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The U.S. Court of Appeals for the Second Circuit upheld a lower court decision dismissing a suit by Apex Oil Co against the New York Mercantile Exchange and several oil companies. The Court however ruled that Apex Oil could pursue anititrust and commodities market manipulation allegations against Belcher Oil Co a unit of Coastal Corp <CGP>. Apex Oil primarily a trading company charged that several companies including Belcher and NYMEX conspired to force it to deliver heating oil it had sold on the mercantile exchange knowing Apex could not make full delivery. The NYMEX ordered Apex to deliver four mln barrels of heating oil sold via a February 1982 heating oil contract. Apex eventually fulfilled this obligation but claimed damages. Richard Wiener attorney for Apex at Cadwalader Wickersham and Taft said the company has not yet decided whether to pursue its case against Belcher Oil. The NYMEX meanwhile has a counterclaim pending against Apex Oil seeking an unspecified amount of attorneys fees and 15 mln dlrs in punitive damages according to a NYMEX spokeswoman. Reuter | U.S. COURT UPHOLDS APEX DECISION FAVORING NYMEX |
TRIBUNE CO TO ISSUE UP TO 100 MLN DLRS IN MEDIUM TERM NOTES |
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Canadian letter carriers today rejected a new contract offer from Canada Post as the strike spread to Toronto where half the nations mail is sorted. The Letter Carriers Union said the new offer presented June 18 contained the same demands for concessions the union had already refused. The union members walked out in other Ontario cities today but returned to work in Atlantic Canada parts of Quebec Edmonton and Victoria. Negotiators were scheduled to resume bargaining today but were not expected to reach an agreement to end the four-day-old strike. Reuter | CANADA POST WORKERS REJECT LATEST OFFER |
Most private banks in central Madrid and Barcelona closed as Spanish bank staff went on strike for more pay union officials and employers said. Union officials said there was at least partial response to the strike call in the rest of Spain. But a spokesman for the employers Banks Association said banks in many towns were working almost normally. Unions called the strike today and tomorrow morning to press for shorter working hours and an eight pct pay increase. Employers offered a 4.75 pct wage increase last month. REUTER | SPANISH PRIVATE BANK WORKERS STRIKE |
American Federal Savings and Loans Association of Colorado said its earnings will continue to be under pressure this year due to the weakness of the Colorado economy. The company which today declared a regular quarterly dividend said it was also under pressure from the level of non-earning assets it holds. The company said this pressure will be offset to a certain extent by increased revenues from out-of-state operations and its strong capital position. Reuter | AMERICAN FEDERAL SAVINGS <AFSL.O> SEES PRESSURE |
Daxor Corp said it has received an offer from Federal Express Corp to establish a national frozen blood bank at Federals Memphis Tenn. headquarters. The company said its blood could be shipped anywhere in the U.S. within six hours from Memphis via Federal Express delivery system. Reuter | DAXOR <DAXR.O> IN FEDERAL EXPRESS <FDX> DEAL |
FED SETS SIX-DAY SYSTEM REPURCHASES, FED SAYS |
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Canon Inc of Japan said Canon of Virginia Inc has opened a 26 mln dlr 289000 square foot plant in Newport News Va. The company said the plant will initially make 700 to 1000 Canon dual-color copiers a month and other business equipment lines including laser beam printers and electronic typewriters may be phased in later. Reuter | CANON <CANNY.O> OPENS VIRGINIA FACILITY |
Digicon Inc said it started an offer to exchange a package of new securities for all 55019000 dlrs of its outstanding subordinated debentures. The exchange includes its 12-7/8 pct senior subordinated notes 10-1/2 pct convertible subordinated debentures and the 8-1/2 pct convertible subordinated debentures of Digicon Finance N.V. It said the new securities to be issued in exchange offers include up to 8574000 dlrs of Digicons 12 pct senior subordinated notes due 1994 up to 23580000 dlrs of Digicon 9.35 pct convertible subordinated debentures due 1997 and up to 16506000 shares of Digicon common. Digicon said in addition to the new notes new debentures and common stock it also will issue to exchangeing holders up to 22865000 dlrs of contingently extinguishable debt certificates. It said the exchange offers are being made only by prospectus. Reuter | DIGICON <DGC> STARTS EXCHANGE OFFER FOR DEBT |
GTE Corp scientists said they have discoverd a much simpler method for producing transistors by creating an entirely new electronic material. The new method they said consists of simultaneously growing metal connections and silicon crystals together to form one three dimensional device with connections penetrating the entire device. Conventional transistors require many steps to make and have connections only on the surface. GTE Laboratories created an entirely new electronic material and device form which may open up a spectrum of uses that cannot even be imagined at this time said David Decker vice president and director of research for GTE Laboratories. Although still early in our research we are obviously excited that we have found a significantly simpler and we believe cheaper way to produce an electronic device he said. Researchers at GTE created the new transistor by combining and heating silicon and a conductive metal tantalum disilicide so that the two grow together. The resulting device has microscopic metal rods extending througout the chips creating a three dimensional transistor that should be superior to standard devics in high power applications the scientists said. They said that because the connections extend vertically througout the new device it has a much greater volume of active material than conventional surface-mounted connections. Decker said the scientists are still in the early stages of their research on the device but prototypes of the new device compare favorably with conventionaly made transistors and show promise of superior performance. He said the prototype device also proved to be particularly efficient in detecting light which could open up new possibilities in solar energy conversion the development of electronic cameras and greater efficiency in optical communication systems. REUTER | GTE <GTE> DEVELOPS METHOD FOR MAKING TRANSISTORS |
Daxor Corp said it has received an offer from Federal Express Corp to establish a national frozen blood bank at Federals Memphis Tenn. Headquarters. The company said its blood could be shipped anywhere in the U.S. Within six hours from Memphis via Federal Express delivery system. REUTER | DAXOR <DAXR.O> IN FEDERAL EXPRESS <FDX> DEAL |
Allergan Inc a subsidiary of Smithkline Beckman Corp said the U.S. District Court in New York has ordered Bausch and Lomb Inc to immediately recall from retail shelves all soft contact lens solutions sold under the HYPO-CARE name and cease any further distribution. The company said the court found that HYPO-CARE was too close to Allergans trademark HYDROCARE to prevent public confusion. Reuter | SMITHKLINE <SKB> SAYS BAUSCH <BOL> RECALL SET |
 ARTHUR D. LITTLE INC <LTLE.O> DIVIDEND CAMBRIDGE Mass. June 19 Qtly div 17.5 cts vs 17.5 cts in prior qtr Payable July 15 Record June 30 Reuter  | |
The Hydraulic Co said it filed for a proposed public offering of 500000 shares of common stock through an underwriting group co-managed by Salomon Brothers Inc and Edward D. Jones and Co. The company said proceeds will be used to repay certain short-term debt. Reuter | THE HYDRAULIC CO <THC> FILES FOR OFFERING |
The Federal Reserve entered the government securities market to arrange six-day repurchase agreements for system account a spokeswoman for the New York Fed said. Fed funds were trading at 6-3/4 pct at the time of the direct injection of temporary reserves dealers said. Economists had expected three- or six-day repurchases because the Fed needs to add a large volume of reserves this statement period. Reuter | FED SETS SIX-DAY SYSTEM REPURCHASES |
Dutch salvage firm Smit-Tak said it may take some three weeks to lift the Swiss tug Orinoko and its lighter Pavo which sank 10 days ago at Karlsruhe in West Germany blocking the Rhine river. Smit-Tak which with its West German subsidiary Harms Bergung GmbH was commissioned by the local water authorities to raise the vessels said its lifting fleet was in position and divers had made the first inspection. Smit is still preparing its final salvage plan and said the work would begin on Sunday. Reuter | RHINE BLOCKED FOR THREE MORE WEEKS - SALVAGER |
Tribune Co said it will offer up to 100 mln dlrs of medium-term notes. The notes will be offered on a continuing basis through Salomon Brothers Inc and Merrill Lynch Capital Markets. The notes may have maturities of nine months to 15 years. Specific terms of each transaction will be established at the time of sale the company said. Proceeds will be used for general corporate purposes. Reuter | TRIBUNE <TRB> TO ISSUE 100 MLN DLRS IN NOTES |
