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<First Toronto Capital Corp> said it planned to issue a five mln dlr convertible debenture to its Dutch parent Arcalex B.V. which if fully converted would raise Arcalexs stake in First Toronto to 62 pct from 54 pct. It said the debenture would have a five-year term bear 10 pct yearly interest and be redeemable by First Toronto after one year at issue price. First Toronto an investment bank also said it planned to grant directors an option expiring March 1 1992 to acquire up to 500000 First Toronto common shares at five dlrs each. Reuter | FIRST TORONTO ISSUING DEBENTURE TO DUTCH PARENT |
Sen. Jake Garn (R-Utah) said a delay in rescuing the Federal Savings and Loan Insurance Corp risked a run on thrift deposits by nervous customers. Garn told a Georgetown University conference on financial institutions that news reports that the Federal Savings and Loan Insurance Corp was technically in deficit were true and urged swift congressional action to strengthen the fund. Garn said his office received calls from individuals worried about the safety of their money. The runs have started Garn a member of the Banking Committee said. Legislation to infuse more money into the fund which insures savings deposits was to be voted on today by the committee but was postponed because of last-minute differences. FSLIC has reserves of two billion dlrs but faces potential claims of 15 billion dlrs Garn said. He said the claims would not come all at once however and dismissed any real danger to deposits at federally insured thrifts up to the insurance level of 100000 dlrs. Peoples money is safe Garn said but he added We need to quiet down the situation and put their fear to bed. Garn said he and Committee Chairman William Proxmire (D-Wis) agree on the need for legislation but they differed over strategy. Garn opposes including other issues in the legislation and would prefer a bill that was limited to restoring FSLIC and giving regulators more power to cope with failing banks and thrifts. Proxmires bill also would prohibit new so-called nonbank banks and thrifts which use a regulatory loophole to operate outside the usual legal limits on traditional banks. William Isaac former chairman of the Federal Deposit Insurance Corp told the conference that if that fund were combined with FSLIC they could have 29 billion dlrs and cover contingencies for both the bank and thrift industries. However political differences make a merger of the two federal funds unlikely Isaac now president of the Secura Group a consulting firm said. By the 1990s the financial industry will include a handful of nationwide institutions offering every type of financial service which evolved from todays banks nontraditional financial firms and industrial companies. Reuter | GARN FEARS RUN ON SAVINGS AND LOAN DEPOSITS |
Brazilian Finance Minister Dilson Funaro will extend his international tour flying to Japan for talks with government officials and representatives of banks to explain Brazils decision to halt payment of part of its 109-billion dlrs foreign debt Finance Ministry sources said. Funaro who is in Rome today will fly to Tokyo on Sunday after having completed a week-long trip to the United States France England Italy West Germany and Switzerland. Brazil halted payment of interest rates on 68 billion dlrs owed to 700 private commercial foreign banks as part of an strategy to alleviate the burden of its commitments. Funaro who is accompanied by Central Bank governor Francisco Gros met only with government officials of the countries visited over the week. In Tokyo however he is due to meet private bankers to whom Brazil owes some 6.8 billion dlrs the sources said. He is due back in Brasilia next Wednesday March 11 the sources added. Reuter | BRAZILIAN FINANCE MINISTER EXTENDS TRIP TO JAPAN |
Shr 39 cts vs not given Net 8801000 vs not given Revs 33.2 mln vs not given Reuter | (CAMBIOR INC) FIVE MTHS DEC 31 NET |
ConAgra Inc agreed to acquire Monfort of Colorado Inc in a stock transaction both companies said. According to the letter of intent signed by the companies ConAgra will acquire all of Monforts 4.3 mln outstanding shares for 10.75 mln of its own shares. Based on ConAgras closing price of 34 dlrs today the transaction is worth about 356.5 mln dlrs. The merger is expected to be completed in June they said. The companies said the acquisition will result in a restatement of ConAgras earnings for the fiscal year ending May 31 but the restatement is not expected to materially change the previously reported or upcoming fiscal year-end earnings. In fiscal 1986 ConAgra had net income of 105.3 mln dlrs on sales of 5.9 billion dlrs. For its fiscal year ending August 1986 Monfort reported 25.1 mln dlrs in earnings on sales of 1.6 billion dlrs. The company is one of the largest lamb and beef producers in the U.S. producing transporting and selling the products domestically and internationally. Reuter | CONAGRA <CAG> TO ACQUIRE MONFORT <MMFT> |
Gould Inc said it registered to offer two mln shares of convertible exchangeable preferred stock. Gould said the proposed new issue will be underwritten by First Boston Corp and Kidder Peabody and Co Inc. In a registration statement filed with the Securities and Exchange Commission Gould said the shares will be convertible at any time into Gould common. The shares also will be exchangeable into Gould convertible subordinated debentures at a rate of 50 dlrs principal amount per debenture. Reuter | GOULD <GLD> REGISTERS TO OFFER PREFERRED |
House Ways and Means Committee chairman Dan Rostenkowski an Illinois Democrat said his committee would raise taxes if the idea were approved by Democrats as part of the 1988 budget but the committee would find it difficult since President Reagan opposes tax increases. Theres always the question of how to do it without Ronald Reagan. Id rather have him than not he told reporters after a meeting with House Speaker James Wright. Wright approached the taxwriters with a tentative plan to raise 18 billion dlr in taxes in 1988 as part of a 36 billion dlr budget deficit reduction plan. Reuter | ROSTENKOWSKI SAYS TAX HIKE TOUGH WITHOUT REAGAN |
Key members of the House Agriculture committee have agreed to scale-back the 0/92 provision of a pending disaster aid bill to cover only 1987 crop wheat but a broader 0/92 proposal is likely to be resurrected later Congressional sources said. The sources said key lawmakers including Reps. Glenn English (D-Okla.) and Dan Glickman (D-Kan.) agreed to support an amendment to be offered next week by Rep. Charles Stenholm (D-Tex.) which would limit 0/92 only to producers of 1987 crop winter and spring wheat. This would scale-back the 0/92 provision to the original proposal by English allowing a pilot 0/92 program for 1987 wheat only. That provision was later broadened by the subcommittee to include 1988 crop winter wheat. Under 0/92 a farmer can forego planting a crop but still collect 92 pct of deficiency payments. Earlier today the House Agriculture committee postponed until next Tuesday a meeting to consider the disaster aid bill and 0/92. The agreement to limit 0/92 to a wheat pilot program follows vocal criticism of the proposal by some influential farm groups who are concerned about the major impact of 0/92 and by members of Congress wary of reopening the farm bill. Congressional sources said there has not been enough time to study the implications of a broad 0/92. The timing (of the proposal) is off said one aide to a House Agriculture committee member. However several Congressional sources said they expect a broader 0/92 provision to emerge again when the House Agriculture committee is faced next month with the need to make spending cuts in the agriculture budget for fiscal 1988 as part of an overall deficit reduction package. Gene Moos aide to House Majority leader Tom Foley (D-Wash.) predicted agricultures share of budget cuts may exceed one billion dlrs. A broader 0/92 might be resurrected later because both the Congressional Budget Office and the Reagan administration estimate it would result in significant budget savings. A U.S. Agriculture Department official said 0/92 for all 1987 crops would save 300 to 400 mln dlrs and more than 1.5 billion dlrs over five years. Another factor which could affect the 0/92 debate is the approach of planting season Congressional sources said. Some officials said it already is late for implementation of a 0/92 in 1987 because farm program signup ends March 31 for wheat and feedgrains. If Congress approved 0/92 later in the year sign-up either would have to be extended or reopened sources said. Reuter | HOUSE 0/92 PLAN SEEN SCALED-BACK TO 1987 WHEAT |
Arizona Appetitos Stores Inc said it has tentatively agreed to sell its franchise operation to privately-held Appetitos Inc. Under the agreement Appetitos Inc would acquire all Arizona Appetitos assets except for 25000 dlrs in cash and assume all liabilities for 1018000 shares of Arizona Appetitos stock and 150000 dlrs in a three-year secured promissory note. After the transaction which is subject to shareholder approval Arizona Appetitos said it proposes to seek to merge or acquire an existing private company in the food sector. Reuter | ARIZONA APPETITIO'S <AAPI> TO SELL FRANCHISE |
TCW Convertible Securities Fund Inc said it has sold 20 mln shares of its common stock to a group of underwriters led by Bear Stearns and Co Inc E.F. Hutton and Co Advest Inc Blunt Ellis and Loewi Inc Piper Jaffray and Hopwook Inc and Sutro and Co Inc. The shares were sold by the underwriters at ten dlrs per share in a public offering. The offering produced net proceeds of 186 mln dlrs. Reuter | TCW CONVERTIBLE SECURITIES <CVT> SOLD STOCK |
