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TCF Banking and Savings F.A. said it filed with the Federal Savings and Loan Association to issue up to 100 mln dlrs of subordinated capital notes. Proceeds will be used to increase the banks regulatory capital and for general corporate purposes TCF said. Reuter | TCF BANKING <TCFC> FILES TO OFFER NOTES |
Shr one ct vs 14 cts Qtly div 11-1/2 cts vs 11-1/2 cts prior Net 411000 vs 5299000 Revs 88.5 mln vs 108.4 mln NOTE: Dividend pay May 18 record May One. Reuter | CHURCH'S FRIED CHICKEN INC <CHU> 1ST QTR NET |
<Sony Corp> of Japan plans to launch a 15-mln-dlr project here soon to produce video and music cassette tapes mainly for export Chira Phanupong head of Thailands Board of Investment said. Chira told reporters Sony will likely receive investment tax incentives from his agency which is in charge of promoting foreign investment. The BoI chief said most small and medium Japanese firms view Thailand as the best country in South East Asia to which they could shift their high-cost production facilities in the wake of the strong yen. BoI officials said the number of new Japanese investment projects seeking promotional privileges from the Thai government increased substantially in the past year as the stronge yen forced more Japanese companies to look for cheaper production bases abroad. <Sharp Corp> recently also obtained BoI tax incentives to invest in a project here to produce microwave ovens and refrigerators for the Thai market and for export. Chira said a big Japanese electronic firm is negotiating with his agency for Thai tax incentives for its project to manufacture audio equipment and other electrical appliances here. He declined to name the Japanese company but said its proposed project will provide employment for 50000 Thais in five years. REUTER | SONY PLANS VIDEO AND TAPE PRODUCTION IN THAILAND |
General Motors Corp believes it must become competitive with other with auto manufacturers in the next five years or cease building its cars in the U.S. a published report said. The Detroit Free Press quoted GM industrial relations vice-president Alfred Warren as saying weve got about three to five years to either get our act together or get out of the business. People cannot believe we could stop building automobiles in the United States he said adding Im sure the electronics people felt the same way. Warren who will be GMs chief negotiator this summer in labor bargaining on a new contract covering 380000 U.S. hourly workers said there will be a greater loss of jobs if GMs share of the U.S. car market continues to decline. And he added the United Automobile Workers union must resolve its concerns over job security with GM because its jobs are at General Motors...not somewhere else. Warren said GM may have been foolish in the last recession to agree to bring back laid-off UAW members to its parts-making operations because today we would be better off had we not brought workers back. Reuter | GM <GM> MAY CEASE U.S. CAR ASSEMBLY - LABOR CHIEF |
Alliance Well Service Inc said not all of its five principal lending banks have agreed yet to the proposed settlement of Alliance debt that the company announced April 15. The company said some important points still need to be negotiated in the agreement as well. Under the agreement all 29.3 mln dlrs of its bank debt plus related interest would be eliminated the banks would recieve common stock and the company would not challenge the banks foreclosure of its 119 drilling rigs. Reuter | ALLIANCE WELL <AWSI.O> SAYS NOT ALL BANKS AGREE |
Southwest Bancorp said through yesterday it had receioved 53571 shares of its 2.50 dlr cumulative convertible preferred stock in response to its offer to exchange 11 common shares for each of the 108710 shares of the preferred. The company said the offer which was to have expired today has been extended until May One. Reuter | SOUTHWEST BANCORP <SWB> HAS HALF OF PREFERRED |
Goldome FSB said it has filed with the New York Superintendent of Banks to convert to a state stock savings bank from a federal mutual savings bank as part of its plan to go public. The company said it plans to first make a subscription offiering to depositors and a direct community offering in its major New York and Florida markets and elsewhere were it has significant subsidiary operations. Any shares remaining would be sold in a public offering through underwriters led by Merrill Lynch and Co Inc <MER>. Goldome has 14.6 billion dlrs in assets. Reuter | <GOLDOMEXFSB> SEEKS TO GO PUBLIC |
Argentinas controversial new financing package should be completed quickly thanks to a wide range of innovative options in the deal said Jorge Gonzalez undersecretary for external debt in the economics ministry. The deal offers banks a lucrative fee if they sign early and an exit bond provision allowing banks to sell as much as five mln dlrs of their existing loans. Gonzalez also disclosed that banks will have the choice of lending up to one mln dlrs in the form of a bearer bond. We expect to complete the package very quickly he said in a telephone interview. By providing their share of the 1.55 billion dlrs in new money being raised for Argentina via an easily tradable bearer bond instead of a participation in the syndicated loan smaller banks could avoid time-consuming legal paperwork. The bonds currently dubbed alternative participation instruments would carry the same terms as the syndicated loan - a 12-year term five years grace and an interest rate margin of 7/8 pct over Eurodollar rates Gonzalez said. The idea of the exit bond is that a creditor bank may exchange up to five mln dlrs of existing debt for a new tradeable bond that bears below-market interest rates. In return for accepting a lower yield the amount of debt converted will be subtracted from the banks exposure for purposes of calculating its contribution to future new loans. Gonzalez said it was difficult to say how many banks would take up the exit bonds because no such instrument has been offered before. On paper however Argentinas lending syndicate could shrink dramatically because over 100 of the countrys 350 creditors have exposure of less than five mln dlrs. Details of the exit bonds are still being finalized Gonzalez added. Argentina has pressed hard for a streamlining of the lending process because it has bitter memories of its last package which was agreed with the Citibank-led steering committee in December 1984 but not signed until August 1985. Gonzalez praised the committee for its cooperation in the latest negotiations and said the resulting deal which was announced by the banks on Wednesday should put Argentina on the road to meeting its economic goals. We believe this is a package that will help Argentine to continue on the track it has elected to follow - stable growth and equilibrium in the external accounts he said. Asked what role the Reagan Administration had played in the final stages of the talks Gonzalez said it had lent practical support. He did not elaborate but bankers said the U.S. had pressed for an agreement after Economics Minister Juan Sourrouille threatened at last weeks spring meeting in Washington of the International Monetary Fund to break off talks unless banks stopped blocking a deal. The specter of Argentina emulating Brazil and suspending interest payments haunted policymakers and bankers alike who have long feared the emergence of a debtors cartel. That was a feeling among people on the committee one banker said. As a result bankers agreed to give Argentina the same interest rate margin as Mexico 13/16 pct on the rescheduling of 30 billion dlrs of debt even though they knew this would raise the ire of the Philippines and Venezuela which paid 7/8 pct on recent rescheduling packages. Asked about the angry reaction of the Manila government which promptly said Wednesday that it would demand a spread of 13/16 pct Gonzalez said this was a matter between the Philippines and the banks. Reuter | ARGENTINA SEES QUICK COMPLETION OF DEBT DEAL |
Shr 1.31 dlrs vs 1.03 dlrs Net 123 mln vs 95 mln Revs 831 mln vs 764 mln Avg shrs 94 mln vs 91 mln 12 mths Shr 4.38 dlrs vs 3.68 dlrs Net 409 mln vs 331 mln Revs 3.14 billion vs 2.77 billion Avg shrs 93 mln vs 90 mln Reuter | DOMINION RESOURCES INC <D> 1ST QTR NET |
H.B. Fuller Co said shareholders at the annual meeting approved an increase in authorized common shares to 40 mln from 15 mln and a requirement that certain accumulations of its voting securities by subject to prior shareholder approval. In addition it said shareholders approved the elimination of the personal liability of directors in legal proceedings alleging a breach of fiduciary duty. Reuter | H.B. FULLER <FULL.O> HOLDERS APPROVE SHARE RISE |
Diamond Shamrock Corp said it has set April 30 as the record date for the spinoff of its refining and marketing operations Diamond R and M Inc and shares will be mailed around May 10. Shareholders will receive one Diamond R and M share for each four Diamond Shamrock shares held. Reuter | DIAMOND SHAMROCK <DIA> SETS DATES FOR SPINOFF |