STIFEL FINANCIAL SAID IT RECEIVED UNSOLICITED MERGER PROPOSAL |
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Harcourt Brace Jovanovich Inc officials were not available for comment on market rumors that it is interested in acquiring Reed International plc <REED.L>. Officials of First Boston Inc Harcourts financial adviser declined comment. A Wall Street arbitrageur who owns Harcourt shares said the rumors did not make much sense because Harcourt has announced a recapitalization plan to ward off a takeover attempt by British publisher Robert Maxwell.Its completely inconsistent with the recapitalization the only way is if they drop the recapitalization he said. Calls to Harcourt seeking comment were not returned. Harcourts recapitalization will come under scrutiny of a U.S. Court in Orlando Fla. Monday. The company has sought a declaratory judgment on convertibility of debentures due 2011 in light of the recapitalization. Harcourt said in a statement this week that Salomon Brothers Inc <SB> and Mutual Shares Corp have intervened in the case claiming ownership of more than 30 mln dlrs face amount of the debenture. In addition British Printing and Communications Corp headed by Maxwell owns 9.5 mln dlrs face amount Harcourt said. Salomon said in a filing with the Securities and Exchange Commission today that it has 21978 of the debentures. If the court decides they should be converted at par value of one dlr they could be converted into 22.0 mln shares. Harcourt is asking the court to rule the company is not required to issue common to debenture holders who did not convert prior to June eight. An increase in Reed shares in London today was attributed by brokers to rumors of Harcourts interest and also to rumors that Maxwell might be a buyer. But an adviser to Maxwell in New York said theres no basis to think that its us. Reuter | HARCOURT <HBJ> MUM ON REED <REED.L> RUMORS |
Salomon Brothers Inc said it has acquired 21978 convertible subordinated debentures of Harcourt Brace Jovanovich Inc which it says could be converted into 21978000 common shares. In a filing with the Securities and Exchange Commission the New York brokerage firm said it bought the debentures which have a face value of 1000 dlrs each in May and June as a regular part of its investment and arbitrage activities. The conversion rights of the debentures are the subject of a Florida court case in which Salomon Brothers said it has also intervened. Salomon Brothers said it rejects Hartcourts position that the debentures are not convertible into stock as of June 9. It said it would leave open a range of options regarding the debentures including buying more selling some or all of their current stake in the market or in negotiated deals talking with other Harcourt security holders surrendering the debentures if there were a merger or tender offer or converting them into stock. Salomon said it would have a 35.8 pct stake in Harcourt based on 39.4 mln shares outstanding if it converted the debentures into 21978000 common shares. The percentage is based on the current outstanding plus the amount of stock that would be issued in a conversion. But Salomon said its stake in Harcourts common stock would be lower if other debentureholders converted their securities into stock. It says it has no idea of the total number of debentures outstanding. Harcourt has said that Salomon and Mutual Shares Corp a New York investment firm hold a combined total of 30 mln dlrs of debentures. Harcourt announced a recapitalization plan last month to ward off a takeover attempt by British publisher Robert Maxwell. Reuter | SALOMON BROTHERS HAS HARCOURT <HBJ> DEBENTURES |
General Dynamics Corp said it formed an international consortium to compete for the contract relating to the multinational air to ground missile known as the modular standoff weapon. The modular standoff program is an agreement between the U.S. West Germany United Kingdom France Italy Canada and Spain to develop three versions of the air-to-ground system. The company said the consortium includes Brunswick Corp <BC> Dornier GMBH <DOGG.F> of West Germany Hunting Engineering Co Ltd of the U.K. Aerospatiale of France Agusta of Italy Garrett of Canada and Inisel of Spain. Reuter | GEN DYNAMICS <GD> IN CONTRACT CONSORTIUM |
LLOYDS BANK SAYS IT WITHDRAWING FROM MARKET MAKING IN EUROBONDS AND GILTS |
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South African staff of the U.S. Bank Citicorp <CCI> said they will challenge its plans to sell local operations and withdraw from the country. Employees said they had written to Citicorp chief executive John Reed protesting against the way the disinvestment deal has been handled. They said that they were not consulted on the sale of Citicorps local subsidiary Citibank N.A. Ltd to South Africas First National Bank <BCLJ.J>. The letter signed by most of the banks 175 staff hints at legal action against Citicorp unless it reviews the disinvestment arrangement. We are seriously considering legal action a senior Citibank employee told Reuters. There has been no consultation with South African staff and that runs contrary to American corporate thinking in this country he added. Citicorp announced the 130 mln rand cash sale on Tuesday with an effective date of July 1. First National Banks managing director Chris Ball said his bank was essentially buying the skills of Citibanks specialist employees and disclosed that the American banks assets in South Africa totalled only 15 mln rand. Ball indicated that the banks staff had been told of the sale and agreed to stay on in the banks employ. Citibanks staff 40 pct of whom are black have complained that the disinvestment accord bars local employees from jobs with Citicorp anywhere in the world for five years. They say that this provision amounts to a restraint clause which is legally challengeable. This could threaten the divestment plan say industry sources since most of the purchase price as Ball said is for employee skills and expertise and not assets. The Citibank employee challenge is seen as more important than a previous ultimately unsuccessful challenge on job security issues by General Motors employees after the U.S. Automaker announced its pull out because valuable managers and other key staff are involved in protest. The employees assert that the Citicorp sale unlike similar disinvestment moves announced this week by <Ford Motor Co> and <ITT Corp> include no portion of South African profits for local employees or black community projects. We always thought they would offer a settlement to staff here in keeping with their image as an equal opportunity employer said a senior black employee adding We had no idea that the age of slavery was still alive. REUTER | S. AFRICA CITICORP STAFF CHALLENGE DISINVESTMENT |
The World Bank said it has extended three loans to India totalling 929 mln dlrs for two projects in the power sector and one for water supply and sewage. One power project will be supported by a 485 mln dlr loan the bank said. The other power project supported by a 375 mln dlr loan plans to aid in the first phase of a power generation complex in eastern India the bank said. The third project which is being supported by a bank loan of 53 mln dlrs and an International Development Association loan of 16 mln dlrs hopes to increase water supply to Madras. Reuter | WORLD BANK LOANS INDIA 929 MLN DLRS |
Lloyds Bank Plc said it is withdrawing from market making in Eurobonds and U.K. Government bonds (gilts). It said in a statement it will maintain an active presence in short-term securities trading swaps and other treasury products building on its strengths in traditional foreign exchange and money markets. In the statement Lloyds chief executive Brian Pitman said We have a relatively small position in these two overcrowded markets and we have decided to reallocate the resources to opportunities which promise a better return on our shareholders investment. With this decision Lloyds becomes the second major U.K. Clearing bank to feel the effects of the deregulation of the London Stock Exchange or Big Bang last October. Earlier this year Midland Bank Plc pulled out of equity market making because it did not believe the return justified the costs involved in maintaining and developing a market share. Lloyds Treasurer Alan Moore subsequently told Reuters that the decision was taken at a board meeting earlier today and had been under discussion for some time. He said the move was not a reaction to any losses sustained in the trading of Eurobonds or gilts but rather a result of a strategic review of the future of Lloyds involvement in these markets. In the end Lloyds decided these markets did not represent an attractive return to our shareholders he said. He noted that Lloyds had not expected its U.K. Government bond operations would be profitable in the early stages although he declined to discuss the finances of the operation. This is an overcrowed market Moore said of the U.K. Government bond market which began Big Bang with 27 market makers. Lloyds withdrawal now leaves the number at 26. Market participants noted that Lloyds was the only one of the clearing banks which did not buy a jobber (middle man) or broker before Big Bang. Under the old system the gilt market operated under a separate system which involved separate functions for jobbers and brokers. Now these tasks have been taken up by market makers acting as both. Moore said that one reason Lloyds decided to withdraw from these markets was that they could no longer justify the commitment of capital that was required to maintain these operations. He said Lloyds would make every effort to redeploy employees in these areas within the bank. REUTER | LLOYDS PULLS OUT OF EUROBOND/GILT MARKET MAKING |