The Reagan administration wants to encourage expanded trade with the Soviet Union but does not believe Moscow yet warrants most-favored-nation treatment Deputy Secretary of State John Whitehead said. It seems to me that more trade between us is better than less trade he told a forum on U.S.-Soviet trade relations. To that end the administration in January allowed foreign policy controls on the export of oil and gas equipment to the Soviet Union to lapse he said. Also Washington and its allies are reviewing remaining export controls in hopes of simplifying the list of prohibited items and speeding up the licensing process he said. Whitehead said however the prefential treatment that comes with most-favored-nation status is out for the moment. U.S. law prohibits most-favored-nation status for countries that restrict emigration and other rights. What we have seen so far (in improved rights under Soviet Leader Mikhail Gorbachev) are promising trends he said. But he added: We dont know if they will continue we dont know how significant they will be. Reuter | FAVORED TRADE STATUS FOR MOSCOW STILL OPPOSED |
McDonnell Douglas Corp which has a five mln dlr investment in Republic Health Corp <REPH> said it has not been approached to sell its shares in Republic Health. Earlier Alpha Health Systems Corp a unit of Pesch and Co said it submitted a merger proposal to the board of REPH Acquisition Co the parent of Republic Health. LeRoy A. Pesch is the principal stockholder of Pesch. We have not been approached by Mr. Pesch or anybody else with respect to our holdings in Republic Health a McDonnell Douglas spokesman told Reuters. Reuter | MCDONNELL DOUGLAS <MD> NOT APPROACHED BY PESCH |
Paradyne Corp said it pleaded guilty to criminal charges of conspiracy to defraud the Social Security Administration and agreed to pay 1.2 mln dlrs in fines and costs to the U.S. Government. The company also reached agreements in principle for an 8.1 mln dlr settlement of class action law suits. About 2.9 mln dlrs of the class action settlement will be provided by Paradynes insurance carrier. The settlement is contingent on court approval after notice to class members it said. The criminal case settlement dismisses all charges including bribery and false statement except for conspiracy to which Paradyne pleaded guilty. The criminal settlement includes the lifting of the governments suspension the dismissal of the federal civil false claims suit and all charges against the individuals. Of the 2.9 mln dlrs the insurance carrier will provide for the civil settlement 750000 dlrs will go to settle a derivative lawsuit. For the year ended December 31 Paradyne reported a net loss of 38.5 mln dlrs. The year-end results include an 8.0 mln dlrs provision for future legal and or settlement costs to cover the civil and criminal settlements announced today. Paradyne also said it named Jerry Kendall as president and chief executive officer succeeding Robert Wiggins who resigned as chairman and chief executive officer as part of the settlement of the indictment. Kendall formerly served as executive vice president and chief operating officer. The company also said that due to the sluggish marketplace it does not expect to be profitable in the first quarter but is optimistic about the outlook for the year. For the first quarter of 1986 the company reported net income of 875000 dlrs on sales of 66.0 mln dlrs. Wiggins was among five Paradyine executives who were charged along with three former officers in a 1985 federal indictment stemming from a 115 mln contract awarded to Paradyne in 1981 to build a computer network for the Social Security Administration. The men were accused of conspiring to bribe government officials and defaud the Social Security Administration. Wiggins and other defendants were also charged with providing false testimony and obstructing justice during a Securities and Exchange Commission investigation. Under the settlement announced today federal prosecutors agreed to defer all charges against Wiggins and three other defendants under a one-year pretrial agreement. The charges would then be dropped if the defendants successfully complete the probation period. Details of the requirements in the agreement were not immediately available. Reuter | PARADYNE <PDN> PLEADS GUILTY TO CRIMINAL CHARGE |
In their search for ways to cut spending on U.S. farm programs policymakers and their advisers here are citing trading in options contracts as an alternative to federal income and price supports. Critics of costly federal farm programs maintain that the government could get out of guaranteeing minimum support prices if farmers systematically used options contracts to protect themselves against vacillating market prices. With agricultural options now available there is less need for government price support programs to provide price stability for farmers the Heritage Foundation a conservative think tank said in a recent position paper. Washington no longer needs to restrict the level and variability of commodity market prices. Farmers and others in agribusiness can now achieve the benefits of price stability by trading in option markets the paper written by Clemson University professor Kandice Kahl said. Critics of farm programs contend that options offer the benefits of price support programs without entailing the cost to taxpayers. Kahls paper urged farmers to buy put options in order to obtain the right to sell at a particular price to the private seller of the option contract. This gives the farmer a guaranteed price but still allows him to profit from higher market prices if they are available by foregoing his option Kahl said. Interest in promoting understanding of options trading among farmers also has been stirred in Congress by a proposed change in agricultural policy that would have the effect of exposing participants in federal farm programs to fluctuations in income subsidies. The proposal -- supported by the Reagan administration and a cross-section of lawmakers -- would allow farmers to receive at least 92 pct of their income subsidies regardless of how much they planted. Under current law farmers enrolled in federal price stabilization programs receive income subsidies or deficiency payments equal to the difference between a set target price and the higher of the support price or market price. The so-called decoupling plan or 0/92 would aim to curtail surplus production by eliminating the requirement that farmers plant in order to receive deficiency payments. Critics of 0/92 plan contend that if the scheme succeeded in curbing surplus output market prices would rise and deficiency payments fall -- leaving farmers who chose not to plant with shrunken income subsidies and no crops to sell. Sen. Rudy Boschwitz (R-Minn.) who has been in the forefront of efforts to decouple income support from acreage plantings advocates replacing the variable deficiency payment with a fixed and gradually declining payment. But many farm state lawmakers are turned off by the idea of offering fixed subsidies to farmers who plant nothing. Some congressional staff members said they are intrigued by the notion of having the federal government subsidize the purchase of call options to help farmers hedge their income risk. By buying a call option the farmer would obtain the right to buy a commodity at a particular price. If the market price rose above that option price the farmer could exercise the option and sell the commodity on the spot market making up most of the reduction in the deficiency payment. An aide to Boschwitz said the senator might offer legislation linking options and decoupling but that it might have to await the results of a pilot project on futures and options trading mandated by the 1985 farm bill. The bill required USDA in association with the Commodity Futures Trading Commission to conduct a pilot program in at least 40 counties which produce major program crops. The program only recently launched was designed to encourage producers to participate in futures and options markets and to ensure that producers net returns would not fall below the county loan level for the crops in question. Reuter | INTEREST IN OPTIONS STIRRED BY U.S. FARM PLANS |
South Africas state-owned energy firm Soekor said it would continue tests after striking oil some 120 kms (75 miles) south-southwest of Mossel Bay. During production tests about 5000 barrels of oil and five mln cubic feet of gas per day were produced it said. This oil discovery will be followed-up as soon as possible by further seismic surveys and drilling. Should further drilling and tests in the area yield positive results oil production from a floating platform could be considered. Director General of Mineral and Energy Affairs Louw Alberts announced the strike earlier but said it was uneconomic. Reuter | SOUTH AFRICAN FIRM TO CONTINUE TESTS |
Cemdac Corp said it told the state of Minnesota to permanently suspend trading of its common stock. The company said it is ceasing operations. Reuter | CEMDAC GOES OUT OF BUSINESS |
Greece replying to a warning from Turkey that it will stop Athens from seeking oil in the Aegean Sea repeated today that it has an exclusive right to decide where or when to drill in the area. A government spokesman said in a statement that if Ankara believed Greece was contravening international law it could bring the issue before the courts. The spokesman was responding to a statement by Turkish Foreign Ministry spokesman Yalim Eralp that Ankara would take action to stop Greeces oil activities beyond its territorial waters as they were a violation of the 1976 Berne accord. Reuter | GREECE REPEATS IT CAN DECIDE ON AEGEAN DRILLING |
