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Scientists reported that AZT a compound found useful in fighting AIDS can also suppress a wide range of diseases including certain types of leukemia. A paper on AZT presented at the Third International Conference on Acquired Immune Deficiency Syndrome by Cancer Institute researcher Hiroaki Mitsuya said we now report that the dideoxynucleosides including AZT can suppress a wide range of human and animal retroviruses in vitro (in test tubes). Among those he cited were human T-cell leukemia virus-I which causes a number of diseases including leukemia immunodeficiencies and neuorological disorders. AIDS is caused by a retrovirus. AZT is made by Burroughs Wellcome Co the U.S. subsidiary of the British Wellcome Plc <WELL.L>. Mitsuya is a member of a team of American and Japanese researchers at the National Cancer Institute that made the original discovery last year that AZT prolonged the life of dying AIDS patients. Reuter | AZT SUPRESSES DISEASES BESIDES AIDS, RESEARCHERS |
U.S. House Speaker Jim Wright said he was concerned that the appointment of Alan Greenspan to succeed Paul Volcker at the Federal Reserve Board would mean interest rates would rise. Speaking to reporters the Texas Democrat said that based of Greenspans tenure as chairman of President Nixons Council of Economic Advisers his policies would mean higher rates. His previous service indicates the kind of economic policies based on the trickle down theory rather than the percolate up theory. This theory tends to higher interest rates Wright said. Wright told reporters he would not have chosen Greenspan to head the Fed but he declined to name his preference. It would be someone whose primary interest is in keeping interest rates low. That is the national interest he said. His main concern was that high interest rates have slowed economic growth and held down the number of new jobs. The United States needs to reduce the level of interest rates so this economy can get oxygen and breathe Wright said. Wright said he had not talked with Greenspan about the appointment. Asked to rate Volckers tenure he replied Long. Reuter | U.S. SPEAKER FEARS HIGHER RATES UNDER GREENSPAN |
Chancellor of the Exchequer Nigel Lawson said satisfactory progress has been made in talks with Japan that would lead to membership of the Tokyo Stock Exchange for three British merchant banks next year. Following weekend talks here between Japanese and British officials Lawson told reporters we have achieved our objective. The three applicants <Baring Brothers and Co Ltd> <J.Henry Wagg and Co Ltd> and Kleinwort Benson Lonsdale Plc <KSLL.L> would join when the Stock Exchange has been extended he said. The TSE has said this will be completed in May 1988. It has repeatedly said it cannot accommodate any new members until then because of limited space on its trading floor. During a visit to Tokyo in April U.K. Corporate Affairs Minister Michael Howard presented Japanese officials with what he called a non-negotiable timetable for granting the three British securities companies TSE membership. Howard said Britain expected a favourable response at last weekends meeting and wanted the firms to be made members before next May. If Tokyo failed to act Britain was ready to retaliate against Japanese financial groups in London he added. Last month the Tokyo Stock Exchange announced plans to set up a special committee to study the membership question. The committee is due to produce a report by the autumn. This would allow the TSE to announce formally by the end of the year who will be granted membership although the companies chosen would not be able to start trading until May. REUTER | U.K. MERCHANT BANKS TO JOIN TOKYO EXCHANGE IN 1988 |
Finance Minster Gerhard Stoltenberg praised the excellent leadership of Federal Reserve Board Chairman Paul Volcker whom the White House said will not be standing for a third term when his current period in office expires. Paul Volcker will go down in U.S. History as one of the important chairmen of the Federal Reserve Board. By his excellent leadership he has also won our great respect Stoltenberg said in a Finance Ministry statement. The minister described Volckers successor economist Alan Greenspan as an experienced and capable man and wished him all the best in his new role. REUTER | STOLTENBERG PRAISES FED'S VOLCKER |
Moodys Investors Service Inc said it raised to Aaa from Aa-1 about 1.4 billion dlrs of senior unsecured debentures of New Jersey Bell Telephone Co a unit of Bell Atlantic Corp. The agency said it believes that New Jersey Bell will sustain strong earnings and interest coverage. The company should continue to benefit from constructive regulatory treatment as well as from the states healthy economy. Moodys noted that the unemployment rate in New Jersey is among the lowest in the country. The state is moving rapidly to a higher growth service industry based economy it added. Reuter | MOODY'S UPGRADES BELL ATLANTIC'S <BEL> N.J. BELL |
The stock of HF Ahmanson and Co fell sharply after analyst Robert Hottensen of Goldman Sachs and Co cut his earnings estimates of the savings and loan traders said. Ahmansons stock fell 1-1/8 to 20-1/8 in active trading. Hottensen was unavailable for comment but a spokeswoman for Goldman Sachs said the reason for the reduction in earnings estimates is the decline in demand for mortgage loans as interest rates move higher. Mortgage rates moved to double digits in april for the first time since last summer. The Goldman spokeswoman said that sales of adjustable rate mortgages was a significant factor in Hottensens original earnings estimates. Last year when the companys net income was 3.22 dlrs a share Ahmanson generated more than half of its 541 mln dlrs of pretax income from gains on loan sales the spokeswoman said. She said the reduction in earnings estimates to 2.60 dlrs a share in 1987 from a previous estimate of 3.30 dlrs reflects less optimism with the mortgage loan environment. In the present environment for mortgages the spokeswoman said Ahmansons second quarter earnings should drop to 45 cts a share from last years 80 cts a share. Hottnesen expects the savings and loan to earn between 2.90 dlrs and 3.10 dlrs a share in 1988. he had previously estimated earnings of 3.30 dlrs a share in 1988. Reuter | HF AHMANSON <AHM> ESTIMATES CUT BY GOLDMAN SACHS |
NCNB Corp said the board of governors of the Federal Reserve System approved its application to merge with (CentraBank Inc) of Baltimore expected to be completed July 1. The company said the boards approval included the dismissal of a protest by the Baltimore-based Maryland Alliance for Responsible Investing against NCNBs performance under the Community Reinvestment Act. The company said Maryland Alliance wanted the merger blocked on the grounds that NCNB inadequately served the credit and financial needs of low-income and minority communities in its markets. The company said it denied the claim. Reuter | NCNB <NCB> TO MERGE WITH (CENTRABANK) |
Fritz Leutwiler chairman of BBC AG Brown Boveri und Cie and a former Swiss National Bank president urged the National Bank to declare its intent of achieving a rising rate for the mark against the Swiss franc. In a speech to shareholders Leutwiler said A gradually rising rate for the mark in relation to the franc would be desirable from the standpoint of industrial exports and with regard to sustaining Swiss industry. Simply an appropriate declaration of intent by our bank of issue (Swiss National Bank) could have a positive effect he said. Leutwiler who served 10 years as head of the Swiss central bank said such a step would not contradict the National Banks target of monetary stability. Bringing the franc close to the mark would of course have to be done step by step under the watchful eye of monetary policy he told shareholders. Realistically there is in fact no persuasive reason why the German currency is quoted almost 20 pct lower than the Swiss. A National Bank spokesman said the relation of the mark and Swiss franc was an example of stable currency parities over a long period of time. The spokesman said exchange rates were made by the market not the central bank and it would be impossible to influence individual parities separately. Leutwiler said the Swiss National Bank could not support the value of the dollar even in conjunction with other central banks without putting monetary stability in jeopardy. I would be the last to recommend that. The key to a stronger dollar lies in the United States itself Leutwiler said. REUTER | LEUTWILER WANTS FIRMER MARK AGAINST SFR |
Tenneco Inc said its Tenngasco Corp subsidiary has started delivering up to 40 mln cubic feet per day of natural gas to PPG Industries Inc in Lake Charles Louisiana under a 10-year firm supply contract. Reuter | TENNECO <TGT> UNIT STARTS SERVING PPG <PPG> |
