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RTE Corp said it completed the purchase of the U.S. aluminum electrolytic capacitor business and related assets of Emhart Corp for undisclosed terms. Reuter | RTE <RTE> BUYS SOME EMHART <EMH> ASSETS |
The World Bank said it approved a 100 mln dlr loan to help Brazil finance the rehabilitation of the railway in Sao Paulo State and establish a institutional reform program as a base for future commercial operation. The 285 mln dlr project is designed to financially rehabilitate the railway -- the primarily state-owned Ferrovia Paulista S.A. -- and improve transportation on the lines leading to the city of Sao Paulo and the port of Santos. The loan is for 14-years including three and one-half years of grace and carries a variable interest rate currently 7.92 pct linked to the banks cost of borrowing. Reuter | WORLD BANK APPROVES 100 MLN DLR LOAN FOR BRAZIL |
stock market deregulation -- will be heard Tuesday when the Canadian securities industry sets off its own fireworks. Some companies are quickly taking advantage of deregulation but more significant moves are likely to be a year or more down the road analysts say. They say most foreign firms will focus at first on bond trading debt financing and underwriting areas in which they have experience under the old rules that allowed them to provide government debt financing and advisory services. When they learn about Canada they might go into retail said Carney at Merrill Lynch Canada. Then they will eventually just start to buy up the little guys. If the bigger boys price comes down theyll end up taking those ones over too. Under the new rules barriers that kept banks brokerage houses insurance companies and trust firms out of each others businesses will be swept away in favor of wide-open competition. The deregulation sometimes nicknamed Little Bang will allow Canadian banks and other domestic financial institutions to set up securities units or acquire existing brokerages. Foreign companies will also be able to form their own securities divisions in Ontario or buy up to 50 pct of a Canadian firm. A year from now they can raise that stake to 100 pct. Foreign firms that entered Canada after 1971 can currently own no more than 10 pct of a Canadian brokerage. Deregulation was expected to generate a major shakeout by June 30 involving mergers of existing firms and buyouts by foreign and domestic financial giants. So far few deals have become reality however despite a swirl of rumors and merger talks. In the heat of deregulation fever many Canadian investment dealers are demanding up to four times book value scaring off prospective suitors analysts said. I would think they (the brokerages) will have to lower their asking prices said financial services analyst Jeff Carney at Merrill Lynch Canada Inc. which recently terminated talks to acquire prominent Canadian brokerage Burns Fry Ltd. I think (a high asking price) is what scared Merrill Lynch away from Burns Fry added Carney. It is just a lot of money. When your asset walks out the door every night it is difficult to pay that amount of cash. Carney said another factor in the slow pace of buyouts was uncertainty about the final deregulation rules which were issued and approved only in mid-June. Most major foreign and Canadian financial players have focused their deregulation strategy on planning their own Canadian securities units or buying seats on the Toronto Stock Exchange Canadas largest equities market. Japans Nomura Securities Co. Ltd. Yamaichi Securities Co. Ltd. Daiwa Securities Co. Ltd. and Nikko Securities Co. Ltd. recently bought seats on Torontos exchange while United States investment banks such as Salomon Inc. and Goldman Sachs and Co. have set plans for Canadian subsidiaries. The few proposed foreign investments in Ontario firms include agreements by New Yorks Shearson Lehman Brothers Inc. to raise its stake in McLeod Young Weir Ltd. to 30 pct from 10 pct and by the British firm of James Capel and Co. to acquire a minority interest in Brown Baldwin Nisker Ltd. Several industry watchers predict the flood of foreign acquisitions is likely a year away when the newcomers become familiar with Canada. Canadian firms will need such international alliances to compete in the increasingly global securities market industry officials said. That is one of the hopes of the regulators that the change will throw off one or two Canadian global firms Toronto Stock Exchange president Pearce Bunting told Reuters recently. Canadas six major banks are also expected to proceed cautiously into the securities field. Analysts said the brokers are too expensive now while the banks are coping with Brazilian loan problems. Banks will also find it tough to merge their cautious bureaucratic culture with that of leaner more free-wheeling securities dealers they said. While the banks have been approached by securities firms seeking merger partners they have not yet bought into brokerages choosing to build securities units from within. Last week Royal Bank of Canada the countrys biggest bank ended merger talks with Canadian broker Wood Gundy Inc. after several months of negotiations. But analyst Thompson forecast that if one bank finally acquires an existing firm all the other banks will jump in. They dont want to be perceived as missing out on something said Prudential-Bache Securities Canada Ltd. analyst Albert Thompson who believes that brokerages are too expensive a risk for banks. Reuter | CANADA SETS OFF ITS OWN BIG BANG |
Rochester Telephone Corp said it completed the acquisition of Canton Telephone Co and is now operating the company. Terms of the acquisition were not disclosed. Canton Telephone serves about 2900 access lines in northwestern Pennsylvania and had 1986 operating revenues of about 1300000 dlrs Rochester Telephone said. Reuter | ROCHESTER <RTC> ACQUIRES <CANTON TELEPHONE CO> |
Prime Computer Inc said it received an order from the Philadelphia board of education for more than 8.0 mln dlrs of advanced computer equipment and software for automating its administrative and student accounting systems. The systems designed and manufactured by Prime were introduced in April. Reuter | PRIME COMPUTER <PRM> WINS CONTRACT |
Corporate mergers and acquisitions in and around San Francisco over the past seven years have had only a modest effect on the metropolitan areas economy a leading business-backed organization said. The Bay Area Council a group of more than 300 business firms said that a study of corporate restructuring in a nine-county area found that San Francisco itself had suffered some ill effects from corporate shake-ups but that surrounding communities had not. Seventeen of the 32 Fortune 500 companies in the area left due to corporate restructuring between 1979 and 1986 but another 21 firms were added to the list. Ten of the departing companies were based in San Francisco. During the period only six located in the city achieved Fortune 500 status. Ted Hall a council director and local managing director of McKinsey and Co. which conducted the survey said the study grew out of concern that mergers and acquisitions had seriously hurt the economic climate of northern California. However Hall said that only about 36000 jobs had been lost in the region while more than 600000 new jobs were created during the period. At the same time he said the region experienced a greater rise in per capita income and lower unemployment than the rest of the United States and California. Council President George Keller who also is chairman and chief executive officer of Chevron Corp. told a news conference that the region had difficulties in persuading companies to locate there because of a fragmented local political system. But he said that because of the amenities of living in San Francisco he was the envy of many chief executives in other metropolitan area. Its a great place to run a business he added but its a hell of a place to do business with government. The study concluded that Chevron which mergered with Gulf Oil in 1984 would benefit in the long run from the restructuring activity. Among the corporate headquarters lost during the period were Crown Zellerbach Memorex Southern Pacific Castle & Cooke and Rolm. Companies that grew enough during the period to make the Fortune 500 list included Apple Computer Pacific Telesis McKesson Tandem Computer U.S. Leasing and Amfac. The study by the management consulting firm said that partly due to corporate restructuring the rate of job growth in San Francisco has slowed since 1980. In addition it said that the loss of corporate leadership had adversely affected some of the Bay Areas civic and charitable activities. Reuter | SAN FRANCISCO, NOT REGION, HURT BY RESTRUCTURING |
Standard and Poors Corp said it downgraded American Healthcare Management Incs subordinated notes to D from B affecting 80 mln dlrs of securities. S and P said that this for-profit operator of 34 actue-care hospitals missed its semi-annual interest payment on the debt. The rating agency said the failure to renegotiate terms on bank obligations was the key to this default. That is because payments on the notes are prohibited until default under terms of senior obligations is remedied. Reuter | S/P DOWNGRADES AMERICAN HEALTHCARE <AHI> NOTES |
Pittston Co said WTC International N.V. shareholders approved the acquisition of the company by Pittston. Terms of the transaction call for Pittston to exchange 0.523 of its own common shares for each outstanding WTC share Pittston said. WTC is engaged in domestic international air freight ocean and surface freight forwarding and consolidation and distribution services. Reuter | WTC SHAREHOLDERS APPROVE PITTSTON <PCO> BUYOUT |