Shr loss 45 cts vs loss 1.34 dlrs Net loss 1240000 vs loss 3621000 Revs 6264000 vs 4626000 Year Shr loss 90 cts vs loss 2.01 dlrs Net loss 2487000 vs loss 5406000 Revs 20.8 mln vs 21.7 mln Reuter | NCA CORP <NCAC> 4TH QTR LOSS |
Shr profit one ct vs loss two cts Net profit 52405 vs loss 67967 Sales 289572 vs 188713 Year Shr loss one cts vs loss five cts Net loss 51019 vs loss 201680 Sales 1.1 mln vs 490935 Reuter | BIOMEDICAL DYNAMICS CORP <BMDC> 4TH QTR NET |
Santa Fe Southern Pacific Corp will later today formally ask the U.S. Interstate Commerce Commission (ICC) to reconsider its earlier rejection of the merger of the holding companys railroad assets a company spokesman said. We expect to file papers late tonight asking the ICC to reopen the rail merger case spokesman Rich Hall said in a telephone interview from the companys Chicago headquarters. The ICC had rejected in July on grounds it would reduce competition the merger of the Santa Fe and Southern Pacific Railroads. The deadline for seeking ICC reconsideration of the merger plan is midnight tonight. Santa Fe Southern Pacific owns the Santa Fe railroad and holds the Southern Pacific railroad assets in trust while awaiting federal approval of the merger plan. The ICC had ordered the holding company to divest one or the other railroad but stayed its ruling pending a decision on the request for reconsideration. If the ICC ultimately decides not to reopen the case it is expected to reinstate the divestiture order. Reuter | SANTA FE SOUTHERN PACIFIC APPEALS MERGER RULING |
Brazils recent announcement of a suspension in interest payments on 68 billion dlrs of foreign debt gave the banking system the jitters and confirmed views among many international economists and commodities analysts that Brazil will continue to flex its trading muscles in 1987. The developing worlds most indebted nation is also its most prolific exporter of agricultural commodities such as coffee and soybeans and might maximize foreign exchange revenue by selling hard on world markets economists said. That sounds like a reasonable strategy. But there is no way they can trade their way out of this situation Aldo Roldan Vice President for International Services at Chase Econometrics said. Roldan told Reuters that Brazil not only had to tackle the problems of satisfying domestic demand and competing on glutted world markets but also had to work to make its position on foreign exchange markets more profitable. Domestic costs have increased (due to inflation) and exporters have not had the same offsetting movement in exchange rates Roldan said. The Chase economist also said commodities markets were depressed and generally did not appear very promising for a country like Brazil where pure commodities account for some 50 pct of exports and in 1986 had a total value of around 23 billion dlrs. But he added: They are always pretty aggressive and they have good foreign marketing channels. Analysts said a key factor in Brazilian trade will be coffee and even without background pressure from foreign creditors the worlds largest producer was expected to hit the market this year with a vengeance. Negotiations between International Coffee Organization (ICO) members to re-establish producer export quotas broke up earlier this week with major producers and consumers accusing each other of intransigence. Brazil would not tolerate a change in ICO regulations which others wanted changed one senior coffee dealer said. The dealer who declined to be named said Brazil wanted to preserve its market share. At the end of the talks he said Brazil hinted it could sell more than anyone else and others would suffer. Brazil will be an aggressive seller under any scenario but as yet there is no sign of unusually heavy Brazilian sales the dealer said. If they do come into the market at this level it will go lower and you could breach a dollar ninety or eighty cents he said. New York coffee futures for May delivery settled 2.29 cents lower Thursday at 104.68 cents a lb while more distant deliveries fell the six-cent maximum trading limit. President of the Brazilian Coffee Institute Jorio Dauster told a press conference in Rio de Janeiro today that Brazil has no set target for its coffee exports following the breakdown of the ICO talks on export quotas. Many economists and analysts believe soybeans could be the focus of possible stepped-up Brazilian marketing efforts. They will be more aggressive this year than they have ever been according to Richard Loewy analyst for Prudential-Bache Securities Inc. Loewy believes the foreign debt problem a good crop plus difficulties with storage would help motivate selling of the Brazil soybean crop. Brazilian farmers also need cash flow and they cant afford to store the crops he said. The Chicago soybean complex has been nervous for some time about large South American crops developing under near ideal conditions towards record yields. We are going to see a very rapid decline earlier than usual this year in our (U.S.) exports Loewy said. Tommy Eshleman economist for the American Soybean Association (ASA) said this years Brazilian soybean harvest could total 18 mln tonnes versus 13.7 mln last year. Marketings will be very aggressive this summer when prices are usually high relative to the rest of the year due to the vulnerability of the U.S. crop to bad growing weather. Another incentive to sell might be trade anticipation of a reduction in the U.S. government soybean loan rate offered to farmers who give crops as collateral Eshleman said. He said there has been some uncertainty this year about the soybean loan rate which acts as an effective floor for prices by keeping supplies away from the free market. Farmers can forfeit their beans to the government rather than repay the loan. Were getting into a period when they (Brazil) are starting to harvest and starting to export Eshleman said. But he added it will be a while before U.S. exports fall to below 10 mln bushels a week from around 20 mln bushels currently. Jose Melicias from the research department of Drexel Burnham Lambert said Brazil would be trying to export as much as it can this year because of its economic situation. He said the debt situation was a major consideration. The Brazilian government also does not have enough money to pay for storage he added. Asked if a return to an inflationary environment in Brazil would make farmers inclined to hold onto crops Melicias said it would not make a big difference. On other commodity markets Brazils selling impact may be muted no matter its need to generate capital. Brazil is faced with a poor 1986/87 sugar harvest which could limit exports to the world market analysts said. The country may have oversold and be unable to honor export commitments and this plus higher domestic demand caused by consumer price subsidies on ethanol and refined sugar will give it little room to stretch exports they said. Brazils other major crop cocoa is in its third year of surplus. Cocoa consumption is basically flat and last year it fell so I dont think they can start throwing out cocoa and find many more markets for it one analyst said. If they come out as aggressive sellers the market would collapse and they cant afford to do that she added. Reuter | BRAZIL DEBT SEEN PARTNER TO HARD SELL TACTICS |
OPEC produced an average 16.1 mln barrels per day (bpd) of crude oil in February down from 16.5 mln the previous month and an overall 17.3 mln bpd in fourth quarter 1986 the International Energy Agency said. A few OPEC countries last month exceeded the production quotas set at their last conference in December but liftings were reduced from several countries it said in its latest monthly oil market report. These cutbacks were due in part to buyer resistance to fixed prices introduced from February 1 particularly for fixed volumes over an extended period. It gave this breakdown for OPEC crude output in mln bpd FOURTH QTR 1986 JANUARY 1987 FEBRUARY 1987 SAUDI ARABIA 4.9 3.7 3.8 IRAN 1.6 2.2 1.9 IRAQ 1.6 1.6 1.7 UAE 1.3 1.2 1.2 KUWAIT 1.0 1.0 1.0 NEUTRAL ZONE 0.5 0.4 0.4 QATAR 0.3 0.3 0.2 NIGERIA 1.3 1.2 1.2 LIBYA 1.0 1.0 1.0 FOURTH QTR 1986 JANUARY 1987 FEBRUARY 1987 ALGERIA 0.6 0.6 0.6 GABON 0.1 0.2 0.2 VENEZUELA 1.6 1.6 1.6 ECUADOR 0.2 0.2 0.2 INDONESIA 1.3 1.2 1.2 TOTAL 17.3 16.5 16.1 The IEA said while Saudi production stayed below its quota of 4.133 mln bpd actual sales might exceed output due to Norbec stock disposals. Contracts for Saudi crude have been signed but it is understood they have much leeway in required liftings. The report said the reduction in Iraqi air attacks on Iranian export facilities allowed Irans output to reach 2.2 mln bpd in January but buyer resistance to fixed prices apparently cut February production. It said Iraqi exports are about 1.0 mln bpd through the Turkish pipeline 0.1-0.2 mln by truck through Jordan and 0.2-0.3 mln via the Saudi pipeline to Yanbu. Internal consumption is some 0.3 mln bpd. The IEA estimated total non-communist world oil supply in February at 45.0 mln bpd down from 45.4 mln in January and 47.0 mln in the fourth quarter. The February world supply figure is made up of 16.1 mln bpd OPEC crude production 1.4 mln bpd OPEC natural gas liquids (ngls) 16.6 mln bpd OECD crude and ngls 8.3 mln bpd other developing countries crude and ngls net trade of 1.1 mln bpd with centrally planned economies 0.5 mln bpd of non-conventional crudes (such as tar sands and oil from coal) and 1.0 mln bpd from processiing gains. Within the OECD preliminary Norwegian data show record 1.06 mln bpd output in January with lower production expected in February in accordance with government curtailments of approximately 80000 bpd announced in support of OPEC. REUTER | IEA SAYS OPEC FEBRUARY CRUDE OUTPUT 16.1 MLN BPD |