Spectra-Physics Inc said it is considering the possibility of recapitalizing restructuring or seeking a buyer for the company following its rejection of an unsolicitied 32 dlr a share bid from Ciba-Geigy Corp. In a filing with the Securities and Exchange Commission the San Jose Calif. gas lasers and accessories company also said its board Sunday agreed to a plan that gives 52 top executives bonuses ranging from 20 to 50 pct of their base salary if they stay with the company through August 29. In rejecting the takeover proposal by the U.S. subsidiary of Swiss-based Ciba-Geigy AG the company said it was unfair. The Spectra-Physics board voted unanimously with two Ciba-Geigy representatives not participating to reject the Swiss-based chemical and pharmaceutical companys takeover bid citing an opinion from its financial advsior Morgan Stanley and Co Inc that it is inadequate and unfair from a financial point of view to the holders of shares the company said. The board also authorized a special committee and Morgan Stanley to vigorously investigate pursue and authorize any alternatives which would maximize the value of shareholders investment in the company the company said. Among the alternatives the special committee will consider are a sale of the company to a third party for more than 32 dlrs a share a recapitalization or restructuring including self tender offers and/or asset dispositions through the use of dividends Spectra-Physics said. The retention plan for the 52 top officers will pay an average bonus percentage of 28 pct of salary it said. Spectra-Physics said its board approved the plan in order to encourage key operating personnel to remain with the company during the period of turmoil and uncertainty engendered by the (Ciba-Geigy) offer. Under the plan the executives would be entitled to their cash bonuses if they stay with the company through August 29 but could receive them earlier if they are fired for reasons other than gross and willful misconduct or if they leave the company because their salaries have been sharply cut. Spectra-Physics also said it filed suit against Ciba-Geigy yesterday in U.S. District Court in Wilmington Del. charging it with making a takeover bid that was false and misleading in violation of securities law and with violating the intent of July 9 1985 standstill agreement. Spectra-Physics said Ciba-Geigy indicated at the time of the standstill agreement that it would not make an unsolicited takeover proposal for the company and that the intent of the agreement was that Ciba-Geigy would not acquire more than 20 pct of the company unless there was another takeover threat. Ciba-Geigy was 18.8 pct of Spectra-Physics and Reliance Group Holdings <REL> which is controlled by New York investor Saul Steinberg controls 12.8 pct. Spectra-Physics said the agreement prevents Ciba-Geigy from raising its stake beyond 20 pct through Jan 1 1992 unless another person get more than 10 pct of its voting power. Reuter | SPECTRA-PHYSICS <SPY> MULLS SALE, RESTRUCTURE |
Magma Power Co said it has discontinued talks on joint ownership of its new Niland geothermal power plants in the Imperial Valley of California with Southern California Edison Co. The company said it has retained J.P. Morgan and Co <JPM> to act as financial advisor in arranging equity and debt financing for its new geothermal plants in the Imperial Valley. It said the moves should bring significant financial benefits to shareholders. Reuter | MAGMA <MGMA.O> ENDS TALKS WITH SOCAL EDISON<SCE> |
Kroger Cos King Soopers Supermarkets unit said employees members of the United Food and Commercial Workers Union rejected its latest contract proposal by a 58 pct to 42 pct margin. The company said employees have been on strike since May 8 but it has kept the stores open and fully staffed. Reuter | KROGER <KR> SAYS UNION REJECTS CONTRACT |
Integrated Generics Inc said its ANDA Development Corp subsidiary filed with the Securities and Exchange Commission for an initial offering of 600000 units with each consisting of one share of common stock and one common purchase warrant. The company said the units will be offered on a best efforts all or none basis by S.J. Bayern and Co Inc and R.F. Lafferty and Co Inc. It said each unit is expected to be offered at five dlrs. Reuter | INTEGRATED <IGN> UNIT IN INITIAL OFFERING |
Paul Volckers decision not to go for a third term as Federal Reserve Chairman and the nomination of Alan Greenspan to replace him have revived deep concerns about the U.S. ability to prevent a further dollar decline and stem rising inflation financial market analysts said. Although Greenspan is known as a committed anti-inflation fighter in the Volcker mould doubts are already surfacing in the U.S. financial markets as to whether he has enough political clout and monetary experience to wage a tough campaign against inflation over the next year or two. The critical issue is how (Greenspan) will deal with inflation said Stephen Axilrod Vice Chairman of Nikko Securities Co International Inc and former staff director for monetary and financial policy at the Fed. A lot of questions have been raised by Volckers departure. Until Greenspan answers them the markets will remain nervous added Stephen Slifer money market economist at Shearson Lehman Government Securities Inc. This mornings announcement sent the dollar into a tailspin which was halted only by concerted central bank intervention in the open currency market. Reuter | VOLCKER DEPARTURE REVIVES DLR, INFLATION FEARS |
Air Canada owned by the Canadian Government said it recorded a net profit of 16.3 mln dlrs in the first quarter compared to a 36.3 mln dlr loss in the first quarter last year. The company said the turnaround was due to improved passenger yields reduced unit costs and good control over capacity levels. It said overall operating revenue rose eight pct compared to the year earlier level while total passenger revenue rose by nine pct. Reuter | AIR CANADA POSTS TURNAROUND IN FIRST QUARTER |
Royal Bank of Canada said it classified 1.3 billion dlrs in medium and long-term loans to Brazil as non-accrual leading to a seven pct drop in second quarter profit. The designation of these loans as non-accrual reduced the banks earnings by about 22 mln dlrs after tax chairman Allan Taylor said in a statement. Without this reduction second-quarter earnings would have been about 138 mln dlrs a 10 pct increase over last years profit Taylor said. The bank earlier reported second quarter profit fell to 116.2 mln dlrs from 125.1 mln dlrs a year ago. The bank said domestic earnings rose to a record 125 mln dlrs in the second quarter a 52 mln dlr increase from the year before due to higher business volumes and securities gains as well as a better yield from its domestic non-accrual loan portfolio. It said international operations reported a net after-tax loss of nine mln dlrs compared with a 52 mln dlr profit last year. The decline largely reflects the impact of Brazils suspended interest payments which resulted in about a 40 mln dlr reduction in net interest income Royal Bank said. Royal Bank said it keeping its 1987 loan loss experience estimate unchanged from the last quarter at one billion dlrs. It said it is committed to building its general provision for loan losses to at least 20 pct of total outstanding loans to troubled sovereign borrowers by the end of 1989. The bank said non-accrual loans totalled 3.3 billion dlrs at April 30--1.5 billion in domestic loans and 1.8 billion in international loans. Excluding the 1.3 billion dlrs in loans to Brazil net non-accrual loans at the end of the second quarter declined 200 mln dlrs over the 1987 first quarter it said. | ROYAL BANK (RY.TO) RECLASSIFIES BRAZIL LOANS |
Atlantic Richfield Co said it has acquired exclusive worldwide rights to the methyl methacrylate technology of Texas Eastern Corps Halcon SD Group affiliate for undisclosed terms. The company said the technology will allow it to introduce a cleaner and more efficient way of making methyl methacrylate a liquid monomer used to make resins for acrylic sheet coatings molded parts and products and plastic impact modifiers. ARCO said it is reviewing options for commercialization of the technology. Reuter | ATLANTIC RICHFIELD <ARC> UNIT BUYS TECHNOLOGY |
