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Treasury Secretary James Baker expressed doubts about a proposal to tax securities transactions as a solution to the budget deficit and said it could hurt financial markets. If you start taxing markets it could impair their efficiency Baker said after a speech to the National Newspaper Association. The problem is not that Americans are undertaxed. We as a government are overspending he told reporters. House Speaker Jim Wright (D-Tex) has proposed a transfer tax to be paid by buyers and sellers of stocks. Reuter | BAKER EXPRESSES DOUBTS ABOUT U.S. STOCK TAX |
Reuters Holdings PLCs Reuters Information Services Inc subsidiary and Real Estate Financing Partnership of Philadelphia said they have developed RSVP an electronic market access system for commercial property financing. The companies said the system on completion of testing will use the Reuter communications network to provide a confidential method for the purchasing selling and financing of commercial property. They said principal participants in RSVP are expected to be private and institutional commercial real estate owners brokers purchasers and investors. The companies said the system which will operate in domestic and international markets is expected to be particularly useful to mortgage brokers and loan correspondents. They said Reuters will provide systems software hardware and telecommunications capabilities and support under a long-term working agreement with Real Estate Financing Partnership and will also provide sales assistance and marketing support to Real Estate Financing. Real Estate Financing designed RSVP. The companies said RSVP will use Reuter Monitor technology and the Reuter private communications network to provide a global financing capability for commercial real estate ventures. It will enable parties seeking real estate financing to identify funding sources on a private basis. They said the system is scheduled for testing in August in selected U.S. cities and is expected to be operational about 90 days after initial testing. Reuter | REUTERS <RTRSY> IN PROPERTY FINANCE SYSTEM |
SALLIE MAE SAYS IT WILL PRICE 300 MLN DLR FLOATING RATE NOTE OFFER MONDAY |
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The Venezuelan government is close to agreement with foreign banks to refinance 300 mln dlrs in foreign debt owed by the Banco de los Trabajadores de Venezuela (BTV) finance minister Manuel Azpurua said. He told reporters Bankers Trust which heads the BTVs bank committee is consulting other creditors on an eight year refinancing plan with a margin of 3/8 pct over libor. He added there is a relending option for which the state owned Banco Industrial de Venezuela will act as agent. BTV 49 pct owned by the government and 51 pct by unions was taken over by trustees in November 1982 with severe liquidity problems. REUTER | REFINANCING SAID CLOSE FOR VENEZUELAN BANK |
The U.S. Treasury said it will sell 9.5 billion dlrs of one-year bills at auction. The March 12 sale will raise 275 mln dlrs of new cash by refunding about 9.23 billion dlrs of maturing bills. The bills will be issued March 19 in minimum amounts of 10000 dlrs and mature March 17 1988. Reuter | U.S. SETS 9.5 BILLION DLR YEAR-BILL AUCTION |
New Jersey Resources corp said it has filed for an offering of 1300000 common shares through underwriters led by Merrill Lynch and Co Inc <MER> and E.F. Hutton Group Inc <EFH>. It said the offering is expected to be completed in late March or early April and proceeds will be used to reduce short-term debt. Reuter | NEW JERSEY RESOURCES <NJR> TO OFFER SHARES |
Den Danske Bank of Denmark is raising 200 mln dlrs through a programme of short and medium term euro-certificates of deposit arranger London-based Salomon Brothers International Ltd said in a statement received here. Signing takes place today and the first issuance of maturities from seven days to five years should take place later this month. Denominations would be 500000 and one mln dlrs and similar amounts in sterling and other currencies. Aside from the London branch of Den Danske and the arranger other dealers in the programme would be the Swiss Bank Corp International and S.G. Warburg and Co Ltd. Salomon said the principal paying agent for the CDs would be Bankers Trust Co. Den Danskes U.S. Domestic commercial paper program is rated A1 by Standard and Poors and P-1 by Moodys rating agency Salomon said. REUTER | DEN DANSKE LAUNCHES 200 MLN DLR EURO-CD PROGRAMME |