Two separate class action lawsuits were filed against ICN Pharmaceuticals Inc and its Viratek Inc <VIRA> subsidiary charging the companies with disseminating allegedly false and misleading information regarding the companys drug Virazole which is being tested as a possible treatment for AIDS. The suit filed in Federal Court here on behalf of ICN shareholders charges that disclosures made by ICN over about the past year encouraged the investing public to believe that Virazole was a promising drug of major importance and did not disclose serious adverse side effects court documents said. An ICN spokesman declined comment on the lawsuits. Attorneys for the plaintiffs were not immediately available for comment. Virazole also known as ribavirin is undergoing extensive testing as a possible treatment for AIDS-related illnesses. The drug which is available in a number of countries outside the United States has been approved by the FDA for use domestically in aerosol form as a treatment for an infection that strikes young children called respiratory syncytial virus. The FDA and a house subcommittee are conducting their own separate probes into whether ICN withheld data from the FDA on adverse reactions to the antiviral drug. The Securities and Exchange Commission is also investigating the company. Reuter | ICN <ICN> SUBJECT OF CLASS ACTIONS |
A majority of the Senate Agriculture Committee urged President Reagan to reverse his opposition to export subsidies to the Soviet Union as a way to get its negotiators to purchase some 500 mln dlrs in American wheat. The group led by committee chairman Patrick Leahy a Vermont Democrat urged Reagan to step up negotiations with the Soviet Union by providing export subsidies to help U.S. farmers. Reuter | U.S. SENATE GROUP URGES SUBSIDIES FOR USSR |
The Reagan administration issued a formal statement to Congress designed to free the remaining 40 mln dlrs in 1987 aid for the U.S.-backed Contra rebels in Nicaragua. The aid is the last instalment of 100 mln dlrs voted by Congress for the Contras and is to be spent on major military equipment. Congress now has 15 days to disapprove of the 40 mln dlrs. White House spokesman Marlin Fitzwater said: We think the prospects for approval are very good. The long-awaited administration move followed by one day President Reagans speech to the nation on a report on the secret Iran arms sales to Iran and diversion of profits to the contras. In the House of Representatives earlier today Rep. David Bonior a Michigan Democrat told reporters Democratic leaders in the House had decided to push for a 180-day moratorium on further aid. He said the House would vote next Wednesday. Reuter | ADMINISTRATION MOVES TO FREE REST OF CONTRA AID |
<Enfield Corp Ltd> said it planned to issue 60 mln dlrs principal amount of notes and 1.6 mln class E preferred shares at 25 dlrs a share. The notes would bear 8 pct yearly interest mature March 31 2002 and be convertible to common shares on either March 31 1997 or the business day before a fixed redemption date at 13.50 dlrs a share Enfield said. It said each preferred share would be convertible to 1.85 common shares on either March 31 1997 or the business day before a fixed redemption date. Gordon Capital Corp and Dominion Securities Inc agreed to acquire the issues it said. Enfield said it would use proceeds to retire short-term bank debt and boost its 22 pct stake in <Consumers Packaging Inc> and its interest in <Federal Pioneer Ltd> through open market purchases. Reuter | ENFIELD CORP PLANS NOTES, PREFERRED ISSUE |
Holiday Inns Inc a unit of Holiday Corp is raising 1.4 billion dlrs through offerings of notes and debentures said bookrunner Drexel Burnham Lambert Inc. Junk bond traders said they thought this to be the second-largest junk bond deal ever brought to market. They said the biggest was BCI Holdings 2.35 billion dlr offering on April 10 1986. Via sole manager Drexel Holiday Inns is selling 900 mln dlrs of senior notes due 1994 with a 10-1/2 pct coupon and par pricing. Non-callable for five years the notes are rated B-1 by Moodys and B-plus by Standard and Poors. Holiday Inns is also offering 500 mln dlrs of subordinated debentures due 1999 with an 11 pct coupon and par pricing. The debentures are non-callable for three years and non-refundable for five years Drexel said as lead manager. A sinking fund starts in 1997 to retire 60 pct of the debentures by maturity. This issue is rated B-2 by Moodys and B-minus by Standard and Poors. Goldman Sachs co-managed the debenture deal. Reuter | HOLIDAY <HIA> UNIT SELLS NOTES AND DEBENTURES |
Wichita Industries Inc said it agreed to buy Fountain Oil and Gas Inc. Wichita said it it will acquire all of the outstanding shares of Fountain in an exchange for about 11 mln newly issued Wichita common shares. Wichita presently has about 3.6 mln shares outstanding. The transaction calls for the issuance of 1-1/2 shares of Wichita common for each outstanding Fountain share. Wichita also said it made a number of refinancing agreements in connection with the acquisition. Reuter | WICHITA <WRO> TO BUY FOUNTAIN OIL <FGAS> |
Argentinas cost of living index grew 6.5 pct in January down from last months 7.6 pct the National Statistics Institute said. It said consumer prices rose 98.9 pct over the last 12 months against 81.9 pct inflation in the calendar year 1986. Reuter | ARGENTINE INFLATION ROSE 6.5 PCT IN FEBRUARY |
The Mexican state oil company Petroleos Mexicanos (PEMEX) said its Far East customers would be charged 17.25 dlrs per barrel for Isthmus crude in February and 14.45 dlrs for the heavier Maya. Pemex said this was 32 cts less than January Isthmus and 15 cts less than January Maya. Far East customers primarily Japan which buys an average 180000 barrels per day of which 150000 is Isthmus pay retroactively while European and U.S. clients are charged per delivery. Reuter | PEMEX LOWERS FEBRUARY FAR EAST CRUDE OIL PRICES |
Retail sales in the quarter ended December 31 fell a seasonally adjusted 13.2 pct compared with a 7.8 pct rise in the September quarter and a 1.3 pct fall a year ago period the Statistics Department said. Actual retail sales in the December quarter totalled 6.17 billion N.Z. Dlrs compared with 6.70 billion in the previous quarter and 6.10 billion a year ago period. The largest decreases in the December quarter were recorded by the same stores which recorded the highest increase in sales in the September 1986 quarter before the introduction of a 10 pct value added goods and services tax on October 1 1986. Reuter | N.Z. DECEMBER QUARTER RETAIL SALES FALL 13.2 PCT |
REPH Acquisition Co said its board appointed a special committee to negotiate the terms of an offer made earlier today by <Pesch and Co> to merge with its Republic Health Corp <REPH> unit. Pesch through its Alpha Health Systems Corp unit offered to acquire the 36 pct of Republic Health stock that it does not already own. Terms of Peschs offer have not been disclosed. Reuter | REPH ACQUISITION TO NEGOTIATE PESCH MERGER BID |
<Royal Trustco Ltd> said it planned a 154.7 mln dlr issue in Canada in late March of 4.5 mln class A common shares at 34.375 dlrs a share. The company added that it would also double the amount of class A and class B common shares on June 26 1987 through a stock dividend of one class A or one class B share for each class A or class B share held on June 5 record date. Each series A and B cumulative redeemable convertible preferred share will be convertible after June 5 to 5.70 common shares Royal Trust said. The current conversion rate is 2.85 common shares for each preferred. Royal Trust said it would use proceeds to acquire income-producing investments. Underwriters are Gordon Capital Corp and Dominion Securities Inc as co-lead managers and Merrill Lynch Canada Inc McLeod Young Weir Ltd Nesbitt Thomson Deacon Inc and Wood Gundy Inc. as co-managers Royal Trust said. Reuter | ROYAL TRUST PLANS 154.7 MLN DLR SHARE ISSUE |
An investor group led by members of the Hunt family of Dallas Texas told the Securities and Exchange Commission it has acquired a 6.2 pct stake in Comdata Network Inc <CDN> and may try to influence company policy. The investor group led by Rosewood Financial Inc said it opposes a company recapitalization plan worked out between Comdata and Mason Best Co a Texas investment firm which last reported holding about 9.5 pct of the companys stock. The Hunt group said it offered on March 3 to buy the entire 5.3 pct stake held by dissident shareholder Donald Carter at 14 dlrs each but has received no reply as of yesterday. Rosewood which is owned by the Caroline Hunt Trust Estate whose trustees include Margaret Hunt Hill also said it has notified the Federal Trade Commission of its intent to buy between 15 and 25 pct of Comdatas common stock. Under federal law it cannot buy more than 15 pct of Comdatas stock until a 15 to 30 day waiting period is over unless the FTC gives it early approval. Under the proposed Comdata recapitalization plan the company would buy up to 10 mln of its common shares at 13.25 dlrs each. Mason Best which belongs to CNI Parnters a Texas partnership would not tender any of its stake under the plan but would instead buy another one mln Comdata common shares and would get representation on the companys board. The Hunt group said it has told Comdata that it considers required payments under the plan such as a 1.5 mln dlr fee and the issuance of a warrant to buy 500000 common shares to be a waste of the companys assets. The Hunt group which also includes securities Texas firms Cypress Partners L.P and Driftwood Ltd said it spent 15.2 mln dlrs on its 1197700 Comdata common shares. Reuter | HUNT GROUP HAS COMDATA STAKE, SEEKS INFLUENCE |