Viacom Inc said the ex-dividend date for its preferred stock is Friday June 19. The company which halted activity on the stock this morning said trading will resume shortly. The last price for Viacom Inc preferred was 24-1/2. Reuter | VIACOM <VIA> SETS EX-DIVIDEND DATE FOR PREFERRED |
Ford Motor Co said that through May its European dealers Europe sold a record 643000 cars and increased their market share to 12 pct from 11.7 pct a year earlier. The company said industry sales ran at a seasonally adjusted annual rate of 11.6 mln cars during the first five months of 1987 compared with 10.9 mln cars in the same period last year. Reuter | FORD <F> HAS 12 PCT MARKET SHARE IN EUROPE |
The U.S. Agriculture Department has ended its screwworm alert control program in Albuquerque New Mexico because the potential of a screwworm outbreak in the area has been contained. The department said the program was set up after a case of screwworms was confirmed in a hunting dog being returned from Venezuela. It said six weeks of surveillance has failed to turn up an additional cases of screrwworms. Reuter | USDA ENDS SCREWWORM CONTROL POST IN ALBUQUERQUE |
Moodys Investors Service Inc said it affirmed First Wisconsin Corps 50 mln dlrs of debt. Affirmed were the firms Baa-1 senior debt and Baa-2 preferred stock. Moodys noted that First Wisconsin said it would add a special loan loss provision of 96 mln dlrs to reflect exposure to economically troubled international borrowers. The provision adjusts the firms financial statement to more accurately reflect economic reality the agency said. Reuter | FIRST WISCONSIN <FWB> DEBT AFFIRMED BY MOODY'S |
Great Western Bank a unit of Great Western Financial Corp is offering 200 mln dlrs of notes due 1997 yielding 9.60 pct said lead manager Merrill Lynch Capital Markets. The notes have a 9-1/2 pct coupon and were priced 99.365 to yield 130 basis points more than comparable Treasury securities. Non-callable to maturity the issue is rated A-2 by Moodys and A by Standard and Poors. The gross spread is 6.50 dlrs the selling concession is four dlrs and the reallowance is 2.50 dlrs. Shearson Lehman co-managed the deal. Reuter | GREAT WESTERN <GWF> UNIT SELLS 10-YEAR NOTES |
The market for advanced visual displays will grow seven-fold into a five billion dlr business in five years NV Philips Gloeilampenfabrieken <PGLO.AS> said. Philips is Europes largest supplier of liquid crystal displays (LCDs) currently used in lighter and more efficient televisions and screens. Last year the market was worth 683 mln dlrs. But Philips sees a surge in demand with applications in monitors test and measuring equipment cars and telecommunications equipment. Philips said the overall market value will have risen to five billion dlrs by 1992. It has so far used LCDs only in industrial applications but said in a statement it was moving to get a big share of a growing consumer products market. Pocket-sized LCDS are already produced and marketed by Japanese manufacturers and sell at around 100 to 200 dlrs Philips spokesman Jack Reemers said. Philips hopes to launch its version later this year. Reuter | PHILIPS SEES BOOM IN MINI VISUAL DISPLAY BUSINESS |
Five mths end may 31 Shr 1.37 dlrs vs 1.38 dlrs Net 75.2 mln vs 73.6 mln Revs 632.3 mln vs 629.6 mln Avg shrs 54.9 mln vs 53.4 mln 12 mths Shr 3.19 dlrs vs 3.13 dlrs Net 173.6 mln vs 165.1 mln Revs 1.43 billion vs 1.47 billion Avg shrs 54.4 mln vs 52.8 mln Reuter | NEW ENGLAND ELECTRIC SYSTEM <NES> FIVE MTHS NET |
Minnesota Governor Rudy Perpich is considering calling a special legislative session to consider amendments to the states anti-takeover statute according to the governors office. A spokesman for the governor said nothing will be decided today but said the governor will evaluate later whether to call a special session in the next few days. The governors office said the possible action was triggered by a proposal by Dayton-Hudson Corp <DH> which has been the subject of takeover rumors. A spokesman for the governor said the company proposed several amendments to Perpich designed to make any takeover attempt in the state more difficult. Dayton-Hudson suggested amendments be passed and instituted by next Friday the spokesperson said. Press reports in Minneapolis newspapers this morning quoted several legislators as saying they were inclined to support legislation that would help Dayton-Hudson according to a governors spokesperson. Senate Majority Leader Roger Moe was quoted as saying he would be inclined to support any action that would help the company the spokesperson said. Robert Vanasek the House speaker designate was quoted in the Minneapolis Star and Tribune as saying We are taking their (Dayton-Hudson) concerns very seriously and we are going to do what we can to help. Reuter | MINNESOTA MAY CONSIDER ANTI-TAKEOVER AMENDMENT |
Boeing Co said the Hart-Scott-Rodino waiting period required in connection with its pending tender offer for ArgoSystems Inc <ARGI.O> expired at midnight June 18. Boeing began its 37 dlr per share cash tender offer for the defense electronics firm on June two. Reuter | BOEING <BA> MERGER WAITING PERIOD EXPIRES |
MOODY'S MAY UPGRADE SCI HOLDINGS' 1.45 BILLION DLRS OF DEBT |
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<MegaVest Industries Inc> said it has agreed in principle to acquire unlisted Computer Trade Development Corp in exchange for 119 mln shares of its common stock. The company said it has about 21.5 mln shares outstanding. It said Computer Trade had revenues of about 6.1 mln dlrs last year. Reuter | MEGAVEST TO ACQUIRE COMPUTER TRADE DEVELOPMENT |
May Department Stores Co said it expects record profits and sales in the fiscal 1988 and also set a five-year 3.3 billion dlr capital expenditure plan. Our sights are set on achieving our 13th consecutive year of record sales and earnings chairman David Farrell told the annual meeting. In the year ended January 31 1987 the company earned 381 mln dlrs or 2.44 dlrs a share on sales of 10.3 billion dlrs. Farrell also said he expects improved second-quarter profits. We believe second-quarter performance should show improvement over 1986 he said. In the quarter ended August 30 1986 the company earned 45.6 mln dlrs or 52 cts on sales of 1.23 billion dlrs. The five-year capital expenditure program includes 1.9 billion dlrs to open a record 73 department stores 52 discount stores and about 1200 specialty stores. About two-thirds of the department stores will be opened by Lord and Taylor May Co and J.W. Robinsons in California Hechts in Washington D.C. and G. Fox in Connecticut. The remainder of the 3.3 billion dlrs will be used for store relocations closings and remodelings Farrell said. Sales per square foot rose eight pct in 1986 to 134 dlrs president Thomas Hays said noting that the company seeks annual increases of 10 pct. Also at the annual meeting shareholders voted to approve indemnification of the companys officers and directors. Reuter | MAY DEPT STORES <MA> SEES RECORD FISCAL 1988 |
Gemcraft Inc said it expects to post a profitable second quarter. Gemcraft recorded net income of 908000 dlrs or 16 cts per shr for the second quarter ended June 30 1986. In addition the company said at its annual shareholders meeting that it will repurchase approximately 130000 shares of its common stock a decrease from its earlier plan to purchase as many as 330000 shares for a total price of three mn dlrs. Reuter | GEMCRAFT <GEMH.O> SEES PROFIT IN 2ND QTR |
Moodys Investors Service Inc said it may upgrade the ratings on 1.45 billion dlrs of debt of SCI Holdings Inc. The agency cited SCIs announcement that it agreed to sell for 1.3 billion dlrs six television stations and related properties to a joint venture formed by SCI and Gillett Holdings Inc. While financing details are not available the agency said SCIs debt should decline as a result of the sale. BCI currently carries Ba-3 zero coupon senior notes and B-2 senior subordinated debentures. The BCI unit Storer Communications Inc has B-2 subordinated debentures. Reuter | SCI HOLDINGS MAY BE UPGRADED BY MOODY'S |