Oper shr profit 18 cts vs loss four cts Oper net profit 1847000 vs loss 282000 Revs 25.9 mln dlrs vs 8626000 drs 12 mths Oper shr profit 39 cts vs loss 24 cts Oper net profit 3262000 vs loss 1555000 revs 67.5 mln vs 27.9 mln dlrs. NOTE: 1986 qtr and year excludes investment gains of 1541000 and 1865000 respectively and 1985 qtr and year includes investment gains of 301000 dlrs and 1424000. Reuter | TRENWICK GROUP INC <TREN> 4TH QTR NET |
The Belgian government which introduced large-scale public spending reductions last year has been told by an International Monetary Fund team there is scope for further cuts in 1988. The suggestion is contained in the preliminary conclusions of the annual IMF consultations with Belgium on its economic policy a copy of which was distributed to journalists at the weekly press conference following meetings of the cabinet. The IMF team also urges Belgium to adopt a firm interest rate policy with a particular emphasis on long-term rates. The teams report to the government praises last years spending cuts which are due to reduce 1987 government spending by 195 billion francs and says 1986 saw the Belgian economy perform better on a broader basis than at any time so far in the 1980s. However it adds that with lower inflation stabilisation of the debt to gross national product ratio requires a much lower budget deficit than the seven pct of GNP target the government has set itself for 1989. The governments net financing requirement was 11.0 pct of GNP in 1986. The report says The most that can be afforded over the next few years is a zero growth of real non-interest expenditure of general Government. It says there is a need for a revision of the Belgian tax system to iron out distortions and meet hopes of a reduced tax burden but substantial progress is needed in stabilising the debt to GNP ratio before this is possible. Because of the difficulty of sustaining zero expenditure growth and of likely growing impatience (for) tax reductions we feel that your position would be stronger if you could decide on rather sharp expenditure reductions in 1988 the report adds. The IMF urges a strong interest rate policy to signal the governments determination to keep its currency strong and to curb inflation. It says firmer long-term rates would slow private net long-term capital outflows which increased strongly in 1986. It also urges net repayments of foreign currency debt and an overhaul of domestic capital markets to facilitate the subscriptions by non-residents of government bond issues in Belgian francs. REUTER | IMF URGES BELGIUM TO MAKE FURTHER SPENDING CUTS |
General Public Utilities Corp said the New Jersey Board of Public Utilities has approved a 72 mln dlrs annual reduction in energy-adjustment charges for the companys Jersey Central Power and Light Co subsidiary. The change in the utilitys Levelized Energy Adjustment Charge represents a five pct decrease in overall electricity rates. On January 28 Jersey Central filed for a 32 mln dlr a year decrease in the charge asking to retain the difference to prevent an increase in these charges next year a company spokesman said. Reuter | NEW JERSEY APPROVES GPU <GPU> UNIT'S RATE CUT |
Bush Industries Inc said that after an audit it has revised upwards its 1986 fourth quarter and year end results. On February 12 it reported unaudited results. Under the audited amounts 1986 fourth quarter income was 1098978 mln dlrs or 55 cts a share. The unaudited income for the period was 1014000 or 51 cts per share. For the year the audited amounts showed earnings of 2505978 or 1.25 dlrs per share. The prior results reported income of 2421000 or 1.21 dlrs per share. Sales figures for both periods did not differ significantly from prior amounts. Reuter | BUSH <BSH> REVISES 4TH QTR, YEAR RESULTS UP |
Moodys Investors Service Inc said it lowered the ratings on about 489 mln dlrs of debt of MCorp and its subsidiaries. Moodys said the change reflects the effect that the companys difficult operating environment will have on its asset quality core earnings and equity base. It said the firms asset quality problems are considerable and centered in its loans to energy and real estate sectors. Ratings lowered include MCorps senior debt to BA-3 from BAA-2 subordinated debt to B-1 from BAA-3 and preferred stock to B-2 from BA-1. Reuter | MCORP <M> AND UNITS' DEBT DOWNGRADED BY MOODY'S |
