22 Reuter | EVEREST AND JENNINGS <EJ.A> QTLY DIVIDEND |
Shr 15 cts vs 15 cts prior qtr Pay May 18 Record April 27 Reuter | PS GROUP INC <PSG> QTLY DIVIDEND |
Shares of Dome Petroleum Ltd posted their biggest gain in months in the U.S. and Canada as stock markets foresaw a takeover tug-of-war beginning for the debt-heavy company. Dome rose 1/4 to 1-1/8 on the American Stock Exchange and gained 31 cents to 1.44 Canadian dlrs on the Toronto Stock Exchange where it was the most active stock. It rose as high as 1.50 dlrs in Toronto during the day. In recent months Dome has normally moved by only a few cents per day. TransCanada PipeLines yesterday announced a 4.3 billion dlr Canadian (3.22 billion U.S.) bid for all of Domes assets but Dome which is based in Calgary Alberta said it is also still talking with two other companies which it refuses to identify. Market analysts today said the other two firms are believed to be foreign oil companies noting that TransCanada yesterday stressed that its bid is a Canadian solution to the financial difficulties of Dome Petroleum. The talk is about Conoco which is controlled by DuPont <DD> and Atlantic Richfield Co <ARC> which sold its Canadian interest in 1975 and could be getting back in said Wilf Gobert of Peters and Co Ltd. David Bryson of Moss Lawson and Co also noted that British Petroleum PLC <BP> is mentioned as a possible buyer despite BPs 70 U.S. dlr per share bid two weeks ago for the 45 percent of Standard Oil Co <SRD> it does not already own. Calgary-based independent analyst James Hamilton has said in recent reports that Amoco Corp <AN> has also been in talks with Dome. Representatives of Atlantic Richfield British Petroleum Conoco and Amoco were not immediately available for comment. Gobert characterized the market action in Dome today as awfully optimistic given TransCanadas offer to give current Dome shareholders stock in a new subsidiary which it valued at 1.10 dlrs Canadian per common share. Under the offer current Dome common and preferred shareholders would own 20 pct of the new subsidiary which would own and operate all Domes former assets. TransCanada would own 80 pct. However Bryson said the market may be looking at the potential for shares in a publicly-traded subsidiary. The TransCanada offer has quite a bit of upside potential for Dome he said. Gobert said he believes the TransCanada offer is at the upper end of what I thought somebody would pay for Dome. The TransCanada proposal would pay Domes creditors 3.87 billion Canadian dlrs (2.90 billion U.S. dlrs) with another one billion Canadian dlrs (750 mln U.S. dlrs) available to secured creditors if the Dome subsidiary earns profits above a certain level. TransCanada would not detail the profit level. Dome currently is seeking to restructure about six billion Canadian dlrs (4.5 billion U.S. dlrs) in debt which it took on several years ago when oil prices were high and the company wanted to expand. There has been speculation that Domes assets are capable of supporting debt of three to four billion dlrs so on that basis the TransCanada offer would be at the upper end of that Gobert said. Domes debt troubles have often obscured the fact that it is a major player in the Canadian oil and gas field. It holds reserves of about 176 mln barrels of crude oil and 3.9 billion cubic feet of natural gas. The company also owns or has an interest in 14.2 mln acres of oil and gas exploration land in the province of Alberta the heart of Canadas oil industry. Dome owns or has an interest in a total of 36.1 mln acres of land across Canada. The company also has tax credits of about 2.5 billion dlrs Canadian (1.9 billion dlrs U.S.). It reported a 1986 loss of 2.2 billion dlrs (1.65 billion dlrs U.S.) believed to be the largest ever by a Canadian company. Reuter | DOME <DMP> BENEFITS FROM TAKEOVER SPECULATION |
The U.S. Treasury said its weekly auction of three-month bills produced an average rate of 5.98 pct with a 6.08 pct rate on six-month bills. These rates compared with averages of 5.53 pct for the three- and 5.63 pct for the six-month bills sold last week. The bond-equivalent yield on three-month bills was 6.17 pct. Accepted bids ranges from 5.92 to 5.99 pct and 60 pct of the bids at the high or stopout rate were taken. For six months the yield was 6.38 pct and the bids ranged from 5.98 pct to 6.10 pct with 48 pct of the bids accepted. The Treasury said it received 25.99 billion dlrs of bids for the three-month bills including 1.2 billion dlrs in non-competitive bids from the public. It accepted 6.6 billion dlrs of bids including 2.1 billion dlrs from the Federal Reserve and 180 mln dlrs from foreign and international monetary authorities. Some 24.7 billion dlrs in bids for six-month bills were received including 832 mln dlrs in non-competitives. The Treasury accepted 6.6 billion dlrs including 1.8 billion dlrs from the Fed and 1.2 billion dlrs from foreign and international authorities. The average price for the three-month bills was 98.488 and prices ranged from 98.504 to 98.486. The average price for the six-months bills was 96.926 and prices ranged from 96.977 to 96.916. The average yield on the three-month bills was the highest since 5.99 pct on June 30 1986. The average yield on the six-month bills was the highest since 6.13 pct on June 23 1986. Reuter | U.S. BILL AUCTION RATES AVERAGE 5.98, 6.08 PCT |
Andover Group a Virginia general partnership said it mailed proxies soliciting votes for a slate of nominees to HBO and Cos board of directors. Last week HBO and Co sent a letter urging shareholders against the proxies. Andover said HBO has consistently refused to provide it with internal financial information it considers essential to formulate an acquisition offer. If its nominees are elected Andover said it will make a proposal to buy HBO on terms and conditions to be determined at that time. The annual meeting is scheduled for April 30. Reuter | ANDOVER WAGES HBO <HBOC> PROXY WAR |
United Technologies Corp said it joined with two other companies to form a partnership in proposing a defense system for the U.S. Army. United Technologies said it joined forces with FMC Corp <FMC> and <British Aerospace> to form <United Aerospace Defense Systems>. Together they proposed the Tracked Rapier defense system to meet Army requirements for defending American divisions in Europe from low flying helicopters and tactical aircraft. Reuter | UNITED TECHNOLOGIES <UTX> IN JOINT PACT |
A shareholder group led by Far Hills N.J. investor Natalie Koether said it raised its stake in Computer Memories Inc to 573300 shares or 5.1 pct of the total outstanding from 542000 shares or 4.8 pct. In a filing with the Securities and Exchange Commission the group which includes Sun Equities Corp an investment firm said it bought a net 31300 Computer Memories common shares since March 31 at prices ranging from three to 3-5/16 dlrs a share for capital appreciation. The group had earlier abandoned plans to seek control of the company and lowered its stake to less than five pct. Reuter | GROUP RAISES COMPUTER MEMORIES <CMIN> STAKE |
Industrial Equity (Pacific) Ltd told the Securities and Exchange Commission it has acquired 72600 shares of McGill Manufacturing Co Inc or 5.1 pct of the total outstanding common stock. Industrial Equity which is principally owned by Brierley Investments Ltd a publicly held New Zealand firm said it bought the stake for 2.3 mln dlrs for investment purposes. It said it may add to its stake or sell some or all of it but has no plans to seek control of the company. Reuter | HONG KONG FIRM HAS 5.1 PCT OF MCGILL <MGLL.O> |