U.S. analysts expect the American Petroleum Institutes weekly report on oil inventories to show a slight build in U.S. stocks of gasoline for the week ended May 29 oil traders and analysts said. While the consensus is for an increase a few would not rule out the possibility of an decline. Traders said that barring any surprises in tonights report they expect the report to be neutral to bearish for oil prices. Heating oil stocks are also likely to build and runs to be steady to slightly higher which could add pressure on oil prices the analysts said. Crude oil was seen likely to build assuming imports continue at relatively high levels. Analysts expect gasoline stocks to rise 500000 to two mln barrels above the 234 mln reported for May 22. Peter Beutel oil analyst with Elders Futures inc who looks for a build said We have had five weeks of gasoline demand at 7.3 mln bpd or more and it is likely to taper off to between 6.7-7.0 mln bpd which should make stocks build. Demand would have to stay above 7.0 mln bpd to have a draw he added. Rising demand is why oil traders and analysts expect a draw in stocks of about of about one mln barrels. The U.S. Energy Information Administration in its latest report for the four weeks ending may 22 said that gasoline demand was up 4.4 pct to 7.3 mln bpd from the previous year. But analysts said hopes of reduced stocks is likely to founder on increased runs in refineries which could be up 0.3 pct above May 22s 81.2 pct capacity operated. Such an increase would raise runs about 100000 bpd and add to U.S. stocks. But some analysts said that refiners may have held refinery runs. Heating oil stocks were also expected to build between 700000 barrels and one mln from the 96 mln barrel level reported last week but a rise in distillate stocks was discounted as having a market impact at this time. A build is seasonal now and not out of line with last year one futures analyst said. Analysts said they also expect crude oil stocks to build between 1.5 mln barrels and three mln from the 325 mln barrels reported by API for the week of may 22. The consensus appears for about two mln barrels to be added to the nations inventory. Reuter | SMALL RISE SEEN IN U.S. GASOLINE INVENTORIES |
Privately-held Piper Aircraft Corp said it has decided to resume production of some Piper models that had faced suspension as soon as existing orders were filled. The company said the decision to resume production reflected improved demand for Piper products mainly due to currency factors and reduced inventories. It said it will immediately resume production of the PA-28-161 Warrior PA-28-181 Archer PA-28R Arrow PA-28-236 Dakota PA-32 and PA-32R Saratoga and Pa-34 Seneca in numbers depending on market demand. The company said it will continue to make the PA-46 Mailbu and resume production of the Cheyenne IIIA and Pa-42-400 Cheyenne late this year. Reuter | (PIPER AIRCRAFT) RESUMES OUTPUT OF SOME MODELS |
U.S. Secretary of State George Shultz said the 6000 billion yen economic package announced by Tokyo last week went further than the U.S. Had expected. But he said the U.S. Would not lift the selective economic sanctions it imposed on Japanese imports in April until Tokyo changed its sales policies concerning computer microchips. Speaking in a televised news conference linking several European capitals Shultz said it was heartening that the Japanese had confronted the problem of stimulating domestic and global demand. There is an even greater amount of stimulus than was originally thought said Shultz speaking from Washington. It is a lot more than nothing. It is more than was talked about when (Prime Minister Yasuhiro) Nakasone was here. It involves a major reduction in tax rates and we believe that getting the tax burden down is one way of stimulating the economy he added. But asked by Japanese reporters also linked into the news conference whether the positive reaction meant the U.S. Might decide at next weeks Venice summit to lift its sanctions on some Japanese electronic goods Shultz replied: These sanctions were undertaken on the basis of an agreement that had been reached between the United States and Japan on various sale practices and prices relating to the chip market. They will be lifted as the facts of change by Japan to the agreement that it made become evident. He said U.S. Officials had only been able to monitor the situation for a month and that it was impossible to determine a trend on only one months data. The U.S. Imposed 100 pct import duties on personal computers colour televisions and power tools alleging that Japan had violated last Septembers bilateral agreement by selling computer chips at below fair market value. Shultz said West Germany and other nations would also do well to look at what they could do to stimulate demand. Asked whether the U.S. Could reasonably ask its allies to take action to stimulate the world economy without a bold American initiative to reduce the size of the federal budget deficit Shultz said moves were already underway to tackle the problem. He said by the end of the current fiscal year the deficit would probably be reduced by around 35 billion dlrs against last year and that the budget being worked on this year would contain a major reduction. REUTER | SHULTZ WELCOMES TOKYO ECONOMIC PACKAGE |
Champion Home Builders Inc said it sold the Commerce Meadows 600-site manufactured housing rental community in Commerce Township Michigan for a pre-tax gain of about 900000 dlrs and the Heron Cay 610-site adult community in Vero Beach Florida for a nominal pre-tax gain. The company said the sales proceeds will be partly used to reduce debt. It said it is shifting its focus away from the development of communities requiring significant equity and having lengthy projected life cycles. The company also said along with local landowners and investors it will acquire 33-acre tract Northtowne Meadows in the Toledo Ohio area for development into 160 home sites and three acres of commercial land. Terms of the transactions and other parties involved were not disclosed. Reuter | CHAMPION HOME <CHB> SELLS TWO PROPERTIES |
Developing countries said the European Community (EC) would breach two international agreements if it went ahead with its plans for an oils and fats tax. Ambassadors to the EC from African Caribbean and Pacific (ACP) states told a press conference the tax would hit the exports of 26 ACP countries. They said the EC failed to follow consultation procedures laid down in the Lome Convention which regulates relations between ACP states and the bloc for moves which could affect trade between the two sides. They also said the EC would be in breach of an undertaking not to bring in new protectionist measures during the current Punta del Este round of world trade negotiations being held under GATT (General Agreement on Tariffs and Trade) auspices. The EC Commission has proposed a tax of up to 330 European currency units (Ecus) a tonne on both imported and EC-produced vegetable and marine fats for human consumption which could raise up to two billion Ecus a year. EC farm ministers who would have to approve such a tax are split on the issue and are expected to decide it at a marathon meeting on EC farm prices beginning in Luxembourg on June 15. Jamaican ambassador Leslie Wilson said ACP countries are convinced this would lead to EC industry substituting products made within the bloc for oil and fat imports. The ACP estimates this would result in a fall of 160 to 185 mln Ecus in its member country exports. We cant believe the EC would willingly take measures to undermine our countries but such would be the impact of these measures Wilson said. The U.S. and Malaysia say their exports would also be hit by the proposed tax and they may take retaliatory action if it is approved. Wilson said the ACP would take such steps only as a very last resort but added that the ACP is in touch with other countries which oppose the plan. Wilson who was chairing the news conference made it clear Jamaica itself would not be hit by the tax as it does not export oils and fats. Among the worst hit countries would be Ivory Coast Senegal Nigeria and Papua New Guinea the ACP says. Reuter | ACP STATES SAY EC OILS TAX PLAN BREAKS ACCORDS |
Salomon Brothers Inc announced formation of global stock indexes designed to make it easy for portfolio money managers to invest all over the world. This is a way to put money into the Pacific or Europe quickly Laszlo Birinyi Salomon vice president Laszlo Birinyi told a news conference. The stock index products were developed in cooperation with the Frank Russell Co a pension fund consulting firm. Birinyi said he would not be surprised if exchanges create futures and options on the indexes. Somebody will - If they dont we will he said. Reuter | SALOMON <SB> ANNOUNCES GLOBAL STOCK INDEXES |
quarter ended May 2 Shr 20 cts vs 17 cts Net 2319000 vs 1950000 Sales 92.4 mln vs 72.2 mln Six mths Shr 1.60 dlrs vs 1.27 dlrs Net 18.7 mln vs 14.8 mln Sales 285.9 mln vs 227.1 mln NOTE: Full name is Burlington Coat Factory Warehouse Corp. Reuter | BURLINGTON COAT FACTORY <BCF> 2ND QTR NET |
Valley Capital Corp said its common stock has been listed on NASDAQs National Market System effective today. Reuter | VALLEY CAPITAL <VCCN.O> IN NASDAQ EXPANSION |
West German officials said they could make no comment on remarks by U.S. Treasury Secretary James Baker who said Group of Seven (G-7) finance ministers had agreed a new process for economic coordination. At last years G-7 summit in Tokyo senior government officials were requested to make a study of how economic data could be better coordinated and the results of their work will be presented at next weeks summit in Venice. West Germany has said governments should not be obliged to take economic steps purely in reaction to economic data. The U.S. Position on data coordination has been that governments should react accordingly when economic indicators fall short of expectations. The West German stance on coordination of data which has also been shared by the British government has been a potential threat to a joint stance by the G-7 on this topic. At a news conference in Washington Baker would not be specific about what agreement had been reached on data coordination by the seven finance ministers. REUTER | GERMAN OFFICIALS HAVE NO COMMENT ON BAKER REMARK |