Trade between Argentina and Brazil jumped 90 pct in 1986 versus 1985 Foreign Minister Dante Caputo said. Speaking to reporters Caputo said the near doubling in trade showed the tangible and immediate results of a wide- ranging economic integration accord signed by the presidents of both countries last July. He said trade last year totalled 1.3 billion dlrs versus 700 mln dlrs in 1985. The accord provided for capital goods trade between the two countries to rise to 2.0 billion dlrs over four years. Argentine wheat exports to Brazil will increase from 1375000 tonnes in 1987 to 2.0 mln tonnes in 1991 the accord said. Reuter | ARGENTINA-BRAZIL TRADE JUMPED 90 PCT IN 1986 |
The New York Stock Exchange said its members overwhelmingly approved a rule change that elminates the limits on fines imposed as a result of disciplinary proceedings. The NYSE said the amendment to its constitution already approved by its board must now be approved by the Securities and Exchange Commission. The NYSE said it currently limits penalties to a maximum of 25000 dlrs per charge against individuals and 100000 dlrs per charge against firms. Reuter | NYSE MEMBERS VOTE TO LIFT LIMIT ON PENALTIES |
The Securities Industry Association SIA has asked the U.S. supreme court to overturn a lower-court ruling that would allow banks to sell commercial paper SIA general counsel William Fitzpatrick said. In a petition the SIA said the court of appeals erred in upholding the decision of the Federal Reserve board of governors to permit Bankers Trust New York Corp <BT> to underwrite and distribute commercial paper. The SIA charged that the Feds ruling violates the 1933 Glass-Steagall Act barring banks from underwriting most types of securities. The court of appeals decision issued last December reversed an earlier district court ruling that selling commercial paper is an improper bank activity and that private placements by banks is also improper. In an earlier round of the case decided in 1984 the Supreme Court upheld the SIAs contention that commercial paper is a security for the purposes of th Glass-Steagall Act. The SIA is a trade association representing the interests of more than 500 U.S. investment banks and securities firms. Reuter | SIA TO APPEAL FED RULING ON COMMERCIAL PAPER |
Santa Fe Southern Pacific Corp will later today formally ask the U.S. Interstate Commerce Commission (ICC) to reconsider its earlier rejection of the merger of the holding companys railroad assets a company spokesman said. We expect to file papers late tonight asking the ICC to reopen the rail merger case spokesman Rich Hall said in a telephone interview from the companys Chicago headquarters. The ICC had rejected in July on grounds it would reduce competition the merger of the Santa Fe and Southern Pacific Railroads. The deadline for seeking ICC reconsideration of the merger plan is midnight tonight. Reuter | SANTA FE SOUTHERN PACIFIC APPEALS MERGER RULING |
Shr loss 10 cts vs profit seven cts Net loss 918000 vs profit 585000 Revs 5475000 vs 4430000 YEAR Shr profit 32 cts vs loss 24 cts Net profit 2909000 vs loss 1501000 Revs 23.7 mln vs 15.0 mln Note: 1986 4th qtr net includes 1.5 mln U.S. dlr or 17 ct shr writedown of stake in Hecks Inc <HEX> and 300000 U.S. dlr or three ct shr writedown of arbitrage positions. 1986 fl-yr net includes 900000 dlr net writedown of stake in Hecks. U.S. dlrs. Reuter | E.A. VINER HOLDINGS LTD <EAVKF> 4TH QTR LOSS |
A group led by GFI Nevada Inc a subsidiary of General Felt Industries a Saddlebrook N.J. carpet maker said it cut its stake in Allied Products Corp to 169888 shares or 3.4 pct from 288652 shares or 5.8 pct. In a filing with the Securities and Exchange Commission GFI said it sold 114000 Allied Products common shares on March 3 at 42 dlrs each and donated another 4746 shares to two universities. It said its dealings in the companys common stock were for investment purposes only. Reuter | CARPET FIRM UNIT CUTS ALLIED PRODUCTS<ADP> STAKE |
World Bank President Barber Conable said he was confident Brazil would come up with a debt plan and that the current suspension on commercial bank debt payments would be temporary. He said Brazils decision to stop payments on its debt had captured the attention of the international community but the country should now produce a plan to reform its overheated economy. They have everyones attention but it must be followed by a constructive plan he said. Conable made his remarks before a group of commercial bankers at a meeting sponsored by the Export-Import Bank and later informally to reporters. Reuter | WORLD BANK PRESIDENT EXPECTS BRAZILIAN DEBT PLAN |
Pay talks aimed at ending a week-old national seamens strike collapsed today and the strike will continue a union official said. The walkout by Brazils 40000 seamen has idled 160 ships in various ports Jorge Luis Leao Franco a senior official of the National Merchant Marine Union told Reuters. The strikers who are seeking a 275 pct pay increase have rejected offers of a 100 pct raise from the state oil company Petrobras and an 80 pct increase from the National Union of Maritime Navigation Companies (Syndarma). Leao Franco said eight hours of talks in Rio de Janeiro with Labor Minister Almir Pazzianotto ended today without resolving the dispute. He said six ships were idle abroad -- in the Netherlands Spain Venezuela France and South Africa. Economic analysts said the strike was of major concern to the government which has suspended interest payments on part of Brazils foreign debt following a drastic deterioration in the countrys trade balance. The head of the National Merchant Marine Authority Murilo Rubens Habbema was quoted today as saying that if the strike continued foreign ships could be authorized to transport Brazilian exports. Brazil is living through a crisis at the moment and it is not conceivable that exports be hit he told the Gazeta Mercantil newspaper. Reuter | TALKS FAIL TO END BRAZILIAN SEAMEN'S STRIKE |
Shearson Lehman Brothers Inc the brokerage subsidiary of American Express Co <AXP> said it has acquired 131300 shares of Chicago Milwaukee Corp or 5.4 pct of its total outstanding common stock. In a filing with the Securities and Exchange Commission Shearson said it bought the stake for 18.8 mln dlrs for investment purposes and has no intention of seeking control of the company. Reuter | SHEARSON HAS 5.4 PCT OF CHICAGO MILWAUKEE <CHG> |
E.A. Viner Holdings Ltd said the earlier reported Chapter 11 bankruptcy filing of Hecks Inc <HEX> in which Viner holds 408000 shares would not materially affect Viners capital position or its ability to carry on its profitable brokerage business. Viner said its brokerage subsidiary Edward A. Viner and Co had regulatory capital of 24.5 mln U.S. dlrs at year-end 1986. The company said Hecks Chapter 11 filing could however affect Viners previously reported legal action to recover costs from an aborted merger agreement with Hecks. It said it and the Toussie-Viner group with which it made the merger offer were assessing their options regarding the Hecks investment. Viner earlier reported a fourth quarter loss of 918000 U.S. dlrs after a 1.5 mln dlr writedown of its stake in Hecks. It earned 585000 dlrs in the previous fourth quarter. Full-year earnings totaled 2.9 mln dlrs against a year-earlier loss of 1.5 mln dlrs. The full-year earnings included a 900000 dlr net writedown of the Hecks stake it said. Reuter | VINER <EAVKF> VIABLE AFTER HECK'S <HEX> MOVE |
Italian Treasury Minister Giovanni Goria met Brazilian Finance Minister Dilson Funaro today and expressed Italys willingness to support his efforts in trying to resolve Brazils pressing debt problems. Goria told reporters after meeting Funaro who is in Rome on the fifth leg of a tour to seek governmental support for his efforts to solve Brazils debt crisis that Italys expression of support was based on reason as much as sympathy. The problems of one country are also those of the rest so we should all work together to help solve them Goria said. It is in the interest of all to work for the future. Reuter | ITALY EXPRESSES WILLINGNESS TO SUPPORT BRAZIL |
Trans World Airlines Inc said it filed suit in Delaware Chancery Court against USAir Group Inc and its board of directors seeking to invalidate its poison pill anti-takeover plan. TWA vice president and general counsel Mark Buckstein said TWA also sought a declaratory judgement from the court that its 52 dlr per share takeover offer for USAir would in no way interfer with USAirs possible buyout of Peidmont Aviation Inc <PIE>. Buckstein said TWA asked the court to enjoin the enforcement of USAirs shareholder rights plan or poison pill. Such provisions which typically allow for the issue of securities to shareholders in the event of a hostile takeover bid are aimed at deterring takeovers by making them more expensive. USAir earlier today rejected TWAs offer saying TWAs bid was an attempt to interfer with its buyout of Piedmont. USAir also had said its counsel would investigate the matter. Tonight a spokesman for USAir said the airline had no comment on TWAs lawsuit. USAir did respond however to a TWA request to the Department of Transportation for permission to buy up to 51 pct of USAir stock and place the stock in a voting trust pending approval of a takeover. USAir said the request was hastily pasted together in order to take advantage of a regulatory anamoly that would allow TWA to accomplish in a regulated environment actions that would be impermissable in the non-regulated economy at large. USAir called on the transportation department to reject TWAs request. Reuter | TWA <TWA> SUES USAIR <U> OVER POISON PILL |