Ford Motor Co said it is developing an aluminum space frame for its Probe V concept car using extruded stretch-formed aluminum that could lead to new techniques for building production cars in the future. It said the frame would reduce vehicle weight and cost while maintaining structural integrity and crashworthiness. The frame has fewer parts than conventional steel frames Ford said. The company said the lighter weight would allow smaller powertrains and suspensions further reducing weight and improving fuel economy. Ford said in addition extrusion dies cost 1000 to 12000 dlrs each compared with hundreds of thousands of dollars for steel stamping dies and using extruded aluminum the number of welds in a car could be reduced to about 40 from over 2000. Reuter | FORD <F> DEVELOPING ALUMINUM CAR FRAME |
James River Corp said it will rebuild its Number Three paper machine at the Wauna pulp and paper mill near Clatskanie Ore. at a cost of about 31.8 mln dlrs to significantly improve newsprint quality and expand its uncoated groundwood specialties paper product line. It said completion is expected in late 1988. Reuter | JAMES RIVER <JR> TO REBUILD PAPER MACHINE |
The Bank of Italy said market operators had taken up 1111 billion lire of indexed government discount certificates (CTs) out of an offer of 2500 billion lire. The Bank took up 600 billion lire and 789 billion were unassigned. The seven-year certificates carry a first-year coupon payable April 21 1988 of 4.86 pct identical to that on the preceeding issue of CTs in March. They were offered at a base price of 72 lire down from 74 previously for an effective annual yield on the first coupon of 10.15 pct against 9.66 in March. Yields after the first year will be linked to rates on 12-month Treasury bills. | ITALIAN DISCOUNT CERTIFICATE ISSUE UNDERSUBSCRIBED |
The Commerce Department said on that insurance and freight costs for imported goods of 1.45 billion dlrs were included in the February trade deficit of 15.1 billion dlrs reported on Tuesday. The department is required by law to wait 48 hours after the initial trade report to issue a second report on a customs value basis which eliminates the freight and insurance charges from the cost of imports. Private-sector economists emphasized that the Commerce Department was not revising down the deficit by 1.45 billion dlrs but simply presenting the figures on a different basis. A report in the Washington Post caused a stir in the foreign exchanges today because it gave the impression dealers said that the underlying trade deficit for February had been revised downward. The Commerce department would like to have the law changed to permit it to report both sets of figures simultaneously. My feeling is the second one is a better report but theres legislation that requires us to delay it two days said Robert Ortner Commerce undersecretary for economic affairs. But this has been going on for a long time and no one pays any attention to the second figure. The 15.1 billion dlr February trade deficit compared with a revised January deficit of 12.3 billion dlrs. The law requiring a 48-hour delay in publishing the monthly trade figure excluding freight and insurance was passed in 1979. Reportedly the feeling was the first figure which includes customs freight and insurance allowed a better comparison with other countries that reported their trade balances on the same basis. The second figure which would always be lower by deducting freight and insurance presents the deficit in a more favorable light for the Reagan administration. Ortner said he would like to see the law changed to eliminate the 48-hour delay in reporting the two figures. Were considering it he said Its one of those dinosaur laws and I think its time has come. The second figure which would always be lower by deducting freight and insurance presents the deficit in a more favorable light for the Reagan administration. Ortner said he would like to see the law changed to eliminate the 48-hour delay in reporting the two figures. Were considering it he said Its one of those dinosaur laws and I think its time has come. Reuter | U.S. COMMERCE TRADE REPORT OMITS FREIGHT COSTS |
Industrial Equity (Pacific) Ltd a Hong Kong investment firm said it raised its stake in CalMat Co to 3712860 shares or 12.2 pct of the total outstanding common stock from 3312460 shares or 10.9 pct. In a filing with the Securities and Exchange Commission Industrial Equity which is principally owned by Brierley Investments Ltd a publicly held New Zealand company said it bought 400400 Calmat common shares between April 9 and 13 for a total of 10.5 mln dlrs. Reuter | HONG KONG FIRM UPS CALMAT <CZM> STAKE TO 12 PCT |
The Farny R. Wurlitzer Foundation told the Securities and Exchange Commission it cut its stake in Wurlitzer Co to 89000 shares or 4.98 pct of the total outstanding common stock from 125000 shares or 7.0 pct. The foundation said it sold 36000 Wurlitzer common shares between March 13 and 30 at prices ranging from 3.25 to 2.375 dlrs a share. As long as the foundations stake in Wurlitzer is below five pct it is not required to report further dealings it has in the companys common stock. Reuter | FOUNDATION CUTS WURLITZER <WUR> STAKE |
Two affiliated investment firms and funds they control told the Securities and Exchange Commission they raised their Orient Express Hotels Inc stake to 1663800 shares or 17.0 pct of the total from 1560800 or 15.9 pct. The firms Boston-based FMR Corp and Bermuda-based Fidelity International Ltd said they bought a combined 103000 Orient Express common shares from March 12 to April 8 at prices ranging from 3.05 to 3.55 dlrs each. Reuter | INVESTMENT FIRMS RAISE ORIENT EXPRESS<OEH> STAKE |
Hospital Corp of America said its management believes the 47 dlr per share acquisition offer it received from Charles R. Miller Richard E. Ragsdale and Richard L. Scott is not in the best interest of shareholders and it does not plan to meet with the individuals. The company said its board considered information on the three and their bid and Given the lack of any demonstrated ability on the part of these individuals to consummate an acquisition of this magnitude the board decided it was not necessary to take any action on their proposal at this time. Hospital Corp said The benefits of the companys ongoing repositioning program are already being realized and we will continue to explore appropriate alternatives for enhancing shareholder value. Reuter | HOSPITAL CORP <HCA> BOARD AGAINST BUYOUT BID |
Prime Minister Yasuhiro Nakasones unpopular sales tax plan suffered another dent today when members of his ruling Liberal Democratic Party (LDP) called for time to be taken in dealing with the proposed sales tax party officials said. The call came in a resolution adopted by a group of some 150 LDP parliamentarians and secretaries acting on behalf of their parliamentarians at a meeting at the LDP headquarters they said. The MPs represented seemed to Account for one-third of LDP MPs. The group is an LDP voluntary organisation called the Parliamentarians Research Society for Reestablishment of Finances claiming a membership of about 300 MPs they said. Meanwhle Nakasone this evening hinted that his party might be ready to accept some modification to the five-pct sales tax proposal after the fiscal 1987 state budget plan was passed by parliament. The LDP suffered a setback in last Sundays local elections because of the controvertial tax plan. The result also undermined Nakasones prestige giving rise to a possibility that he might be forced out of office before October 30 when he is supposed to step down. REUTER | NAKASONE'S SALES TAX PLAN SUFFERS ANOTHER DENT |
Kaydon Corp said president Richard A. Shantz has been named chairman succeeding Glenn W. Bailey who remains on the board. The company said Lawrence J. Cawley who had been president of the Bearing Division has ben named to succeed Shantz as Kaydon president. Reuter | KAYDON <KDON.O> NAMES NEW CHAIRMAN |
Affiliated Bankshares of Colorado Inc said president and chief operating officer Kent O. Olin has been named to the added post of chief executive succeeding Leo Hill who plans to retire at the end of the year. Reuter | AFFILIATED BANKSHARES <AFBK.O> NAMES CEO |
Moodys Investors Service Inc said it may downgrade Todd Shipyards Corps 110 mln dlrs of debt. It cited Toods report of significant and unanticipated losses on a commercial contract and continuing uncertainty over the U.S. Navys DDG-51 Destroyer program which Moodys termed an important business for Todds viability. Moodys said it would assess the companys future financing flexibility in light of current negotiations of existing credit and loan agreements. Todd carries B-2 senior subordinated notes due 1996 and B-3 3.08 dlr convertible exchangeable preferred stock. Reuter | TODD <TOD> DEBT MAY BE DOWNGRADED BY MOODY'S |
Calny Inc said M. Hal Taylor has been named poresident and chief operating officer succeeding Marvin Hart who had been serving as president on an interim basis and remains chairman and chief executive. The company said Taylor who joined the company in January has also been named to the board. Reuter | CALNY <CLNY.O> NAMES NEW PRESIDENT |