Home Federal Bank of Florida F.S.B. <HFBF.O> said it has scheduled a special shareholders meetng for July 26 to approve proposed changes to the banks charter and merge with Barnett Bank Incs Barnett Bank of Pinellas County N.A. Home Federal said the meeting is to approve a definitive agreement signed May 26 calling for each share of Home Federals common stock to be exchanged for about 40 dlrs in market value of Barnett common stock. The exchange would be based on conversion of Home Federal shares of not less than 1.935 or more than 1.200 shares of Barnett stocks. At 40 dlrs a share Home Federal said the total market value of the transaction would be about 175 mln dlrs. Home Federal said notice of the meeting and related proxy materials which has been filed previously with the Securities and Exchange Commission and the Federal Home Loan Bank board were mailed on June 26 to holders of record on June 15. Reuter | HOME FEDERAL <HFBF.O> SETS SHAREHOLDER MEETING |
A North Sea oil find announced by Chevron Corps <CHV> Chevron Exploration North Sea Ltd may indicate a new field with recoverable crude oil reserves of 300 mln barrels industry analysts said. Chevron said a sidetrack well on block 16/26 on the U.K. Continental shelf tested 9000 barrels per day (bpd) of 20 API crude oil from the tertiary Alba sand through a three-inch surface choke. The estimated amount of oil at the Alba field is around 320 mln barrels Paul Spedding of stockbroker Kleinwort Grieveson and Co told Reuters. He said industry estimates put the total reserves at the field at over one billion barrels but given the low gravity of oil the recovery rate would be expected to be around 20-25 pct. Analysts said the results were encouraging but the potential difficulty of operating and recovering oil in the field was shown by the fact that the first well had to be plugged and a sidetrack drilled. The field seems to be shallow and widespread which will require a multi-platform development in recovery pushing costs up Christopher Osborne of stockbroker Hoare Govett said. Most analysts said that although the low gravity of the oil found would require additional costs in recovery the test well showed that it flows well. Although the gravity of oil at the field seems to be low it seems to flow quite well and around 300 mln barrels could be recovered Carol Bell of Phillips and Drew told Reuters. However Chevron officials declined to comment on the analysts reserve estimates. They said that without further research and drilling in the area this summer they would not disclose any reserve figures. Analysts said that if the field were declared commercial and developed there would be a ready local market for the heavy crude it produced. Most refineries are now upgraded to refine heavy oils and the price differentials between heavy and light crudes are a lot narrower today Osborne said. Chevron operates the block on behalf of 16 companies which include British Petroleum Development Ltd DSM Hydrocarbons (UK) Ltd Enterprise Oil (TNS) Ltd Marathon Int. Pet. (GB) Ltd and Phillips Petroleum Co U.K. Ltd. Reuter | CHEVRON N.SEA FIND MAY HOLD 300 MLN BBLS -ANALYSTS |
Arden Group Inc said it filed a registration statement with the Securities and Exchange Commission covering two issuer tender offers. It said one offer its directed to its class A common stock holders and another to holders of its 8-1/4 pct debentures due March 1 1989. The planned offer for common stock holders calls for the company to exchange either 30 dlrs in cash or 35 dlrs principal amount of 13 pct subordinated debentures due September 1 1997 or one share of a new class B common stock for each class A share held Arden Group said. It also said the cash payment is subject to proration. In addition the company said it plans to offer to exchange one dlr principal amount of 13 pct debentures due September 1 1997 for each outstanding one dlr principal amount of 8-1/4 pct debentures. Reuter | ARDEN GROUP <ARDNA.O> PLANS ISSUER TENDER |
The World Bank said it approved a 100 mln dlr loan to help Brazil finance the rehabilitation of the railway in Sao Paulo state and establish an institutional reform program as a base for future commercial operation. The 285 mln dlr project is designed to financially rehabilitate the railway -- the primarily state-owned Ferrovia Paulista S.A. -- and improve transport on the lines leading to the city of Sao Paulo and the port of Santos. The loan is for 14 years including 3-1/2 years of grace and carries a variable interest rate currently 7.92 pct linked to the banks cost of borrowing. Reuter | WORLD BANK APPROVES LOAN FOR BRAZIL RAILWAY |
The Pakistani government allowed the private sector to export cotton and rice in a new trade policy announced to cover the next three years. Commerce and Planning Minister Mahbubul Haq said in a televised speech it was also decided to allow duty-free import of cotton yarn. Cotton and rice are Pakistans main exports which have been handled exclusively by state corporations since early 1970s. Haq said now the private sector would export cotton and rice along with the state corporations. He said duty-free import of cotton yarn was allowed to make high quality yarn available to local ancillary industries and to enable them to compete effectively in the world market. This would help overcome domestic shortages of yarn he said. Reuter | PAKISTAN ALLOWS PRIVATE COTTON, RICE EXPORTS |
The Palo Verde Unit 1 nuclear power plant was removed from service Sunday due to a leaking pipe in its circulating water system according to the plants operator the Arizona Nuclear Power Project. It said the pipe on the non-nuclear steam-generating side of the plant delivers water to the plants condenser. This water is used to condense steam to drive the turbine generator the Power Project said. The cause of the leak is being investigated and no time estimate was given for when the unit will return to service it said adding Unit 2 is operating at full power. The Arizona Nuclear Power Project is a consortium of southwest U.S. utilities including AZP Groups <AZP> Arizona Public Service El Paso Electric <ELPA> Public Service of New Mexico <PNM> and Southern California Edison <SCE>. Reuter | ARIZONA NUCLEAR PLANT SHUTDOWN DUE TO WATER LEAK |
Lomas and Nettleton Financial Corp said its shareholders approved at a special meeting the companys acquisition of Equitable Life Leasing Corp for 263.3 mln dlrs. Equitable Life Leasing Corp is a subsidiary of Equitable Investment Corp which is owned by the Equitable Life Assurance Co of U.S. Lomas said the acquistion price will consist of one mln in cash 1.5 mln shares of the companys common stock 71000 shares of a new series C preferred stock and 8.944 mln dlrs principal amount of nine pct senior notes due 1994. The company added that the acquisition will close June 30. Reuter | LOMAS <LNK> SHAREHOLDERS APPROVE ACQUISITION |
Biscayne Holdings Inc said its stockholders approved a one-for-three reverse stock split as a portion of the amendments approved to its certificate of incorporation. The company said holders reduced the number of authorized class A common shares to 50 mln from 100 mln and reclassified each outstanding three shares into one share. About 6036800 shares will be outstanding after the split. Biscayne Holdings said shareholders also approved annual election of directors eliminating provisions related to the classified board. Reuter | BISCAYNE HOLDINGS <BISHA.O> REVERSE SPLIT OK'D |
<ALMI Group L.P.> said its co-chairmen Michael Landes and Albert Schwartz and its vice chairman Michael Spiegler have acquired a 50 pct equity interest in <Clearview Baking Corp> for undisclosed terms. A. Dale Mayo Clearviews president and chief executive officer will retain a 50 pct interest in the company ALMI Group said. Reuter | ALMI GROUP ACQUIRES INTEREST IN CLEARVIEW BAKING |
Symbolics Inc said it won a 500000 dlr contract from NASA Ames Research Center for the preliminary design of a spaceborne symbolic processor. The company said its symbolic processing technology is used to faciliate artificial intelligence applications and other advanced computing techniques. It said its processor will be used to execute both symbolic and numeric applications on future space shuttle space stations and deep space missions. Reuter | SYMBOLICS INC <SMBX> WINS SPACE CONTRACT |
National City Corp projected income of eight mln dlrs for the second quarter ending June 30 due to a 55 mln dlr charge for loan loss provisions. This compares with earnings in the second quarter of last year of 36.3 mln dlrs. National City said it expects per share income in the second quarter to be 20 cts. The company said it expects full year earnings to be comparable with last years record 135 mln dlrs. The bank said its 55 mln dlr special loan loss provision is related to loan exposure in less developed countries in its international portfolio. Reuter | NATIONAL CITY CORP <NCTY.O> SEES LOWER 2ND QTR |
Arcturus Inc said it introduced it MegaBeam product a three-tube high resolution data display projector. The company said the large screen projector is more than twice as bright as competing models. It said the projector would be used to show the image of a 14-inch computer terminal to large groupd on a six-foot wall screen. It said the MegaBeam is priced at 11995 dlrs per unit. Reuter | ARCTURUS INC <ARTU> LAUNCHES NEW MEGABEAM |
Shr 25 cts vs 25 cts prior qtr Pay August 10 Record July 10 Reuter | UNOCAL CORP <UCL> QTLY DIVIDEND |