Cold and wet weather in northern western and central parts of Europe continued to slow beet growth but plant density is reported to be good in most countries sugar statistician F.O. Licht said. Temperatures were too low for the season and the rain has hampered field work and occasionally led to water-logged fields. But in eastern and southeastern Europe warmer weather has boosted sugar beet growth. Weather in the Soviet Union also allowed good beet development Licht said. In Sweden beet growth has been delayed although plant population is reported to be regular and good. Cool and rainy weather slowed beet growth in Denmark and crop prospects are rated as slightly below normal. In the United Kingdom and Ireland it was rather cool with heavy rainfall in places which has delayed beet growth. In France Belgium the Netherlands and West Germany it was mostly cool with frequent and often heavy rainfall which continued to slow down beet growth and often made field work impossible. In Austria it was warm with some rainfall which was favourable for beet growth Licht said. In Czechoslovakia and Poland it was mostly warm favouring beet development. but some heavy rain may have caused damage. In the European beet growing regions of the Soviet Union it was warm with showers over most areas and weather was generally good for the emergence and growth of beets. In south eastern Europe warm weather with some rainfall boosted beet development. Labour trouble threatens the beet crop in Spain. Disputes between the factories and the trade unions are threatening to delay the start of processing in the southern areas where beets are maturing very early this year. Reuter | COLD, WET WEATHER SLOWS BEET GROWTH IN W. EUROPE |
First City Bancorp of Texas Inc which is soliciting bidders reiterated that it is premature to speculate on what course of action it will pursue following a story in todays Wall Street Journal that it has attracted at least three potential acquirers. First City said the article was not confirmed by the company and it cautioned that there is absotluely nothing to say or report beyond its statement. The Journal reported that among the bidders for First city was Robert Carney and Robert Abboud a former Chicago banker. Reuter | FIRST <FBT> REITERATES SPECULATION PREMATURE |
BankAmerica Corps Bank of America unit said it will offer 300 mln dlrs in certificates representing interests in a pool of receivables selected from its California Classic Visa credit card accounts. The certificate rate is 8.2 pct. The offering price to the public is 99.89 dlrs resulting in a yield to certificate holdes of 8.21 pct. The certificates have a provisional rating of Aaa by Moodys Investors Service and are backed by a 30-mln-dlr lettter of credit by Bayerische Vereinsbank AG BankAmerica said. The offering will be co-managed by Salomon Brothers Inc and the bank. Selling these loans provides a cost-effective source of medium-term funds and allows the bank to leverage its existing capital base across a broad range of activities said Vice Chairman and Chief Financial Officer Frank Newman. Bank of America said it will continue to service the loans and maintain customer relationships while the proceeds of the offering can be used to fund new loans. BankAmerica said it pioneered securitization in 1977 with home loans sold as mortgage pass-through certificates. Reuter | BANKAMERICA <BAC> TO SECURITIZE CREDIT CARDS |
Tribune Co said it is offering up to 100 mln dlrs of medium-term notes. The notes will have maturities from nine months to 15 years the company said. The terms of each deal will be set at the time of sale. They will be offered on a continuing basis through Salomon Brothers and Merrill Lynch the firm added. Proceeds will be used for general corporate purposes. Reuter | TRIBUNE CO <TRB> TO SELL MEDIUM-TERM NOTES |
The Paris Club of creditor nations agreed to a major rescheduling of Ugandas and Mozambiques government-to-government debts the Club said in a statement. At meetings here this week both countries were accorded terms that were more generous than usually granted by the Club. Uganda was given 15 years to repay its debts with a six-year grace period while Mozambique was accorded an exceptionally long 20-year period with 10 years grace. The Club said it approved of both countries economic and financial programs and would therefore make a contribution to improve their external payments prospects. It said both countries faced heavy debt service obligations and low per capita income adding the solution of the countries debt problems would take a number of years. The statement also said Mozambiques limited debt service capacity made borrowing from the International Monetary Fund in the upper credit tranches inappropriate. No details were available from the countries embassies nor from the Club on the amounts involved but last week the Ugandan Finance Minister Chrispus Kiyonga said he was hoping for a rescheduling of 120 mln dlrs. Ugandas total foreign debt is estimated at some 1.5 billion dlrs. A French Finance Ministry statement issued the same time as the Paris Club statement said France had formally agreed with Gabon to reschedule bilateral unpaid debt amounting to about 440 mln francs. The bilateral agreement covering payments due to have been made by May 31 this year follows the Paris Clubs January decision to grant Gabon an extended repayment period for its government-to-government debt. The ministry said French aid to Gabon in 1987 within the framework of the countrys economic recovery program amounts to about 1.67 billion francs. REUTER | UGANDA, MOZAMBIQUE WIN DEBT RESCHEDULING ACCORD |
Shr loss 20 cts vs loss three cts Net loss 346000 dlrs vs loss 26000 dlrs Revs 7671000 dlrs vs 4775000 dlrs 12 mths Shr profit one dlr vs profit 2.19 dlrs Net profit 2927000 dlrs vs profit 5613000 dlrs Revs 40.9 mln vs 35.8 mln Reuter | CHANCELLOR CORP <CHCR.O> 4TH QTR MARCH 31 LOSS |
Jewelmasters Inc said it signed a licensing agreement with Walt Disney Co to make and market gold jewelry featuring such Disney characters as Mickey Mouse Minnie Mouse Donald Duck Pluto and Goofy. Terms were not disclosed. The company said the Disney in Gold merchandise including necklaces earrings and rings in 14 carat and 18 carat gold will cost anywhere from 200 dlrs to 10000 dlrs. It said sales are expected to begin in the fall and the initial license agreement begins in June and continues through September 1988 with multiple renewal options. Reuter | JEWELMASTERS <JEM> IN PACT WITH DISNEY <DIS> |
U.S. Agriculture Department inspectors have refused entry to parts of two lots of Australian beef because of pesticide residues a spokeswoman for the department said. She said USDA has notified Australia which assured it that stricter controls would be implemented. The Australian government had already imposed residue controls and it is believed the meat with the presticide residues was already in the pipeline before the controls were put in place the spokeswoman said. There have been five other cases of Australian meat which had residue levels above U.S. allowable limits this year she said. Reuter | U.S. REFUSES PARTS OF TWO AUSTRALIA BEEF CARGOES |
Chevron Corp said it sold 4.6 mln shares of UNC Inc common stock on June 15 leaving it with 1.4 mln UNC common shares or 8.4 pct of the total. In a filing with the Securities and Exchange Commission Chevron said it sold the shares for 11.88 dlrs each or a total of 54.6 mln dlrs under an agreement it had with UNC. The stock was sold to an underwriting syndicate managed by Dillon Read and Co Inc and Donaldson Lufkin and Jenrette Securities Corp with the underwriters paying 38.3 mln dlrs and UNC paying 16.4 mln it said. Reuter | CHEVRON <CHV> CUTS UNC <UNC> STAKE TO 8.4 PCT |
N-D Resources Inc said it agreed in principle to issue an undetermined number of shares to Recovery Resources Corp Bahrain in order to acquire Recoverys Atoka Gas Gathering Systems Inc. Atoka currently operates a 20-mile natural gas pipeline of 46 miles in length in southeastern Oklahoma. Reuter | N-D RESOURCES <NUDY.O> AGREES TO ACQUIRE ATOKA |
The United Food and Commercial Workers Union said unlisted Safeway Inc has agreed to provide severance pay to about 5000 workers in the Dallas area resulting from the closure of a division last April. The union said the total severance payment will be about five mln dlrs. It said the division was closed as a result of 4.6 billion dlrs in debt incurred from a leveraged buyout last year. The union said it filed suit following the leveraged buyout to protect the claims of union members. The leveraged buyout was implemented to ward off a bid by Dart Group Corp <DARTA.O>. Reuter | SAFEWAY AGREES TO SEVERANCE FOR DALLAS WORKERS |
Fifteen countries in Eastern and Southern Africa have agreed to cut tariffs on regional trade by 10 pct every two years up to 1996. A statement by the Preferential Trade Area (PTA) which seeks to create a common market stretching from Ethiopia in the north to Lesotho in the south said the governments would make the first tariff cut next year. In 1996 they would assess the impact of the tariff reductions and work out a new timetable for the complete elimination of all barriers to trade by the year 2000. The PTA set up in 1982 groups Burnudi the Comoros Djibouti Ethiopia Kenya Lesotho Malawi Mauritius Rwanda Somalia Swaziland Tanzania Uganda Zambia and Zimbabwe. PTA sources said the agreement averted a split between members wanting more progress towards free trade and weaker states concerned about the effects on customs revenue. The reductions cover only a common list of 300 or so widely traded commodities and goods but PTA sources said the organisation planned to expand the list to include 425 items. Reuter | AFRICAN STATES AGREE TO REGIONAL TARIFF CUTS |