GoodMark Foods Inc said president and chief executive officer Ron E. Doggett will assume the added post of chairman effective June One when H. Hawkins Bradley retires. It said Bradley will remain on the board and as a company consultant. Reuter | GOODMARK FOODS <GDMK.O> NAMES NEW CHAIRMAN |
El Pollo Asado Inc said executive vice president and chief operating officer Richard J. Peterson has been named president succeeding Richard B. Lipson who remains chairman and chief executive. The company also said chief financial officer Ronald A. Paradis has been named to the added posts of executive vice president and director. On the board he replaces Maria A. Lipson. Reuter | EL POLLO ASADO <EPAI.O> NAMES PRESIDENT |
Citizens Savings Bank FSB said chairman and chief executive officer Frank L. Hewitt Jr. is retiring and is being succeeded by vice chairman Clinton C. Sisson. The company said Hewitt will remain chairman and president of its First Citizens Corp subsidiary. Reuter | CITIZENS SAVINGS <CSBF.O> NAMES NEW CHAIRMAN |
Qtly div four cts vs four cts prior Pay May 13 Record April 29 Reuter | CALNY INC <CLNY> SETS QUARTERLY |
Rowan Cos Inc said it expects to incur substantial losses in 1987 despite expected improvement in drilling levels in the Gulf of Mexico and the North Sea. The offshore and onshore drilling company today reported a first quarter loss of 18.6 mln dlrs after a 12.2 mln dlr tax credit compared with a year-earlier loss of 5855000 dlrs after a tax credit of 8510000 dlrs. For all of 1986 Rowan lost 42.1 mln dlrs after a 47.6 mln dlr tax credit. Reuter | ROWAN <RDC> SEES SUBSTANTIAL LOSSES FOR YEAR |
Shr loss 36 cts vs loss 11 cts Net loss 18.6 mln vs loss 5855000 Revs 23.9 mln vs 53.9 mln NOTE: Net includes tax credits of 12.2 mln dlrs vs 8510000 dlrs. Reuter | ROWAN COS INC <RDC> 1ST QTR LOSS |
Ford Motor Co said it awarded 164.3 mln dlrs in bonuses to 5528 executives based on the companys record 3.3 billion dlrs in 1986 profits. The number two U.S. automaker said chairman Donald Petersen last year collected more than 4.3 mln dlrs inlcuing salary of 660772 dlrs a 1.3 mln dlr bonus and nearly 2.4 mln dlrs from exercising stock options. Ford said each of it five top executives received bonuses which swelled their pay last year past the one mln dlr mark. Ford said it last month paid 371 mln dlrs in profit-sharing to 160000 hourly and salaried employees in the U.S. The company also disclosed in its proxy statement mailed to 262000 shareholders for Fords May 14 annual meeting in Detroit that directors John Connally and Carter Burgess are retiring from its board and that Irvine Hockaday Jr president of Hallmark Cards Inc of Kansas City Mo is being nominated for a board seat. Reuter | FORD <F> AWARDS BONUSES OF 164.3 MLN DLRS |
Oper shr loss 64 cts vs profit 11 cts Oper net loss 7229000 vs profit 902000 Revs 67.6 mln vs 66.7 mln Avg shrs 11.3 mln vs 8507000 Year Oper shr loss 63 cts vs profit 43 cts Oper net loss 6177000 vs profit 3604000 Revs 264.8 mln vs 238.5 mln Avg shrs 9827000 vs 8403000 NOTE: 1986 quarter net includes 731000 dlr tax credit. 1986 net excludes charges from debt restructuring of 1976000 dlrs in quarter and 3800000 dlrs in year. Reuter | CARE ENTERPRISES <CRE> 4TH QTR LOSS |
NWA Inc said Edward A. Neer Jr. has been named president and chief executive officer of its Mainline Travel Inc subsidiary replacing Warren D. Phillips as chief executive and Robert L. Daniels asd president. Neer had been western regional sales director of NWAs Northwest Airlines unit. It said Daniels has been named president of Mainlines retail division. Reuter | NWA <NWA> NAMES NEW HEAD FOR UNIT |
Shr 56 cts vs 46 cts Qtly div 29 cts vs 27 cts prior Net 9089000 vs 7585000 Sales 86.8 mln vs 83.0 mln NOTE: Pay May 15 record May One. Reuter | LANCE INC <LNCE> 1ST QTR NET |
Damon Corps Damon Clinical Laboratories expects to report significantly better profits this year and a 20 pct gain in sales due in part to increased testing for AIDS virus Damon president Joe Isola said. Last year the unit earned 8.6 mln dlrs on sales of 97.3 mln for the fiscal year ended August 31 1986. Overall Damon Corp reported a loss of 2.5 mln dlrs on sales of 148 mln. Isola attributed the loss to the companys biotechnology subsidiary. Damon Labs currently tests about 8000 samples a night for the AIDS virus at its Irving Texas facility. Thats an increase of about 100 percent from 18 months ago when the U.S. Army chose the company to test for Acquired Immune Deficiency Syndrome among its recruits. Now in addition to recruits the company processes regular Army soldiers undergoing annual physicals Army Reserves the National Guard as well as some Coast Guard and Naval Reserves. Despite having a capacity for processing 10000 samples a day Damon Labs recently decided to move out of its Irving facility into a larger one close by and from April 25 on will be able to process some 16000 a day. He said AIDS testing was expected to contribute 18 mln dlrs to sales over the next three to four years adding that some 80 pct of the AIDS testing was military-related. Despite the enormous number of tests being processed each day he said there had never been a mistake. Reuter | DAMON <DMN> LAB UNIT RIDES HIGH ON AIDS TESTING |
Moodys Investors Service Inc said it downgraded 3.7 billion dlrs of debt of Security Pacific Corp lead bank Security Pacific National Bank and other units. Moodys said it is concerned over the outlook for improvement in the lead banks earnings and asset quality which have been burdened by high levels of nonperforming assets and charge-offs. Cut were the parents senior and guaranteed debt to Aa-3 from Aa-2 and subordinated debt to A-1 from Aa-3 and the lead banks senior debt and long-term deposits to Aa-2 from Aaa. Reuter | SECURITY PACIFIC <SPC> DOWNGRADED BY MOODY'S |
The Federal Home Loan Bank Board said its insured savings and loan associations (thrifts) that made a profit in the fourth quarter of 1986 reported moderate increases in net earnings. It said that the 74 pct of the thrifts reporting profits had net after-tax income of 2.3 billion dlrs up from 2.0 billion dlrs earned by 77 pct of the profitable industry in the third quarter. For 1986 as a whole the profitable firms had a net income of 9.2 billion dlrs up from 7.3 billion dlrs in 1985. It said the 26 pct of the industry that made no profit in the fourth quarter had losses of 3.2 billion dlrs. The figure for the unprofitable firms was up from 2.1 billion dlrs in the third quarter of 1986 it said. Over the year these firms had total losses of 8.3 billion dlrs up from 3.6 billion dlrs in 1985. Reuter | FHLBB REPORTS THRIFT RESULTS IN FOURTH QUARTER |
Niagara Mohawk Power Corp said it and the other owners of Nine Mile Point Two nuclear power unit have filed suit seeking over 500 mln dlrs in damages against three companies involved with the design and fabrication of the ball valve system for the plant. The company said the suit filed in New York State Supreme Court names Gulf and Western Industries Inc <GW> Wickes Cos Inc <WIX>s Wickes Manufacturing Co Inc subsidiary and Gearhart Industries Incs <GOI> Crosby Valve and Gage Co affiliate. Gulf and Western sold the Fluid Systems Division of its Gulf and Western Manufacturing unit which makes such valves to Crosby Valve in 1983 and the remainder of Gulf and Western Manufacturing to Wickes in 1985. The company said the suit alleges breaches of contract and warranty and negligence in engineering and seeks damages for the cost of delay in the plants commercial operation alleged caused by the failure of the valve system to meet contract specifications and licensing requirements. The ball-type main steam isolation valve system was removed from Nine Mile Two in March following tests in which the company said the valves failed to meet specifications agreed to by the defendants. The system is now being replaced by a Y-pattern globe valve system. It said the 500 mln dlr figure is a preliminary estimate. Niagara Mohawk owns 41 pct of Nine Mile Two a 1080 megatt boiling water reactor near Oswego N.Y. with Long Island Lighting Co <LIL> owning 18 pct Rochester Gas and Electric Corp <RGS> 14 pct and Central Hudson Gas and Electric Corp <CNH> nine pct. Reuter | THREE SUED OVER BALL VALVES FOR NINE MILE POINT |
The White House announced 100 pct tariffs on 300 mln dlrs worth of Japanese electronic goods effective Friday. The tariffs were imposed because of alleged Japanese failure to honor an agreement to stop below cost dumping of computer microchips on world markets and to open up its domestic markets to American goods. I regret that these actions were necessary President Reagan said in a statement. Reagan said the tariffs would be eliminated as soon as we have firm and continuing evidence that the dumping in third country markets has stopped and that access to the Japanese market has improved. He said he was encouraged by recent actions by Tokyo to improve compliance with the U.S.-Japanese semiconductor agreement and he looked forward to the day when it was working as effectively as it should. REUTER | WHITE HOUSE SLAPS TARIFFS ON JAPANESE GOODS |
MOODY'S DOWNGRADES BANKERS TRUST, AFFECTS 1.7 BILLION DLRS OF DEBT |