Ecuador will produce crude oil in excess of its 221000-bpd OPEC quota during the second half of this year Energy Minister Fernando Santos Alvite told a news conference. Ecuador plans to produce 280000 bpd in August rising to 320000 bpd next January the minister said. We will be producing more than the quota to pay off the crude and products we have been lent by Venezuela Nigeria and Kuwait and to compensate for the crude we have been unable to produce during the past few months he said. Earthquake damage to a pipeline sharply cut Ecuadorean production from March to May this year. Santos said the move had been explained to fellow OPEC members during last weeks meeting in Vienna when an increase in Ecuadors quota to 221000 bpd from 210000 was approved. They understood our position and we believe we remain within the spirit of the (quota) agreement he said. Immediately before the March quake Ecuadorean production was 250000-260000 bpd with 144000 bpd exported. While its production was down Venezuela Nigeria and Kuwait loaned Ecuador a total 12 mln barrels of crude and four mln barrels of products Santos said. Reuter | ECUADOR TO PRODUCE ABOVE OPEC QUOTA - MINISTER |
The World Bank said it has extended loans totalling 241 mln dlrs to Niger and Zaire to help support economic reforms through structural adjustment programs. The loans have been made through the International Development Association (IDA) the banks concessionary lending arm and the African Facility a three-year IDA-administered fund that supports economic policy reforms in sub-Saharan Africa the bank said. Zaires structural adjustment program supported by a 67 mln dlr IDA loan and a 94 mln dlr African Facility loan hopes to lay the basis for sustained economic growth the bank said. Included in the programs goals are strengthening private sector incentives aiding macroeconomic management and unspecified changes in transportion and agricultural policies the bank said. Nigers structural adjustment program supported by a 60 mln dlr IDA loan and a 20 mln dlr African Facility loan hopes to aid public spending controls support pricing reforms and encourage private sector competition the bank said. Reuter | WORLD BANK EXTENDS 241 MLN DLRS IN AFRICAN LOANS |
Standard and Poors Corp said it affirmed about 100 mln dlrs of B-minus subordinated debt of Intelogic Trace Inc. S and P cited the end of an attempted takeover of Burlington Industries Inc by an Asher Edelman-led group in which Intelogic was used as a financing vehicle. About 78 pct of Burlingtons common shares were tendered to Morgan Stanley Group Inc it added. S and P said Intelogics problems expanding its computer maintenence activities have led to drops in revenues but financial resources should remain supportive. Reuter | INTELOGIC TRACE <IT> DEBT AFFIRMED BY S/P |
Moodys Investors Service said it downgraded 95 mln dlrs of outstanding Allis-Chalmers Corp issues. It lowered the sinking fund debentures to Ca from B-3 and the Series C preferred stock to Ca from Caa. Moodys cited as justification the companys filing for court protection under Chapter 11 of the Federal Bankruptcy Code. Also the agency noted the companys inability to restructure its debt obligations. Allis-Chalmers Corp is a manufacturer of air quality control fluids handling and solid materials processing equipment. Reuter | ALLIS-CHALMERS <AH> DEBT, PAPER CUT BY MOODY'S |
U.S. firms are expected to enjoy the advantage of superior experience over their Japanese competitors in the new promising business of bringing asset rich Japanese investors to the U.S. financial futures markets. Japan allowed local financial institutions last month to start using overseas futures in currencies bonds and stocks to help them manage their bulging foreign portfolios. U.S. investment banks are going to take advantage. Weve been in the business for two decades the Japanese have not said Eugene Atkinson president of Goldman Sachs Japan Corp. Japanese investors were assumed to be eager to get into the new markets but in fact participation so far has been slow Japanese securities and bank sources in New York said. Koichi Kane Executive Vice President of Nomura Securities International said Theyre still in a starting up period. Theyre testing the water Atkinson added. But once they start the Japanese are likely to become very big players opening up lucrative business opportunities he said. U.S. investment banking sources said the slow start is understandable because U.S. institutional investors too are fairly new to the market. Futures markets have a long history in the U.S. but because of the high risks involved American pension funds and mutual funds were not allowed to use the markets until relatively recently a U.S. investment bank futures analyst said. In addition to Japans inexperience in financial futures an insufficient number of brokers in Japan is also to be blamed for the slow start the Japanese sources said. Japan is liberalizing its financial markets but domestic financial institutions are still not allowed to act as brokers in Japan for overseas futures markets. This may change next year when bankers speculate that securities houses will be permitted to enter this line of business. While the Japanese are out of the business the Americans have moved in with First Boston Corp Salomon Brothers Inc Goldman Sachs and Co Drexel Burnham Lambert Inc and PainWebber Inc leading the charge they said. In the U.S. Nikko Securities Co International Inc is preparing to become a clearing member of the Chicago Boad of Trade (CBT)in anticipation of growing Japanese demand for futures products Akira Tokutomi of Nikko said. Nomura Japans largest securities house has not yet decided whether to expand its futures brokerage business in the U.S. to establish closer links between Japanese investors and the U.S. futures markets Kane said. The evening session of CBT inaugurated recently to coincide with early Tokyo business hours has increased Japanese participation to some extent but the brokerage issue is still a hurdle the Japanese sources said. High liquidity is the biggest attraction of the futures market so the Japanese naturally want to join the daytime trading session in Chicago if possible they said. The Japanese are in the process of selecting brokers and establishing channels to pay fees and margins but harmonizing clerical procedures and bridging the time gap between Tokyo and Chicago are proving to be a burden the sources said. Some Japanese banks which are largely barred from the securities industry in Japan have contemplated buying into the U.S. brokerage business the Japanese sources said. One of the motives for doing so is to save on commissions which was also a spur for U.S. commercial banks to get into the brokerage business they said. The simplest way may be to take over a brokerage house or to go into a business tie-up said Hiroyuki Kondo of Yasuda Trust and Banking Co Ltd in New York. One trust bank source said total fees could amount to around one mln dlrs a year if his bank used the futures markets fully to hedge its huge pension fund and other assets. Japanese banks have been able to penetrate aggressively many foreign financial markets by mobilizing their mammoth capital assets but the futures brokerage business to be a different story Japanese banking sources said. They cited stiff fee-cutting competition in addition to difficulties recruiting influential Chicago brokers. In anticipation of sizeable orders in the future some U.S. brokers are now taking orders from the Japanese at around 13 dlrs per contract below the break-even level they said. Some Chicago brokers and brokerage houses are trying to approach Japanese financial institutions about possible tie-ups a futures indusry source in Chicago said. But Japanese bank sources in New York said the small capital base of many of these brokerages is making the Japanese nervous about a capital link. Japanese banks are unlikely to ignore the brokerage business once financial futures trading by the Japanese starts growing fast and proves to be profitable they said. But the big question they added is whether the Japanese government would let banks engage in this new risky business. reuter | U.S. LEADS JAPAN IN FINANCIAL FUTURES BUSINESS |
Court documents filed with the U.S. bankruptcy court by attorneys for Allis-Chalmers Corp <AH> listed Equitable Life Assurance Co as one of the largest creditors. According to the court papers Equitable was owed a total of 468859 dlrs. Other creditors included Connecticut General Life Insurance Co owed 192520 dlrs and New York Life Insurance Co owed 146553 dlrs. The list of unsecured creditors was headed by KHIC America Corp of Rutheford New Jersey which was owed 663950 dlrs. Second on the list of unsecured creditors was a group of paving contractors owed 600000 dlrs. Manville Corp <MAN> was third with 471157 dlrs owed. Allis-Chalmers said that on Dec 31 the unfunded pension liabilities totaled 44 mln dlrs. It said that it intended to carry out a reorganization by disposing of businesses that do not contribute adequately to cash flow. The company said it plans to eliminate unprofitable product lines and emphasize more profitable product lines. Allis-Chalmers said it intended to obtain workforce reductions and seek monetary and other concessions from salaried and hourly employees. It said it will eliminate operations of facilities that are marginal performers. The company said it plans to discontinue burdensome contracts and leases as well as collective bargaining agreements. The company said it believes creditors will realize more from a reorganization than from a liquidation. The documents said Allis-Chalmers has suffered substantial losses since 1981 due to sales declines caused by fierce competition and a sluggish global economy. It said a restructuring plan which it has already instituted adversely affected cash flow because certain costs including product liability and retiree medical and pension costs continued as before despite a reduction in the size of its business. Reuter | ALLIS-CHALMERS <AH> LISTS MAIN CREDITORS |