qtr ended May 2 Shr 29 cts vs 22 cts Net 1975000 vs 1403000 Revs 68.1 mln vs 54.0 mln Avg shrs 6722527 vs 6597492 Nine mths Shr 1.17 dlrs vs 92 cts Net 7847000 vs 6017000 Revs 209.7 mln vs 175.7 mln Avg shrs 6687138 vs 6549197 Reuter | CML GROUP INC <CMLI.O> 3RD QTR NET |
The New York Stock Exchange said Sterling Bancorp declined to comment on whether there are any corporate developments that would explain the unusual activity in its stock. Sterling whose stock is up 3/8 at 14-7/8 said its policy is not to comment on unusual market activity or rumors the Exchange said. Reuter | STERLING BANCORP <STL>HAS NO COMMENT ON ACTIVITY |
Ball Corp said it completed the acquisition of privately held Verac Inc. Terms were not disclosed. The company said the San Diego-based defense systems and software development company had sales of about 23 mln dlrs in 1986 and will operate as part of Balls technical products group. Reuter | BALL CORP <BLL> COMPLETES ACQUISITION OF VERAC |
qtr ended April 30 Shr seven cts vs 10 cts Net 158294 vs 234829 Revs 8727242 vs 8152478 Reuter | NODAWAY VALLEY CO <NVCO.O> 1ST QTR NET |
United Automobile Workers union president Owen Bieber said he was pleased Paul Volcker is leaving as chairman of the Federal Reserve Board but not encouraged at Alan Greenspans nomination to succeed him. When you say Greenspan in now in view that troubles me the UAW leader told reporters at a news conference. Bieber whose union has 1.1 mln members said that with Greenspan heading the Fed Im afraid it means a continuation of the same policies weve been on which I dont think are the right policies. Reuter | UAW CHIEF DISPLEASED WITH GREENSPAN APPOINTMENT |
Secretary of State George Shultz said today that a boost in allied forces in the Mideast Gulf was not vital to protect shipping against attack but that possible allied contributions should be examined. Asked if he saw the need for a greater military presence by the allies in the gulf Shultz told reporters Not necessarily particularly so. But he said an adequate force was needed to deter attack and noted that the British and the French as well as the United States maintained naval contingents there. We have to look at things that others might do he said. Reuter | NEED FOR BIGGER ALLIED FORCE IN GULF PLAYED DOWN |
Rep. Jack Kemp a conservative Republican from New York praised Federal Reserve Board chairman-designate Alan Greenspans calls for international monetary reform. Alan Greenspan has called for a fundamental reform of the international monetary system which is long overdue. The challenge facing Mr Greenspan is to combine a commitment to monetary reform with a policy for economic growth Kemp said in a statement. However Kemp said he was disappointed Fed vice-chairman Manuel Johnson was not to succeed Fed chief Paul Volcker. Reuter | KEMP PRAISES GREENSPAN VIEWS ON MONETARY REFORM |
Chicago Pacific Corp said it could achieve the 1987 estimates of some analysts for a sharp increase in sales and in fully diluted per share earnings before extraordinary items in 1987. The company said the estimates ranged from 3.10 dlrs to 3.40 dlrs per share and sales of more than 1.35 billion dlrs. It earned 2.30 dlrs per share in 1986 on sales of 954.9 mln dlrs. Reuter | CHICAGO PACIFIC <CPAC.O> SHOWS CONFIDENCE |
Finance Minister Edouard Balladur is undecided over his future in office after next Springs presidential election his spokesman said. He (Balladur) has taken no definitive decision about his activities in a years time his spokesman said in answer to a Reuters question. He was responding to questions on a comment made by Balladur a close political associate of right wing Prime Minister Jacques Chirac in a radio interview. Balladur told a Radio Monte Carlo interviewer From next year I shall rediscover the freedom of private life. France is due to hold a presidential election in April or May next year. Under the French political system the prime minister and his cabinet tender their resignation to the incoming President giving him freedom to appoint a new government. Chirac leader of a two-party coalition government is widely assumed to be a presidential candidate while incumbent Socialist President Francois Mitterrand is tipped by most opinion polls to win if he decides to stand again. Balladurs stringent economic policies have come under increasing criticism inside and outside the coalition parties in recent months as official statistics and forecasts have shown slowing growth prospects and rising inflation. But the spokesman said Balladur was having no second thoughts about the direction of his policies. The Minister of State (Balladur) has one current ambition which is to achieve his mission of national economic recovery he said. He refuses to prejudge the future a year from now. REUTER | BALLADUR UNDECIDED ON FUTURE, SPOKESMAN SAYS |
Qtly div 12 cts vs 12 cts prior Pay June 26 Record June Five Reuter | TELERATE INC <TLR> SETS QUARTERLY |
Qtly div 10 cts vs 10 cts prior Pay September three Record August 13 Reuter | ZAYRE CORP <ZY> SETS REGULAR PAYOUT |
Shr profit four cts vs loss 47 cts Net profit 209000 vs loss 2164000 Sales 4849000 vs 3682000 Year Shr loss 10 cts vs loss 52 cts Net loss 451000 vs loss 2378000 Sales 18.0 mln vs 15.8 mln Reuter | GAMMA BIOLOGICALS INC <GAMA.O> 4TH QTR MARCH 31 |
Alan Greenspan who has been nominated to replace Paul Volcker as Chairman of the Federal Reserve Board is regarded by financial analysts as a conservative economist who will take a strong stand against inflation. Hell be a strong fighter against inflation said Martin Regalia director of research and economics at the National Council of Savings Institutions. Greenspan has broad experience both in running his own private economic consulting firm - Townsend-Greenspan - and in government service. He was President Fords top economic adviser serving as chairman of the Council of Economic Advisers from September 1974 until January 1977. During that time inflation rising above 10 percent a was a major political concern during Fords administration. Hes had a lot of experience with inflation and as an inflation fighter Richard Medley partner with Smick-Medley and Associates said of Greenspan. He had that seared into his memory during that period Medley added. Reuter | GREENSPAN SEEN AS STRONG INFLATION FIGHTER |
Putnam Financial Services Inc said its newest fund offering Putnam Global Governmental Income Trust is among the few global funds with an investment objective of high current income through a portfolio of mainly government bonds. Putnam claimed the trust allows investor money to go where the best yields are found worldwide yet investors still have the assurance of governmental obligations. Reuter | PUTNAM LAUNHCES NEW GLOBAL INCOME FUND |
Intelligent Systems Corps Asher Technologies Inc said it introduced two facsimile products a portable unit and an internal card for IBM personal computers and compatibles. The JT facsimile products are designed for use with the IBM PC XT AT or compatibles to send or receive group III transmissioins the company said. Asher said the new products eliminate printing out hard copies and manually sending each sheet to be transmitted. The internal unit retails for 395 dlrs while the portable unit sells for 495 dlrs the company said. Reuter | INTELLIGENT <INP> UNIT INTRODUCES FAX PRODUCTS |
Barnes Group Inc said it will build a new 3.7 mn dlrs manufacturing plant in Saline Mich. to house its Associated Spriung units high-tech valve and torque converter clutch spring operations. Reuter | BARNES <B> UNIT TO CONSTRUCT NEW PLANT |
Neotech Industries Inc said it has formed a joint venture with Texas Instruments Inc to develop low-cost digital pressure measurement technologies. The company said Texas Instruments will be cooperating with it on the development of application-specific integrated circuits for use in Neotech pressure measurement devices that are to be made in Britain. Reuter | NEOTECH, TEXAS INSTRUMENTS <TXN> IN VENTURE |
American Superstores Inc a unit of American Stores Co <ASC> said it elected Jonathan Scott as chairman of the board and chief executive officer effective immediately. Scott replaces Thomas Sunday former chairman who passed away May 25 the compnay said. The food retailer chain said previously Scott served as vice chairman and chief executive officer. Reuter | AMERICAN STORES <ASC> UNIT ELECTS NEW CHAIRMAN |