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Soviet industrial output in the first quarter of this year grew by 2.5 pct compared with the first three months of 1986 Tass news agency reported. A regular meeting of the Politburo heard that in March industry achieved the average daily rate needed to fulfil annual targets. Quarterly plans were exceeded in the fuel and power sector and agriculture where output grew by 8.7 pct compared with the same period last year it said. Plans were not fulfilled by the engineering and building ministries the chemical and timber sectors rail transport and light industry it added. Reuter | SOVIET INDUSTRIAL OUTPUT UP IN FIRST QUARTER |
General Motors Corps executive salary bonus plan effective since 1918 was out of date for the worlds largest automakers changing corporate strategy executive vice president Robert Stempel said. The bonus plan was a plan that was really in sync with a manufacturing organization selling what it builds Stempel told reporters at New York Auto Shows press opening. Commenting on GMs previously announced move to replace the executive bonus-system with a stock option plan Stempel said the old system did not fit with the companys strategy of long term capital investment. We need to make sure that our pay system is in line with...the long term enhancing of the value of the stock and we think that the new program will be doing just that for us GMs Stempel said in response to a reporters question. Stempel voiced confidence that GM shareholders will approve the new plan outlined in a shareholder proxy statement issued Thursday. Stempel also said General Motors will reduce 10 pct of its component business by 1990 for savings of about 500 mln dlrs. GM plans to eliminate those units that are clearly defined as non-competitive in the components business he said. Reuter | GM <GM> BONUS SYSTEM OUT OF DATE FOR COMPANY |
British Automobile Manufacturers Association expects exports to the United States to more than double in 1987 to 56595 units from 26200 in 1986 association president G.W. Whitehead told reporters at the New York Auto Show. We feel this is the appropriate occasion to announce the return of British cars as an important force in the U.S. imported car market said Whitehead who is also president of Jaguar Plcs U.S. unit. Whitehead said increased sales will result from intensified North American marketing by British automakers. Reuter | BRITISH AUTOMAKERS SEE U.S. 1987 SALES DOUBLING |
Moodys Investors Service Inc said it downgraded 1.7 billion dlrs of debt of Bankers Trust New York Corp lead bank Bankers Trust Co and other subsidiaries. It said the slate of key competitors in Bankers Trusts principal markets shifted as the bank repositioned itself into the global institutional markets. Moodys said the substantial new capital committed to these markets and the size of direct competitors increased the uncertainty of future performance. Cut were the parents senior and guaranteed debt to Aa-3 from Aa-2 and subordinated debt to A-1 from Aa-3 and the lead banks long-term debt and deposits to Aa-1 from Aaa. Reuter | BANKERS TRUST <BT> DEBT DOWNGRADED BY MOODY'S |
The Argentine government will ask congress to declare a state of siege following a rebellion by army officers objecting to human rights trials official sources said. Earlier Army Chief of Staff Hector Rios Erenu said he would use all the means at his disposal to put down the rebellion. He relieved from their commands two colonels one of them at an airborne infantry regiment in Cordoba centre of the uprising. Argentine Army Chief of Staff Hector Rios Erenu said he would begin moving troops for a possible military operation to put down the almost three-day old rebellion. Interior Minister Antonio Troccoli said the government would seek parliamentary approval of the state of siege unless there is something unexpected that justifies more urgent treatment. Reuter | ARGENTINE GOVERNMENT TO SEEK STATE OF SIEGE |
Prime Minister Robert Mugabe of Zimbabwe said he suspended key talks to unite his ruling ZANU-PF party and opposition PF-ZAPU party. I am sorry to say we have been deadlocked for too long on the question of unity and the central committee of my party has recently decided that the talks be discontinued for they are serving no purpose he said in a nationwide radio-and-television address. The collapse of the unity talks widely expected to have heralded creation of a socialist one-party state was a major setback for the government diplomats said. Reuter | ZIMBABWE UNITY TALKS OFF, MUGABE SAYS |
The White House distancing itself from remarks by the administrations budget chief said the Federal Reserves current course of monetary policy was appropriate. The administration feels that the current course of monetary policy is appropriate White House spokesman Marlin Fitwater said. Fitzwater said the administration did not endorse remarks by White House budget chief James Miller who said he was concerned the Federal Reserve might overreact to the decline in the value of the U.S. dollar by raising interest rates. More | WHITE HOUSE SAYS U.S. MONETARY POLICY CORRECT |
Senior U.S. bankers are seeking to calm the furore in the Philippines caused by the terms of Argentinas new financing package but a source in New York close to the Manila government said finance minister Jaime Ongpin is in no mood for compromise. Ongpin is angry because the banks granted Argentina an interest rate spread of 13/16 pct the same as Mexico won just weeks after telling the Philippines that it must accept 7/8 pct because the Mexican margin could never be repeated. Bankers acknowledged the political sensitivity of the interest spread but urged Ongpin to examine the Argentine package in its entirety. Argentina for instance is offering banks a 3/8 pct participation fee if they sign up for the deal within 30 days (declining to 1/8 pct if banks commit within 60 days) which boosts the all-in interest rate it is paying on the package. You can make the case that the deal is not 13/16 pct one banker said. Another referring to the Philippine debt negotiators said The only reason theyd have to come back to New York is political not economic. Ongpin has said as much himself estimating that an extra 1/16 percentage point would cost just 5.1 mln dlrs a year. But the source close to the Philippines said Ongpins anger goes beyond the dollars. He said the minister feels personally betrayed by bankers who insisted Mexicos 13/16 pct was a rock-bottom spread that could not be duplicated. Top U.S. Treasury and Federal Reserve officials had said the same. The source said Ongpin is unlikely to come to the U.S. to press his case and was expecting the Philippines bank advisory committee headed by Manufacturers Hanover Trust Co to negotiate the spread reduction by telex. Ongpin has not said the Philippines will unilaterally start paying interest at the lower rate but has made it clear to the committee in a telex that he is not prepared to pay more than Mexico and Argentina the source said. The Philippines really means business on this. I dont think theres much room for compromise he said. Manufacturers Hanover declined to comment on the issue. The Philippines last month won an agreement to reschedule 10.3 billion dlrs of debt over 17 years at an interest rate of 7/8 pct whereas some 30 billion dlrs in old Argentine debt will be stretched out over 19 years with a spread of 13/16 pct. Bankers said they were forced to break their word because political circumstances had changed in the past few weeks. In particular they said it had become clear that Argentina was serious about its threat to suspend interest payments unless it got a good deal. Fearing that an Argentine moratorium would stiffen the resolve of its neighbour Brazil which has already suspended payments the banks at the urging of the Reagan Administration bowed to Argentinas demands. Some U.S. bankers argued that regardless of politics the rich menu of options in the Argentine package makes it attractive enough to justify a 13/16 pct rescheduling rate. When they (the Philippines) see the whole package they may realize that this is not a Mexican deal one banker said of the Argentine agreement. The Argentine pact contains several features that were not in the Mexican accord such as exit bonds an option to provide new money via bearer bonds a trade facility onlending provisions and a debt-equity conversion scheme. Moreover Argentina is requesting only 1.95 billion dlrs in new loans compared with Mexicos 7.7 billion and is paying 7/8 pct for most of the money instead of the 13/16 pct charged to Mexico. This line of argument cuts no ice with the Filipinos who note drily that they asked for no new money at all. The banks reacted on the level of politics to Argentina and try to justify it in terms of economics and now theyre going to have problems with both the Philippines and Venezuela said the source close to the Manila government. Because of the Easter holidays bankers have not yet got an official reaction from Venezuela which is also paying 7/8 pct on its 20.2 billion dlr rescheduling. But they acknowledged that Caracas which was also told that the Mexico spread was inviolate is quite likely to demand a lower spread. Bankers were more sanguine in the case of Chile. Because it is under fire for its human-rights record the government of General Augusto Pinochet is unlikely to attract attention to itself by seeking to renegotiate its recent debt package which carries interest of one pct bankers said. They hope that once tempers cool the Philippines will also accept that reopening an agreement that took 4-1/2 tough months to negotiate will be more trouble than it is worth. Reuter | BANKS TRY TO CALM MANILA'S FURY OVER DEBT DEAL |