Ramada Inc is raising 100 mln dlrs through an offering of subordinated notes due 1999 yielding 11.703 pct said sole manager Salomon Brothers Inc. The notes have an 11-5/8 pct coupon and were priced at 99.50 Salomon said. Non-callable for three years and non-refundable for five the issue is rated B-2 by Moodys Investors Service Inc and B-minus by Standard and Poors Corp. Reuter | RAMADA <RAM> SELLS SUBORDINATED NOTES |
Shr 49 cts vs 50 cts Net 3922533 vs 3979580 Note: Full name Montgomery Street Income Securities Inc. Reuter | MONTGOMERY STREET INCOME <MTS> 1ST QTR NET |
Northair Mines Ltd said it would oppose Nor-Quest Resources Incs earlier reported proposed takeover bid with every means at its disposal saying this attempt at a property grab is an insult to the intelligence of our shareholders. It said Nor-Quests offer to swap one Nor-Quest share plus one dlr for two Northair shares would seriously dilute Northairs equity in its Willa mine in British Columbia. Our company is in sound financial position and production financing can be readily arranged when required. Were not looking for a partner and if we were it certainly wouldnt be these guys Northair said. Reuter | NORTHAIR <NRM.TO> OPPOSING NORQUEST <NQRLF> BID |
Vista Chemical Co said it plans to file a registration statement with the Securities and Exchange Commission in early covering the sale of about 4.5 mln shares of its common stock to the public. The shares will be sold by institutional investors who partially financed the company upon its formation in 1984 and by the trustee of its savings and investment plan on behalf of employee participants. None of the shares will be sold by the company it said. Reuter | VISTA CHEMICAL <VC> IN PUBLIC OFFERING |
Harmon Industries said it signed a contract worth more than three mln dlrs with the National Railroad Passenger Corp (Amtrak). Harmon Industries said the contract includes the design engineering manufacturing delivery and system integration for signalling equipment along Amtraks 55-mile Philadelphia to Atlantic City N.J. line. Reuter | HARMON INDUSTRIES <HRMN.O> IN PACT WITH AMTRAK |
CFM International a joint venture of <SNECMA> of France and General Electric Co said it received an order for its CFM56-5 engines worth 320 mln dlrs from <GPA Airbus 320 Group Ltd Shannon Ireland. The company said the engines will power 25 twin-engine Airbus Industrie A320 aircraft. Reuter | GE <GE> VENTURE WINS JET ENGINE ORDER |
<Medizone International Inc> said it expects the Food and Drug Administration to soon approve the companys application to begin limited tests of its potential therapy against AIDS using a combination of ozone and oxygen. The company said that once it receives FDA approval 20 patients with AIDS-related complex will start the treatment at Mount Sinai Medical Center in New York. Dr Joseph Latino director of research at Medizone said the therapy which he likened to a process uses a combination of oxygen and ozone injected into a patients owns blood outside of the body and then reinfused back into the body. We are guardedly optimistic that this treatment may work said Latino who said the process has been used to treat viral illneses including AIDS in Europe with varying degrees of success. He said ozone can kill viruses and is used to kill viruses in waste water treatments. He said the treatment should not be compared to inhaling ozone which is toxic. Latino said the company is prepared to fund the trial which will cost about 250000 dlrs. Reuter | MEDIZONE SAYS AIDS THERAPY TO BE TESTED |
Textron Inc said E. Paul Casey resigned as vice-chairman and a director to pursue other interests. Casey assumed his duties at Textron in October 1986 following acquisition of Ex-Cell-O Corp by Textron. Casey was formerly chairman president and chief executive of Ex-Cell-O. Reuter | TEXTRON <TXT> VICE-CHAIRMAN RESIGNS |
The Securities and Exchange Commission said it began a disciplinary review of two men who were previously convicted of fraud for violations of U.S. securities laws. The SEC said Robert and Albert DElia were convicted following allegations that they traded upon information misappropriated from a financial printer in 1980 and 1981. The DElias were officers and shareholders of Rad Securities Inc a Philadelphia broker-dealer. A hearing will be scheduled at a later date the SEC said. Reuter | SEC TO PROBE TWO CONVICTED OF SECURITIES FRAUD |
Texas Air Corps Eastern Airlines said it completed its previously announced plan to sell its travel agency automation system SystemOne Direct Access Inc and its computer and communications support unit EAL Automation Systems Inc to SystemOne Corp a wholly-owned subsidiary of Texas Air Corp. Reuter | TEXAS AIR <TEX> UNIT COMPLETES SYSTEM SALE |
National Gypsum Co a unit of Aancor Holdings Inc said it is offering 300 mln dlrs of priority senior subordinated notes due 1997 with an 11-3/8 pct coupon and par pricing. Non-redeemable for five years the issue is rated B-2 by Moodys Investors Service Inc and B by Standard and Poors Corp. A sinking fund starts in 1994 to retire 75 pct of the notes by maturity. Proceeds will be used to terminate the companys current revolving credit facility. Goldman Sachs and Co and Merrill Lynch Capital Markets underwrote the deal. Reuter | AANCOR UNIT SELLS PRIORITY SUBORDINATED NOTES |
Moodys Investors Service Inc said it downgraded 110 mln dlrs of debt of Michigan General Corp. Reduced were the companys 10-3/4 pct senior subordinated debentures of 1998 to Caa from B-3. Moodys cited Michigans ongoing losses which have impaired liquidity weakened financial flexibility and lessened the likelihood for operating performance to improve. Michigans principal business lumber and housebuilding products sales operates in a cyclical and highly competitve environment so that even debt restructuring would probably not improve earnings Moodys pointed out. Reuter | MOODY'S DOWNGRADES MICHIGAN GENERAL <MGL> DEBT |
Shr 68 cts vs 68 cts Net 53.9 mln vs 53.2 mln Assets 26.5 billion vs 22.2 billion Loans 15.7 billion vs vs 13.3 billion Deposits 13.8 billion vs vs 11.6 billion Reuter | NCNB CORP <NCB> 1ST QTR NET |
Air Canada the state-owned airline said it plans to begin flights to Egypt next year following a bilateral air trade agreement signed between the Egyptian and Canadian governments. Egypt has a healthy passenger and cargo air market in which Air Canada can be a powerful competitor executive vice-president Roger Linder said. The airline said it would like to link the service with one of its European stops. It said it plans further expansion with destinations in the Middle East and Asia and a trans-Pacific route from Canada to the Far East. Reuter | AIR CANADA SETS SERVICE TO EGYPT |
Fidelity International Ltd a Bermuda-based investment advisory firm and an affiliated investment firm American Values III N.V. said they have acquired 208000 share of Blasius Industries Inc. In a filing with the Securities and Exchange Commission the group said it bought the stake which amounts to 5.3 pct of the total outstanding common stock to acquire an equity interest in the company for investment purposes. The group said it may raise its stake or sell some or all of it and has no plans to seek control of the company. Reuter | INVESTMENT FIRM HAS 5.3 PCT OF BLASIUS <BLAS.O> |