American Telephone and Telegraph Co said it introduced its Overview Scanner that works in conjunction with a personal computer. The company said the Overview Scanner lends itself to meeting environments where discussions call for the graphic to be pointed to or annotated. The system works with any ATT PC 6300 series or MS-DOS-compatible personal computer the company said. The company said customers who have a personal computer could augment the system with the scanner for about 3000 dlrs. Reuter | ATT <T> INTRODUCES OVERVIEW SCANNER |
Bromon Aircraft Co which is privately held said it is in the final design phase of a twin turboprop and is scheduled to complete production of three prototype aircraft in the fall of 1988. It also said it expects certification by the Federal Aviation Administration in 1988. The turboprop the BR-2000 can carry up to 46 passengers or up to six tons of cargo according to the company. Reuter | BORMON IN FINAL PHASE OF BUILDING TRANSPORT |
ElectroSound Group Inc said Richard Meixner has resigned as senior vice president of the company. The company said they expect the board to appoint Robert Barone presently president of Electro Sound Inc a unit of ElectroSound Group as vice president of operations for ElectroSound Group. ElectroSound said Meixner left the company to explore opportunities with a private company in the recorded music industry. Reuter | ELECTROSOUND <ESG> SAYS OFFICIAL HAS RESIGNED |
Skyline Explorations Ltd said expects construction can begin next month on a gold mine at Johnny Mountain Camp located 600 miles north of Vancouver. The company said a contract has been let for a 200 to 400 tons per day mill and the company is receiving cooperation from provincial and federal agencies on its stage one report approval in principal which is required before actual construction can begin. Skyline said it is optimistic the approval in principal will be received in late June by which time it expects to have confirmed threshold tonnage and grade targets so construction can begin in July. Skyline said the 1987 exploration drift on 16 vien east at Johnny Mountain has advanced 320 feet. The vein is continuous averaging four feet thick plus an altered mineralized hanging wall. It said periodic face samples indicate an average grade of 1.05 ounces per ton of ore ranging from a low of 0.78 ounce per ton to a high of 55.8 ounces per ton. Reuter | SKYLINE <SKX.V> EXPECTS TO BEGIN MINE IN JULY |
Nearby months in soybean and soymeal futures could post a short-term rally on tightening supply of livestock feed even if favorable growing conditions keep the new crop outlook bearish traders said. A lot of soymeal dealers are just getting very worried about where processors will get their soybeans this Summer one Illinois soyproduct dealer said. Processors are competing vigorously with river dealers for the few soybeans being offered by country elevators with a Decatur Illinois processor raising its spot soybean basis bid another two cents today to 10 over July futures. Farmer marketings of old crop soybeans continue very light with flat prices apparently well below levels they are willing to sell dealers said. Some terminal elevator operators are coming to the belief that even if futures rally back to last months highs country movement may remain light because farmers in many areas are sold out of old crop soybeans particularly in the eastern half of the Midwest. Soybean processors will continue to take seasonal downtime for maintenance if soybeans remain difficult to buy reducing the weekly soybean crush rate still further and keeping the spot soymeal basis strong dealers said. Futures traders said tight cash supplies should help July soybeans and soymeal gain on deferreds. July soymeal has already moved to a premium over the August through October months and old crop July/new crop November soybeans may also move to a July premium later this month they added. Reuter | SOYCOMPLEX COULD RALLY ON TIGHT U.S. FEED SUPPLY |
Manor Care Incs Quality Inn International said it received more franchise applications in May than in any month in the chains history. Quality said it received 51 applications for the month. Reuter | MANOR <MNR> UNIT GETS RECORD FRANCHISE BIDS |
Robinson Nugent Inc said a fire that started in the electroplating operation damaged its Delemont Switzerland plant. The company said cleanup operations are in progress and it will serve customer requirments from other plants during the period of cleanup and equipment repair or replacement. Reuter | ROBINSON NUGENT <RNIC.O> PLANT HAS FIRE |
Shr 33 cts vs 26 cts Net 489351 vs 430143 Revs 6961091 vs 6009026 Avg shrs 1.5 mln vs 1.6 mln Reuter | LONDON HOUSE INC <LOND.O> YEAR APRIL 30 NET |
Munson Transportation Inc said its proposed initial public offering has been postponed due to a recent weakness in the prices of comparable trucking stocks. Reuter | MUNSON TRANSPORTATION POSTPONES INITIAL OFFERING |
An investor group led by Technology Growth Fund Ltd an Aspen Colo. investment firm said it has acquired 129000 shares of Distributed Logic Corp or 5.2 pct of the total and may try to influence the company. In a filing with the Securities and Exchange Commission the group which also includes individual investors and a non-profit foundation said it bought the stake for 884414 dlrs as an investment in the Anaheim Calif. company. But it also said it is investigating the possibility of seeking to influence the composition of the management of the company and may increase its stake. Reuter | GROUP HAS 5.2 PCT OF DISTRIBUTED LOGIC <DLOG.O> |
General Motors Corp said in a corporate statement its executives can think of no person better qualified than Alan Greenspan to replace Paul Volcker as chairman of the Federal Reserve Board. Greenspan possesses great understanding of both the American and international economies and the interaction between them the company said in a statement. He also possesses enormous good judgement. No other possible replacement for Paul Volcker would be more likely to have as steadying an influence on and be as well received by financial markets here and overseas as Alan Greenspan it said. GM also said the U.S. owes Volcker a great debt of gratitiude by wringing inflation out of the U.S. economy. Reuter | GM <GM> PRAISES GREENSPAN APPOINTMENT |
Moodys Investors Service Inc said it is likely that large underwriting losses will persist in the mortgage insurance industry for at least the next two years. In its annual report on the mortgage insurance industry Moodys said that in 1986 incurred losses increased by 21 pct over the dismal record posted the year before. Moodys said the underwriting losses mainly reflected major economic forces structural complications and the risk makeup of the industry. The rating agency said that while mortgage insurance industry risk remains high slow improvement appears likely. Reuter | MOODY'S SEES MORE LOSSES IN MORTGAGE INSURANCE |
Henry Kaufman managing director of Salomon Brothers Inc said the nomination of economist Alan Greenspan to replace Federal Reserve Board Chairman Paul Volcker is bearish in the near term for the fixed income and currency markets. The basic direction of interest rates is not changed. The fundamental direction of interest rates continues to be upward interrupted by intermittent rallies Kaufman said in a statement. He said the implication for equity markets in neutral to bullish. Kaufman said Unlike Paul Volcker who entered the office of the Federal Reserve chairman with strong credibility both domestically and internationally Mr Greenspan will have to demonstrate both his competence and policy independence before he can gain full confidence of the financial markets. Greenspan is most knowledgeable on the behavior of the U.S. economy while his professional skills in the international area are much more limited Kaufman noted. Consequently although he is well known abroad his views on issues such as the Less Developed Country Debt may initially carry less weight than have those of Mr Volcker. Reuter | KAUFMAN SAYS GREENSPAN NOMINATION BAD FOR BONDS |