The following proposed securities offerings were filed recently with the Securities and Exchange Commission: Columbus and Southern Ohio Electric Co subsidiary of American Electric Power Co Inc <AEP> - Offering of 100 mln dlrs of first mortgage bonds due 2017. Blocker Energy Corp <BLK> - Offering of 12 mln shares of common stock through Drexel Burnham Lambert Inc and Alex. Brown and Sons Inc. Freymiller Trucking Inc - Initial public offering of one mln shares of common stock including 250000 being sold by current holders at an estimated 12 to 14 dlrs each through Alex. Brown and Sons Inc and Bateman Eichler Hill Richards Inc. Ohio Mattress Co <OMT> - Offeing of 75 mln dlrs of convertible subordinated debentures due 2012 through Lazard Freres and Co. Zehntel Inc <ZNTL> - Offering of 13.5 mln dlrs of convertible subordinated debentured due 2012 through Sutro and Co Inc. Intel Corp <INTC> - Offering of 75 mln dlrs of senior subordinated notes due 1994 and offering of 1.5 mln shares of convertible cumulative exchangeable Class B preferred stock Series C both through Merrill Lynch Capital Markets. Reuter | PROPOSED OFFERINGS RECENTLY FILED WITH THE SEC |
Oper shr 99 cts vs 54 cts Oper net 9515000 vs 3449000 Revs 509.3 mln vs 440.5 mln Note: 1985 net excludes extraordinary gain of 1.2 mln dlrs. Reuter | <FOUR SEASONS HOTELS INC> YEAR NET |
Ivey Properties Inc said it raised its quarterly dividend to 18 cts a share from 14 cts and declared both an extra dividend of 27 cts a share and a 50 pct stock dividend. It said the dividends will be paid April one to shareholders of record March 16. For the stock dividend Ivey said it will pay for fractional shares at 25 dlrs per share. Reuter | <IVEY PROPERTIES INC> RAISES QUARTERLY DIVIDEND |
Mexico has temporarily suspended overseas coffee sales due to falling prices triggered by the failure of the International Coffee Organisation (ICO) meeting to agree a quota system at its latest meeting the official Notimex news agency said. Were just waiting a while for prices to improve an unidentified Mexican trader told the agency. Mexico has already sold 80 pct of its export coffee produced in the year to last September the source said. The country exports about 3.3 mln 60-kilo bags a year. Reuter | MEXICO SUSPENDS OVERSEAS COFFEE SALES |
A shareholder group led by a Swedish investment firm and a Norwegian investor said it raised its stake in the Scandinavia Fund Inc to 2165300 shares or 33.3 pct of the total from 1978900 shares or 30.5 pct. In a filing with the Securities and Exchange Commission the group which includes Ingemar Rydin Industritillbehor AB the firm and investor Erik Martin Vik said it bought the additional shares between Feb 24 and March 9. Reuter | GROUP BOOSTS SCANDINAVIA FUND <SCF> STAKE |
VBI Corp an offshore-based investment firm told the Securities and Exchange Commission it raised its stake in the France Fund Inc <FRN> to 681800 shares or 9.1 pct of the total from 551000 or 7.4 pct. VBI which is based in Turks and Caicos Islands the British West Indies said it bought the additional shares between Feb 24 and March 4. It has said it bought its France Fund stake for investment purposes only. Reuter | OFFSHORE INVESTMENT FIRM UPS FRANCE FUND STAKE |
Costa Ricas economy minister said he sees new hope for winning changes in the International Coffee Organisation system of export quotas. Minister Luis Diego Escalante who serves as president of the Costa Rican Coffee Institute said he was hopeful because of the support offered Costa Rica and other smaller producing- nations by such major consumers as the United States Britain and the Netherlands at last weeks ICO meeting in london. Escalante told a news conference here he carried the weight of the negotiations at the meeting by calling for larger export quotas for the smaller coffee-growing nations. Costa rica is insisting Escalante said on a new quota system based on a producing nations real export capacity once it has satisfied internal demand. There are countries such as our own whose sales possibilities are close to or above 100 pct of their current quotas Escalante said. At the same time there are countries favoured by the current system that have been assigned quotas far above their export potential he said. The current ICO quota system is unfair and autocratic Escalante said. Escalante attributed the nosedive in international coffee prices over the last week to speculation rather than real matters of supply and demand. Be careful he warned theres not as much coffee in the world as they say. What there is are bags of sawdust. Reuter | COSTA RICA OPTIMISTIC ABOUT REFORMING ICO |
U.S. money supply growth is slowing down rapidly and some economists believe that all three of the Federal Reserves main monetary aggregates may even have contracted in February. A contraction is unlikely to be a major concern for the Fed especially as it would follow a long period of torrid growth but it could give the central bank extra leeway in the weeks ahead if it decided that a relaxation of monetary policy was justified on account of weakness in the economy. M-1 money supply for the week ended February 23 reported today rose 1.9 billion dlrs to 738.5 billion but preliminary forecasts call for a drop next week of around two billion dlrs. The monthly average in January was 737.1 billion dlrs. M-1 makes up about a quarter of M-2 and a fifth of M-3. With other components of M-2 such as money-market deposit accounts and small time deposits also falling the stage is set for falls in the broader aggregates too economists say. M-1 has been largely discredited because its traditional link to economic growth has disintegrated under the impact of falling interest rates and banking deregulation. But the consistent behavior of all three aggregates is likely to impress the Fed said Ward McCarthy of Merrill Lynch Economics Inc. The Fed has confidence in the aggregates when theyre all sending the same signal. This is going to raise some eyebrows at the Fed McCarthy said. Stephen Slifer of Shearson Lehman Brothers Inc added We have some very good-looking monetary aggregate data. Its coming in a lot weaker than I thought. The economists were quick to caution that one months data prove nothing especially because money growth previously had been so rapid. M-1 in the last 52 weeks has grown at a 16.7 pct rate and at a 19.1 pct rate in the past 13 weeks. Moreover some of the contraction in M-2 can probably be explained by a shift of funds from savings vehicles into the booming stock market and is thus not an indication of a slowdown in the business expansion. But the data raise the tantalizing possibility for the bond markets that the slowdown in money growth is partly a reflection of a weaker economy that needs more Fed stimulus. McCarthy noted that the slower money growth coincides with signs that the economy is losing momentum as the quarter progresses. Some of the economic indicators are not as rosy as they were a month ago he noted. He expects only five to six pct M-1 growth in March and rises in M-2 and M-3 of about four pct. Slifer sees stronger growth of 10 pct in M-1 and five pct or less for M-2 and M-3 but the rates would still be moderate enough to encourage the Fed to ease policy if gross national product for the first quarter proved to be weak. Youd certainly be more inclined to ease than you would in the past. There was certainly nothing in the Feds latest balance sheet however to suggest a change of policy is already under way economists said. Discount window borrowings were in line with expectations at 233 mln dlrs a day. Robert Brusca of Nikko Securities Co International Inc argued that an easier Fed policy is unlikely to do much to solve Americas most urgent economic problem its massive trade deficit. Because of the possibility that further dollar depreciation - and thus rising inflation - may be needed to close the trade gap Brusca said Im not prepared to be all that optimistic about the bond market. Reuter | U.S. MONEY GROWTH SLOWS SHARPLY, ECONOMISTS SAY |
Ecuadors consumer price index rose 2.5 pct in February to 562.4 (base 1978) the National Statistics and Census Institute said. The rise compared to a 1.8 pct rise in January and a 2.5 pct rise in February 1986. The Institute said accumulated overall inflation for the first two months of this year was 4.0 pct compared to 5.0 pct for the same period last year. Inflation for the 12 months ending February 1987 was 25.5 pct compared to 13.0 pct for the 12 months ending February 1986. REUTER | ECUADOR'S CONSUMER PRICES RISE 2.5 PCT IN FEBRUARY |
The opposition National Party took a five percentage point lead over New Zealands Labour government in an opinion poll reversing the seven point lead held by Labour in a comparable poll in February. In the regular Television New Zealand Heylen/Eyewitness poll Nationals support rose to 50 pct against 45 pct a month earlier while Labours popularity dropped to 45 pct from 52 pct. National has not been ahead in this poll since April. This result contrasts with a newspaper poll published yesterday that put Labours popularity at 50 pct and Nationals at 44 pct. Both polls showed large numbers of voters are uncommitted. Approval of the governments handling of the economy also dropped in the television poll to 34 pct from 40 pct. Prime Minister David Lange remained first choice as Prime Minister but with 25 pct against 28 pct last month. Opposition leader Jim Bolger remained steady on nine pct in this category but his colleague and former Prime Minister Robert Muldoon rose two points to 18 pct. An election is due to be held before September this year. REUTER | NATIONAL OPPOSITION AHEAD IN N.Z. OPINION POLL |