Shr 20 cts vs 12 cts Net 34088000 vs 18727000 Revs 340.4 mln vs 200.3 mln Nine mths Shr 53 cts vs 31 cts Net 88661000 vs 49059000 Revs 926.5 mln vs 560.1 mln Avg shrs 151.1 mln vs 137.0 mln Reuter | LAIDLAW TRANSPORTATION LTD (LDMF.O) THIRD QTR |
Gateway Communications Inc said it expects its second quarter earnings to be lower than last years income of seven cts per share but its revenue for the period should increase by 20 pct over the 2.7 mln dlrs reported a year ago. The decline in second quarter earnings is attributable to higher operating costs resulting from increased sales development and expansion Gateway said. Reuter | GATEWAY <GWAY.O> SEES LOWER 2ND QTR RESULTS |
The Environmental Protection Agency (EPA) announced plans to disapprove clean-air plans for 14 metropolitan areas and called for bans in those areas on new construction of potentially polluting facilties. EPA Administrator Lee Thomas said in a statement the areas had not shown they could meet agency ozone or carbon-monoxide air-quality standards by the end of 1987 or soon after. He said the proposed ban on construction would cover such industries as electric utilities iron and steel production plants industrial boilers and petroleum refineries. The areas affected are Chicago; the Indiana portion of the Chicago area; East St. Louis Ill.; the Indiana portion of the Louisville Ky. area; Cleveland Ohio; Atlanta Ga.; Dallas-Ft. Worth Tex.; Denver Colo.; the California south coast including Los Angeles; Fresno Sacramenta Ventura and Kern counties Calif. and Washoe County (Reno) Nev. Thomas also proposed major changes to existing sources of pollution in those areas. They would effective after a final assessment of the areas pollution expected late this year or early next. For Cleveland the EPA also proposed a restriction on federal highway funding and clean-air grants because the state of Ohio did not provide for adequate testing to curb car pollutions as required by the Clean AirAct. Thomas said: It is clear that the state implementation plans for these areas will not achieve federal ozone or carbon-monoxide standards under the deadline mandated by Congress. In these circumstances the Clean Air Act leaves no discretion. I must propose sanctions. The EPA estimated that another 20 metropolitan areas will fail to meet the agencys ozone standards by the end of the year. About 70 are meeting the ozone standards. It added that about 80 areas are now not meeting the EPA carbon-monoxide standards but only a few will have long-term problems in meeting the standards. The EPA has proposed that car-makers be ordered to install canisters on new cars beginning in 1979 to capture polluting gasoline vapors which escape when gas is pumped from filling stations to a cars gas tank. reuter | EPA TO REJECT CLEAN-AIR PLANS FOR 14 AREAS |
MOODY'S UPGRADES ONE BILLION DLRS OF SCOTT PAPER DEBT TO A3 FROM BAA1 |
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Oper shr 38 cts vs 32 cts Qtly div 12 cts vs 12 cts Oper net 5430000 vs 4707000 Revs 169.1 mln vs 139.4 mln Year Oper shr 1.50 dlrs vs 1.32 dlrs Oper net 21.5 mln vs 19.1 mln Revs 602.5 mln vs 524.4 mln NOTE: 1986 operating net in both periods excludes loss 8.2 mln dlrs or 56 cts a share from discontinued operations Reuter | MORRISON INC <MORR.O> 4TH QTR MAY 30 NET |
Geothermal Resources International Inc said it has completed two additional geothermal wells in its steam fields in The Geysers area of northern California. The field is being developed to supply steam to the 130-megawatt Coldwater Creek Geothermal Power Plant scheduled to go into commercial operation in late 1987 or early 1988 the company said adding it has completed 15 geothermal wells in the field since 1981. The Coldwater Creek power plant is being built by a consortium of local utilities Geothermal said. Reuter | GEOTHERMAL RESOURCES <GEO> COMPLETES TWO WELLS |
Wal-Mart Stores Inc said it has completed the acquisition of <Super Saver Warehouse Inc> and Super Saver is now a wholly owned unit of Wal-Mart. Reuter | WAL-MART <WMT> COMPLETES ACQUISITION |
Piedmont Aviation Inc said it is accepting reservations for nonstop service to Nassau Bahamas from Charlotte N.C. beginning November 15. The new service will connect more than 30 cities on the Piedmont system to Nassau the company said. Reuter | PIEDMONT <PIE> ACCEPTS RESERVATIONS FOR BAHAMAS |
Micro General Corp said it has completed a 1.5-mln-dlr equity offering of 1.2 mln units each consisting of two shares of common stock and one common stock purchase warrant. The offering was underwritten by Paulson Investment Co Inc. Net proceeds of about 1.3 mln dlrs will be used to expand the companys parcel shipping systems and postal scales manufacturing and marketing for new product development and/or for acquisition. Reuter | MICRO GENERAL CORP <MGEN.O> COMPLETES OFFER |
Owens-Corning Fiberglass Corp said it agreed with Taiwan Glass Industries Corp on the manufacture and distribution of its fiberglass reinforcements products under license. The company said the two firms will construct a new manufacturing plant for these products outside Taipei but it disclosed no terms of the deal. It said the agreement will enhance its ability to serve the growing Asian market for fiberglass reinforcements and yarns. Reuter | OWENS-CORNING <OCF> AGREES WITH TAIWAN GLASS |
Kraft Inc said it completed the acquisition of Frostex Foods Inc for undisclosed terms. Kraft said last month it had signed a letter of intent to acquire the Austin Texas-based foodservice distributor. Reuter | KRAFT <KRA> COMPLETES FROSTEX ACQUISITION |
<Phoenix Technologies Ltd> said it has signed a marketing agreement with Apollo Computer Inc. Phoenix said that the agreement allows Apollo to market Phoenixs software under the name Domain/PC Emulator. The company said that the software will be available on Apollos new Domain Series 4000 personal workstations and Apollos current generation of machines by the end of this years third quarter. Phoenix said the software allows system manufacturers to offer their customers an MS-DOS based 100 pct PC-compatible operating mode done solely through software emulation. Apollo will license the software from Phoenix and sell it directly to its customers. Reuter | APOLLO <APCI.O> LICENSES PHOENIX SOFTWARE |
Qtr ended April 30 Shr profit one ct vs loss three cts Net profit 146000 vs loss 203000 Revs 2001000 vs 1493000 Year Shr profit four cts vs loss 13 cts Net profit 445000 vs loss 827000 Revs 7135000 vs 5237000 NOTE: Full name is Precision Target Marketing Inc. Latest year and quarter includes extraordinary gains of 214000 dlrs or three cts a share and 85000 dlrs or one ct a share. Reuter | PRECISION TARGET MARKETING <PTMI.O> 4TH QTR NET |
Moodys Investors Service Inc said it upgraded Scott Paper Cos long-term debt rating to A-3 from Baa-1. The companys Prime-2 commercial paper rating remains unchanged. Approximately one billion dlrs of long-term debt is affected. Moodys said the upgrade reflects Scotts continuing improvement in operating results as well as Moodys expectation of substantial funds flowing to the company from an asset sale. Reuter | MOODY'S UPGRADES SCOTT PAPER <SPP> DEBT TO A-3 |
RTE Corp said it completed the purchase of Emhart Corps United States aluminum electrolytic capacitor business for an undisclosed sum. The company said the capacitor business is part of Emharts electrical and electronic group marketed under the Mallory brand name. The company said the product lines it acquired had sales of 25 mln dlrs last year. Reuter | RTE CORP <RTE> BUYS EMHART CORP UNIT |
Periods ended April 30 Shr 83 cts vs 94 cts net 5583000 vs 8403000 Revs 28.8 mln vs 29.4 mln Avg shrs 6754000 vs 6802000 Reuter | SEVEN OAKS INTERNATIONAL INC <QPON.O> YEAR NET |
United Medical Corp said it will sell its Trotter Treadmills Inc unit. The company said the sale is in line with its strategy of refocusing on its health care service business. It said it had received interest from several parties but no agreement has yet been reached. Trotter Treadmills makes motorized treadmills for the exercise enthusiast and fitness club market. It said its sales for this year are projected to be over 10 mln dlrs. Reuter | UNITED MEDICAL CORP <UM> SELLS UNIT |
A specially convened Franco-German meeting in the sidelines of a summit of EC leaders failed to make any progress over a 1987-88 farm price package that has deeply split the two former EC allies diplomats said The meeting was attended by farm ministers and foreign ministers from both countries and by French President Francois Mitterand his Prime Minister Jacques Chirac and by Chancellor Helmut Kohl of West Germany. The stalemate over farm prices is seen as a key to providing a solution to a long-term settlement of the Communitys worst-ever budget crisis. The Germans clearly do not want to budge an aide to Chirac told reporters. He added the French Prime Minister was visibly angered as he the hour-long meeting. Bonn and Paris are diametrically opposed to a proposal for the Brussels Executive Commission to overhaul radically the ECs complex green currrency system designed to translate common EC farm prices into national currencies. Paris also supports a move for an oils and fats tax which West Germany is against along with Britain Denmark and the Netherlands. EC farm minsters are due to resume negotiations on the package which should have been agreed by an April 1 deadline tomorrow. Diplomats said it had been hoped that the summit could have injected fresh impetus into those talks. The Commission proposed its package to save one billion dollars on the ECs ever-rising farm budget. The summit has been dominated by lengthy talks on moves to alter the entire system of financing the 12-nation group and plugging a 5.7 billion dollar budget shortfall for 1987. Reuter | FRANCO-GERMAN PARLEY FAILS TO UNBLOCK FARM TALKS |