The operator of a major U.S. crude oil pipeline shutdown because of flood damage said it may be several days before repairs are made and the system is functioning again. Dan Stevens manager of public and government affairs at Texaco Inc <TX> operator of the pipeline through its subsidiary Texaco Pipeline Co said the company hopes repairs will begin in about five days and expects it to take several more days to complete. At this point we are lining up what we know we need to get the job done Stevens said adding that the timing for repairs will depend on the damage to the pipeline which is difficult to assess because of flooding on the Red River. The pipeline was shipping roughly 225000 barrels of crude oil per day or about 55 pct of its capacity during the 30 days preceding its shutdown on Saturday Stevens said. The pipeline was shut down from Cushing Okla to Witchita Falls Kan on Saturday due to an undetermined leak at the Red River crossing near the Oklahoma/Texas border because of severe rains a spokesman for Texaco said. Stevens said it was reasonable to suggest the pipeline could operate at full capacity when it reopens in order to make up for the shortfull but cautioned they will talk with customers to determine their requirements. Oil analysts and traders said they were not sure if the shutdown will continue to raise U.S. oil prices. Monday after Texaco confirmed that the pipeline had been closed West Texas Intermediate crude in the spot market and on New York Mercantile Exchanges energy futures complex rose 20 cts a barrel. Stevens said it was reasonable to suggest the pipeline could operate at full capacity when it reopens in order to make up for the shortfull but cautioned they will talk with customers to determine their requirements. Oil analysts and traders said they were not sure if the shutdown will continue to raise U.S. oil prices. Monday after Texaco confirmed that the pipeline had been closed West Texas Intermediate crude in the spot market and on New York Mercantile Exchanges energy futures complex rose 20 cts a barrel. Reuter | MAJOR U.S. PIPELINE MAY BE CLOSED SEVERAL DAYS |
Neti Technologies Inc said it has sold for over four mln dlrs U.S. in cash notes and the assumption of liabilities its Huron Leasing Inc subsidiary to a group of investors headed by a former Huron executive. The company said the transaction will yield about two mln dlrs in cash Huron sells leases and services computer hardware. The transaction is subject to approval by the Montreal and Vancouver Stock Exchange and the arrangement of financing by June 15. Reuter | NETI TECHNOLOGIES <NETFC.O> SELLS SUBSIDIARY |
PacifiCorp said it acquired Thomas Nationwide Computer Corp for 25 mln dlrs in cash and 15 mln dlrs in deferred consideration depending on the future performance of the company. Thomas Nationwide leases and re-markets new and used International Business Machines Corp equipment PacifiCorp said. It said Thomas Nationwide will be combined with its Systems Leasing Corp unit in MacLean Va. Reuter | PACIFICORP <PPW> BUYS BUYS COMPUTER FIRM |
K-Tron International Inc said its board elected John C. Tucker president filling a position that had been vacant since July 30 1985. Tucker joined K-Tron in 1981 as vice president chief financial officer and treasurer. In 1986 he was promoted to executive vice president and chief operating officer. Reuter | K-TRON <KTII.O> ELECTS NEW PRESIDENT |
FNMA SETS 8.55 PCT, 9.20 PCT COUPONS ON 1.5 BILLION DEBT OFFER |
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FMC Corp said it has entered into an equally owned joint venture with Indo-Thai Synthetics called Thai Peroxide Co Ltd to build a hydrogen peroxide plant with an initial capacity of 5000 metric tonnes of 100 pct peroxide north of Bangkok. The company said the plant is expected to starft operating by the fourth quarter of 1988. It said the venture received grants and incentives from the government of Thailand. Reuter | FMC CORP <FMC> IN PEROXIDE VENTURE |
Alternacare Corp said Wallace Reed has stepped down from his duties as chairman of the board and has been named chairman emeritus. Reed will continue to serve on its board Alternacare said adding the company has no immediate plans to fill the position. The company also said Reed was re-elected to its board along with president and chief executive Paul Dinkel. Reuter | ALTERNACARE <ALTN.O> CHAIRMAN STEPS DOWN |
Consolidated Oil and Gas Inc said the exercise price of its Oil Indexed Common Stock Purchase Warrants Series 1900 <CGS.WS.P> will remain three dlrs a share for the six month period July one to December 31. The warrant exercise price is based on the average price of West Texas Intermediate Crude Oil reported for the trading month of May. For the month the average price was less than 20 dlrs per barrel the first index point above which there would be a change in the exercise price of the warrants. Reuter | CONSOLIDATED OIL <CGS> WARRANTS PRICE UNCHANGED |
Lac Minerals Ltd reiterated it expected substantially higher 1987 profit and revenues than last years earnings of 19.1 mln dlrs on 250.2 mln dlrs of revenues. The 1986 results include the disputed Page-Williams mine at Hemlo Ontario. A decision is imminent on Lacs appeal of a 1986 Ontario court decision ordering Lac to hand over the mine to International Corona Resources Ltd <ICR.TO>. Lac chief executive Peter Allen told institutional investors that the anticipated stronger performance would come from strong operating results and an active revenue management program. Lac said year-to-date gold production excluding the disputed Page-Williams mine was 134000 ounces in line with targeted 1987 production of 300000 ounces. It said it expected an average realized price of 450 U.S. dlrs an ounce in full-year 1987. It said its outstanding forward contracts at May 29 were 220000 ounces of gold at average price of 439 U.S. dlrs an ounce including 135000 ounces maturing in 1987 at 482 U.S. dlrs an ounce. Reuter | LAC <LAC> REAFFIRMS FORECAST FOR HIGHER NET |
Disc Technology Corp said it has received 1500000 dlrs in orders for hard discs from MiniScribe Corps MiniScribe Ltd Singapore affiliate. It said the shipments are to be completed by September 30. Reuter | DISC <DSTC.O> GETS ORDER FROM MINISCRIBE<MINY.O> |
Hoffmann-La Roche Inc the licensee of a Hormone Research Foundation patent of a synthetic version of human growth hormone said it entered into a license agreement with Eli Lilly and Co involving Lillys Humatrope hormone used to treat dwarfism in children. Details of the license agreement were not disclosed and company officials were unavailable for comment. A statement from the companies said Lilly and Roche have entered into the license agreement as an alternative to litigation. South San Francisco-based Genetech Inc <GENE> also markets a genetically engineered human growth hormone called Protropin. Lilly received approval from the Food and Drug Administration to market is human growth hormone earlier this year. A Lilly spokesperson said the company has in effect licensed the patent for the hormone through Hoffman-LaRoche. She refused to comment on the terms of the license agreement. Last September Hoffman-LaRoche and the Foundation sued Genetech in a Federal court in California alleging its product infringed on Hoffmans patent for the synthetic hormone. Reuter | HOFFMAN-LA ROCHE, LILLY <LLY> IN LICENSE PACT |
United Services Advisors Inc said it has sold to an investor 75760 shares of preferred stock at 3.25 dlrs each and an equal number of warrants at five cts each but an agreement to sell 454546 preferred shares and the same number of warrants to another investor has been terminated. The warrants are exercisable at seven dlrs per share for five years. It said after the sale it has 2033733 preferred shares outstanding. Reuter | UNITED SERVICES <USVSP.O> SELLS PREFERRED |
NEWBERY CORP EXPECTS TO FILE FOR BANKRUPTCY BY THE END OF THE WEEK |
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Chicago Pacific Corp chairman Harvey Kapnick told analysts that he expects within the next year to repurchase about 25 mln dlrs of the companys 200 mln dlr issue of 14 pct subordinated notes. To date the company has repurchased about 60 mln of these notes. This will have a beneficial effect on our net income but the effects in 1987 have already been anticipated in estimates for 1987 Kapnick said. Earlier Kapnick said that analysts 1987 projections of 31 to 35 mln dlrs or 3.10 dlrs to 3.40 dlrs for earnings for operations are reasonable. These compare to 2.30 dlrs or 22 mln dlrs for 1986. Since November 1985 Chicago Pacific has acquired the <Hoover Co> and <Rowenta> both appliance companies and furniture companies <Kippinger/Pennsylvania House Group Inc> and the <McGuire Co>. The company spent a total of 724.8 mln dlrs on acquisitions. We believe our balance sheets provides us with about 300 mln dlrs for future acquisitions Kapnick said. Kapnick also said he expects sales of the companys appliance division to increase 17 pct from the 915.7 mln dlrs reported in 1986. Kapnick further said the 67 mln dlrs of trademarks and patents will be reduced to 40 mln dlrs due to net loss carryforwards of acquired companies which were offset against these assets as required by current accounting principles. Reuter | CHICAGO PACIFIC <CPA> TO REPURCHASE NOTES |
The Federal National Mortgage Association set an 8.55 pct coupon rate to yield 8.55 on a four-year 900 mln dlr issue and set a 9.20 pct coupon rate to yield 9.22 on a 10-year 600 mln dlr issue in tomorrows 1.5 billion dlr debenture offer. Prices were set at par and 99.875 respectively. FNMA said previously that the 900 mln dlr issue matures June 10 1991 while the 600 mln dlr issue matures June 10 1997. First interest payments will occur Dec 10 1987 it said. FNMA said proceeds will be used to redeem the 300 mln dlrs of 7.65 pct debentures 1.05 billion dlrs of 11.2 pct debentures that mature June 10 1987 and to finance operations. The debentures will be issued in book entry form only in minimum purchase amounts of 10000 dlrs and multiples of 5000 dlrs thereafter. The debentures will be free to trade at 0930 hrs EDT tomorrow FNMA said. Reuter | FNMA SETS RATE ON DEBENTURE OFFERING |