West German gross fishmeal imports rose 60260 tonnes or 14.6 pct last year to 471891 tonnes the highest level since 1972 trade sources said. Re-exports fell by 6.6 pct resulting in a surge in net imports from 175901 to 251708 tonnes an increase of 43 pct. Total West German consumption was estimated at around a high 287000 tonnes largely reflecting attractive prices. The sources however could not give comparative figures for 1985. South American producer countries supplied 97 pct of West German requirements with Chile shipping 229176 tonnes (1985 - 182959) and Peru 210513 (147014) tonnes. The two South American countries share of the West German market rose to 93.2 pct from 80.2 pct because imports from Ecuador fell to 21110 tonnes in 1986 from 51722 in 1985. West Germany imported 56823 tonnes of fishmeal in December up from 46236 tonnes in the same 1985 month with re-exports at 22262 tonnes after 25062 a year earlier. Reuter | WEST GERMAN FISHMEAL IMPORTS HIGHEST IN 15 YEARS |
Shr loss five cts Net loss 753000 Revs 8932000 Avg shrs 16.0 mln Year Shr loss seven cts Net loss 995000 Revs 27.9 mln Avg shrs 14.8 mln NOTE: Company started operating in August 1985. Results reflect change in fiscal year from November 30 end. Reuter | TPA OF AMERICA INC <TPS> 4TH QTR LOSS |
Silver State Mining Corp said it expects gold production this year to be more than double 1986s 17458 ounces. The companys 1985 production was 2050 ounces. Reuter | SILVER STATE MINING <SSMC> SEES PRODUCTION RISE |
McGrath RentCorp said as a result of its December acquisition of Space Co it expects earnings per share in 1987 of 1.15 to 1.30 dlrs per share up from 70 cts in 1986. The company said pretax net should rise to nine to 10 mln dlrs from six mln dlrs in 1986 and rental operation revenues to 19 to 22 mln dlrs from 12.5 mln dlrs. It said cash flow per share this year should be 2.50 to three dlrs. Reuter | MCGRATH RENTCORP <MGRC> SEES NET RISING |
Shr one ct vs one ct Net 528790 vs 286969 Revs 2537803 vs 773729 Year Shr seven cts vs one ct Net 2429576 vs 404394 Revs 6726327 vs 1150961 Reuter | SILVER STATE MINING CORP <SSMC> 4TH QTR NET |
Shr 15 cts vs 14 cts Net 2547000 vs 2242000 Revs 56.7 mln vs 44.0 mln Avg shrs 17.6 mln vs 15.6 mln Nine mths Shr 54 cts vs 54 cts Net 9249000 vs 8334000 Revs 173.3 mln vs 134.3 mln Avg shrs 17.1 mln vs 15.5 mln Reuter | SIZZLER RESTAURANTS INTERNATIONAL INC <SIZZ> NET |
Brazilian Finance Minister Dilson Funaro last night concluded this weeks tour of European capitals having gleaned little in the way of concrete support from governments for his countrys attempts to find a radical solution to its debt payments crisis. However banking sources noted the existence of considerable sympathy for Brazils position among most of its commercial bank creditors manifested in the widespread belief that adopting a hard line could only exacerbate the problems while patience might pave the way for an eventual reconciliation. Brazil on February 20 unilaterally suspended interest payments on its 68 billion dlr debt to commercial banks followed by moves related to around 15 billion dlrs of bank and trade credit lines deposited by foreign banks and institutions. The action had been preceded by a significant deterioration in Brazils balance of payments situation in the final quarter of 1986 along with a marked acceleration in inflation. Reserves had dipped to below four billion dlrs. Funaro and central bank president Francisco Gros last week visited Washington to explain Brazils move to government officials and agencies. This week they have sought official support in the U.K. France Germany Switzerland and Italy. They have now decided to extend their tour flying on Sunday to Tokyo to talk to government officials with a possible visit to Canada before they return home. Funaro and Gros have so far confined their consultations to government representatives believing that problems with Brazils 109 billion dlr debt call for a political solution. However banking sources noted that their attempts to enlist the support of European and U.S. Governments had been met almost unanimously with advice to talk first to banks. This counsel has been coupled with emphasis on the need for Brazil to present to creditors a convincing economic programme with U.K. Chancellor of the Exchequer Nigel Lawson also recommending an accord with the International Monetary Fund (IMF) advice which Funaro subsequently rejected flatly. Reuter | BRAZIL'S FUNARO WINS FEW PROMISES ON EUROPE TRIP |
MCANDREWS AND FORBES ARE OFFERING 18.50 DLRS PER SHARE FOR REVLON STOCK |
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The Bank of England said it had revised its estimate of the shortage in the money market back to its initial forecast of 550 mln stg. At midsession the central bank changed the shortfall to 500 mln and provided assistance worth 96 mln stg through bank bill purchases in bands one and two at established dealing rates. REUTER | U.K. MONEY MARKET DEFICIT REVISED TO 550 MLN STG |
Shr six cts Net 155764 Revs 6506792 NOTE: Company formed in August 1986. Reuter | DONEGAL GROUP INC <DGIC> YEAR NET |
Shr loss 28 cts vs profit seven cts Net loss 931000 vs profit 7000 Revs 2.3 mln vs 2.0 mln Nine mths Shr loss 55 cts vs profit seven cts Net loss 1619000 vs profit 185000 Revs 7.7 mln vs 7.1 mln NOTE: Shr figures adjusted for issue of 600000 shares in October 1986. Avg shrs not given. Full name is <Peter Miller Apparel Group Inc>. Reuter | PETER MILLER APPAREL GROUP 3RD QTR JAN 31 LOSS |
Period ended Jan 31 Shr seven cts vs 14 cts Net 136000 vs 274000 Sales 48.4 mln vs 38.2 mln Nine mths Shr 30 cts vs 17 cts Net 573000 vs 328000 Sales 140.0 mln vs 102.4 mln NOTE: Prior year period ended Sept 30 Comparable periods reflect change in fiscal yearend to April from December Reuter | KRELITZ INDUSTRIES INC <KRLZ> 3RD QTR NET |
Donegal Group Inc which today reported earnings of 155764 dlrs on revenues of 6506792 dlrs for the period from August 26 startup through the end of 1986 said it expects much improved profits for the full year 1987 on revenues of about 32 mln dlrs. Reuter | DONEGAL <DGIC> PROJECTS FULL YEAR RESULTS |
McAndrews and Forbes Holdings Inc said it will offer 18.50 dlrs per share for all of Revlon Group Incs <REV> outstanding common stock. McAndrews said terms of the acquisition have not been determined and are subject to the acquisition of financing. Revlon closed yesterday on the New York Stock Exchange at 14-3/4. The company said it would bid for all stock it or its affiliates do not already own. McAndrews and Forbes said it informed the board of directors of Revlon that it expects to make a formal proposal in the near future. It also said there can be no assurance as to the terms of the proposals or that the deal can be concluded. Reuter | MACANDREWS AND FORBES HOLDINGS BIDS FOR REVLON |
The Gillette Company <GS.N> and Swedens Electrolux AB <ELUX.ST> said they would form a partnership to commercialise a new technology developed by the U.S. Firm which uses solar cells to generate electricity. Electrolux is interested in harnessing the technology to produce portable domestic appliances and will provide capital and development contracts for the joint venture. The two companies are to establish a laboratory outside Boston to develop what are known as thermophotovoltaic (TPV) technologies that convert hydrocarbon fuels such as gasoline into light and electricity through the use of solar cells. REUTER | ELECTROLUX AND GILLETTE IN JOINT VENTURE |
Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating todays hog slaughter at about 300000 to 305000 head versus 292000 week ago and 316000 a year ago. Saturdays hog slaughter is guesstimated at about 30000 to 55000 head. Cattle slaughter is guesstimated at about 128000 to 130000 head versus 129000 week ago and 119000 a year ago. Saturdays cattle slaughter is guesstimated at about 20000 to 40000 head. Reuter | HOG AND CATTLE SLAUGHTER GUESSTIMATES |
Lead underwriters Morgan Stanley Group Inc <MS> <Goldman Sachs and Co> and <Salomon Inc> said an offering of 1000 shares of market auction preferred stock of <Talman Home Federal Savings and Loan Association of Illinois> Talman Finance Corp C unit is underway at 100000 dlrs a share. It said the initial dividend rate is 4.35 pct and the diovidend will be reset every 49 days in a Dutch auction process. The first Dutch action date is May 12. Reuter | TALMAN HOME FEDERAL PREFERRED OFFERING STARTS |
<Borealis Exploration Ltd> said it entered into an agreement with <Faraway Gold Mines Ltd> of Vancouver British Columbia under which Faraway will acquire an interest in Borealiss Whale Cove Gold Property in the Keewatin district of the Northwest Territories. Faraway will spend 1.5 mln dlrs on exploration over three years and will hold 50 pct of the property until all expenses are paid out when the interest will drop to 40 pct. Also Borealis and Faraway will issue treasury shares to each other and Faraway will buy 575000 Borealis shares from Borealis president Lorne Spence. Reuter | BOREALIS IN GOLD EXPLORATION PACT WITH FARAWAY |
<Rapid-American Corp> said its Faberge Inc subsidiary was granted approval by federal court to pursue its 11 mln dlr fraud suit against <Porterfield Buying Unit> and its partners. Faberge said the U.S. District Court Southern District of New York reinstituted the suit against Porterfield and its partners Samuel Wyman and Grace Porterfield vacating an earlier court decision dismissing the suit. The suit filed in 1982 charges Porterfield with overcharging commissions and for billing commericals that were promised but never aired according to the company. Faberge alleges that Porterfield used fraudulent invoices and schemes which netted it more than 3500000 dlrs in illegal profits. The suit brought under the Racketeer Influenced and Corrupt Organization Act (RICO) was dismissed earlier because the court ruled it did not meet certain criteria of the RICO Act. But an Appeals Court sent the suit back to district court based on two related decisions involving the RICO Act Faberge said. Reuter | RAPID-AMERICAN CORP UNIT PURSUES FRAUD SUIT |