The World Bank said it approved four loans to Jamaica totalling 104 mln dlrs to assist that country with an economic structural adjustment program a sugar industry rehabilitation scheme and a population and health project. The bank said two loans will support Jamaicas structural adjustment program -- a 40 mln dlr loan for trade and financial sector adjustment and a 20 mln dlr loan for the public enterprise sector. The 40 mln dlr loan is designed to raise the performance of exports and industry and strengthen the financial sector. Reuter | WORLD BANK TO LOAN JAMAICA 104 MLN DLRS |
Hot dry weather has caused some deterioration in Saskatchewan crops according to the Saskatchewan Wheat Pools weekly crop report. Rain was needed in the southwest west-central and northeast regions and other regions were expected to need rain soon. Summerfallow crops were in fair to good condition while stubble crops were rated fair to poor. Wheat durum oats and barley crops were all one-pct headed rye was 40 pct in the milk stage and winter wheat was 21 pct milk stage. Flax was 51 pct tillering and canola was 58 pct tillering. Areas of the southern grain belt were hit by high winds and hail Tuesday with some damage reported. Reuter | SASKATCHEWAN CROPS DETERIORATE IN HOT WEATHER |
Illinois Governor James Thompson will likely sign a bill setting December 1 1990 as the trigger date opening the state to wider interstate banking a gubernatorial spokesman said. The bill passed both chambers of the Illinois legislature this week by wide margins. The bill provides that Illinois banks and bank holding companies can be acquired by similar institutions from any state with a reciprocal law. Current Illinois law limits interstate banking to six Midwestern states. The governor had supported a July 1 1988 date for full interstate banking. Large banking firms particularly Citicorp <CCI> have lobbied for the earlier date. But legislation with the later date was approved in the states house and senate. The governor has the authority to use an amendatory veto and pencil in an earlier trigger date. Im sure the bill will get his approval the spokesman said. The only question is whether he will use his authority to change the trigger date. He will hear from people who want the different dates. I dont think hell take action before late summer. Reuter | FULL INTERSTATE BANKING GAINS IN ILLINOIS |
Japanese crushers bought 8000 tonnes of Canadian rapeseed for shipment from the last-half of July to September trade sources said. Price details were not available. Reuter | JAPAN BUYS 8,000 TONNES OF CANADIAN RAPESEED |
The World Bank said it approved loans to Jamaica totalling 104 mln dlrs to assist it with an economic structural adjustment program a sugar industry rehabilitation scheme and a population and health project. The bank said two loans will support Jamaicas structural adjustment program -- a 40 mln dlr loan for the trade and financial sector and a 20 mln dlr loan for the public enterprise sector. The bank said a 34 mln dlr loan is to help Jamaicas sugar industry become self-sufficient and meet both domestic demand and the export demand of the United States and European Community. The fourth loan for 10 mln dlrs is to improve family planning programs and health care. Reuter | WORLD BANK TO LOAN JAMAICA 104 MLN DLRS |
IC INDUSTRIES NAMES KARL BAYS CHAIRMAN, CHIEF EXECUTIVE |
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Galaxy Cablevision L.P. said it signed a letter of intent to sell the assets of its cable television systems in West Texas which serve about 4600 basic subscribers through nine cable television systems. Terms were not disclosed and the Galaxy did not identify the buyer. The company also said it will make its first cash dividend of 37 cents per unit on or about August 15 to holders of record June 30. In March Galaxy completed a public offering of 2.2 mln units for 43 mln dlrs and acquired the assets of 132 cable television systems for about 34 mln dlrs. Reuter | GALAXY <GTV> TO SELL WEST TEXAS ASSETS |
NORTH AMERICAN COMMUNICATIONS WEIGHS POSSIBLE SALE OR MERGER |
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IC industries Inc said Karl Bays has been elected chairman and chief executive officer effective July one. William Johnson who is recovering from a recent stroke has been named chairman emeritus and will continue as a member of the board. Bays is currently chairman of Baxter Travenol Laboratories Inc <BAX>. Reuter | IC INDUSTRIES <ICX> NAMES KARL BAYS AS CHAIRMAN |
Stifel Financial Corp said it received an unsolicited merger proposal from privately held Laidlaw Adams and Peck Inc for 15 dlrs a share in cash for all its outstanding shares. The proposal which expires July 1 values Stifel at about 54 mln dlrs. Stifel has about 3.6 mln shares outstanding. The company said its management and board of directors will consider the proposal but have not set a date to meet. It said the proposal is currently being studied by Goldman Sachs and Co and legal counsel. It said conditions of the proposal include obtaining necessary financing satisfactory completion of a due diligence investigation by Laidlaw and execution of employment contracts with key employees to be designated by Laidlaw. Reuter | STIFEL FINANCIAL <SF> RECEIVES MERGER PROPOSAL |
CANADIAN MONEY SUPPLY M-1 FELL 430 MLN DLRS IN WEEK, BANK OF CANADA SAID |
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U.S. crude oil prices are at their highest level in more than a year ahead of next weeks OPEC meeting even though most industry analysts do not expect any policy changes from the session. They said prices which have steadily climbed since the organizations accord in December have risen on technical factors within the market and concerns about supplies because of the Iran-Iraq war which could disrupt deliveries from the Gulf. The U.S. benchmark crude West Texas Intermediate is trading around 20.55 dlrs in the July contract on New York Mercantile Exchanges energy futures and in the spot market. That is its highest level since January 1986. OPEC conference president Rilwanu Lukman who is Nigerias oil minister said Friday he expects the meeting in Vienna to be brief and calm and that OPECs current price and production agreement may only need a slight review. Although most industry experts expect just a reaffirmation of the December agreement oil prices continue to climb due to a desire to hedge positions in case of any surprises. Analysts expect the higher prices to continue until soon after the OPEC meeting. At that point barring any increased tension in the Gulf or changes in OPECs policies prices should begin easing. OPEC will probably not do anything it hasnt already agreed to in December because oil prices are firm said John Hill a vice president at Merrill Lynch Futures. OPEC agreed in December to maintain official oil prices at 18 dlrs a barrel and raise the groups production ceiling to 16.6 mln barrels per day in the third quarter and to 18.3 mln barrels in the fourth quarter. This agreement helped send prices sharply higher rising from 15 dlrs a barrel in early December. Several OPEC members who are price hawks including Iran Algeria and Libya will seek a higher official price and a reduction in output. And if U.S. West Texas Intermediate crude continues to trade above 20 dlrs a barrel there is a greater chance that OPEC will raise its official 18 dlrs price said Nauman Barakat analyst at Smith Barney Harris Upham and Co. But most analysts expect the more moderate producers such as Saudi Arabia to block any changes in policy. The meeting will be a non-event with no change in the official prices because OPEC and in particular the Saudis are committed to stabilizing the market said Rosario Ilacqua analyst with L.F. Rothschild. However some analysts said OPEC may need to hold a meeting in September to re-evaluate market conditions. Overproduction by OPEC will become a real problem in the fourth quarter when the quota is raised to 18.3 mln barrels a day and Iraqs pipeline through Turkey brings another 500000 barrels to the market each day said John Lichtblau president of Petroleum Industry Ressearch Foundation. Most expect Saudi Arabia to oppose a price increase at this meeting but many look for an increase by year-end to 20 dlrs to offset the decline in the dollar. Oil prices are denominated throughout the world in dollars so as the currency declines producers receive less money for their oil. The only real production restraint in OPEC is Saudi Arabia said Sanford Margoshes analyst at Shearson Lehman Brothers. In the second half of the year we expect the Saudis not to produce at their 4.1 mln barrel a day quota and therefore act as a vehicle to stablize the market and pave the way for a two dlrs a barrel price increase at the December 1987 meeting he said. One uncertain factor is the course of the Iran-Iraq war. The wild card is the increased tensions in the Persian Gulf said Frank Knuettel analyst with Prudential-Bache Securites. Oil tankers taking oil from Iraq and Kuwait have been regular targets for Iranian planes. The Reagan administration is planning to put Kuwait tankers under the protection of the U.S. flag with naval escorts. Extra (oil) inventories are needed during a time of crisis like this and just general nervousness over an incident that could disrupt oil supplies drives prices up Knuettel said. Reuter | U.S. OIL PRICES STRONG AHEAD OF OPEC MEETING |