Amoco Corps wholly owned Amoco Canada Petroleum Co Ltd said it had yet to work out details regarding the amount and timing of its previously reported share offering in Canada and would be doing so in talks with Investment Canada in coming weeks. An earlier reported published report based on an interview with Amoco Canada president T. Don Stacy said Amocos stock offering would total more than one billion Canadian dlrs if the company succeeded in its 5.22 billion Canadian dlr bid for Dome Petroleum Ltd <DMP>. Reuter | AMOCO <AN> CANADA SAYS SHARE AMOUNT UNDECIDED |
Lead underwriter Kidder Peabody and Co Inc sand an initial public offering of two mln common shares of Designs Inc is underway at 13 dlrs per share. The company is selling 1125000 shares and shareholders the rest and underwriters have been granted an option to buy up to 300000 more shares to cover overallotments. Reuter | DESIGNS INC <DESI.O> INITIAL OFFERING UNDERWAY |
RCM Technologies Inc said the Securities and Exchange Commission has declared a post-effective amendment to its registration statement effective making its warrants exercisable. Reuter | RCM TECHNOLOGIES <RCMT.O> WARRANTS EXERCISABLE |
Noranda Forest Inc a new company controlled by Noranda Inc <NOR.TO> will have net earnings of more than 165 mln dlrs in 1987 and profit will likely continue to grow Noranda Forest chairman Adam Zimmerman told Reuters in an interview. I think our earnings have not peaked Zimmerman said of Noranda Forest which will be Canadas largest forest products company. Noranda previously said it is spinning off its vast forest product holdings into the new company and is now making an initial public offering of Noranda Forest shares. Zimmerman told Reuters that he agrees with one forest industry analysts prediction that Noranda Forest will earn at least 165 mln dlrs in 1987. Noranda Forests preliminary share prospectus released today shows the company had 1986 pro forma earnings of 80.2 mln dlrs excluding a 22.5 mln dlr extraordinary gain. Asked to comment on the analysts forecast that Noranda could earn about 200 mln dlrs this year Zimmerman said I think that he is directionally very correct. He also said Noranda Forest will consolidate financial results of 50 pct-owned MacMillan Bloedel Ltd <MB.TO>. Zimmerman said Noranda Forest expects to raise at least 350 mln dlrs from its first share issue making it one of Canadas largest initial public offerings. Noranda Forest intends to issue about 15 pct of its common shares to the public at first but parent company Noranda Inc is prepared to let up to 49 pct of it go into the public hands he added. Noranda Inc now holds all of the 79.9 mln outstanding shares of Noranda Forest. Zimmerman declined to say when future secondary share offerings might occur although he said they will be made as soon as its right for either cash or other securities. Proceeds from the share issue will be used mainly to reduce Noranda Forests long term debt listed pro forma as 1.36 billion dlrs at the end of first quarter 1987 chairman Zimmerman said. Noranda Forests first priority will be to continue cutting debt to a comfortable manageable level in all likely future circumstances or about 30 pct of capital he said. I think we learned last time around that although your assets can support a high levels of debt earnings cant support associated interest in times of high interest rates Zimmerman commented. Noranda Forest had pro forma operating losses of 8.6 mln dlrs in 1985 and 2.9 mln dlrs in 1984 during periods of higher interest rates. The companys pro forma 1987 first quarter results showed net profit of 42.2 mln dlrs or 49 cts a share up from earnings of 4.7 mln dlrs or one ct a share excluding a 22.5 mln dlr extraordinary gain in the prior year. Zimmerman also said the company will concentrate on maintaining quality earnings from existing operations rather than increasing operating volumes. We are likely to spend money to enhance our operations ahead of expanding them he said. Noranda Forest would also be interested in buying the 50 pct interest it does not already own in Northwood Pulp and Timber Ltd from Mead Corp <MEA> for between 150 mln and 200 mln dlrs Zimmerman said. Noranda Forest and Mead each have the right of first refusal the others Northwood holding but Mead likely is not anxious to sell he added. Noranda Forests initial dividend policy will be to pay 10 cents a share quarterly. When asked Zimmerman agreed the dividend was small compared to cash flow adding the company will later establish a typical or sensible dividend policy. Reuter | NORANDA FOREST SEES STRONG PROFIT, CHAIRMAN |
VBI Corp a British West Indies investment firm told the Securities and Exchange Commission it raised its stake in France Fund Inc to 1075700 shares or 14.3 pct of the total from 896500 shares or 11.9 pct. VBI said it bought 179200 France Fund common shares between April 24 and June 2 at prices ranging from 13.000 to 14.125 dlrs a share. Reuter | INVESTMENT FIRM UPS FRANCE FUND <FRN> STAKE |
Lead underwriter PaineWebber Group Inc <PWJ> said an offering of two mln shares of the Class A preferred stock of Southern Cos Georgia Power Co subsidiary is underway at 25 dlrs per share. It said the underwriters won the issue at competitive sale today on a bid of 23.812 dlrs per share. The shares are not redeemable through refunding operations before June 1 1992 when a sinking fund will start retiring the issue. Reuter | SOUTHERN <SO> UNIT PREFERRED OFFERING UNDERWAY |
Scott Paper Co said its S.D. Warren Co subsidiary will undertake a 60 mln dlr modernization to increase capacity at its Muskegon Mich. paper plant. The company said the plant is the nations largest producer of premium quality coated printing paper. It said the modernization is expected to be completed by the fall of 1988. Reuter | SCOTT PAPER <SPP> SETS MODERNIZATION PROGRAM |
Citizens Savings Bank FSB said it will incur an expense of about 393000 dlrs or 20 cts a share for the three and six months ending June 30. Citizens said the expense is due to a a recent decision by the Federal Home Loan Bank Board to eliminate the FSLIC secondary reserrve as of December 31 1986. According to Citizens the FHLBB action was taken to cover future losses of financially troubled institutions. Citizens said its secondary reserve balance as of December 31 1986 was 694000 dlrs. Reuter | CITIZENS <CSBF.O> SAYS IT WILL INCUR EXPENSE |
International Cablecasting Technologies Inc said it introduced its proprietary new technology that can broadcast compact disk-quality digital sound into the home. The company said the new technology called digital modulation permits noise-free undistorted transmission of 10 channels of pure digital sound or data via satellite and cable into subscribers homes all on a single video channel. According to the company the first consumer service to be offered by International via the new technology will be SuperSound a package of eight 24-hour commercial-free digital uninterrupted music channels to subscribers. International said the SuperSound service is expected to be launched in late 1987 and generally available by early 1988. Reuter | INTERNATIONAL <ICC.O> SETS NEW SOUND TECHNOLOGY |
Lynch Corp said it will offer 10.50 dlrs a share in cash 4.50 dlrs in subordinated debentures and a 1/4 share in a new company for each Becor Western Inc share outstanding. Lynch said its proposed offer substantially improves over the offer of 10.45 dlrs a share in cash and 4.00 dlrs of senior sinking fund debentures made by BCW Acquisition Inc formed by Becors management. Lynch Chairman Mario Gabelli who heads a group which owns 12.35 pct of Becors 16.5 mln outstanding shares said the Lynch bid is about one dlr better than the present offer. Gabelli previously said in a filing with the Securities and Exchange Commission he felt the Becor managment buyout was unfar. The Lynch officer said he was invited by other Becor shareholders to make an offer. Following sale of Becors aerospace subsidiary in February the management group led by President William Winter announced plans for a 238.1 mln dlr leveraged buyout. was planning to take Becor for about 238.1 mln dlrs. A shareholder vote on the buyout offer is scheduled for June four. Reuter | LYNCH <LGL> PLANS OFFER FOR BECOR <BCW> STOCK |
Munson Transportation Inc said it postponed its proposed initial public offering due to weakness in the price of truck stocks. Munson is a trucking company that transports food products and other general commodities primarily in the Midwestern Central and Northeastern sections of the U.S. Reuter | MUNSON TRANSPORTATION DELAYS INITIAL OFFER |