Gulf and Western Inc <GW> said it believes it has no liability under an earlier reported lawsuit seeking 500 mln dlrs in damages against it and two other companies. The suit filed by Niagara Mohawk Power Corp and other owners of the Nine Mile Point Two nuclear plant concerns the design and fabrication of the ball valve system for the facility. Niagara Mohawk appears to be trying to shift their responsibilities in connection with the construction of the Nine Mile Point Two plant to others Gulf and Western said. Gulf and Western said it has not yet seen the lawsuit. The company said a subsidiary no longer owned by it sold the valves in question in 1977. Since then the valves have been subject to substantial modifications by others it said. Reuter | GULF AND WESTERN <GW> RESPONDS TO VALVE SUIT |
The former chief executive officer of Baldwin-United Corp now known as PHLCorp <PHX> agreed to settle charges stemming from misleading financial statements the company is accused of making before it collapsed in 1983. Under the settlement with the Securities and Exchange Commission former Baldwin-United President Morley Thompson agreed to an order issued by the U.S. District Court in Cincinnati Ohio barring him from committing further securities law violations. Thompson did not admit or deny the charges. Although Thompson was the last of several defendants to settle charges brought by the SEC on September 26 1985 in connection with the Baldwin-United case the agency said it is continuing to investigate other matters related to the company and may bring charges against other people. Baldwin-United a Cincinnati-based diversified financial services holding company went bankrupt in September 1983. It changed its name last November to PHLCorp. The SEC said Thompson violated reporting and anti-fraud provisions of federal securities laws in late 1982 by issuing misleading press releases. Baldwin-United which has already settled SEC charges brought against it made false statements concerning the financing for two corporate acquisitions the SEC said. The statements indicated that the company had available cash for the takeovers while it was actually facing a serious cash flow crisis it said. The company was also accused of filing false and misleading financial statements with the SEC. Reuter | FORMER BALDWIN-UNITED CHIEF SETTLES SEC CHARGE |
The White House issued a list of Japanese exports to covered by the 100 pct tariffs imposed by President Reagan. - Automatic data processing machines (1986 imports worth 180 mln dlrs) including certain desk and lap models with microprocessor-based calculating mechanism capable of handling words of at least 16-bits off the microprocessor; - Complete color television sets with 18 19 or 20 inch screens (1986 imports 90 mln dlrs); - Power tools including certain drills percussion hammers sanders polishers grinders. Reuter | WHITE HOUSE LISTS TARIFFS ON JAPANESE GOODS |
Business loans on the books of major U.S. banks excluding acceptances fell 1.08 billion dlrs to 276.37 billion dlrs in the week ended April 8 the Federal Reserve Board said. The Fed said that business loans including acceptances fell 1.1 billion dlrs to 278.67 billion dlrs. Reuter | U.S. BUSINESS LOANS FALL 1.08 BILLION DLRS |
shr 46 cts vs 76 cts div 30 cts vs 30 cts prior net 8.5 mln vs 14.0 mln NOTE: 1987 qtr net is after a 5.5 mln dlr reserve for a potential refund as a result of the Federal Communications Commissions continuing rate investigation. company said it believes any refunds it may have to make would not materially affect its financial position. Reuter | COMMUNICATIONS SATELLITE CORP <CQ> 1ST QTR NET |
shr 21 cts vs 18 cts net 1068000 vs 902000 revs 38.1 mln vs 29.7 mln avg shrs 5177000 vs 5120000 NOTE: shr reflects 2-for-1 stock split on June 9 1986 Reuter | AMERICAN MANAGEMENT SYSTEMS <AMSY.O> 1ST QTR NET |
shr loss 17 cts vs loss 14 cts net loss 467000 vs loss 400000 revs 3856000 vs 3423000 avg shrs 2821000 vs 2797000 Reuter | HYTEK MICROSYSTEMS INC <HTEK.O> 1ST QTR LOSS |
shr loss 38 cts vs profit two cts net loss 2254533 vs profit 106621 revs 3430970 vs 4104506 Reuter | TVI CORP <TVIE.O> YEAR 1986 LOSS |
shr 73 cts vs 1.03 dlrs net 10245000 vs 12364000 avg shrs 13981024 vs 11968524 assets 6.07 billion vs 5.22 billion loans 2.92 billion vs 2.45 billion deposits 4.78 billion vs 4.14 billion NOTE: gain from sale of securities 4.6 mln vs 12.8 mln. loan loss provision 100000 dlrs vs 7.7 mln Reuter | RIGGS NATIONAL CORP <RIGS.O> 1ST QTR NET |
The Republic of Finland filed with the Securities and Exchange Commission for a shelf offering of up to 550 mln dlrs of debt securities including notes and bonds and/or warrants to buy debt securities on terms to be determined at the time of the sale. The offering is in addition to 50 mln dlrs of debt securities already registered with the SEC but unsold. Proceeds from the sale will be used to finance capital investment and the promotion of productive investments and exports designed to strengthen the countrys balance of payments the government said. No underwriter was named. Reuter | FINLAND FILES FOR 550 MLN DLR DEBT OFFERING |
Grumman Aerospace Corp is being awarded a 77 mln dlr increment to a Navy contract related to fiscal 1988 A-6F aircraft production the Defense Department said. It said work on the contract is expected to be completed in October 1990. Reuter | GRUMMAN CORP <GQ> GETS 77 MLN DLR NAVY CONTRACT |
shr 1.35 dlrs vs 1.27 dlrs div 39 cts vs 39 cts prior net 14291000 vs 13211000 revs 52.6 mln vs 51.1 mln avg shrs 10234000 vs 9936000 Reuter | NORTHWEST NATURAL GAS CO <NWNG.O> 1ST QTR NET |
Kentucky Central Life Insurance Co said its Bluegrass Broadcasting Co Inc subsidiary has agreed to sell two Orlando Fla. radio stations to TK Communications Inc for 13.5 mln dlrs subject to FCC approval. Reuter | KENTUCKY CENTRAL <KENCA.O> UNIT SELLS STATIONS |
shr loss 57 cts vs loss 2.88 dlrs net loss 3442000 vs loss 13750000 Reuter | KIMBARK OIL AND GAS CO <KIMB.O> 1986 YEAR LOSS |
The following proposed securities offerings were filed recently with the Securities and Exchange Commission: General Instrument Corp <GRL> - Offering of 150 mln dlrs of convertible subordinated debentures due 2012 through an underwriting group led by Lazard Freres and Co Dillard Department Stores Inc <DDSA> - Shelf offering of up to 100 mln dlrs of debt securities including debentures and notes and a shelf offering of another 100 mln dlrs of debt securities by its Dillard Investment Co Inc subsidiary both through Goldman Sachs and Co. Sara Lee Corp <SLE> - Shelf offering of up to 1.0 mln shares of common stock through Morgan Stanley and Co Inc and Goldman Sachs and Co. Reuter | PROPOSED OFFERINGS RECENTLY FILED WITH THE SEC |
Tracor Applied Sciences a division of Tracor Inc is being awarded a 60.1 mln dlr contract for the design and development of Radio Communication Suites for the Aegis CG-60 through CG-70 ships the Defense Department said. It said work on the contract is expected to be completed in 1992. Reuter | TRACOR INC <TRR> GETS 60.1 MLN DLR NA |
shr 47 cts vs 46 cts net 3470859 vs 3454577 Reuter | SOUTHERN NATIONAL CORP <SNAT.O> 1ST QTR NET |
First Bank System said it has agreeed to sell its First Bank Lewiston subsidiary of Lewiston Mont. to two local bankers for undisclosed terms. First Bank Lewiston has assets of 101.4 mln dlrs at the end of the first quarter. Reuter | FIRST BANK SYSTEM <FBS> SELLS LEWISTON BANK |
ICN Pharmaceuticals Inc told the Securities and Exchange Commission it has acquired 556500 shares of Syncor International Corp or 5.0 pct of the total outstanding common stock. ICN said it bought the stake for 3.9 mln dlrs as an investment and has no plans to seek control of the company or to participate in the management of it. Reuter | ICN <ICN> HAS FIVE PCT OF SYNCOR <SCOR.O> |
The Japanese Embassy said in a statement it was deeply disappointed by the tariffs announced by President Reagan in retaliation for Japans not honoring its semiconductor agreement with the United States. It said Japan had been fully implementing the pact to end dumping semiconductors in world markets and to open its home market to U.S. goods and the results were starting to show. The embassy said Japan would complain to the General Agreement on Tariffs and Trade as it said it would and seek new talks with Washington to resolve the issue as soon as possible. Reuter | JAPAN SAYS IT IS DISAPPOINTED WITH TARIFFS |