Toll Brothers Inc said it has opened a Washington D.C.-Baltimore Metro divisional office in Greenbelt Md. Reuter | TOLL BROTHERS <TOL> OPENS NEW OFFICE |
Venezuelas cabinet approved a new exchange rate for oil and mining export earnings setting it at 14.50 bolivars to the dollar from 7.50 bolivars previously Minister Manuel Azpur UA said. Azpur told reporters after a cabinet meeting that the measure is fundamental to conserving the economic and financial strength of the petroleum industry. He said the new exchange rate which goes before the central bank for final approval tommorrow will allow the state oil company Petroleos De Venezuela S.A.(PDVSA) to solve its problem of working capital and implement investment plans estimated at 20 billion bolivars for 1987. He did not say when the measure would become effective. Venezuelas oil industry previously sold its dollar earnings to the government at 7.50 to the dollar but bought foreign exchange from its imports at 14.50 bolivars. The new exchange rate will promote purchases of domestic goods and services by the industry Azpur said. He added that it would also put PDVSA in a position to purchase more government debt bonds. PDVSA had available liquid assets of 20 billion bolivars at the start of this year of which nine billion were in a trust fund in the Central Bank of Venezuela (BCV) and placed in government bonds. According to a contract between PDVSA and the central bank the BCV must provide cash as the oil industry requries by repurchasing the bonds. PDVSAs contribution to the treasury last year was 44.480 billion bolivars. It foreign earnings for oil and petrochemcial sales were 8.023 billion dlrs. Reuter | VENEZUELA LOWERS EXCHANGE RATE FOR OIL EARNINGS |
CyCare Systems Inc said it bought Control Data Corps <CDA> MedTec unit for an undisclosed sum. The company said MedTecs new client base could have a significant impact on long-term revenues although it expects a minimal positive impact on earnings in the next six months. It said the assets purchased include processing agreements software maintenance contracts and the supporting software. Reuter | CYCARE SYSTEMS INC <CYCR> BUYS MEDTEC |
Canadian Tire Corp Ltd said it still hopes a special board committee can solve a voting rights dispute between class A and common stock shareholders. Although no such proposal has yet been developed the directors hope that such a result can be achieved chairman Hugh Macaulay said at the annual meeting. The committee formed last fall has been trying to determine the voting rights of class A non-voting shares if control of the company changes hands. The Ontario Securities Commission blocked a 270 mln dlr takeover bid last January for 49 pct of the companys common shares. The OSC said the bid by a group of Canadian Tire store owners abused shareholders rights by circumventing share provisions that would convert non-voting stock into voting shares if more than 50 pct of the stock changed ownership. Since then three members of the Billes family who agreed to tender their 60 pct holding of Canadian Tires common shares to the pro rata offer have commenced legal proceedings amongst themselves. Macaulay said he would not comment further on the situation while matters remain in an unsettled state. At the meeting president Dean Groussman said the higher profit trend evident in the first quarter ended April 4 was continuing. First quarter net rose 10 pct to 21.1 mln dlrs from 19.2 mln dlrs a year earlier. Groussman also said the company plans sharply higher capital spending this year of 103 mln dlrs compared to 43 mln dlrs last year and it will likely maintain high levels of capital investment in 1988 and 1989. Reuter | CANADIAN TIRE <CTC.TO> HOPES TO SOLVE DISPUTE |
BASS-LED GROUP HAS 8.9 PCT BELL and HOWELL CO STAKE FOR INVESTMENT |
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First Pennsylvania Bank N.A. the major subsidiary of First Pennsylvania Corp said it will add a variable-rate <VISA> card to its consumer credit product line. The bank said the card carries a 14 pct annual interest rate that is guaranteed through Sept 30 after which time the interest rate will increase or decrease if there is a change in the prime rate as reflected in the Wall Street Journal. There is no grace period for purchases made with card but First Pennsylvania already offers a <MasterCard> product with a 25-day grace period the bank added. Reuter | FIRST PENNSYLVANIA <FBA> TO LAUNCH NEW VISA CARD |
McChip Resources Inc said it has agreed to exchange its interest in Oklahoma oil and gas properties operated by Reserve Exploration Co <REXC.O> for 638435 restricted Reserve common shares. The company said it will have a 44 pct stake in Reserves outstanding shares as a result of the exchange. Reuter | MCCHIP <MCS.TO> TO ACQUIRE RESERVE HOLDING |
Sales of new single-family homes tumbled 14.9 pct in May from April levels because of higher mortgage interest rates analysts said. There should be another month or two of very weak new home sales but with interest rates stabilizing sale of new homes should become more stable by mid-summer said economist Lawrence Chimerine of Wharton Econometrics Inc. The drop in May to a seasonally adjusted annual rate of 616000 units was the largest since January 1982 the Commerce Department said. Interest rates on conventional mortgages bottomed out at about 9.08 pct in March and rose to about 10.7 pct in April according to Stephen Roach economist at Morgan Stanley. The effect was to freeze some potential new homebuyers out of the market he and others said. The rates moved very suddenly and were certainly unexpected by homebuyers said Cynthia Latta an economist with Data Resources. They were so startled they wanted to hold back and see what would happen. The drop in sales of new single-family home sales was sharper than expected some economists said. We fully expected a decline but the extent was more than we anticipated said James Christian chief economist for the U.S. League of Savings Institutions. Christian said there was a sharp rise in May in sales of existing homes which are generally less expensive than new homes. Latta of Data Resources said strong sales of new condominiums in the Northeast and on the West Coast were reflected in sales of existing but not new homes. Christian of the U.S. League of Savings Institutions said Underlying housing demand remains strong. I think the market is going to stabilize and give us a good second half. Others were less optimistic however. We clearly wont have a boom (in new home sales) but I dont think this is the start of a collapse in single-family housing said Chimerine of Wharton. Eugene Sherman chief economist of the Federal Home Loan Bank of New York said The lower sales level will be maintained for awhile until there is another change in rates. There wont be much specific improvement in coming months. Reuter | INTEREST RATES HURT U.S. MAY HOUSING SALES |
First American Financial Corp said it repurchased 997756 shares or 18 pct of its own common stock from American Century Corp <ACT> for 29.50 dlrs per share in cash and two real estate properties in California. Concurrent with the closing of the deal its First American Title Insurance Co unit entered into a long-term lease arrangement for the properties First American said. It also said the stock it is repurchasing will be retired and not re-issued. Reuter | FIRST AMERICAN <FAMR.O> BUYS BACK STOCK |
Brazils land reform program long trumpeted by the government as one of its absolute priorities is mired in bureaucracy after achieving very few of its aims. Officials acknowledge that progress is now minimal. Land rights activists see no progress at all and say things are actually worsening. Over the last year economic pressures have forced many small producers to sell out to big land-owners. Land reform one of the countrys most hotly-debated political issues is particularly to the fore this year as a Constituent Assembly in Brasilia draws up a new constitution. Land rights campaigners say that if the new charter does not give fresh hope for the countrys 4.5 mln landless families there will be wave upon wave of land occupations. We make no secret of our tactics said one leader of the land reform movement Joao Pedro. The solution is to occupy -- that is what we say to the rural workers. There has not been a single program of land reform in the world without the people occupying land. The land issue spawns violence from Amazonia to Mato Grosso. Some 278 people died in land disputes last year according to the Pastoral Commission for Land which is linked to the Roman Catholic Church. The land reform program announced in 1985 soon after the civilian government of President Jose Sarney took power aimed to resettle 14 mln families by 1989 by gradually splitting up the countrys vast undeveloped estates. The government in its National Plan for Agrarian Reform described the program as one of its absolute priorities. In practice fewer than 20000 families have been helped so far and the government admits that it will not get anywhere near the original target. Political analysts said that the pace of land reform was now slower under Sarney than it had been under the military government of General Joao Figueiredo (1979-85). The slow progress on the issue is fuelling deep frustration. Land rights demonstrations are a common sight in Sao Paulo and other parts of the country. Activists say social conditions in