Energy Minister Marcel Masse announced a series of conferences will be held across Canada to review the countrys policy options in the energy sector. It is planned as a comprehensive review of Canadian energy issues an examination of the present energy situation an attempt to identify and evaluate our options for the future Masse said in a speech at a luncheon in Toronto that was made available here. The meetings which will be chaired by Tom Kierans President of McLeod Young Weir Ltd will begin in June in Calgary Alberta and conclude in December in Montreal. The energy minister did not elaborate on what if any federal legislation would result from the process. A final report would be issued at the end of the conference sessions and Masse said he would be in a position to respond to the report at that time. In his speech however Masse said he would prefer to see the governments energy policies retain a market base but added government intervention was sometimes necessary. I believe most of us accept the importance of allowing the market to function with the greatest possible freedom and flexibility he said. However because of intervention of all kinds a market as perfect as we would like to have does not exist in this imperfect world Masses said. Reuter | CANADA MINISTER SETS REVIEW OF ENERGY OPTIONS |
Conoco a unit of DuPont Co said it is not interested in buying Dome Petroleum Ltd <DMP> the Canadian oil company which has said it is in discussions with two unidentified companies. To my knowledge there is no interest on our part Conoco spokesman Sondra Fowler said. Houston-based Conoco has been mentioned in market speculation on the identity of the two companies. Yesterday Dome also received a 4.3 billion Canadian dlr offer for all its assets from TransCanada PipeLines Ltd <TMP>. Reuter | DUPONT'S <DD> CONOCO SAYS NO INTEREST IN DOME |
First Family Group Inc said sales for March increased 27 pct over a year ago the same month to 4.4 mln dlrs from 3.5 mln dlrs. The company also reported third quarter sales increased 35 pct to 14.5 mln dlrs from 10.6 mln dlrs. First Family Group also reported sales for the first nine months of fiscal 1987. It said sales were 54.5 mln dlrs compared to 52.7 mln dlrs a year ago. Reuter | FIRST FAMILY GROUP <FFAM> SALES INCREASE |
Bechtel said it signed aa contract with the Lewis County Public Utility District and started preliminary design of the 100-mln-dlr Cowlitz Falls Hydroelectric Project in Washington. The 70-megawatt project will generate about 250 mln kilowatt hours annually serving the 21000 residents of Lewis. Bechtel said it will use anew power generation concept called hydrocombine which may save 15 pct on the cost of the project. Reuter | BECHTEL INC SETS UTLITY DESIGN CONTRACT |
Shr seven cts vs 24 cts Net 1114000 vs 3676000 Revs 43.6 mln vs 41.2 mln Nine mths Shr 25 cts vs 64 cts Net 3952000 vs 9614000 Revs 118.6 mln vs 119.9 mln Reuter | ISC SYSTEMS <ISCS.O> 3RD QTR MARCH 27 NET |
Slater Industries Inc said it planned a 15 mln dlr modernization of its Slater Steels Corp Fort Wayne specialty bar division in Indiana. It said the modernization would involve replacement of the existing bar mill with a high-speed quick-change continuous mill. The new facility will lower labor and mill costs and enhance product quality and range Slater said. Completion date of the new mill was undisclosed. Reuter | SLATER <SSI.A.TO> PLANS U.S. MODERNIZATION |
Adams-Russell Co Inc said it agreed to acquire cable television systems serving about 7000 customers in New York State from Sammons Communications Inc for undisclosed terms. Adams-Russell said the systems operate in Wellsville Amity Andover Scio Willing Belmont Milo Jerusalem Benton and Penn Yan N.Y. Reuter | ADAMS-RUSSELL <AAR> TO ACQUIRE CABLE SYSTEMS |
Shr 27 cts vs shr 18 cts Net 477000 vs 305000 Reuter | INDEPENDENT BANK CORP <IBCP.O> 1ST QTR NET |
<Forber and Platel Inc> said it filed a demand for arbitration against Medi-Rx America Inc that seeks damages of more than five mln dlrs. The company said that its demand alleges breach of contract tortious interference with contractual relationships and fraud. The company said it signed a contract with Medi-Rx to sell mail order prescription services and prescribed medical products for Medi-Rx. The company said that Medi-Rx violated terms of the contract and failed to pay commissions as provided for under the agreement. Reuter | MEDI-RX <MDRX.O> NAMED IN ARBRITRATION REQUEST |
Gulf Canada Corp said it acquired a 25 pct working interest in the Gulf of Suez oil concession for undisclosed terms. The company said its agreement with operator Conoco Hurghada Inc and Hispanoil covered the 168374-acre East Hurghada offshore concession. It said a 15.6 mln U.S. dlr four-well program was planned for 1987. After the acquisition which is subject to Egyptian government approval working interests in the Hurghada block will be Conoco Hurghada at 45 pct Hispanoil 30 pct and Gulf Canada the balance. Reuter | GULF CANADA <GOC> ACQUIRES SUEZ OIL STAKE |
Convergent Technologies Inc said it expects to report in the first quarter a loss more than twice the size of the 4.8-mln-dlr loss reported in the fourth quarter of 1986. Convergent reported a first quarter 1986 profit of 2100000 dlrs or five cts per share. The company said results declined in the quarter both in its traditional OEM business and its business systems group. The anticipated loss reflects lower than expected operating margins start-up costs for new product manufacturing and higher than planned expenses. Reuter | CONVERGENT TECHNOLOGIES <CVGT.O> SEES QTR LOSS |
G. Heileman Brewing Co Inc said it agreed to acquire the trademarks of Philadelphia-based C. Schmidt which produces a line of malt beverage products including Schmidt Rheingold Duquesne and Ortlieb. In 1986 Schmidt sold about 1.6 mln barrels. Under terms of the proposed agreement Heileman said it will enter a trademark transfer agreement which provides for royalties to be paid to Schmidt over a specified period of time on beverage products produced under the C. Schmidt labels. Reuter | HEILEMAN <GHB> ACQUIRING C. SCHMIDT TRADEMARKS |
Texaco Inc told securities analysts at a meeting today that any settlement offers to Pennzoil Co <PZL> would now be far less than what it offered before according to analysts who attended the meeting. The message was they were far less likely to settle following the bankruptcy filing said Richard Pzena of Sanford C. Bernstein and Co who attended the meeting. Texaco yesterday filed Chapter 11 bankrupcty to protect itself from the 10.3 billion dlr judgement awarded to Pennzoil for Texacos illegal takeover of Getty Oil Co. Texaco spokesmen said they could not comment on the analysts meeting. The companys bankruptcy filing freed Texaco from posting a bond for the judgment pending appeal of the case in Texas Courts. Pennzoil said it would oppose the Chapter 11 filing. They are ready and willing to talk settlement said one analyst who attended the Texaco meeting but declined to be named. But a settlement would be for less now he added. The analysts a number of whom said they were recommending Texaco said the stock was so cheap that it might open up the company up to a takeover bid. Texaco declined 3-1/8 to close at 28-1/2 today. Pzena said company officials were asked at the meeting if it would agree to a takeover but offered no comment in reply. He said the company said that takeover talks were not being held. It would make a lot of sense for Royal Dutch/Shell <RD> or Exxon Corp <XON> to go out and do it Pzena said. But they wouldnt make a hostile offer. This thing has opened them up to a possible acquisition said Alan Edgar of Prudential Bache Capital Funding in Dallas. Theres a lot of volume (in their stock) and that tells me someones messing around he added. Texaco was the most actively traded issue on the New York Stock Exchange with just under 13 mln shares changing hands. I wouldnt rule anything out right now said John Olson an analyst with Drexel Burnham Lambert Inc. Pennzoils stock also on the NYSEs most active list fell 15-1/4 points to close at 77. Many analysts said the bankruptcy filing was unfavorable to Pennzoil. Reuter | TEXACO <TX> LESS WILLING TO SETTLE - ANALYSTS |