Dixons Group Plc <DXNS.L> the British concern that recently acquired operational control of Cyclops Corp said it is exploring the possibility of selling the Cyclops subsidiary Busy Beaver Building Centers Inc. In a filing with the Securities and Exchange Commission Dixons said it has determined to explore the possibility of the sale following its preliminary review of the business and activities of Cyclops. Busy Beaver Building Centers is a Pittsburgh Pa. lumber and building materials company. Dixons won control of Cyclops with a 95 dlr a share tender offer. Reuter | DIXONS EXPLORING SALE OF CYCLOPS <CYL> UNIT |
The tough trade sanctions President Reagan imposed on Japanese exports are not only a shot across Japans bow but also a sign Reagan will attack unfair trade practices worldwide U.S. officials said. But Robert Crandall a trade specialist at Brookings Institution a think tank said a shot across their bow can often result in a shot in our stern. He said it left the United States open to retaliation. The U.S. officials said the 100 pct tariffs Reagan ordered on 300 mln dlrs worth of Japanese goods will also show Congress that a tough pro-trade stand can be taken under existing laws and no new protectionist legislation is needed. In the past year tough trade action had been taken against the European Community over corn and sorghum Taiwan over beer and wine South Korea over counterfeiting of copyrights patents and trademarkets and Japan on tobacco. White House spokesman Marlin Fitzwater told reporters the tariffs - up from five pct - should be seen as a serious signal to other nations on the need for fair trade practices. Reagan said he imposed the sanctions on certain computers television sets and some hand tools because Japan did not honor an agreement to end dumping semiconductors in world markets at less than cost and to open its markets to U.S. products. The tariffs were placed on items which were available from other sources so there would be little effect on the American consumer Fitzwater said. Reagan has come under heavy pressure to take tougher action - especially against Japan - to end global unfair trade practices and reverse the growing U.S. trade deficit. The alternative was that if he did not Congress would. The U.S. trade gap last year was a record 169.8 billion dlrs and continues to rise with Japan accounting for about one-third of Americas overall deficit. But there are other two-way deficits - with Canada West Germany Taiwan and South Korea - and Reagan officials said the president is ready to fight them all. Reagan said in announcing the sanctions today that I regret that these actions are necessary but that the health and vitality of the U.S. semiconductor industry was essential to American competitiveness in world markets. We cannot allow it to be jeopardized by unfair trading practices Reagan added in the statement from his California vacation home at Santa Barbara. He said the tariffs would remain in force until Japan abided by the agreement. U.S. officials say the action today will show Congress - which is about to write a trade bill he does not like - that he already has the tools needed to fight unfair trade. The White House aide said of the tariff action it wasnt done to appease Congress but because there was an unfair trade practice. The aide added however on another plane it was an example of how the administration uses the trade law to fight unfair practices an that it is not necessary to make a major overall of our trade laws. But the analyst Crandall said the tariff action was not in the best interests of the United States and that negotiations should have been pursued to resolve the issue. Its very dangerous to go down the retaliatory route he said because it leads to more retaliation and restrictions in trade. Crandall said the administration is doing this for its political impact across the country and therefore its impact on Congress. He said I dont think it makes a lot of sense. But other analysts said it made little difference whether the tariffs were aimed at U.S. trading partners or Congress and that the main point was that the trading partners were on notice that retaliation was a weapon Reagan was ready to use. Spokesman Fitzwater said we dont want a trade war but the imposition of sanctions showed the United States would act when it had evidence that trade pacts were being violated. Crandall said the administration is doing this for its political impact across the country and therefore its impact on Congress. He said I dont think it makes a lot of sense. But other analysts said it made little difference whether the tariffs were aimed at U.S. trading partners or Congress and that the main point was that the trading partners were on notice that retaliation was a weapon Reagan was ready to use. Spokesman Fitzwater said we dont want a trade war but the imposition of sanctions showed the United States would act when it had evidence that trade pacts were being violated. Reuter | JAPANESE TARIFFS SEEN AS WORLDWIDE WARNING |
Diamond Shamrock Corp said it will redeem May 29 the entire outstanding amounts of three separate sinking fund debenture issues. The company will buy back its outstanding 79.7 mln dlrs of 7.70 pct debentures of 2001 at 103.20 pct of par value plus accrued interest 59.9 mln dlrs of nine pct debentures due 1999 at 103.15 pct per principal amount plus accrued interest and 50 mln dlrs of 9-1/8 pct debentures of 2000 at 103.625 pct of par value plus accrued interest. Reuter | DIAMOND SHAMROCK <DIA> TO REDEEM DEBENTURES |
Rebellious troops in the central city of Cordoba called off an uprising against President Raul Alfonsins government the army command said. Congressional leaders said that it would probably not be necessary therefore to declare a state of siege. Military officers earlier said army units in Buenos Aires and Misiones provinces had supported the Cordoba regiment the focal point of the uprising. The troops were objecting to human rights trials. Reuter | ARGENTINE TROOPS END UPRISING |
U.S. Trade Representative Clayton Yeutter said he was almost sure Japan would not retaliate against tariffs President Reagan slapped on 300 mln dlrs of Japanese electronic goods today. Id say its 99 plus pct sure that it (the tariffs) will not provoke a retaliation on American products Yeutter told Cable News Network. Japan has far too much at stake in this relationship (with the United States) to seriously entertain thoughts of retaliation Yeutter said. Earlier today Reagan imposed 100 pct tariffs on a range of Japanese goods in retaliation for Japans alleged violation of a bilateral pact governing semiconductor trade. Yeutter did say that U.S. farm products would be targeted if Tokyo decided to hit back. If they (Japan) were to retaliate it would probably be on something like American agricultural products he said. But I really think the chances of that happening are between slim and none he added. Reuter | YEUTTER ALMOST SURE JAPAN WILL NOT RETALIATE |
Shooting erupted at Philippine army headquarters early this morning an independent Manila radio station said. Radio DZRH said it was checking unconfirmed reports that about 120 mutineers had surrounded an office building inside Fort Bonifacio. An officer told Reuters an alert had been sounded at the camp. A Reuter reporter at the camp said the gates had been sealed and guards were preventing anyone from going inside. REUTER | RADIO REPORTS SHOOTING AT MANILA ARMY HEADQUARTERS |
A truckload of heavily-armed rebel soldiers forced their way into Philippine army headquarters and freed several men held prisoner in the camp since a January revolt military sources said. The sources told Reuters an estimated 100 rebels were occupying the headquarters building at Fort Bonifacio and forces loyal to President Aquino had surrounded the building urging them to surrender. An independent radio station reported gunfire at the camp. REUTER | ARMY REBELS OCCUPY MANILA HQ |
Japan does not plan to take immediate retaliatory action against implementation of U.S. Tariffs on some Japanese electronic goods the minister of international trade and industry Hajime Tamura said in a statement. Japan requested bilateral consultations in accordance with Article 23-1 of the General Agreement on Tariffs and Trade (GATT) in Washington yesterday. Tamura said there was deep regret over the U.S. Measures which will impose 100 pct tariffs on about 300 mln dlrs worth of Japanese imports of some small computers colour television sets and power tools. REUTER | JAPAN WILL NOT RETALIATE NOW AGAINST U.S. TARIFFS |
The central bank has issued 5.3 billion Taiwan dlrs of certificates of deposits (CDs) boosting CD issues so far this year to 140.42 billion compared with 16 billion issued in the same 1986 period. The new CDs with maturities of six months one year and two years carry interest rates ranging from 4.07 to 5.12 pct a bank spokesman told Reuters. The issues are aimed at helping curb the growth of M-1b money supply the result of large foreign exchange reserves now at more than 53 billion U.S. Dlrs. REUTER | TAIWAN ISSUES MORE CDS TO CURB MONEY SUPPLY GROWTH |
Foreign investment in Malaysia in 1986 rose to 524.5 mln ringgit the highest since 1971 from 324.9 mln in 1985 the Malaysian Industrial Development Authority MIDA said. MIDA director-general N. Sadasivan said the increase was due to large investment from the Netherlands in a 180.3 mln ringgit petrochemical project in Bintulu national news agency Bernama reported. REUTER | FOREIGN INVESTMENT RISES IN MALAYSIA |