the countryside far from improving have significantly deteriorated. Pedro a leader of the Movement of Landless Rural Workers said that over the last 12 months 100000 small producers had been forced off the land in Brazils five southernmost states. He said the exodus had been caused first by the governments anti-inflation Cruzado Plan which last year froze prices and hit the income of small farmers. When the Cruzado Plan collapsed late last year prices and interest rates soared and many small farmers were unable to pay debts taken out during the price freeze. Pedro said most of the 100000 families who had left the countryside in the south had previously been land-owners while a minority had been tenant farmers. Most had moved to Brazils swollen cities. One activist said the number of landless day labourers called boias-frias (literally cold meals) most of whom cut sugar cane had increased to 400000 in Sao Paulo state from about 300000 five years ago. In an attempt to improve the lot of the rural poor the land reform movement has drawn up a radical proposal which it is sending to the Constituent Assembly. The proposal would severely limit the size of a maximum permissible holding and the land rights movement does not expect it to be voted into the constitution. Pedro said at least 70 pct of the 559-member assembly is composed of big land-owners. He added that the assembly would probably vote on the proposal by October and that its rejection would be the signal for large-scale land invasions. Reuter | BRAZIL LAND REFORM PROGRAM FALTERS, TENSIONS RISE |
Standard and Poors Corp said it upgraded Phelps Dodge Corps senior debt to BB-plus from BB and preference stock to BB-minus from B-plus. About 400 mln dlrs of debt and preference stock is outstanding. Continuing cost cutting in its copper operations has significantly enhanced the firms competitive position S and P said. It added that the acquisition of Columbian Chemical Co has broadened Phelps Dodges earnings base. Reuter | S/P UPGRADES PHELPS DODGE <PD> DEBT, PREFERRED |
A subsidiary of (Kyowa Hakko Kogyo Co Ltd) and privately-held (Murex Corp) jointly announced they signed an agreement giving Kyowa exclusive rights in Japan to market certain Murex products to detect AIDS. The companies estimated that Japanese clinicians will perform a minimum of 28 mln AIDS tests a year. The Murex products must be approved by Japanese authorities before they are sold in Japan. Reuter | KYOWA LICENSES AIDS TEST FROM MUREX |
An investor group led by Robert Bass of Fort Worth Texas said it owns 786800 shares of Bell and Howell Co common stock equal to 8.9 pct of the companys common stock outstanding. In a filing with the Securities and Exchange Commission the group said it purchased 511500 Bell and Howell common shares between April 29 and June 26 at 44.25 dlrs to 56.02 dlrs a share. The stock was acquired for investment purposes the group said adding it may purchase or sell additional shares in the future. Reuter | BASS GROUP HAS STAKE IN BELL AND HOWELL <BHW> |
American Century Corp said its Commerce Savings unit will sell 997756 common shares in First American Financial Corp <FAMR.O> representing 18 pct of First American. The company said the shares are being repurchased by First American for 29.4 mln dlrs and two real estate assets in California. It said Commerce Savings acquired the shares in 1982 and 1983. Reuter | AMERICAN CENTURY <ACT> UNIT SELLS STOCK |
The United States responded to an apparent escalation of Iranian rhetoric with continued assurances that its expanded military force in the Gulf would play purely a deterrent role. I can only emphasize that our role there is deterrent that were going to be assuring safety for American shipping and that that shipping is not related to the war itself State Department spokesman Charles Redman told reporters. He was asked about Iranian claims that the United States was moving towards the brink of armed conflict with Iran. Tehran Radio quoted defence spokesman Ali Akbar Hashemi Rafsanjani telling a visiting Nicaraguan delegation yesterday At the moment the United States is moving towards the brink of an armed encounter with us. We are not concerned about this and believe that the U.S. Presence in the war will make our nation even more serious. We are determined to stand firm and will certainly win. The United States disclosed last week it was beefing up its Gulf fleet from seven to 10 warships and also sending the refurbished battleship Missouri to patrol just outside the strategic Strait of Hormuz entrance to the Gulf. The buildup ties in with U.S. Plans to escort Kuwaiti oil tankers which have been re-registered to fly the American flag and gain naval protection against Iranian attacks. Asked about the Iranian rhetoric White House spokesman Marlin Fitzwater said We wont have any comment or response to the Iranian statements. Our position has been made clear about the status of events in the Gulf. We want an end to the war with no winners and no losers and any activities or statements that tend to prolong the war or increase hostilities are not helpful or welcome. Redman said he could not independently confirm reports that Iran has offered to halt attacks on Gulf shipping. Reuter | U.S. REASSERTS PLANS FOR DETERRENT ROLE IN GULF |
Belden and Blake Energy Co a master limited partnership said it entered into an agreement to sell 400000 of its units for two mln dlrs in cash. The company said <Great Pacific Capital S.A.> of Geneva Switzerland is acting as lead manager for the private placement of the units with international investors. Under the agreement it said an option has also been granted to buy up to 800000 additional units at five dlrs per unit on or before July 13. Reuter | BELDEN <BBE> TO SELL UNITS INTERNATIONALLY |
Texas Instruments Inc (TXN) has been awarded a 556.1 mln dlr contract to build 2575 high-speed anti-radiation missiles (HARM) the Navy said. The company also has won a 5.9 mln dlr contract to upgrade M-48 tanks for Turkey the Army said. REUTER | TEXAS INSTRUMENTS GETS 556.1 MLN DLR CONTRACT |
Life Technologies Inc said it has submitted to the Food and Drug Administration a new test which has proven effective in detecting a sexually transmitted virus thought to play a role in the development of cervical cancer. Life Technologies said the test called ViraPap identifies the presence of human papillomavirus (HPV) by detecting the virus DNA makeup. Life Technologies said the test uses radioactive probes to to detect the virus. Reuter | LIFE TECHNOLOGIES <LTEK.O> FILES TEST WITH FDA |
Security Federal Savings and Loan Association said the initial public offering of its holding company Security Financial Group Inc has been completed. The company said the offering by Security Financial consisted of 766251 issued through the conversion of Security Federal to stock ownership from mutual ownership. It said net proceeds of the offering will be used for general corporate purposes. Trident Securities Inc and Dain Bosworth Inc were underwriters for the offering. Security Financial will begin trading on NASDAQ on or about June 29 the company said. Reuter | SECURITY <SFGI.O> COMPLETES INITIAL OFFERING |
Shr 40 cts vs 11 cts Net 8265000 vs 2255000 Sales 248.3 mln vs 245.4 mln Six mths Shr 94 cts vs 51 cts Net 19.4 mln vs 10.6 mln Sales 531 mln vs 535.8 mln Reuter | HARTMARX CORP <HMX> 2ND QTR MAY 31 NET |
Standard and Poors Corp said it affirmed ratings on 500 mln dlrs of Bank of New York Co debt after the bank set a special LDC loan loss reserve. Affirmed are the A-plus senior debt rating the A subordinated debt A-1-plus commercial paper and respective A-plus and A1-plus ratings on certificates of deposit of Bank of New York and Bank of New York (Delaware). S and P said the banks 135 mln dlr addition to its loan loss reserve conservatively addresses LDC exposure. S and P said the resulting second quarter loss expected will not substantially diminish fundamental earnings strength. Reuter | BANK OF NEW YORK <BK> DEBT AFFIRMED BY S/P |
Qtly div 35 cts vs 35 cts Pay Sept 11 Record Aug 10 Reuter | BOEING CO <BA> QUARTERLY DIVIDEND |
CXR Telcom Corp and Torotel Inc agreed in principle to settle pending litigation regarding the sale of Torotels former Halcyon Communications Inc unit to CXR in March 1986 the two companies said in a joint statement. The agreement calls for CXR to pay to Torotel 1350000 dlrs in exchange for return of a 2.5 mln dlr note and five mln CXR common shares valued at 17754000 mln dlrs the companies said. In June 1986 CXR filed the suit in San Francisco federal court charging that the 10.3 mln dlr price it paid for Halycon was excessive Torotel said. It also said that in is suit CXR asked for seven mln dlrs in damages along with an unspecified punitive award. Reuter | CXR <CXRL.O>,TOROTEL <TRTL.O> TO SETTLE SUIT |
Matthews and Wright Group Inc citing the opinion of bond counsel said certain bond issues that it underwrote were validly issued and will continue to receive tax-exempt status. The company issues the statement as its stock fell 2-1/8 to 4-5/8 on the American Stock Exchange. Matthews and Wright said that in response to press stories governmental agencies have made preliminary inquiries seeking more information. Reuter | MATTHEWS AND WRIGHT <MW> SAYS BONDS TAX-EXEMPT |
Cablevision Systems Corp said it bought cable television systems in six Dutchess County N.Y. communities from Dutchess County Cablevision Associates Ltd. The company said the acquisition of the new systems will add to its presence in New York. It said it will add 4400 subsribers to its 568000 subscriber base. Reuter | CABLEVISION SYSTEMS <CVCC> BUYS STATIONS |
MOODY'S AFFIRMS 1.2 BILLION DLRS OF DEBT OF BANK OF NEW YORK CO |