INTERCO Inc said its shareholders and shareholders of the Lane Co <LANE.O> approved the merger of the two companies. In the merger Lanes stockholders will receive 1.5 shares of INTERCO common stock for each outstanding share of Lane common stock INTERCO said. Reuter | INTERCO <ISS> SHAREHOLDERS APPROVE MERGER |
Shr 30 cts vs 25 cts Net 10.5 mln vs 8697589 Revs 71.9 mln vs 64.9 mln Reuter | JOHN H. HARLAND CO <JH> 1ST QTR NET |
PacifiCorp said on May 15 it is redeeming 2.4 mln shares of its preferred stock. The company said it is fully redeeming its 2.29-dlr no par serial preferred and its 2.48-dlr no par serial preferred and partially redeeming its 9.15 pct serial preferred. The 993383 shares of 2.29-dlr will be redeemed at 26.72 dlrs per share plus accumulated dividend of 0.0565 dlrs. The 976352 shares of 2.48-dlr preferred will be redeemed at 26.24 dlrs per share plus dividend of 0.0612 dlrs. Pacificorp will redeem 87.5 pct of its 500000 shares of 9.15 pct preferred at 105.78 dlrs plus 0.2257 dlrs dividend. Reuter | PACIFICORP <PPW> REDEEMS PREFERRED STOCK |
Shr 32 cts vs 38 cts Qtrly div 35 cts vs 35 cts prior Net 731055 vs 865117 NOTE: dividend payable May 20 to shareholders of record April 24. Reuter | <TRAVELERS REALTY INCOME INVESTORS> 1ST QTR NET |
Dotronix Inc said it agreed in principle to buy Video Monitors Inc a privately-held company. In payment for the acquisition Dotronix will issue 312500 unregistered shares of its common stock notes worth 1.8 mln dlrs payable over three years and about 70000 dlrs in cash. Dotronix said Video Monitors sales for the fiscal year ended April 30 1986 were 7.6 mln dlrs. Dotronix had income of 659663 dlrs on sales of 7.1 mln dlrs for the six months ended Dec. 31 1986 as previously reported. Reuter | DOTRONIX INC <DOTX.O> TO BUY <VIDEO MONITORS> |
Period ended Feb 28 Shr loss 34 cts vs loss 58 cts Net loss 1252000 vs 2145000 Revs 4539000 vs 3504000 SIX MTHS Shr loss 66 cts vs loss 86 cts Net loss 2428000 vs loss 3163000 Revs 9033000 vs 8192000 Reuter | DEVELCON ELECTRONICS LTD <DLCFF> 2ND QTR LOSS |
Advanced Institutional Management Software Inc said it renegotiated its bank credit facility from a demand note to a 10-year term note with a 25-year payment schedule. Reuter | ADVANCED INSTITUTIONAL <AIMS.O> IN NEW FACILITY |
Genetic Laboratories Inc said it set up a wholly owned subsidiary that will encorporate its reconstructive plastic surgery products. Genetic Laboratories said one of the reasons for the move was to facilitate the sale or merger of the business with other companies specializing in plastic surgery. Reuter | GENETIC LABORATORIES <GENL.O> SETS UP UNIT |
Dresser Industries Inc said the U.S. Court of Appeals ruled against it in its appeal of a 1985 judgment in favor of Hughes Tool Co <HT> concerning a patent infringement. The case alleged that Dresser infringed on a Hughes patent regarding a drill bit sealing device the company said. However Dresser said the Appellate Court set aside the royalty rate of 25 pct on selected bits as being arbitarary and returned the case to the district court level to ascertain a new rate. Reuter | DRESSER INDUSTRIES <DI> LOSES PATENT APPEAL |
U.S. oil traders said Texaco Incs filing for protection under the Chapter 11 bankruptcy code is adding uncertainty to an already skittish oil market but opinions are divided on the impact to the market. The filing is holding up wet barrel trading today said one trader. Everyone is talking about it assessing their companys situations in relation to Texaco he added. Some traders said companies that deal with Texaco are concerned about whether they will receive payment or supplies under the bankruptcy filing. However others were less worried. The first paid will be the trading community and those connected with Texaco in the shipping industry one New York trader said. If Texaco doesnt get crude supplies it cant run its refineries so its other assets would not be worth anything he added. Texaco filed for protection under Chapter 11 of the U.S. bankruptcy code yesterday after failing to reach a settlement with Pennzoil on an 11 billion dlrs court award for illegally interferring with Pennzoils proposed purchase of Getty Oil Co. However others were less worried. The first paid will be the trading community and those connected with Texaco in the shipping industry one New York trader said. If Texaco doesnt get crude supplies it cant run its refineries so its other assets would not be worth anything he added. Texaco filed for protection under Chapter 11 of the U.S. bankruptcy code yesterday after failing to reach a settlement with Pennzoil on an 11 billion dlrs court award for illegally interferring with Pennzoils proposed purchase of Getty Oil Co. There is some reluctance to trade with Texaco but no great change said another trader adding that traders are tending toward prudence in their dealings with the company. Traders are assessing whether to require cash prepayment or letters of credit or to continue to trade as usual with Texaco on an open line basis he said. Another trader however described todays activity as business as usual adding that traders feel more secure because no liens can be put on Texacos assets while it is in bankruptcy. Traders said there was no apparent effect of the Texaco filing on crude futures trading although they said the exchange might lower Texacos position limit and require higher margins for Texacos trades. New York Mercantile Exchange President Rosemary McFadden declined to comment on Texacos futures trading saying that is is proprietary information. McFadden did say however that as a matter of procedure it is possible the exchange can lower allowable position limits or increase margin requirements for companies that are in financial trouble. Reuter | TEXACO FILING ADDS UNCERTAINTY IN OIL MARKET |
ERC International said it will file in the first quarter for a public offering of 25 mln dlrs principal amount convertible subordinated debentures due 2012. It said it will file a registration statement with the Securities and Exchange Commission. Proceeds will be used to repay existing debt with the balance to be used in its acquisition program and for additional working capital the company said. Reuter | ERC INTERNATIONAL <ERC> TO OFFER DEBENTURES |
Shr 1.18 dlrs vs 1.15 dlrs Net 19.7 mln vs 19.3 mln Assets 10.05 billion vs 9.62 billion Deposits 8.56 billion vs 8.04 billion Net loans 6.95 billion vs 6.71 billion Reuter | VALLEY NATIONAL CORP <VNCP.O> 1ST QTR NET |
Qtly dividend 73 cts vs 73 cts Pay June 10 Record May 15 Reuter | OTTER TAIL POWER CO <OTTR.O> SETS DIVIDEND |