The Bank of England said it provided assistance worth 350 mln stg during the afternoon session which takes total help so far today to 446 mln stg against a shortage estimated at around 550 mln stg. The central bank purchased outright bank bills comprising 120 mln stg in band one at 10-7/8 pct and 227 mln stg in band two at 10-13/16 pct. It also bought treasury bills worth one mln stg in band one and two mln stg in band two at the same rates of interest as bank bills. REUTER | U.K. MONEY MARKET GETS 350 MLN STG AFTERNOON HELP |
IMRE Corp said it has received commitments for a group of European institutions to buy about 400000 IMRE shares for 2500000 dlrs with closing expected on March 16. Reuter | IMRE <IMRE> SELLS STOCK TO EUROPEAN INSTITUTIONS |
Finlands medical group Instrumentarium Oy <INMR.HE> said it has acquired electronics components importers and marketers <Ferrado Oy> and <Insele Oy> subsidiaries of Finlands electronics group Nokia Oy <NOKS.HE>. It said in a statement Ferrado and Insele will be merged into Instrumentariums Professional Electronics and Information Systems Division. It did not disclose a price for the acquisitions but said it had issued 30000 restricted B shares as partial payment to Nokia. REUTER | INSTRUMENTARIUM ACQUIRES NOKIA SUBSIDIARY |
Qtly div six cts vs six cts prior Pay April One Record March 20 Reuter | FUQUA INDUSTRIES INC <FQA> SETS QUARTERLY |
Shr 73 cts vs 55 cts Net 1691878 vs 1117747 Revs 7.1 mln vs 4.9 mln Avg shrs 2.3 mln vs 2.0 mln NOTE: Share results reflect two-for-one stock split in June 1986. Reuter | <M-CORP INC> YEAR DEC 28 NET |
Engineered Support Systems Inc said Jerome Labarbera will retire as chairman but remain a director effective May one 1987. President Michael Shanahan will assume the additional post of chairman pending approval of the companys directors it said. Reuter | ENGINEERED SUPPORT <EASI> CHAIRMAN TO RETIRE |
DOME PETROLEUM REAFFIRMS DOME MINES STAKE FOR SALE AT RIGHT PRICE, SPOKESMAN SAYS |
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Commonwealth Mortgage Co said it purchased Westfiar Funding Corp of Armonk N.Y. for an undisclosed amount of cash. Commonwealth said Westfair originated 60 mln dlrs of residential mortgage loans during 1986. Reuter | COMMONWEALTH MORTGAGE <CCMC> BUYS ARMONK FIRM |
Semi-annual div 7-1/2 cts vs five cts Pay April nine Record March 26 Reuter | <M-CORP INC> RAISES DIVIDEND |
Permian Corp said that effective march 5 it raised its posted prices for crude oil 50 cts a barrel. The raise brought its posted prices for West texas Intermediate up by 50 cts to 17.00 dlrs a barrel. West Texas Sour was also raised by 50 cts to 17.00 dlrs a barrel. A Permian spokesman said that the South Louisiana sweet posted prices was also raised 50 cts a barrel to 17.35 dlrs. Reuter | PERMIAN <PBT> RAISES CRUDE PRICES |
Postmasters Inc said its common stock has been listed on the NASDAQ system effective today. Reuter | POSTMASTERS <POST> LISTED ON NASDAQ |
AMERICAN STORES CO 4TH QTR SHR 1.57 DLRS VS 1.60 DLRS |
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ATT PROPOSES REPLACING RATE OF RETURN REGULATION WITH NEW SIMPLIFIED RULES |
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Lead underwriters PaineWebber Group Inc <PWJ> and Ryan Beck and Co Inc <RBCO> said an initial public offering of 537500 shares of Montclair Savings Bank common stock is under way at 15 dlrs per share. Underwriters have been granted an option to purchase up to an additional 322500 shares to cover overallotments. The company also sold 1612500 shares in a subscription and community offering. Reuter | <MONTCLAIR SAVINGS BANK> INITIAL OFFERING STARTS |
Shr 19 cts vs 20 cts Shr diluted 18 cts vs 18 cts Net 578000 vs 554000 Sales 10.7 mln vs 10.4 mln Avg shrs 3006s302 vs 2795820 Avg shrs diluted 4271488 vs 4081534 Reuter | CENTRAL SPRINKLER CORP <CNSP> 1ST QTR JAN 31 NET |
Annual div four cts vs 1.76 cts Pay March 20 Record March 15 Reuter | <FAR WEST INDUSTRIES INC> RAISES DIVIDEND |
Pace Membership Warehouse Inc said it made a series of recent purchases of its 13 pct subordinated notes totaling about 13.6 mln dlrs. It said the amount of notes originally issued totaled 60 mln dlrs. Pace also said it may purchase additional outstanding notes in the future. Reuter | PACE MEMBERSHIP <PMWI> BUYS BACK NOTES |
Shr 23 cts vs 17 cts Net 761000 vs 490000 Revs 7.3 mln vs 4.5 mln Reuter | <FAR WEST INDUSTRIES INC> YEAR NET |
U.K. Officials are studying the possible link between the use of antibiotics in calf feeds and the spread of drug-resistant strains of salmonella in humans a Ministry of Agriculture official said. A study published in the New England Journal of Medicine yesterday stated that the spread of an unusual strain of salmonella that is resistant to the drug chloramphenicol had been shown to be linked to farms that used the drug to promote the growth of cattle. The U.K. Ministry of Agriculture is working with the Department of Health and the Public Health Laboratory to investigate the whole subject of resistant strains of salmonella. The Ministry of Agriculture is concerned about the possible effects on human and animal health the official said. The government is also studying a recommendation from the Farm Animal Welfare Council (FAWC) to restrict the trade of calves under 56 days old through markets. The FAWC says this would help reduce the spread of salmonella. Reuter | U.K. OFFICIALS STUDY SALMONELLA/CALF FEED LINK |
CANADA RULES U.S. CORN INJURING CANADIAN FARMERS, UPHOLDS DUTY |
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Dome Petroleum Ltds 23.2 pct stake of gold producer Dome Mines Ltd continues to be for sale at the right price spokesman David Annesley said in response to an inquiry. Reaffirming remarks made last year by chairman Howard Macdonald Annesley said the company is considering selling its stake in Dome Mines. Concerning Dome Petroleums 42 pct stake in <Encor Energy Corp Ltd> Annesley said Encor is a strategic investment for Dome and we have no intention of selling it. Dome spokesman Annesley said in answer to a question that he was not aware of any negotiations now under way toward the sale of Dome Petroleums 20.9 mln Dome Mines shares. He also declined to specify at what price the company would consider selling it shares. Clearly todays prices of more than 15 dlrs a share (of Dome Mines stock) are very attractive Annesley commented. We were considering the sale at the right price at a time when the shares were priced around nine to 10 dlrs he added. A price of around 15 dlrs a share would be considered fairly attractive Annesley said. Annesley also Dome Petroleum may be able to sell its Dome Mines shares at a premium to market prices. There might be an opportunity to pick up a premium on that because it would be virtually a control block in Dome Mines he said. Dome Mines shares traded earlier at 15-1/4 dlrs off 1/4 on the Toronto Stock Exchange. Dome Petroleum is now negotiating a plan to restructure debt of more than 6.1 billion Canadian dlrs with a group of 56 major creditors which includes Dome Mines and Encor Energy. The company previously said it expects to detail the plan to lenders early next week. Reuter | DOME<DMP> REPEATS DOME MINES<DM> STAKE FOR SALE |
American Telephone and Telegraph Co said it is proposing a new simplified approach to regulating the long-distance telecommunications market. In a filing with the Federal Communications Commission ATT proposed replacing the current rate of return regulation with simplified rules that would eliminate many costs now imposed on customers while freeing ATT to introduce new services and pricing options more swiftly. The filing comes one day after MCI Communications Corp said the firm will seek immediate deregulation of its principal long-distance competitor ATT. Under the approach outlined in the filing ATT would commit to continue providing basic long-distance services to all customers and to maintain uniform nationwide prices in all parts of the country unless granted regulatory approval to do otherwise. Specifically ATT proposed that the FCC require the company to file tariffs for new interstate services and price changes that would go into effect within 14 days. In addition the proposal calls for the reduction of the voluminous documentation ATT is required to file each time it introduces or changes long-distance services. The new proposal would place the burden on challengers to demonstrate that ATTs tariffs are unreasonable. It would also require long-distance companies to submit periodic reports to help regulators monitor competition in the industry. Lawrence Garfinkel ATTs Vice-President of Marketing Services said With this filing were suggesting that regulators replace a blanket approach to regulating ATT with a more finely tuned targeted approach. Reuter | ATT <T> PROPOSES NEW SIMPLIFIED REGULATIONS |
The Commonwealth Bank of Australias 16 pct Australian dlr 101 pct bond issue of yesterday has been raised to a total of 125 mln Australian dlrs from 100 mln lead manager Swiss Bank Corp International said. The coupon is valid for one year and will then be re-fixed annually at the one-year Australian Treasury rate. There will also be an investor put option annually at par REUTER | CBA NOVEL AUSTRALIAN DLR ISSUES UPPED TO 125 MLN |
CANADA RULES U.S. CORN INJURING CANADIAN FARMERS, UPHOLDS DUTY |
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U.S. TREASURY'S BAKER SAYS PARIS PACT ONLY A START TO GREATER COOPERATION |
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