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Ashford Financial Group said it will create its first master limited partnership in the third quarter. The company said the move will allow small investors to participate in the early-stage financing of its new client companies. The company said investors will also find they have more liquidity than in traditional limited partnership investments. Ashford Financial specializes in providing financial backing to small companies with the potential for high earnings growth and to go public in less than three years. Reuter | <ASHFORD FINANCIAL> CREATES LIMITED PARTNERSHIP |
Austec International Ltd said its North American unit Austec Inc completed the purchase of privately-held Ryan-McFarland Corp for an undisclosed sum. The company said the two units combined are expected to have net revenues of about 25 mln dlrs in 1987. Ryan-McFarlnad develops COBOL and FORTRAN language compilers for the micro mini and mainframe computer markets. Austec International is based in Melbourne Australia. Ryan-McFarland is located in Rolling Hills Estates Calif. Reuter | AUSTEC <AIL.S> COMPLETE PURCHASE OF PRIVATE FIRM |
Pepsi-Cola USA said received an exclusive five-year contract to supply soft drinks to all of Harcourt Brace Jovanovich Incs <HBJ> Sea World theme parks in the United States effective Jan 1 1988. Pepsi said Sea World has had an account with Coca-Cola for the past 16 years. Pepsi said Sea World operates five major theme parks in Orlando San Diego Cleveland Winter Haven Fla. and Baseball City Fla. Pepsi said the new agreement also calls for a major promotional partnerships between the companies. Reuter | PEPSI <PEP> GETS SUPPLIER CONTRACT |
The Securities and Exchange Commissions entry into the battle between Texaco Inc and Pennzoil Co <PZL> could affect the outcome of the 10.3 billion dlr legal saga some analysts said. Texaco today said the SEC would file a friend of the court brief on the tender offer rule as it pertains to the case. Some analysts construed this as positive for Texaco since they said it is alleged by Texaco that Pennzoil violated the rule and the issue was not thoroughly addressed in lower Texas courts. Texacos stock rose 1-1/2 to 39-3/8 and Pennzoil fell four to 78-7/8. A Pennzoil attorney would not comment. He said the SEC rule 10b-13 is part of Texacos argument in its request for a Texas Supreme Court case and that the matter has been previously addressed in court. Pennzoil said it knew of the SEC brief but it did not know whether the brief would support the view of one litigant or be an inquiry and request for clarification of the reasons for two lower state court decisions. Texaco today said the SEC would urge the Texas Supreme Court to accept the case for review with respect to the issue. Texaco has alleged Pennzoil violated the rule when it had a tender offer for Getty Oil Co outstanding and then made an alleged agreement on January 3 1984 to buy Getty shares. Analysts said the SEC tender offer rule prevents those making the offer from entering into contracts for the target companys stock. Frederick Leuffer of C.J. Lawrence believes SEC intervention could be meaningful but acknowledged it could also have no affect. If this friend of the court brief is potent and clearly pro-Texaco and is taken into account by the Texas Supreme Court there is a chance the entire judgment could be reversed and Pennzoil gets nothing Leuffer said. Texaco and Pennzoil have been locked in a bitter legal battle over Texacos acquisition of Getty Oil. A Texas court awarded Pennzoil a record 10.53 billion dlrs in damages later reduced by two billion dlrs. With interest the award now totals 10.3 billion dlrs. Texaco filed for protection under chapter 11 of the federal bankruptcy laws earlier this year. Its action was designed to avoid having a Texas appeals court order it to post a security bond for the entire amount of the Pennzoil judgement. Texaco earlier said the SEC will file its brief the week of July 20. In his comments Leuffer also reflected the views of other analysts who believe are not convinced the SEC will play a significant role. The other argument is the court will ignore it (the SEC brief) as it has all the other friend of the court briefs he said. Kidder Peabody and Co analyst Marc Cohen said he does not expect the SECs brief to change the direction of the case. Everyday youre going to see something like this Cohen said. Texaco lawyer Jim Sales said it was only logical to believe that the SEC would have sought to intervene in the case if it believed the 10b-13 rule was involved. I think what the market sensed today is that there is a reminder here for Pennzoil that they may reach for the stars and fall on their face Sales said. They (Pennzoil) have won every case in Texas said Joel Fischer of Drexel Burnham Lambert. But Fischer and other analysts said SEC involvement may raise questions of federal law that could help Texaco take its case to the U.S. Supreme Court if the Texas court does not reverse the lower opinions or refuses to hear its case. Analysts said the lower courts did not give much weight to the 10b-13 issue. Sales said the point was argued and the courts acknowledged that it was there but they really ignored the legal affect of what the regulation required and we hope we can correct that misimpression. Wall Street analysts and arbitragers speculated on many possible outcomes. One arbitrager said there was concern that Texaco and Pennzoil could settle for a lower sum than demanded by Pennzoil. The SEC stepping in on this issue as an amicus curiae (friend of the court) has a lot of arbitragers a little bit disturbed said Cohen. What youre seeing is a continual chess game. Every slight move down the road could have a multiplying effect he said. Reuter | TEXACO (QTX) MAY BENEFIT FROM SEC BRIEF |
Negotiations resumed in the 14-day-old strike by Canadas letter carriers and picket line violence subsided after the federal government changed its mind and appointed a mediator. The talks between the 20000-member Letter Carriers Union of Canada and government-owned Canada Post were the first since Labor Minister Pierre Cadieux announced the appointment of a mediator yesterday. There had been little progress between the parties last week and both sides requested a mediator for the second time. Cadieux originally said the two sides were too far apart to warrant the help on an independent third party. Although the postal union said it would maintain its strategy of selected rotating strikes across the country only the Montreal area was affected today and service was normal elsewhere in Canada. Canada Post stuck by its promise to halt the use of replacement workers for at least seven days if a mediator was appointed and there were no reports of picket line violence. Canada Post under government orders to eliminate a $160 million (U.S.) deficit by next year has taken a tough stand in the talks and the two sides remain far apart on wages and working conditions. Reuter | NEGOTIATIONS RESUME IN CANADIAN POSTAL STRIKE |
JMB REALTY TRUST CUTS DIVIDEND TO 35 CTS FROM 41 CTS |
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TECSYN INTERNATIONAL TERMINATES TAKEOVER TALKS WITH INVESTOR GROUP |
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Boeing Co has been awarded a 43.4 mln dlr contract for management and production work on the B-52G upgrade program the Air Force said. REUTER | BOEING <BA> GETS 43.4 MLN DLR CONTRACT |
<Campeau Corp> said it is not involved in the Securities and Exchange Commissions administrative proceeding against Allied Stores Corp which Campeau acquired at the end of last year. In a statement the company said The SEC action involves events that occurred prior to Campeaus acquisition of Allied relating to the alleged failure of Allied to make certain disclosures. Consequently Campeau is not subject to the procedings. Reuter | CAMPEAU SAYS IT IS NOT PART OF SEC PROCEEDING |
Henley Group Incs M.W. Kellogg Co subsidiary said it in consortium with <Inelectra> received a contract from Corpoven S.A. a Venezuelan-owned domestic oil company to revamp and expand its El Palito Refinery. Kellogg said the installed cost of the work to be performed is estimated to be 130 mln dlrs. Inelectra Kellogg said is a major Venezuelan engineering firm. Kellog said the project will enable the refinery to produce BTX products -- benzene toluene and orthoxylene -- by processing naphtha feed from an expanded reformer-hydrotreater. Kellogg said the refinerys reformer-hydrotreater will be upgraded to 9500 barrels a day capacity from 7500. It said the new BTX process units include aromatic extraction xylene fractionation xylene isomerization and thermal hydrodealkylation. Kellogg pointed out that Venezuela now imports all of its BTX aromatics. Reuter | HENLEY <HENG.O> HAS VENEZUELAN REFINERY PROJECT |
Equitble Real Estate Shopping Centers L.P. said it has executed a ground lease with Federated Department Stores Inc <FDS> for a site at its Brookdale Shopping Center in Brooklyn Center Minn. Equitable said Federated will build a 67000 squre feet department store and will operate it under its MainStreet division. The new store is expected to be completed and open for business in the second half of 1988. Reuter | EQUITABLE REAL ESTATE <EQM> TO LEASE STORE SPACE |
The Hong Kong and Shanghai Banking Corp said it named John Bond chief executive officer Americas succeeding Angus Petrie who is retiring. Bond will have responsibility for the banks operations in the United States Canada and Latin America the company said. Reuter | HONK KONG AND SHANGHAI <HKS> NAMES AMERICAS CEO |