Merrill Lynch and Co Inc <MER> subsidiary seeking to take over of Borg-Warner Corp said it could realize a 30 mln dlr fee for its efforts whether or not the deal which it values at 4.7 billion dlrs succeeds. In a filing with the Securities and Exchange Commission Merrill Lynch Capital Partners Inc said it would receive a 30 mln dlr fee from the surviving company for acting as dealer manager of the merger after the Borg-Warner deal is completed. But it said it could also receive a break-up fee of 30 mln dlrs if the deal fails for reasons which include another party holding more than 40 pct of its stock or tendering for 50 pct. The 30 mln dlr fee is among the highest set down in any tender offer agreement either in compensation for dealer manager services or for break-up of the deal. Merrill Lynch Capital Markets backed by a group of investors it organized has launched a 48.50 dlr a share tender offer for Borg-Warner for 90 pct of its stock. The companys board has approved the plan which was intended to thwart an unsolicited offer from GAF Corp. Borg-Warner also agreed to redeem all outstanding Series A preferred shares and to pay off on all options at a 48.50 dlr a share exercise price before the merger is effective it said. Merrill Lynch said its representatives discussed a possible leveraged buyout with Borg-Warner as early as last December. At that time Merrill Lynch told the company it would consider a 43 dlr a share tender offer in cash and securities if the Borg-Warner board approved it said. On Feb 24 it said it was told the company had decided against a buyout. But talks were revived after GAF launched its 46 dlr a share proposal on March 31 Merrill Lynch said. Unlike its earlier proposal Merrill Lynch said Borg-Warner management was asked not to take part in the new deal and it was conditioned upon payment of the fees. In addition to its fees Merrill Lynch said it will also get up to 17 mln dlrs from Borg-Warner to cover its expenses in the tender offer. Merrill Lynch said it would continue operating Borg-Warner as a subsidiary with its current officers keeping their positions. But for flexibility purposes Merrill Lynch said it is considering redistributing Borg-Warners assets to a number of subsdiaries of an entity it created to carry out the merger. All in all Merrill Lynch estimated that there would be 130 mln dlrs in fees and expenses connected with the deal. Another 250 mln dlrs will be needed to repay certain debt of Borg-Warner Merrill Lynch said. To finance the deal Merrill Lynch said it expects to borrow 3.5 billion dlrs from a group of banks and sell 100 mln dlrs of common stock of the new company sell 100 mln dlrs of non-voting preferred stock of the new company to Merrill Lynch and Co sell up to 650 mln dlrs of subordinated notes to Merrill Lynch and Co and sell to the public 204 mln dlrs of subordinated discount debentures. GAF has raised its offer to 48 dlrs a share cash. Reuter | MERRILL TO GET 30 MLN DLR FEE IN BORG <BOR> DEAL |
United Food and Commercial Workers International Union said its locals currently bargaining with Supermarkets General Corp were prepared to demand additional job security in light of the recent takeover attempt by the Dart Group Corp. The union said it represented more than 10000 Pathmark workers. Reuter | SUPERMARKETS GENERAL <SGL> UNIONS WANT SECURITY |
Paradyne Corp said it signed a contract with Van Waters and Rogers Inc a subsidiary of UNIVAR Corp to supply a data communications network. The contract valued at 1.5 mln dlrs will include Paradyne modems multiplexers ANALYSIS network management system and NetCare services Paradyne said. Reuter | PARADYNE <PDN> IN PACT WITH UNIVAR <UVX> UNIT |
President Reagans chief of staff said a decision on a new U.S.-Soviet summit could emerge from Secretary of State George Shultz Moscow talks with Soviet Foreign Minister Eduard Shevardnadze. Chief of Staff Howard Baker noted Reagans invitation to Kremlin chief Mikhail Gorbachev to visit the United States made at their first summit in Geneva in November 1985 was still on the table. I would not be surprised to see that subject discussed by the secretary of state and the Soviet Foreign Minister Baker told reporters. I would not be surprised to see some sort of decision result from those conversations. Reuter | WHITE HOUSE SAYS SHULTZ TRIP MAY LEAD TO SUMMIT |
Pennzoil Co frustrated by Texaco Incs <TX> decision to seek bankruptcy protection from its 10.3 billion dlr court judgment is preparing to launch a new assault that may include investigating assets Texaco transferred from its corporate parent to subsidiaries legal experts said. Joe Jamail a Houston lawyer for Pennzoil said the company would file a challenge to Texacos bankruptcy petition sometime this week accusing the oil giant of bad faith and ignoring its fiduciary responsibilities to shareholders. The action is almost certain to ignite a new round of debate between the two companies stemming from Texacos 1984 acquisition of Getty Oil Co for 10.2 billion dlrs a company Pennzoil believed it had an agreement to buy. Were going to be doing a lot of things they may not like Jamail said referring to the bankruptcy court proceeding in New York. Some legal experts suggested that a mud-slinging battle in bankruptcy court between the two companies might also provoke Congressional interest in whether the bankruptcy code is too lenient because it permits a profitable firm to freeze debts. Texaco which has assets totaling 34.9 billion dlrs sought protection Sunday under Chapter 11 of the federal bankruptcy code rather than risk having a Texas appeals court order the company to post a security bond for the entire amount of the Pennzoil judgment. Gerald Treece dean of the South Texas College of Law and an observer of the litigation during the past three years said Pennzoil was unlikely to prove Texaco is not qualified to be in bankruptcy court simply because the giant oil company has a positive cash flow and assets that far exceed its liabilities. But Pennzoil may be successful in raising the issue of whether Texaco improperly transferred certain assets from the corporate parent into subsidiaries unaffected by the bankruptcy filing Treece said. Pennzoils lawyers are going to be like dogs barking at the heels of Texaco wherever they go Treece said I think people are going to be surprised at the level of intensity that Pennzoil will use in searching for hidden Texaco assets. Jamail said Pennzoil objected to Texacos transfer of an oil refinery and chemical plant in Port Arthur Texas from its corporate parent to a subsidiary on Dec. 9 1985 one day before a state court judge entered the record jury award against Texaco. Jamail suggested that the refinery and chemical plant valued at about 1.1 billion dlrs were deliberately placed out of reach of the Texas jury judgment. But Richard Lieb an attorney with Kronish Lieb Weiner and Hellman in New York said Texaco could elect to place additional subsidiaries into bankruptcy if necessary. In the petition filed Sunday only Texaco Inc the corporate parent and two financial subsidiaries were included in the bankruptcy case. The businesses account for only about four pct of Texacos total revenues. Mickey Sheinfeld a Houston lawyer who represented Continental Airlines in an historic bankruptcy case that set aside labor union agreements said the track record of the bitter Texaco-Pennzoil struggle indicates that the two companies could spend two or three years fighting in bankruptcy court. The