Medi-Rx America Inc said its Rx Plus Inc subsidiary received a letter of intent for a proposed initial public offering of four mln dlrs to six mln dlrs. It also said the subisidary formed to franchise retail drug stores recently placed a 1.2 mln dlrs equity offering with private investors and secured a one mln dlrs line of credit for assisting applications for a Rx Plus franchise. Reuter | MEDI-RX UNIT IN PROPOSED INITIAL OFFERING |
Universal Furniture Ltd said in a filing with the Securities and Exchange Commission that it had increased its stake in Bench Craft Inc common stock to 2548975 shares or 45.3 pct of the total outstanding. Universal said its Universal Furniture Industries N.V. unit bought 235750 Bench Craft shares March 4 in the over-the-counter market. Reuter | FURNITURE (UFURF) UPS BENCH CRAFT (SOFA) STAKE |
American Airlines Inc owned by AMR Corp said its load factor for February dropped to 60.2 pct from 64.0 pct a year ago. It said revenue passenger miles for the month increased 5.9 pct to 3.66 billion from 3.45 billion a year ago. Available seat miles rose 12.7 pct ot 6.08 billion from 5.40 billion and passenger boardings rose 8.6 pct to 3.5 mln from 3.2 mln a year earlier. More | AMERICAN AIRLINES <AMR> LOAD FACTOR DECLINES |
Valero Energy Corp <VLO> said it knows of no reason for its stock activity today. The stock rose 1-5/8 to 10-7/8 a gain of about 17.5 pct. A spokesman for Valero Steve Fry said the company knows of no reason for the increased volume and sharp gain in the stock. Reuter | VALERO ENERGY KNOWS OF NO REASON FOR STOCK GAIN |
Moodys Investors Service Inc said it may downgrade Service Merchandise Cos 300 mln dlrs of Ba-2 senior subordinated notes. The rating agency said it had anticipated that Service Merchandise would be able to achieve better operating results than it actually did in fiscal 1986. Moodys said it would assess future prospects for the company as well as for the whole catalogue showroom industry. The agency will also examine the effects of recent acquisitions on Service Merchandises operating results financial structure and cash flow. Reuter | MOODY'S MAY DOWNGRADE SERVICE MERCHANDISE <SMCH> |
Oper net loss 411000 vs profit 875000 Sales 69.7 mln vs 70.5 mln Year Oper net profit 6258000 vs profit 4785000 Sales 299.5 mln vs 297.2 mln Note: Company made initial public offering in June 1986. Assuming the offering had occurred on Jan. 1 1986 operating net income per share would have been 85 cts a share for 1986. 1986 oper net excludes one-time charge of 16.8 mln dlrs or 2.46 dlrs a share in qtr and year due to the February 1987 sale of the companys engine parts division. Oper net for 1986 year also includes profit from discontinued operations of 360000 dlrs or five cts a share. Oper net for 1986 excludes extraordinary loss of 1.1 mln dlrs or 17 cts a share due to the June 1986 write-off of unamortized debt issue costs from the public offering. 1985 oper net excludes extraordinary profit of 1.1 mln dlrs. Reuter | CLEVITE INDUSTRIES INC <CLEV> 4TH QTR OPER LOSS |
NEC Electronics Inc a unit of NEC Corp <NIPNY> said a U.S. District Court judge denied NECs motion to disqualify Judge William Ingram from presiding over its lawsuit against Intel Corp <INTC>. NEC said it sought to disqualify the judge when it learned in October 1986 that Ingram had an ownership interest in an investment club that owned Intel stock. Ingram reported that his interest in Intel through the club amounted to about 80 dlrs worth of Intels stock and the judge ended his participation in the investment club after NEC moved to have him disqualified an NEC spokeswoman said. NEC said it intends to appeal the ruling. NEC sued Intel in December 1984 seeking a judgement declaring that microcode or the control function in certain NEC microprocessor products does not infringe on any valid Intel copyrights. Intel subsequently filed a suit charging NEC with infringing on Intel semiconductor copyrights. Reuter | BID TO DISMISS JUDGE IN COPYRIGHT CASE DENIED |
<CMS Advertising Inc> said its board has approved a three-for-two stock split in the form of a dividend payable March 30 to holders of record March 16. The company said a similar split was paid December eight leaving it with 2344200 shares outstanding. CMS Advertising said the next split will result in a proportionate reduction in the exercise price of its stock purchase warrants to 1.67 dlrs a share from 2.50 dlrs. Reuter | CMS ADVERTISING SETS 3-FOR-2 STOCK SPLIT |