GCA Corp said it completed its previously announced plan of financial restructuring under which Hallwood Group Inc <HWG> took a 14 pct interest in the company a maker of semiconductor manufacturing equipment. The company said it also implemented a one-for-50 reverse stock split. Under terms of the plan the company exchanged about 109 mln dlrs in debt to creditors and suppliers for 43 mln dlrs in cash and warrants to purchase 2.2 mln shares of its common stock. GCA also raised 71.7 mln dlrs through the sale of common stock. Reuter | GCA <GCA> COMPLETES FINANCIAL RESTRUCTURING |
The Securities and Exchange Commission reminded securities dealers that its mark-up disclosure requirements also applies to transactions on zero-coupon securities. Dealers and brokers are required by U.S. securities law to disclose their mark-ups if they are excessive the SEC said in a public notice. Further excessive mark-ups on securities transactions whether disclosed or not violate the rules of the national Association of Securities Dealers Inc and Municipal Securities Rulemaking Board it said. In a separate action the SEC filed a friend-of-the-court brief in a private civil case involving a complaint against Merrill Lynch over excessive mark-ups on zero-coupon bonds. The case is being appealed to the U.S. Appeals Court. The lower court dismissed the complaint finding antifraud provisions of securities laws do not prohibit undisclosed excessive mark-ups on securities transactions. The SEC is urging the appeals court to reverse the decision citing its nearly 50 year-old position that undisclosed excessive mark-ups by securities dealers violate the general antifraud provisions of securities laws. Reuter | SEC WARNS SECURITIES DEALERS ON HIGH MARK-UPS |
Oper shr 32 cts vs 37 cts Oper net 18.9 mln vs 21.6 mln Revs 352.1 mln vs 323.0 mln Note: 1987 net excludes extraordinary gain of 2.8 mln dlrs or five cts shr from sale of surplus property. Reuter | SOUTHAM INC <STM.TO> 1ST QTR NET |
Shr 96 cts vs 53 cts Net 8663000 vs 4798000 Revs 89.7 m ln vs 66.8 mln Nine mths Shr 2.33 dlrs vs 1.67 dlrs Net 21.1 mln vs 15.1 mln Revs 241.3 mln vs 192.8 mln Reuter | LOCTITE CORP <LOC> 3RD QTR MARCH 31 NET |
Special Japanese envoy Shintaro Abe said in a brief interview with Reuters that the feeling in the U.S. congress is very severe against Japan. However Abe said he believed that neither Congress nor the Reagan administration wants to undermine relations with Japan. He said the Reagan administration showed relative understanding of how Japan is trying to alleviate its U.S. trade imbalance. Abe said he was convinced Congress and the administration had the same view that the relationship between Tokyo and Washington should not be undermined. Reuter | U.S. CONGRESS STILL ANGRY WITH JAPAN - ABE |
Oper shr 1.54 dlrs vs 82 cts Oper net 33.7 mln vs 17.66 mln Revs 473.1 mln vs 419.0 mln Nine mths Oper shr 4.60 dlrs vs 2.39 dlrs Oper net 100.4 mln vs 51.0 mln Revs 1.38 billion vs 1.21 billion Assets 18.5 billion vs 15.5 billion Deposits 13.00 billion vs 11.29 billion Loans 15.04 billion vs 12.56 billion Note: Oper net excludes extraordinary loss 6636000 and 11.9 mln for 1987 qtr and nine mths on prepayment of borrowings from the Federal Home Loan Bank Board. Oper also excludes tax credits of 15.8 mln vs 5954000 for qtr and 17.8 mln vs 11.6 mln for nine mths. Reuter | GLENFED INC <GLN> 3RD QTR MARCH 31 NET |
Qtr ended April four Shr profit eight cts vs loss 22 cts Net profit 341000 vs loss 903000 Revs 58.4 mln vs 46.3 mln Six mths Shr profit 35 cts vs loss 19 cts Net profit 1466000 vs loss 767000 Revs 121.4 ln vs 95.9 mln Reuter | HORIZON INDUSTRIES INC <HRZN> 2ND QTR NET |
U.S. banking data released today are too distorted to draw sweeping conclusions about monetary policy but they do support the markets assumption that the Federal Reserve has started to tighten its grip on credit economists said. Its clear that the Fed has firmed somewhat. Discount window borrowings net free reserves the Fed funds rate average and the pattern of reserve additions are all consistent with a modest tightening said Dana Johnson of First Chicago Corp. Johnson and several other economists now estimate that the Fed funds rate should trade between 6-1/4 and 6-3/8 pct. Discount window borrowings in the week to Wednesday were 935 mln dlrs a day producing a daily average for the two-week statement period of 689 mln dlrs the highest since the week of December 31 1986 and up from 393 mln dlrs previously. Moreover banks were forced to borrow a huge 5.2 billion dlrs from the Fed on Wednesday - the highest daily total this year - even though unexpectedly low Treasury balances at the Fed that day left banks with over two billion dlrs more in reserves than the Fed had anticipated. However economists said it is almost certain that the Fed is aiming for much lower discount window borrowings than witnessed this week. They pointed to two factors that may have forced banks to scramble for reserves at the end of the week. First economists now expect M-1 money supply for the week ended April 29 to rise by a staggering 15 to 20 billion dlrs partly reflecting the parking in checking accounts of the proceeds from stock market sales and mutual fund redemptions to pay annual income taxes. As banks checking-account liabilities rise so do the reserves that they are required to hold on deposit at the Fed. Required reserves did indeed rise sharply by 2.5 billion dlrs a day in the two weeks ended Wednesday but economists said the Fed may not have believed in the magnitude of the projected M-1 surge until late in the week and so started to add reserves too late. Second an apparent shortage of Treasury bills apparently left Wall Street dealers with too little collateral with which to enagage in repurchase agreements with the Fed economists said. Thus although there were 10.3 billion dlrs of repos outstanding on Wednesday night the Fed may have wanted to add even more reserves but was prevented from doing so. Its not at all inconceivable that the Fed didnt add as much as they wanted to because of the shortage of collateral said Ward McCarthy of Merrill Lynch Economics Inc. McCarthy estimated that the Fed is now targetting discount-window borrowings of about 400 mln dlrs a day equivalent to a Fed funds rate of around 6-3/8 pct. After citing the reasons why the Fed probably has not tightened credit to the degree suggested by the data economists said the fact that the Fed delayed arranging overnight injections of reserves until the last day of the statement period was a good sign of a more restrictive policy. Jeffrey Leeds of Chemical Bank had not been convinced that the Fed was tightening policy. But after reviewing todays figures he said Its fair to say that the Fed may be moving toward a slightly less accommodative reserve posture. Leeds expects Fed funds to trade between 6-1/4 and 6-3/8 pct and said the Fed is unlikely to raise the discount rate unless the dollars fall gathers pace. Johnson at First Chicago agreed citing political opposition in Washington to a dollar-defense package at a time when Congress sees further dollar depreciation as the key to reducing the U.S. trade surplus with Japan. Reuter | FED DATA PROVIDE NEW EVIDENCE OF TIGHTER POLICY |
Oper shr profit 34 cts vs loss 78 cts Oper net profit 7434000 vs loss 17.0 mln Revs 201.2 mln vs 171.7 mln Note: Year-ago oper exludes gain on sale of businesses of 139.6 mln. Year-ago oper includes charges of 27.8 mln resulting from allocation of the purchase price of Revlons businesses to inventory and 7.1 mln for restructuring costs. Reuter | RORER GROUP INC <ROR> 1ST QTR NET |
A large group of other milds coffee-growing nations will hold talks in Guatemala next month to map their strategy for next Septembers meeting of the International Coffee Organisation (ICO). Mario Fernandez executive director of the Costa Rican coffee institute said delegates from Mexico the Dominican Republic Peru Ecuador India Papua New Guinea and five central american nations will participate in the two-day strategy session beginning May 4. The main topic will be reform of what many producing countries perceive as the ICOs unfair distribution of export quotas Fernandez said. He said Costa Rica would press for quotas based on the real production and export potential of each country in the past few years and to distribute quotas based on historic production levels rather than recent harvests and crop estimates. Reuter | MILD COFFEE GROWERS TO MEET IN GUATEMALA |
A congressional study today said the proposed but now apparently abandoned merger of the Communications Satellite Corp <CQ> and Contel Corp <CTC> would technically be legal but could violate the spirt of the law setting up COMSAT. Two weeks ago before the study was completed Contel announced it would seek to terminate the proposed merger. The study by the non partisan Congressional Research Service (CRS) said the proposed merger appears to comply technically with the mandates or letter of statutes if may nevertheless violate the spirit of the law. Comsat created by a 1962 act of Congress and Contel a corporation of local telephone and communications firms filed with the Federal Communications Commission last November 3 an application for merger. Several firms had protested the proposed merger. In an analysis of the law the research service issued several critical comments about the structure of the new firm and said apparent domination by Contel of a restructured COMSAT would have broken the spirit of the law setting up COMSAT.COMSAT is the U.S. arm of Intelstat the international satellite communications firm. Reuter...^M | US STUDY DISCUSSES DROPPED COMSAT-CONTEL MERGER |