courts have been very interested in the issue of good-faith bankruptcy filings. This may prove to be a landmark case in developing that issue Sheinfeld said. Texaco he said was following the example set by Manville Corp A.H. Robins Co and other firms that fell into bankruptcy expressly to avoid paying large legal judgments. Bankruptcy laws were relaxed in 1978 so that a company no longer needed to prove it was insolvent in order to seek protection from creditors. Texaco lawyers bristle at the suggestion that the company entered bankruptcy to spite Pennzoil. Gibson Gayle a Texaco lawyer said the company had every right to seek protection from creditors and that Texaco had embarked on an internal restructuring plan in December 1984 that required transferring various assets among subsidiaries. But Treece said the high profile of the Texaco bankruptcy case may also put the company under an uncomfortable spotlight. What seems fair and what may be legally correct may be two entirely different things Treece said. This may be a signal to Congress to do something about tightening the bankruptcy laws. You are either a chicken or a duck just like you are either bankrupt or youre not. Reuter | PENNZOIL <PZL> PLOTS STRATEGY TO FIGHT TEXACO |
The latest British opinion poll gave Margaret Thatchers Conservative party a huge 17 point lead over the opposition -- the highest rating yet for the prime minister who is seeking a record third consecutive term. The poll in todays Sun popular tabloid showed the Conservatives could win a solid majority of 125 seats in Parliament in the next general election. Thatcher must call an election by June 1988 but is widely expected to call it this year. The survey gave the Conservatives 44 pct of the votes left-wing Labour and the centrist Liberal-Social Democratic Alliance 27 pct each. Reuter | LATEST BRITISH POLL HAS THATCHER STILL WAY AHEAD |
Texaco Inc and Pennzoil Co are still far apart on a settlement of their 10.3 billion dlrs dispute but both sides are still willing to settle executives from both companies said. Pennzoil chairman J. Hugh Liedtke on the MacNeil/Lehrer News Hour said Pennzoil had offered to settle the dispute along the lines suggested by Wall Street analysts - something in the range of three to five billion dlrs - but Texaco Inc president James Kinnear said it was the first time he heard the three to five billion dlrs figure. Kinnear on the television news program said Pennzoil had talked about four to five billion dlrs previously. Both executives who were taped in separate interviews each accused the other of irresponsible actions in the ongoing legal battle which involves Texacos 1984 takeover of Getty Oil Co. Yesterday Texaco filed for protection under Chapter 11 of the U.S. Bankruptcy code stating it was unable to continue its business because of the legal fight. Liedtke said Pennzoil is prepared to litigate the matter as long as it takes to bring the case to a final conclusion. Lietke said he thought it would take about 18 months to two years to conclude the case. Asked if chance of a settlement were out the window Liedtke replied Ive never thought that was the case. I always believed this could be settled. But it will never be settled as long as Texaco has the position that it has that either you will settle with us on our basis or we will hold our breath till we die. But Kinnear said we offered a big reasonable settlement. Kinnear also seemed to confirm remarks made at an analysts meeting earlier today where Texaco said it would only settle the matter for far less than what it offered before. The offers we made yesterday wont be repeated tomorrow Kinnear said. Kinnear charged that Pennzoil was using extortionary pressure to deny us the ability to conduct our business. He said that pressure forced the company into its Chapter 11 filing. But he added he still hoped the dispute would be settled. Reuter | TEXACO <TX> PENNZOIL <PZL> WIDE APART ON ACCORD |
Chrysler Corps Chrysler Motors Corp said its Chrysler Training Corp non-profit organization sold the name and assets of its Motech Auto Mechanic and Body Shop Schools to O/E Corp of Troy Mich. The sale price was not disclosed. Under the Internal Revenue Service code proceeds from the sale of Motech must be donated to another tax-exempt nonprofit organization. Chrysler did not reveal the name of the group that received the proceeds. Reuter | CHRYSLER <C> NON-PROFIT GROUP SELLS UNIT |
Shr 63 cts vs 47 cts Net 16.8 mln vs 12.4 mln Sales 248.6 mln vs 233.3 mln Reuter | POTLATCH CORP <PCH> 1ST QTR NET |
Dense-Pac Microsystems Inc said it named James Turner is chief executive officer. He replaces Anthony Macedo who was acting on an interim basis and remains a director. Turner had been president of Titan Severe Environment Systems Co. Reuter | DENSE-PAC MICROSYSTMS <DPAC.O> NAMES CEO |
Diceon Electronics Inc said it has entered an agreement in principal to buy closely-held Symtron Corp in a stock exchange transaction. Under the pact Diceon would exchange 300000 shares of its stock for all of Symtrons shares. The acquisition which is subject to board approval and a definitive agreement is expected to be concluded during May. Diceon said Symtron management would continue running the business which would become a wholly-owned subsidiary. Symtron had 1986 sales of about 20 mln dlrs. Reuter | DICEON ELECTRONICS <DICN.O> TO BUY SYMTRON CORP |
Advanced Genetic Sciences Inc said it received final authorization for field testing of its genetically altered bacteria Frostban developed to protect fruit and nut crops from frost damage. The company said its state permit by the California Department of Food and Agriculture is the final clearance needed ending three and one-half years of laboratory and greenhouse testing and various government approvals. A public interest group concerned about the environmental safety of the test tried repeatedly to block government approval of the testing. Itss gratifying when government relies on scientific expertise in reaching its decision and rejects the rhetoric that has delayed this risk-free field trial for too long said Advanced Genetic Sciences President and Chief Executive Officer Joseph Bouckaert. The company said it expects to begin the testing on strawberry plants covering one-fifth of an acre later this spring. The test site is near Brentwood California. Reuter | ADVANCED GENETIC SCIENCES <AGSI.O> FROSTBAN TEST |
Ecuador will resume limited crude output next week to fill up storage tanks as a first step to pump oil to a Colombian pipeline on May one the state Ecuadorean Petroleum Corp (CEPE) said. CEPE manager Carlos Romoleroux told reporters that Ecuador would begin pumping an unspecified amount of crude in northeastern jungle oilfields at the end of next week in preparation to send the oil through a new pipeline link-up to neighbouring Colombia. Oil production in Ecuador was halted on March five when an earthquake damaged the countrys main pipeline from Lago Agrio at the heart of the Ecuadorean jungle oilfields to the pacific port of Balao. It will take at least until the end of July to repair the pipeline and return output to normal levels. The country was pumping between 245000 bpd and 250000 bpd before the tremor. To resume limited output in the meantime Ecuador is constructing a 26 mile pipeline linkup capable of carrying 55000 bpd from Lago Agrio to Puerto Colon the starting point of Colombias pipeline to the Pacific port of Tumaco. The original target date to resume limited crude output was May eight the scheduled date for the inauguration of the Lago Agrio to Puerto Colon pipeline an energy ministry spokesman said. Reuter | ECUADOR SAYS WILL RESUME LIMITED OIL PRODUCTION |