The New York Times Co said it had an agreement to buy the Gwinnett Daily News an evening newspaper published in Lawrenceville Ga. Terms were not disclosed. The company said Gwinnett has a weekday circulation of about 27500 and a Sunday circulation of about 30900. The New York Times also said Gwinnett County a northeast suburb of Atlanta is the fastest-growing county in the country. The purchase agreement includes the Forsyth County News published on Wednesday and Sunday and the Winder News a weekly among other publications. Reuter | N.Y. TIMES <NYT> TO BUY GWINNETT DAILY NEWS |
Lloyds of London the insurance market said its offer for a settlement of the five-year old <PCW Underwriting Agencies> affair which involved losses totaling about 235 mln stg was unconditional. For the offers to become unconditional there had to be 90 pct acceptance by those Lloyds members affected by the PCW fraud although this level could be reduced by a caretaker agency set up in 1985 to manage the affair. The offers involve one-off cash payments by PCW names - investors who guarantee insurance risks - in exchange for a Lloyds guarantee ending their exposure to PCW-related claims. Reuter | LLOYD'S OF LONDON DECLARES PCW OFFER UNCONDITIONAL |
Chancellor Corp said its board declared a special dividend of 17 cts per share payable Aug 14 1987 to shareholders of record July 31 1987. The company said it is not its intention to pay quarterly dividends but from time to time pays special dividends if the board believes it appropriate. Reuter | CHANCELLOR <CHCR.O> DECLARES SPECIAL DIVIDEND |
The tug-of-war over who pays to develop new weapons--contractors or the government--is likely to lead to more writeoffs by defense firms analysts said. Singer Co <SMF> and Northrop Corp <NOC> recently announced planned second quarter writeoffs related to costs of major defense programs under fixed-price government contracts. Its a case of companies paying for things that in a different environment the Defense Department would have paid for said Howard Mager of Donaldson Lufkin Jenrette Securities Corp. In recent years the Defense Department DOD has increased competitive bidding for weapons contracts and has asked contractors to pay more of the costs of developing weapons programs. The moves have helped cut waste and abuse by contractors but have also dictated that the firms assume much more risk analysts said. Its a stricter environment said Anthony Hatch of Argus Research Corp. Contractors are absorbing more of the cost and more of risk and thats likely to be the trend for some time to come. The trend will probably lead to further writeoffs the analysts said. Programs most prone they agreed are the Advanced Tactical Fighter ATF a new generation high-technology fighter plane being developed for the U.S. Air Force the C-17 air transport plane and the Light Helicopter Experimental LHX under development for the Army. Other programs may also be affected they said. The Air Force is expected to order 750 of the advanced fighter planes in the 1990s at a cost of up to 40 billion dlrs analysts have said. Two teams of contractors are competing for a contract to develop a prototype ATF. Lockheed Corp <LK> General Dynamics Corp <GD> and Boeing Co <BA> are teamed in competition against Northrop Corp <NOC> and McDonnell Douglas Corp <MD> on ATF. The two teams fighting for an award to develop the LHX are Bell Helicopter a unit of Textron Inc <TXT> coupled with McDonnell Douglas and United Technologies Corps <UTX> Sikorsky paired with Boeing. The C-17 is a four-engine transport plane. McDonnell Douglass Douglas Aircraft Co is working on two test planes and a production award for up to 210 of the aircraft should be made by late 1989 a Douglas Aircraft spokesman said. Under the governments new procedures contractors can spend hundreds of millions of dollars on development and typically recoup their investments during production. But now the government sometimes awards production to a second contractor who did not develop the system. General Electric Co <GE> for example developed the F404 engine for the Navy. But two weeks ago the Pentagon awarded 30 pct of F404 production to United Technologies Pratt and Whitney. Such tactics have increased competition but the government now risks decimating the industry by making it too competitive said Michael LaTronica of Redding Research Group. Two years ago defense contractors were their own worst enemies. They were not cost efficient LaTronica said. Now DOD has allowed the situation to swing so far back the other way that you may be in danger of losing the defense industry as a national resource. While the nation as a whole has posted trade deficits in recent years aerospace and defense has exported more products than it imported he noted. LaTronica and others said however that changes in government procurement may be coming. I hear that the Pentagon is looking into the situation said John Diamantis defense analyst at Pershing and Co. He said that some small defense electronics firms believe the Pentagon will begin re-evaluating procurement policy and perhaps start paying more development money. Redding Researchs LaTronica who still likes the industry despite the probability of additional unforeseen writeoffs said Theres been a swing in sentiment. The defense bashing psychology of the last few years is starting to shift. LaTronica noted that one government official has recently suggested that the winner of the ATF prototype award should get sole production of the plane for a specified time. The investments are large. The Lockheed General Dynamics Boeing ATF team for example is spending 691 mln dlrs just to develop the prototype. The danger the Pentagon runs if changes are not made is that companies will hesitate to bid to develop a program but instead will wait for a second source production award. But it may take a company going bust to really change peoples thinking LaTronica said. Reuter | FURTHER US DEFENSE WRITEOFFS LIKELY, ANALYSTS SAY |
Reed International Plc <REED.L> said it had no comment to make on U.K. stock market rumors that Harcourt Brace Jovanovich Inc <HBJ> may make a bid for the company in order to escape unwelcome offers from Robert Maxwells British Printing and Communication Corp <BPCL.L>. A spokeswoman for Reed said earlier analysts forecasts that a bid for Reed will have to be about 700 mln stg were totally unrealistic adding that its current market is about 2.7 billion stg. Reuter | REED SAYS IT HAS NO COMMENT ON HARCOURT RUMOURS |
Unocal Corp said it told the U.S. Treasury Department that it will not include fluidized bed combustion technology a method for the more efficient burning of solids at its Parachute Creek oil shale project in Colorado due to high costs. Under a 1985 agreement with the now-defunct U.S. Synthetic Fuels Corp Unocal said it would study using the technology at the oil shale plant. In return the company would have been eligible for 500 mln dlrs in loan gaurantees and price supports from the U.S. Treasury Department which took over the contract from the Synthetic Fuels Corp Unocal said. Unocal said its studies showed the cost for the fluidized bed combustion facility would have exceeded 352 mln dlrs compared with an original estimate of 260 mln dlrs. The fluidized bed facility would have provided heat and electricity for the oil shale project Unocal said. Last years fall in oil prices and the loss of investment tax credit under the Tax Reform Act made the project uneconomical even with government price supports and loan guarantees Unocal said. The Parachute Creek oil shale plant produces about 4000 to 5000 barrels per day of crude shale oil Unocal said. Reuter | UNOCAL<UCL> SCRAPS FLUIDIZED BED BOILER PROJECT |
Merck Co <MRK> and Squibb Corp <SQB> will benefit from a study that shows lower levels of blood cholesterol slows the build-up of fat in the hearts arteries lowering the risk of heart attacks industry analysts said. Both companies have developed drugs that slow the bodys production of cholesterol although Merck is about 18 months ahead of Squibb with a drug expected to be approved this year. Certainly this study will create greater acceptance of anti-cholesterol drugs said Robert Uhl a drug analyst at F. Eberstadt Fleming. Although neither companys drug was used in the study which was conducted by a team of scientists at the University of Southern California School of Medicine both are leaders in a new class of drugs that fight cholesterol. The study reported in the Journal of the American Medical Association showed lower levels of cholesterol achieved through a combination of drugs and special diet slowed and in some cases reversed the build up of fatty deposits in the hearts arteries. Such build up leads to heart attacks the leading cause of death in the U.S. Health officials have said lower levels of cholesterol could immediately benefit six mln Americans who suffer symptoms of coronary artery disease. The study advocated reduction of cholesterol in some 40 mln Americans. As the anti-cholesterol crusade gains momentum industry analysts and executives believe a healthier diet and drug therapy will gain wider acceptance. In this context pharmaceutical analyst David Crossen of Sanford C. Bernstein said the culture can shift in terms of drug treatment because some people arnt going to fundamentally