Japans Lower House passed the 1987 budget after the ruling Liberal Democratic Party agreed to a mediation proposal that could kill its plan to introduce a controversial sales tax political analysts said. The move was seen as a major blow to Prime Minister Yasuhiro Nakasone the leading advocate of the five pct tax. Some analysts predicted Nakasone might be forced to step down just after the June summit of leaders from major industrial democracies well before his one-year term is due to expire at the end of October. The ruling party though was anxious to pass the budget before Nakasone leaves next week for the U.S. so that he could tell Washington the Japanese government was doing its utmost to boost the sagging economy and imports. Reuter | SETBACK SEEN FOR NAKASONE IN JAPANESE PARLIAMENT |
The Bank of Japan intervened just after the Tokyo market opened to support the dollar from falling below 140.00 yen dealers said. The central bank bought a moderate amount of dollars to prevent its decline amid bearish sentiment for the U.S. Currency they said. The dollar opened at a record Tokyo low of 140.00 yen against 140.70/80 in New York and 141.15 at the close here yesterday. The previous Tokyo low was 140.55 yen set on April 15. REUTER | BANK OF JAPAN INTERVENES IN TOKYO MARKET |
Australias M-3 money supply growth was 1.5 pct in March and 11.3 pct in the 12 months to March the Reserve Bank said. This compared with a revised rise of 0.5 pct in February and 11.1 pct in the year to end-February. The Reserve Bank said the M-3 data for March was affected by the start of the operations of <National Mutual Royal Savings Bank Ltd> which has resulted in the transfer of deposits (equivalent to around 1.5 pct of m-3) from the United Permanent Building Society to National Mutual Royal Savings Bank Ltd. The Reserve Bank said M-3 money supply in March was 110.77 billion Australian dlrs compared with a revised 109.11 billion in February and 99.48 billion in March 1986. M-3 is deposits of the private sector held by trading and savings banks plus holdings of notes and coins. REUTER | AUSTRALIA'S M-3 MONEY SUPPLY RISE 1.5 PCT IN MARCH |
Parliaments Lower House passed the 1987 budget shortly before midnight local time official parliamentary sources said. The move followed agreement by the ruling Liberal Democratic Party to a proposal that could kill its plan to introduce a controversial sales tax political analysts said. The move was seen as a major blow to Prime Minister Yasuhiro Nakasone the leading advocate of the five pct tax they said. Some analysts said Nakasone may be forced to step down after the June summit of heads of major industrial democracies and before his one-year term is due to expire at end-October. Under the compromise agreed by the LDP and opposition parties Lower House Speaker Kenzaburo Hara will take charge of the sales tax bill appoint a ruling/opposition party council to debate it and allow opposition leaders to review the present tax system analysts said. Hara also verbally agreed to scrap the sales tax plan entirely if the joint council fails to reach agreement on how to handle the tax. The opposition parties who have been vociferously attacking the sales tax plan for months hailed the decision as a great victory. The opposition parties had already delayed passage of the budget for three weeks after the April 1 start of the fiscal year by intermittent parliamentary boycotts. Although the LDP had more than enough votes to ram the budget through parliament it had been reluctant to do so for fear of a backlash of public opinion especially after its setback in recent local elections due to the sales tax issue. The ruling party though was anxious to pass the budget before Nakasone leaves next week for the U.S. So that he could tell Washington the Japanese government was doing its utmost to boost the sagging economy and imports. According to Kyodo News Service Nakasone told reporters he did not think the sales tax was dead. If the sales tax is dropped it could prove a major boost to the economy because it would increase the government budget deficit economists said. The sales tax was originally scheduled to be introduced next January to help offset the loss of government revenues stemming from a cut in income and corporate taxes due to go into effect this month. REUTER | JAPANESE PARLIAMENT PASSES 1987 BUDGET |
Dollar trades at post-war low of 139.50 yen in Tokyo - brokers |
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Many major nations yesterday intervened heavily to aid dlr - Miyazawa |
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STANDARD OIL SAYS BRITISH PETROLEUM SHARE TENDER EXTENDED UNTIL MAY 4 |
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Finance Minister Kiichi Miyazawa said Japan has no plans to take new emergency measures to support the dollar other than foreign exchange intervention. He also told reporters that many major nations yesterday intervened heavily to support the dollar against the yen. Yesterdays intervention was large in terms of the countries involved and the amounts expended he said. With the continued fall of the dollar against the yen 0speculation had arisen in currency markets here that Japan might take new measures to support the U.S. Currency such as curbing capital outflows. Miyazawa said that yesterdays news of a 4.3 pct rise in U.S. Gnp in the first quarter had been expected. Although the growth looks robust on the surface the figures in reality are not that good he said. He said the ruling Liberal Democratic Party (LDP) is expected to come up with a final set of recommendations of ways to stimulate the Japanese economy before Prime Minister Yasuhiro Nakasone leaves for Washington next week. Commenting on yesterdays report on economic restructuring by a high-level advisory panel to Nakasone Miyazawa said it was important to put the panels recommendations into effect. REUTER | JAPAN HAS NO PLANS FOR NEW MEASURES TO AID DLR |
Standard Oil Co <SRD> said in a brief announcement issued after a meeting of its board of directors that British Petroleum Co PLC <BP.L> (BP) has extended its 70 dlr per share tender offer until midnight May 4. The offer for the 45 pct of Standard shares not owned by BP had been due to expire midnight April 28. Standard Oil said discussions with BP concerning the tender were continuing but provided no further details. So long as those discussions continue no recommendation will be made to Standard Oil shareholders regarding the offer Standard said. Standard directors met at the companys Cleveland headquarters on Thursday in a regularly scheduled meeting. The spokesman was unable to say if the meeting would continue on Friday. A committee of independent directors previously obtained an opinion from First Boston Corp that the Standard shares were worth 85 dlrs each 15 dlrs more than the BP offer. REUTER | STANDARD OIL SAYS BP EXTENDS TENDER |
State-owned <Qantas Airways Ltd> said it has placed a firm order for a single Boeing Co <BA.N> 767-300ER (extended range) aircraft for delivery in August 1988 at a cost of 150 mln Australian dlrs including spares. A statement said it also has options to buy six more and will decide in mid-1987 whether to use engines made by United Technologies Corp <UTX> unit Pratt and Whitney or General Electric Co <GE>. The 767-300ER can carry more cargo and passengers and is more fuel-efficient than the 767-200 six of which Qantas has in service. REUTER | QANTAS TO BUY EXTENDED RANGE BOEING 767 AIRCRAFT |
Japan should look out for possible effects of the yens recent sharp rise on Japans economy as growth remains slow the governments Economic Planning Agency said in a monthly report submitted to cabinet ministers. EPA officials told reporters the underlying trend of the economy is firm but growth is slow due to sluggish exports. Customs-cleared exports by volume fell 4.9 pct month-on-month in February after a 2.8 pct fall in March. The government must take adequate economic measures to expand domestic demand and stabilise exchange rates in a bid to ensure sustained econonic growth the report said. The report made a special reference to the yens renewed rise and its effect on the economy the officials said adding the agencys judgement of current economic conditions has not changed since last month. The EPA said last month Japans economy is beginning to show signs of bottoming out conditional upon exchange rates. The dollar fell below 139 yen in early trading today - a post-war low. REUTER | JAPAN AGENCY URGES WATCH ON YEN RISE EFFECTS |
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