New Zealands consumer price index CPI which measures the rate of inflation rose 2.3 pct in the quarter ended March 31 against an 8.9 pct rise in the December 1986 quarter and a 2.3 pct rise in the March 1986 quarter the Statistics Department said. For the 12 months ended March 1987 the CPI rose 18.3 pct against 18.2 pct in 12 months ended December 1986 and 13.0 pct in the 12 months ended March 1986 it said in a statement. Nearly half the increase in the latest quarterly index was contributed by the housing group the department said. The December quarter was significantly affected by the introduction of a 10 pct value added goods and services tax GST in October 1986 it added. However some GST charges not measured in the December 1986 quarter influenced the latest March quarterly figure it said. This is because of an unavoidable lag in price information particularly on housing used cars and insurance on household contents it added. Reuter | NEW ZEALAND CPI RISES 2.3 PCT IN MARCH QUARTER |
The latest British opinion poll gave Margaret Thatchers Conservatives a 17-point lead over the opposition -- the highest rating yet for the Prime Minister who is seeking a record third consecutive term. The poll in todays Sun tabloid showed the Conservatives could win a majority of 125 seats in Parliament in the next general elections. Thatcher must call the elections by June 1988 but is expected to do so this year. The survey conducted between April 10 and 12 among 1000 adults eligible to vote gave the Conservatives 44 pct and left-wing Labour and the centrist Liberal-Social Democratic Alliance 27 pct each. | LATEST POLL PUTS THATCHER'S CONSERVATIVES AHEAD |
The operations in Colombia of Texas Petroleum Co a subsidiary of Texaco Inc will not be affected by the legal dispute with the Pennzoil Co its manager John Buttle said in a communique. The company yesterday filed protection under Chapter 11 of the Bankruptcy code. He said Texaco Inc did not operate outside the United States and operations of Texas Petroleum here are unaffected. Texas Petroleum Co which posted a seven mln dlr profit in 1986 in Colombia exploits in association with state-run oil company Ecopetrol some crude and natural gas wells. Reuter | COLOMBIA'S TEXACO <TX> OPERATIONS NOT AFFECTED |
Bank of Japan intervenes to support dollar after Tokyo opening, dealers |
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The Bank of Japan intervened in Tokyo to buy dollars just after the market opened dealers said. The dollar opened at 142.05 yen against 142.15/25 in New York and 142.50 at the close here yesterday. The bank stepped into the market amid selling pressure from interbank dealers dealers said. REUTER | BANK OF JAPAN INTERVENES IN TOKYO AFTER OPENING |
Japanese Finance Minister Kiichi Miyazawa told a press conference he expects the U.S. Trade deficit to eventually start reflecting economic fundamentals which should influence exchange rates. The minister was not referring to the U.S. Trade data to be released in Washington later today. Miyazawa also said he told major industrial nations when he was in Washington last week that present exchange rates are not necessarily good. He had said earlier in Washington that current exchange rates were within levels implied in the February Paris currency accord. REUTER | MIYAZAWA SEES EVENTUAL LOWER U.S. TRADE DEFICIT |
Japan March wholesale prices rise 0.2 pct (0.1 pct February drop) - official |
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No formal talks have been scheduled yet among companies involved in a controversial proposal to merge two groups seeking to enter Japans international telecommunications sector an official from one group said. Nothing has been firmed up yet said an official at <International Digital Communications Planning Inc> (IDC) one of the groups set up last year to study competing against <Kokusai Denshin Denwa Co Ltd> which monopolises the sector. Britains Cable and Wireless Plc <CAWL.L> which holds a 20 pct share in IDC has opposed plans to merge with rival group <International Telecom Japan Inc>. Under the plan backed by the Post and Telecommunications Ministry Cable and Wireless and U.S.-based <Pacific Telesis International Inc> would become core companies in the merged firm with shares equal to those of the six major Japanese core companies and seats on the board of directors. Britain angry over what it feels are moves to restrict Cable and Wireless role in the sector views the issue as a test case. The IDC official declined to specify what was holding up the talks. A spokesman for C. Itoh and Co Ltd <CITT.T> which holds 20 pct of IDC said a meeting may be held later this week. REUTER | NO TALKS SET ON PROPOSED JAPAN TELECOM MERGER |
Members of the Chicago Mercantile Exchange (CME) rejected a membership petition to ban dual trading in Standard and Poors 500 stock index futures and options on futures the exchange said. Members voted 1272 to 525 against a proposal to prohibit members from filling customer orders and trading for their own account known as dual trading in the S and P contracts. Instead of an outright ban on dual trading the CME board adopted new rules which include limitations on dual trading in stock index products that will now be sent to the Commodity Futures Trading Commission for approval. The new rules will limit the use of the top step in the S and P 500 futures and options pits where the most active contract is traded to brokers filling customer orders only. They may not transact business for their own account. The CME last week hired a new compliance officer and increased the staff of the market surveillance department to enhance security and regulation of the exchange. The rule changes also require brokers in S and P futures and options to manually record to the nearest minute the time of all personal trades in stock index products. Finally the board voted to impose strict limits on trading within broker groups applicable to the entire exchange and redefined broker groups to more completely cover all forms of associations. A percentage limitation on the personal trading of a broker group member with other members of the group and a percentage limitation on filling orders between members of the same broker group will be set. John Sandner CME board chairman said in a statement the original petition would have adversely affected liquidity discriminated against every broker and deprived all customers of their right to choose a broker who is a dual trader. REUTER | CME MEMBERS REJECT PETITION TO BAN DUAL TRADING |
About 2000 sugar cane planters marched to Port-au-Prince to protest against the closure of Haitis largest sugar mill and second biggest employer. The Haitian American Sugar Company closed on Friday because of a huge surplus of unsold sugar. The firm said Haiti has been flooded with smuggled refined and unrefined sugar from the Dominican Republic and refined U.S. Sugar from Miami. The closure idled 3500 factory workers and left 30000 small cane planters with no outlet for their cane. The protesters blamed Finance Minister Lesly Delatour for the closure saying his policies have hurt Haitian businesses. REUTER | HAITIAN CANE PLANTERS PROTEST SUGAR MILL CLOSURE |