alter their diets. The worldwide anti-cholesterol drug market is valued at 600 mln dlrs a year. But as the new drugs reach the market analysts estimate revenues will swell to 1.5 billion dlrs annually in about next five years. The drugs used in the study in combination with the low cholesterol diet were niacin a common compound and colestipol a drug Upjohn Co <UPJ> has sold since 1977. But these two drugs have some drawbacks that analysts say the new drugs from Merck and Squibb avoid. Niacin leads to tremendous amounts of flushing constipation or stomach upset Crossen said. Colestipol a sand-like powder comes in a dosage of 15 to 30 grams and must be mixed with a glass of water. It isnt fun to take Crossen said. Drug analyst Uhl said the drawbacks restricted Upjohns sales for the drug which he said is under 10 mln dlrs a year. In contrast the new drugs from Merck and Squibb have little side effects because they target a key factor in the bodys production of cholesterol -- an enzyme found in the liver. Past methods of getting down cholesterol have been rather variable said Dr. Charles Sanders an executive vice president at Squibb. The new drugs in contrast interupt a clear step in cholesterol production Sanders said. Also the new drugs are easier to take since they come in a tablet form swallowed once or twice a day. Mercks drug Mevacor received a recommendation from an advisory panel of the Food and Drug Administration earlier this year and is expected to receive full approval for sale in late summer or fall. Squibbs drug eptastatin is expected to be submitted for regulatory approval in the first or second quarter 1988 Sanders said. Warner Lambert Co <WLA> and Bristol Meyers Co <BMY> also have cholesterol fighting compounds similar to the Upjohn drug but only Merck and Upjohn are ahead in the new class of cholesterol inhibitors. Reuter | MERCK <MRK>, SQUIBB <SQB> BENEFIT FROM STUDY |
Civil service industrial action started early this month will delay the publication of Mays U.K. Overseas trade figures which had been due out next Thursday a Trade and Industry Department statement said. A department spokesman said the figures will probably be put back by about a month. The June trade figures due in late July will also be delayed he added. REUTER | CIVIL SERVICE STRIKE DELAYS U.K. TRADE FIGURES |
Canadian narrowly-defined money supply M-1 fell 430 mln dlrs to 35.65 billion dlrs in week ended June 10 Bank of Canada said. M-1-A which is M-1 plus daily interest chequable and non-personal deposits fell 874 mln dlrs to 79.97 billion dlrs and M-2 which is M-1-A plus other notice and personal fixed-term deposits fell 952 mln dlrs to 184.45 billion dlrs. M-3 which is non-personal fixed term deposits and foreign currency deposits of residents booked at chartered banks in Canada fell 549 mln dlrs to 225.30 billion dlrs. Chartered bank general loans outstanding fell 584 mln dlrs to 127.58 billion dlrs. Canadian liquid plus short term assets rose 20 mln dlrs to 37.96 billion dlrs and total Canadian dollar major assets of the chartered banks fell 753 mln dlrs to 229.05 billion dlrs. Chartered bank net foreign currency assets fell 92 mln dlrs to minus 1.92 billion dlrs. Notes in circulation totalled 17.11 billion dlrs up 59 mln dlrs from the week before. Government cash balances rose 26 mln dlrs to 2.65 billion dlrs in week ended June 17. Government securities outstanding fell 424 mln dlrs to 227.38 billion dlrs in week ended June 17 treasury bills rose 700 mln dlrs to 78.00 billion dlrs and Canada Savings Bonds fell 121 mln dlrs to 42.45 billion dlrs. Reuter | CANADIAN MONEY SUPPLY FALLS IN WEEK |
Demand for platinum could reach 3.4 mln ounces by 1991 compared with an estimated offtake of 2.88 mln in 1986 Chris Clark platinum marketing director for Johnson Matthey Plc said. Clark told a meeting of the Minerals Research Organisation in Milton Keynes he foresaw a 250000 ounce increase in consumption for use in autocatalysts currently the largest single application for platinum. Jewellery consumption is set to rise by 70000 ounces Clark predicted in his speech the text of which was released in London today. Clark said his forecast allowed for only a modest further increase in investment buying and may well be cautious. He said South Africa was the most likely source of additional supplies and will need to increase output by about 500000 ounces to meet increased demand. The capital investment required to produce the additional output would be around one billion U.S. Dlrs and the political climate may make it difficult to raise the money he said. The Soviet Union whose exports have declined since the 1970s might increase sales to the West by about 50000 ounces Clark said. The very probability of a growth in demand set against the massive investment required for expansion - and that expansion only being viable in South Africa or Russia - leads me to conclude that the price of platinum will be substantially underpinned in the medium to long-term Clark said. REUTER | PLATINUM DEMAND ESTIMATED 17 PCT HIGHER BY 1991 |
Trammel Crow Co said it agreed to buy the 42-story headquarters building of First Wisconsin Corp for undisclosed terms. The privately held real estate development and investment firm said it plans to develop the remainder of the eight-acre site in Milwaukee to include a tower with office space luxury condominiums and retail stores. First Wisconsin will continue to occupy 19 floors in First Wisconsin Center it said. Reuter | <TRAMMEL CROW> TO BUY WISCONSIN <FWB> BUILDING |
Metro Airlines Inc said it has agreed in principle to acquire privately held Chaparral Airlines inc for 5700000 dlrs in cash. Chaparral provides regularly scheduled service out of Dallas/Fort Worth Regional Airport as an affiliated carrier of AMR Corp <AMR> and had revenues in 1986 of 14.1 mln dlrs. Reuter | METRO AIRLINES <MAIR.O> TO MAKE ACQUISITION |
Weatherford International Inc said executive vice president and chief operating officer Kurt K. Bushati will leave September One to accept a senior operating position with the Austrian national oil company. The company said president and chief executive officer Eugene L. Butler will assume the added duties of chief operating officer. Reuter | WEATHERFORD INTERNATIONAL <WII> EXECUTIVE LEAVES |
Duff and Phelps said it lowered its ratings on senior debt and preferred stock to DP-7 (low A) from DP-6 (high A) affecting nearly 670 mln dlrs in debt securities. The action reflects the increased financial leverage resulting from the companys 1986 acquisition of Hammmermill Paper which raised the fixed obligations ratio to 34 pct compared with 26 pct in 1985 Duff and Phelps said. Reuter | DUFF/PHELPS LOWERS INTERNATIONAL PAPER <IP> DEBT |
Standard and Poors Corp said it is keeping Crazy Eddie Incs 81 mln dlrs of B-rated convertible subordinated debt on creditwatch with negatives implications. The companys implied senior debt rating is BB-minus. S and P said it considers a downgrade of Crazy Eddie more likely because of a rash of senior management resignations and Chemical Banks withdrawal of a 52 mln dlr credit line. Crazy Eddie has yet to respond to two competing takeover bids one by founder and chairman Eddie Antar with First City Capital Corp and a second for about 235 mln dlrs by Entertainment Marketing Inc S and P noted. Reuter | CRAZY EDDIE <CRZY.O> REMAINS ON S/P CREDITWATCH |
Manufacturers Hanover Corp is offering 200 mln dlrs of two-year senior extendable notes with a final maturity of 1993 yielding 8.30 pct said lead manager Shearson Lehman Brothers Inc. The notes have an 8-1/4 pct coupon and were priced at 99.90 to yield 85 basis points more than the when-issued two-year Treasury note. After two years holders can sell the notes back to Manufacturers at par. In 1989 and every year until 1993 the issuer will conduct an open reset on the yields of those notes not sold back to it Shearson said. Moodys Investors Service Inc rates the Manufacturers issue A-3 compared to an A grade by Standard and Poors Corp. The gross spread is 3.50 dlrs the selling concession is two dlrs and the reallowance is 1.25 dlrs. First Boston Prudential-Bache and Salomon Brothers co-managed the deal. Reuter | MANUFACTURERS<MHC> SELLS 2-YEAR EXTENDABLE NOTES |
Standard and Poors Corp said it downgraded to B-plus from A about 50 mln dlrs of collateral trust notes of Leaseway Transportation Corp. S and P cited a leveraged buyout offer from an investor group that was organized by Citibank and included management. The buyout of Leaseway will result in significant deterioration of its balance sheet the agency pointed out. Leaseways strong competitive position in auto hauling and retail support services will enable it to generate sufficient cash flow to service commitments. But S and P expects debt leverage to remain extremely high for the forseeable future. Reuter | LEASEWAY <LTC> DEBT DOWNGRADED BY S/P |
June 19 Semi-annual div eight cts vs 15 cts prior Pay Aug 1 Record July 1 NOTE: Before the establishment of the Amity Bancorp Inc holding company Amity Bank declared a full year dividend of 15 cts for the year ended December 31 1986. Reuter | AMITY BANCORP INC <AMTY.O> SEMI-ANNUAL DIV |