Southern California Edison Co <SCE> Chairman Howard Allen said the company plans no new major construction projects in the next eight years. We plan no new major plant additions until at least the mid-1990s and maybe longer Allen told a renewable energy conference here. He said Southern California Edison had peak power reserve margins greater than 20 pct last year. Allen also said he expects renewable and alternate energy sources such as solar and geothermal power to contribute as much as 26 pct of the companys electricity within 10 years. Reuter | SOCAL EDISON PLANS NO MAJOR NEW PLANTS |
Overseas Shipholding Group Inc president Morton Hyman said if oil production by OPEC rises during the second half of 1987 freight rates for tankers should rise accordingly. Hyman delivering a speech at the annual shareholders meeting said international tanker markets were generally weak throughout the first quarter but since the end of March OPEC oil production has picked up. The result has been a modest improvement in tanker rates. Overseas said 73 pct of its fleet handles liquid cargo. He said tanker requirements decreased in September 1986 as OPEC production quotas dropped and levels of oil stocks rose. For the first quarter 1987 the company reported net income of 10.3 mln dlrs or 40 cts per share compared to 9.3 mln dlrs or 36 cts per share for the comparable quarter a year ago. The company reported net income for 1986 of 37.3 mln dlrs or 1.45 dlrs per share. The improvement in the companys 1986 results after four years of declining earnings reflects a sharp albeit temporary rise in freight rates in the international tanker markets last summer Hyman said. He said the Alaskan oil trade continues to be the principal source of employment for its U.S. flag tanker fleet which represents approximately 15 pct of the companys tonnage. Overseas owns and operates 67 vessels. Reuter | OVERSEAS <OSG> SEES OPEC QUOTAS KEY TO RATES |
CANADA 7 YEAR AND 3 MONTH BONDS YIELD 9.40 PCT - OFFICIAL |
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Qtrly div 12.5 cts per share vs 12.5 cts prior Pay Aug 25 Record Aug Three NOTER: full name of company is overseas shipholding group inc. Reuter | OVERSEAS SHIPHOLDING GROUP <OSG> SETS PAYOUT |
Qtly div 11 cts vs 10 cts prior Pay July 31 Record July 17 Reuter | LOWE'S COS <LOW> RAISES QUARTERLY ONE CT |
The Quebec government said it joined with B.F. Goodrich Canada Inc to study the feasability of building a vinyl chloride monomer plant in Montreal. The plant would supply manufacturers of PVC construction and other materials in Eastern Canada and the Northeastern U.S. government officials said. Theys said the plant would cost about 125 mln Canadian dlrs with production beginning in 1991 if economic conditions are right. more The Quebec government has said it wants the project to proceed because it would provide future demand for Petromont Inc petrochemical products. Petromont is jointly owned by Union Carbide Canada Ltd <UCC.TO> and the Quebec governments SGF industrial development group. Its Montreal plant would provide ethylene as a raw material for the project. Quebec said it also wants Interprovincial Pipe Line Ltd <IPIPF.O> to adapt its pipeline from Sarnia Ont. to Montreal to carry natural gas liquids a decision that will be made by the federal National Energy Board. It said the pipeline could provide Petromont with feedstock at one-third the cost of moving it by rail. Reuter | B.F. GOODRICH <GR> CANADA STUDIES PLANT |
Chicago Pacific Corp chairman Harvey Kapnick told analysts that he expects whithin the next year to repurchase about 25 mln dlrs of the companys 200 mln dlr issue of 14 pct subordinated notes. To date the company has repurchased about 60 mln of these notes. This will have a beneficial effect on our net income but the effects in 1987 have already been anticipated in estimates for 1987 Kapnik said. reuter | CHICAGO PACIFIC <CPA> TO REPURCHASE NOTES |
Qtly div 45 cts vs 45 cts prior Pay July One Record June 15 Reuter | MCDERMOTT INTERNATIONAL INC <MDR> SETS QUARTERLY |
Newbery Corp said Firemans Fund Corp <FFC> and United Bank of Arizona are continuing to meet to explore alternatives but the company believes that irrespective of the outcome it will be forced to file for bankruptcy by the end of the week. On May four Newbery said it would receive supplemental funding under a 30-day arrangement with Firemans Fund and United Bank that would allow it to continue to operate until a decision was made on the companys request for long-term financing. The company later announced that it would not be able to make its July one interest payment on its 12 pct subordinated convertible debentures. Reuter | NEWBERY <NBE> EXPECTS TO FILE FOR BANKRUPTCY |
ICCO buffer stock manager to buy 3,000 tonnes cocoa Wednesday, June 3 - official |
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The buffer stock manager of the International Cocoa Organization (ICCO) will tender for about 3000 tonnes of cocoa beans Wednesday June 3 the ICCO said in a statement. It said all other conditions remain unchanged from the previous announcement. These conditions are that offers from registered companies should be in pounds sterling for cocoa beans for which standard differentials have been set in the ICCOs buffer stock rules and can be for cocoa afloat through to December shipment and spot to December arrival/delivery. The basis position will be afloat May/July shipment or June arrival/delivery. For later positions the appropriate carrying costs will be taken into account. The deadline for the receipt of offers by the manager shall be 1330 hrs london time (1230 gmt) in the case of offers emanating from the secondhand market and 1400 hours in the case of offers emanating from the origins. The competitiveness of offers will be assessed by taking into account the standard differentials the cost of taking cocoa into store (currently 23.00 pounds sterling from cif landed and 38.00 pounds sterling from cif shipping weights to in store) and the cost of carry which currently is 12.00 pounds sterling per month the ICCO said. No more than four offers will be considered from each offering party it added. Reuter | ICCO BUFFER TO BUY 3,000 TONNES COCOA JUNE 3 |
A foreign investment group told the Securities and Exchange Commission it raised its stake in Scandinavia Fund Inc to 3040600 shares or 46.6 pct of the total outstanding from 2829300 shares or 43.2 pct. The group which includes Ingemar Rydin Industritillbehor AB a Swedish firm VBI Corp a British West Indies investment firm and Norwegian investor Erik Vik said it bought 211300 Scandinavia common shares since April 30 at prices ranging from 10.000 to 10.625 dlrs a share. Reuter | GROUP LIFTS STAKE IN SCANDINAVIA FUND <SCF> |
Lowes Cos Inc said its sales for the four weeks ended May 29 were up 11 pct to 221.0 mln dlrs from 199.5 mln dlrs a year before with same-store sales up five pct. Reuter | LOWE'S <LOW> MAY SALES UP 11 PCT |
Mueller Brass Co said that effective with shipments today it is adjusting the price of all brass mill products except free-cutting brass rod and related alloys and copper water tube and related products to reflect contained copper values at 73 cents a pound down two cents. Reuter | MUELLER BRASS LOWERS PRODUCT PRICES |
Mercantile Stores Co Inc said its stockholders approved a 2-1/2-for-1 common stock split. Mercantile said the record date for the split was June one and that it expects to mail the additional shares resulting from the split on June 15. Reuter | MERCANTILE STORES <MST> SETS 2-1/2-FOR-1 SPLIT |
AMR Corp parent company of American Airlines said it has completed a private placement of 150 mln dlrs of preferred auction rate stock through Bankers Trust Co NY <BT>. AMR said the preferred stock was sold in three series of 50 mln dlrs each. Each series is perpetual and will pay dividend rates which will be determined every seven weeks through a Dutch Auction process AMR added. The company said it will add the proceeds from the issue to working capital and use it for capital expenditures and for general corporate purposes. Reuter | AMR <AMR> COMPLETES PREFERRED STOCK PLACEMENT |
Two people were missing and six injured after tanks containing thousands of cubic metres of fuel burst into flames today at a Shell storage unit in Lyon rescue workers said. The blaze broke out with an explosion around 1330 local time (1130 GMT). Shell is a subsidiary of the Royal Dutch/Shell Group <RD>. Some 200 firemen fought the flames at the gasoline storage unit at Edouard Herriot riverside port complex and appeared to have the blaze under control as night fell. The entire southern section of Lyon was cordoned off. The fire destroyed five giant tanks and threatened four others the Shell spokesman said. He said that the company estimated between six and seven thousand cubic metres of domestic fuel oil gasoline and additives had been burned. The total capacity of the burning tanks was over 10000 cubic metres but some had been empty when an explosion started todays fire he added. Reuter | FUEL STORAGE TANKS IN FRANCE BURST INTO FLAMES |
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