China a major aluminium importer will open the first phase of its biggest aluminium plant on October 1 the China Daily said. The first phase of the plant located in Qinghai province will have an annual capacity of 100000 tonnes of ingots half the capacity of the finished plant. It will turn out 4000 tonnes in 1987 the paper said but gave no more details. Construction of the 510 mln yuan plant began in April 1984. Customs figures show China imported 266241 tonnes of aluminium and alloy in 1986 down from 487862 in 1985. REUTER | CHINA TO OPEN FIRST PHASE OF LARGE ALUMINIUM PLANT |
Taiwan imported about 210000 tonnes of South African maize between January 1 and April 13 the joint committee of local maize importers said. Under a three-year agreement signed last year South Africa will export 600000 tonnes of maize a year to Taiwan. A committee spokesman told Reuters the rest of this years quota will be shipped during the rest of 1987. REUTER | TAIWAN IMPORTS 210,000 TONNES SOUTH AFRICAN MAIZE |
A 50 pct cut in the import tariff for soybeans should help boost 1987 U.S. Soybean exports to Taiwan a spokesman for the joint committee of soybean importers told Reuters. He said the cut to 3.5 from seven pct was approved by the cabinet yesterday and would go into effect within a week. The cut will encourage local importers to increase 1987 soybean imports to 1.9 mln tonnes from 1.74 mln last year he said. The previous target for 1987 was 1.81 tonnes. Taiwan imports more than 90 pct of its soybeans from the U.S. And the rest from South America. The spokesman said the increase in imports from the U.S. Is in line with government efforts to reduce Taiwans trade surplus with Washington which rose to 3.61 billion U.S. Dlrs in the first quarter of 1987 from 2.78 billion a year ago. The tariff cut is very helpful for American suppliers (who want) to boost their exports to Taiwan Steve Chen country director of the American Soybean Association told Reuters. REUTER | TAIWAN LIKELY TO BUY MORE U.S. SOYBEANS |
China will be short of sorghum in 1987 for the sixth successive year because high production costs and low profits discourage farmers from growing it the China Daily Business Weekly said. It said sorghum output in calendar 1986 was 5.34 mln tonnes down five pct from the 1985 level and prices on the free market rose in January to 0.42 yuan per kg up 14 pct on January 1986. It said sorghum acreage in 1987 is six pct lower than in 1986. Sorghum accounts for 40 pct of the raw materials needed by Chinas breweries it added but gave no more details. REUTER | CHINA FACES EXTENDED SORGHUM SHORTAGE |
Bank of Japan intervening to support dollar against yen, dealers |
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Japans broadly defined money supply average of M-2 plus certificate of deposits (CD) rose a preliminary 9.0 pct in March from a year earlier compared with an 8.8 pct rise in February the Bank of Japan said. The seasonally adjusted March average of M-2 plus CDs rose 0.8 pct from February when it rose an identical 0.8 pct from a month earlier it said. Unadjusted M-2 plus CDs stood at an average 343600 billion yen in March compared with 336015 billion in February. REUTER | JAPAN MARCH MONEY SUPPLY RISES 9.0 PCT |
Traders in financial centres in Asia generally welcomed the first U.S. Night session of futures trading which starts in Chicago on April 30. Traders in Japan Sydney and Hong Kong said they expected the move to bring benefits but traders and bankers in Singapore said it posed a serious threat to the Singapore International Monetary Exchange (SIMEX). The Commodity Futures Trading Commission (CFTC) in Washington gave unanimous approval to the Chicago Board of Trades (CBT) proposals on Tuesday. The CBT plans to offer futures on U.S. Treasury notes and bonds and options on those futures from 1800 to 2100 hrs Chicago time (2300 to 0200 gmt) on Mondays to Thursdays. The sessions would mark the start of the trading day which would end at the present close of business the next day. The proposed hours are designed to coincide with the busiest morning trading hours in Japan. But Andrea Corcoran chief of CFTCs division of trading and markets said on Tuesday she expected the evening sessions to attract primarily U.S. Firms looking for additional overnight protection. Traders in Tokyo said the night sessions were expected to help expand U.S. Treasury bond trading volume and enlarge daily fluctuation ranges in Tokyo. They said Japanese financial institutions were very interested in using overseas futures markets but were waiting for finance ministry approval to do so. Approval is expected before the end of the month. The foreign branches of financial institutions can already trade futures but in practice make little use of them. But traders said the timing of the launch was poor as it is in a ten day period when Tokyo has three public holidays. The Tokyo traders said because of the holidays little interest in night trading could be expected until after May 5. Tokyo bond managers said also that participation could be limited by a lack of experienced futures traders in Tokyo. The Sydney Futures Exchange (SFE) hoped the four-hour trading overlap with the new CBT hours would boost activity in Sydneys eurodollar and U.S. Treasury bond contracts spokesman Stephen Calder said. The eurodollar contracts are linked to the London International Financial Futures Exchange (LIFFE). Calder said turnover in both contracts had been disappointingly low since they were introduced last October. He said the CBT move would broaden arbitraging opportunities for SFE traders. With a late evening lead from Chicago theres also more chance that people will deal here in the afternoon he said. But in Singapore news of the CBT move was not welcomed. A senior executive of a Japanese securities firm operating in Singapore told Reuters: Expanding global links between futures markets mean that SIMEX must add Chicago and London and Sydney to its list of rivals. LIFFE could cut further into the SIMEX contract with a U.S treasury bond contract that can be off-set on the CBOT the Singapore-based Japanese trader said. Such a contract is expected later this year he said. Other SIMEX traders said local interest in the Sydney treasury bond contract might be boosted if the Sydney exchange established a three-way link with Chicago and London. LIFFE has signed a memorandum of understanding with CBOT for such a link. If this link-up materializes most traders are likely to by-pass SIMEX said one trader. Hong Kong commodity traders welcomed the CFTCs decision though they added that local investors would have been more interested in financial futures. I think it is very good because the move will help us to increase our market share here said Joseph Tan manager of <Bache Securities (HK) Ltd>. He said that Bache like many other local units of U.S. Commodity houses had been participating in Chicagos rregular hours of trading for a long time and would like to extend its business. Local Hong Kong houses also welcomed the move but a spokesman for Shun Loong Co said investors would be more interested if stock index or currency futures were available. Futures contracts in the local Hang Seng index have become increasingly popular since they were introduced to the market in May 1986. (See ECRA for Spotlight Index) REUTER | ASIA GENERALLY WELCOMES U.S. NIGHT FUTURES TRADING |
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