Shr loss 46 cts vs loss five cts Net loss 3922000 vs loss 420000 Sales 16.0 mln vs 23.9 mln Avg shrs 8567000 vs 8458000 Nine mths Shr loss 1.02 dlrs vs profit 35 cts Net loss 8685000 vs profit 2978000 Avg shrs 8547000 vs 8437000 Reuter | TELCO SYSTEMS INC <TELC.O> 3RD QTR MAY 31 LOSS |
FEDERAL CO PREDICTS RECORD EARNINGS PER SHARE 4.25-4.50 DLRS FISCAL 1987. |
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Chyron Corp said it has entered into a long term 10 mln dlr revolving credit agreement with European American Bank. It said the agreement will allow it to convert 10 mln dlrs of short-term debt to long-term debt. The agreement is for a period of three years with an option to extend payments for another four years it said. Reuter | CHYRON <CHY> GETS 10 MLN DLR CREDIT |
Altus Bank said it has not been able to reach a definitive agreement to buy Horizon Financial Corp Horizon Funding and 2.8 billion dlrs in loan servicing from Victor Savings and Loan Association. Altus formerly known as First Southern Federal Savings and Loan Association earlier announced the signing of a letter of intent to make the acquisitions. Horizon Financial and Horizon Funding both are units of Victor Savings and Loan Association. Reuter | ALTUS BANK <ALTS.O> FAILS TO REACH AGREEMENT |
Shr 12 cts vs 10 cts Net 189578 vs 100254 Sales 3403914 vs 3122983 Avg shrs 1617600 vs 954400 Reuter | MARS GRAPHIC SERVICES INC <WMD> 1ST QTR MAY 31 |
Qtly div 35 cts vs 35 cts prior Pay July 15 Record June 30 NOTE: Full name is Winthrop Insured Mortgage Investors II Reuter | WINTHROP INSURED MORTGAGE <WMI> SETS PAYOUT |
Qtly div 17-1/2 cts vs 17-1/2 cts prior Pay July 15 Record June 30 Reuter | ARTHUR D. LITTLE INC <LTLE.O> SETS QUARTERLY |
Qtly div 2-1/2 cts vs 2-1/2 cts prior Pay Sept 18 Record Aug 21 Reuter | AMES DEPARTMENT STORES INC <ADD> SETS QUARTERLY |
Marcade Group said it had agreed to buy Europe Craft Imports Inc for a combination of cash and common stock. The company said Europe Craft designs imports and distributes menswear and sportswear under the Members Only brand name. The company said Europe Craft had sales of 70 mln dlrs last year. Marcade said this latest deal is part of an ongoing acquisition phase. Reuter | MARCADE GROUP INC <MAR> BUYS EUROPE CRAFT |
Qtly div 47 cts vs 47 cts prior Pay Aug 15 Record Aug Three Reuter | UNITIL CORP <UTL> SETS QUARTERLY |
Merck and Co Inc said it has opened a new 80 mln dlr research facility at its Rahway N.J. headquarters. The company said researchers in the new building will be involved in research on MK-906 for reducing the size of enlarged prostate glands an agent to promote wound healing the leukotiene substances linked to asthma and arthritis new vaccines made by genetic engineering fermentation broths and safe and cost-effective ways of producing new drugs. Reuter | MERCK <MRK> OPENS NEW RESEARCH CENTER |
Options on Viacom International stock have been adjusted to account for the payment of a dividend on preferred stock the Chicago Board Options Exchange said. Trading in Viacom stock at the New York Stock Exchange was halted this morning after the company announced a preferred stock dividend at a rate of 0.025834 of preferred stock for each preferred share held. The Chicago options exchange said all exercises of the options as of today require delivery or receipt of 30 shares of preferred stock 20 shares of common a cash payment of 4322.37 dlrs and an undetermined cash payment in lieu of fractional shares from the preferred dividend payment. The options symbol for Viacom will be changed to VIY from VIZ as of June 22 the exchange said. Reuter | OPTIONS ON VIACOM <VIA> ADJUSTED BY DIVIDEND |
The 72-member Canadian Chemical Producers Association said it adopted a code of practice for the safe transport of chemicals and their by-products. Through cooperation with the transportation industry we will not only minimize transportation accidents but also the risks to people and the environment association president David Buzzelli said at the annual meeting in Jasper. He said as a first step the association will conduct an internal survey rating the safety capabilities of trucking companies that transport chemicals. Reuter | CANADIAN CHEMICAL PRODUCERS SET TRANSPORT CODE |
Pacific International Services Corp said it plans to register with the Securities and Exchange Commission in July to issue convertible subordinated debentures. The company did not detail the prospective offering. Reuter | PACIFIC INTERNATIONAL <PISC.O> TO OFFER DEBT |
European coffee roasters and traders have agreed to propose a new formula for calculating International Coffee Organization ICO quotas Dutch Coffee Trade Association chairman chairman Frits van Horick said. Van Horick who is a council member of the European Coffee Federation was speaking at the end of the ECF annual meeting. The new formula is based on six-year moving averages and would give Brazil the worlds biggest coffee producer an unchanged quota for the remaining two years of the current coffee agreement van Horick said. If accepted by the consumer and producer members of the ICO the formula could also be a basis for negotiating a new agreement van Horick said. Coffee quotas were suspended in February last year when prices shot up on fears of a drought-induced crop disaster in Brazil. Although prices are now considerably lower consumers and producers have been unable to agree on re-introduction. Brazil has been the most strongly against any change in the formula because it feared a lower quota. But our proposal leaves it very little to object to van Horick said. The existing quota system is far too rigid and does not reflect supply and demand reality he said. Our formula builds flexibility into the system and will benefit almost everyone. Although full implications of the new formula have still to be worked out initial estimates suggest countries such as Colombia Kenya Indonesia and Costa Rica would get slightly higher quotas while others such as the Ivory Coast El Salvador and Nicaragua would lose quota share van Horick said. Because the proposal provides that future quota distribution must reflect current demand and actual supply it should also prevent under-shipment of quota as countries doing so would automatically prejudice their following years quota. If the ICO consumers accept our proposal it stands at least a fair chance of being accepted by the producers at the September meeting most of whom are generally in favour of a new quota formula van Horick said. At the same time much will depend on Brazils attitude. Brazil is increasingly isolated on the producer side. If there is no frost damage to its coffee crop over the next two months and most other producers favour our proposal we might just get an agreement van Horick added. Reuter | EUROPEAN COFFEE TRADE PROPOSES NEW QUOTA FORMULA |
Continental Illinois Corp will add to its reserves against bad loans from less developed countries when its board meets next week E.F. Hutton analyst Fred Meinke said. Meinke said a Continental executive told him Friday the banking firm parent of Continental Illinois National Bank and Trust Co of Chicago will add to its reserves next week along the lines of what other banks have been doing since Citicorp <CCI> initiated the provisioning last month. Continental Illinois has about 2.6 billion dlrs in loans to Latin American countries. Meinke said he thinks Continental Illinois will add about 25 pct or more of its Latin American exposure to its loss reserve or about 650 mln dlrs or more. They have a big reserve already. My guess this will be on top of that he said. available. Reuter | CONT'L ILLINOIS <CIL> PLANS TO ADD TO RESERVE |
Hills Department Stores Inc said it has decided to amend the registration on file with the Securities and Exchange Commission covering its planned initial offering. The company said it expects to offer three mln common shares at a filing range of 11 to 12 dlrs a share along with a 40 mln dlr offering of convertible junior subordinated debentures instead of the 6.9 mln common shares proposed in the pending registration. Hills said it expects to file a registration statement on the proposed changes within two weeks. Reuter | HILLS DEPARTMENT STORES PLANS OFFERING CHANGES |
The World Bank said it approved a 70 mln dlr loan to Hungary to help finance a 833.1 mln dlr telecommunications project. The Bank noted that Hungary which until recently had given telecommunications low priority recognized that inadequate telecommunications are a serious constraint to economic development and reform. The project extends through 1991 and will help Magyar Posta the state enterprise overseeing the telecommunications sector meet its long-term development goals. Reuter | WORLD BANK LOANS HUNGARY 70 MLN DLRS |
Brazil has bought 75000 tonnes of French wheat at tender a Brazilian Wheat Board spokesman said. He said the Board accepted offers for 25000 tonnes of wheat from grain firm J. Souffle at 80.49 dlrs per tonne Fob for August shipment. For September shipment the Board bought 25000 tonnes from Graniere at 79.32 dlrs per tonne Fob and for October shipment it accepted 25000 tonnes from Andre and Companie at 79.47 dlrs per tonne Fob. The next tender for Aug/Sept/Oct shipment was set for June 24 the spokesman said. Reuter | BRAZIL BUYS FRENCH WHEAT AT TENDER |
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