Fortune Systems Corp said its shareholders approved the sale of its computer hardware business to SCI Technologies Inc. The transaction is expected to close this week. At its annual meeting Fortune said shareholders also voted to change Fortunes name to Tigera Inc. Its principal subsidiary is Tigeral Corp. Reuter | FORTUNE SYSTEMS <FSYS.O> APPROVES UNIT SALE |
International Broadcasting Corp said it plans to make a secondary public offering of between 700000 and 800000 shares of common stock. The offering will be made through underwriters in mid-August. International Broadcasting did not identify the underwriters. The company said it plans to file a registration statement on the offering with the Securities and Exchange Commission. Reuter | INTERNATIONAL BROADCASTING <IBCA.O> IN OFFERING |
Warrantech Corp said it agreed with Providence Washington Insurance Group to insure Warrantechs obligations on its Extended Service line of business. The company said that last year it wrote over 1.9 mln dlrs of extended service plans representing over 20 mln dlrs worth of electronic products. The company said the agreement will enhance its future business opportunities as an important aspect for it is the flexibility credibility and aggressiveness of its insurance company. Reuter | WARRANTECH CORP <WTEC.O> AGREES INSURANCE |
Middle South Utilities Inc said the Federal Energy Regulatory Commission has requested a 30-day stay of a U.S. Court of Appeals ruling ordering the commission to reconsider its allocation of costs from the Grand Gulf One nuclear power plant. More than two years ago FERC set the allocation af Grand Gulf capacity and costs among the four Middle South operating companies. These allocations in turn have become the basis for contested rate filings the four operating utilities made to regulators in their service areas. In a ruling dated June 24 and distributed June 26 the U.S. Court of Appeals in Washington reversed its January 1987 decision and ordered FERC to explain its criteria for determining undue discrimination and why the FERCs allocation currently in effect is not unduly discriminatory under that definition Middle South said. The company said the ruling by the three-judge appeals court panel was totally unexpected especially in light of the timetable the full 11-member court set in April of this year when it announced that all judges would rehear the panels January decision in which the panel had upheld FERC. In essence Middle South said the three-member panel has adopted the dissenting opinion as the new majority opinion and the full court has accepted the new decision. The company said it supports FERCs motion for a stay. The commission said it needed the time to determine the appropriate course it should take in light of the new court decision. Given its complexity and the need for clarification by the FERC the significance of this latest order will take time to determine Middle South said in a statement. Reuter | FERC SEEKS STAY OF MIDDLE SOUTH <MSU> RULING |
Qtly div 35 cts vs 41 cts prior Pay July 31 Record July 15 Reuter | JMB REALTY TRUST <JMBR.O> SETS DECREASED PAYOUT |
U.S. SELLS 3-MO BILLS AT 5.82 PCT, STOP 5.82 PCT, 6-MO 6.00 PCT, STOP 6.01 PCT |
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TecSyn International Inc said it terminated takeover discussions with a U.S.-based investors group after the group was unable to establish access to funds to complete the proposed transactions contrary to previous assurances. TecSyn previously said it and its controlling shareholders accepted in principle a proposal from the group to offer nine dlrs a share for 70 pct of TecSyns outstanding shares. The investor group also planned to invest 22.5 mln dlrs in a private placement of four mln non-voting TecSyn common shares the company said. Reuter | TECSYN <TSNA.TO> TERMINATES TAKEOVER TALKS |
Goodyear said it is selling its 50 pct interest in Toyobo Petcord Ltd of Japan to its partner in the venture Toyobo Co. Reuter | GOODYEAR <GT> TO SELL STAKE IN TOYOBO PETCORD |
Infinite Graphics Inc said it signed a letter of intent to create a joint venture with <Computer Design Equipment Co> to expand sales of its computer-aided design equipment in the Midwest. Infinite Graphics said it will manage and hold the controlling interest in the venture National CADD-Pro Upper Midwest. Computer Design has headquarters in Syracuse Ind. Reuter | INFINITE GRAPHICS <INFG.O> IN JOINT VEENTURE |
Shr 16 cts vs two cts Net 391000 vs 57000 Sales 7917000 vs 7255000 Six mths Shr 47 cts vs 17 cts Net 1164000 vs 422000 Sales 27.9 mln vs 24.3 mln NOTE: Full company name is Washington Scientific Industries Inc. Second quarter ended June seven. Reuter | WASHINGTON SCIENTIFIC <WSCI.O> 2ND QTR NET |
Western Union said it signed an agreement with <Electronic Data Systems Corp>. Under the agreement EDS will provide Western Unions easylink electronic mail service to the 35000 EDS diamond communications users of General Motors Corp <GM> internal electronic mail network. Diamond is an interface linking eight incompatible electronic mail systems at GMs various divisions. Diamond users will now have a communications path to 160000 easylink users and 1.5 mln telex users worldwide Western Union said. Reuter | WESTERN UNION <WU> IN PACT WITH ELECTRONIC DATA |
Warwick Insurance Managers Inc the holding company for Warwick Insurance Co and its subsidiaries said it purchased 55000 shares of its own common stock. The company said it may establish an employee stock ownership plan and that the shares purchased would be made available to the plan if it is adopted. Reuter | WARWICK INSURANCE <WIMI.O> BUYS STOCK |
Israels exports to the U.S. can and must double over the next five years if the mideast nations goal of economic independence is to be achieved said Gad Yaacobi Israeli minister of Economy and Communication. Speaking before an American-Israel Chamber of Commerce seminar Yaacobi said that in 1986 Israeli exports to the U.S. were over 2.3 billion dlrs or about one-third of Israels total exports while imports from the U.S. were around 1.8 billion dlrs or roughly one-sixth of the total. I am convinced that Israel exports to the U.S. can reach five billion dlrs in the next five years if we learn to function in the American marketplace and place greater emphasis on product quality Yaacobi said. While the weakening of the dollar vis-a-vis European currencies is a bottleneck to increasing exports to the U.S. Yaacobi said he expects Israel to extend its recent trend toward higher U.S. exports. In the last ten years Israeli exports to the U.S. rose fivefold from 417 mln dlrs to 2.3 billion in 1986 while imports rose from 888 mln dlrs to 1.8 billion last year. Yaacobi said export growth must increase ten to eleven pct annually the rate achieved until the 1973 Yom Kippur War. He said that the U.S./Israel Free Trade agreement passed last year and eliminating all duties and other commercial restrictions between the two nations through 1994 would continue to facilitate the desired export growth. Dual agreements included in the FTA allow Israel to act as an economic bridge between the U.S. and Europe enabling U.S. firms to export to Europe at lower cost if a certain percentage of the exported is produced in Israel and vice-versa. Yaacobi said that tensions among the nations of the middle east was one of the main reasons Israel had not yet been able to achieve its economic potential. Since 1973 the U.S. has given Israel 25 billion dlrs in aid but most of it went to defense expenditures and financing military conflicts which were imposed on Israel he said. Short of achieving Israels full growth potential however Yaccobi said it would still be possible to achieve economic independence by 1993 or 1994 based on the assumption that exports can be doubled from 1986 levels in that time period. Reuter | ISRAEL MINISTER SEES INCREASED EXPORTS TO U.S. |
Revco D.S. Inc said it expects a loss of 14 mln dlrs for the fourth quarter ended May 30. The company said it expects sales of 703 mln dlrs with operating profit at 52 mln dlrs. The company said that it expects sales in the full fiscal year ending May 30 of around 2.7 billion dlrs with operating profit of around 159 mln dlrs and earnings of about nine mln dlrs. The company said figures for last year are not comparable as Revco was acquired in a leveraged buyout at the end of December. Reuter | <REVCO> SEES 4TH QTR LOSS |
The House of Representatives passed a bill that requires financial institutions to disclose the terms and conditions of interest rates they offer on savings accounts. Institutions would be required to disclose through advertisments and announcements the minimum balances time requirements fees and other conditions of their savings accounts certificates of deposits and interest-bearing checking accounts. The purpose of the bill is to help customers decide which banks and savings associations offer the best rates according to House Banking Committee chairman Fernand St Germain a Rhode Island Democrat. The bill was passed by voice vote and sent to the Senate. Reuter | U.S. HOUSE PASSES TRUTH IN SAVINGS ACT |
GENCORP INC SAYS TO SELL GENERAL TIRE TO CONTINENTAL GUMMI FOR 650 MLN DLRS |
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Moodys Investors Service Inc said it downgraded Potomac Electric Power Cos preferred stock to AA-1 from AAA and it continues to review the utilitys AAA bond rating for downgrade. Some 1.3 billion dlrs is affected. The prime-1 commercial paper rating is not under review. Moodys said it expects Potomac Electrics credit quality to undergo a degree of erosion because of recent rate reductions in the District of Columbia and Maryland. Reuter | MOODY'S DOWNGRADES POTOMAC ELECTRIC <POM> STOCK |
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