AMAX Inc said it has accepted offers to buy its share and option interests in <Australian Consolidated Minerals Ltd>. AMAX said the sale is part of its ongoing program to increase shareholder value. The company did not identify who made the offer but said the interests involved include 35.2 mln Australian Consolidated shares to be sold for 6.32 Australian dlrs per share and 5.4 mln options to be sold for 4.82 Australian dlrs per option. Reuter | AMAX <AMX> ACCEPTS OFFER FOR AUSTRALIAN INTEREST |
Parent company net profit 385 mln francs vs 226.9 mln Dividend five francs vs no comparison Note - The financial and banking group was privatised by the government in January this year. Reuter | CIE FINANCIERE DE PARIBAS <PARI.PA> 1986 YEAR |
 CORRECTION - HEINEKEN 1986 YEAR In item headlined HEINEKEN N.V. <HEIN.AS> 1986 YEAR please read in first line pre-tax profit 513.2 mln guilders vs 454.5 mln. Corrects year ago comparison to 454.5 mln from 545.5 mln. Reuter  | |
Food Lion Inc said its sales totaled 207.5 mln dlrs last month up 26.0 pct from the 164.7 mln dlrs reported for February 1986. The company said sales for the first eight weeks of the year were up 26.1 pct to 411.1 mln dlrs from 326.0 mln dlrs. The company operates 396 supermarkets in six southeastern states. Reuter | FOOD LION <FDLNB> FEBRUARY SALES UP 26 PCT |
This weeks Bank of England resistance to strong market pressure for lower interest rates succeeded in holding bank base rates at 11 pct. But at a cost of threatening the Chancellor of the Exchequer Nigel Lawsons policy stated at the end of the Paris Group of Six meeting last month that he wanted to see sterling broadly stable about then prevailing levels market sources said. Since then the pound has risen to 71.8 pct on its closing trade-weighted index up from 69.7 pct imediately after the Paris meeting and up 0.4 on the day. Todays peak at 72.0 pct was its highest since August 19. A Treasury spokesman said Lawson had said he neither wanted a substantial rise or fall in sterling. The question is therefore how large a rise he is ready to see before acting. Paul Temperton chief economist at Merrill Lynch Europe Ltd estimated that the government wanted to see the trade-weighted index about 72-73 pct. Even after this action over the last few weeks sterlings only just within striking distance of that range he said. Other analysts agree that the government probably has some broad target range around this area. However they said Lawson would be prepared to see the pound go higher at least in the short term despite the risk of a loss of export competitiveness and cheaper prices on imports. If the Bank of England keeps the interest rates as they are whats to stop it (going higher) said John Cox executive director of EBC Amro Bank Ltd a major operator on the London foreign exchange market. Cox estimates that the Bank of England has been active selling sterling over the past few days despite the lack of general market talk of such intervention and this has helped keep it below 1.60 dlrs. The pound rose to 1.5870 dlrs from 1.5764 yesterday and 1.5400 February 23 the day after the Paris meeting. But Cox says the government must be worried with sterling heading toward 2.95 marks and would be very concerned if it holds around these levels. He warned the Bank may run the risk of missing the interest rate boat. If rates dont come down the market will say they ought to have come down and will sell sterling he said. Most dealers agree there is a good deal of hot money being invested in sterling money simply attracted by high overnight or one-week rates which could flow out at equally short notice. However the authorities will hope that at least a proportion of the buying reflects long-term investment. The last thing they want to do is reduce them (rates) and have to jack them back up again said Richard Jeffrey economist at brokerage house Hoare Govett Ltd. He said a half point cut would ensure continued support for sterling at least in the near term. However most analysts are still looking for a full point about March 17 Budget Day. The Bank must hold out until it sees the reaction to the Budget said Temperton. The Budget is widely forecast to be a vote winner in the run-up to a general election the major factor behind current bullishness in the government bond and currency markets. Lawson wants to delay a cut in base rates until the budget. He wants it to be crowned with the glory of an interest rate cut said Ian Harwood economist at Warburg Securities the equities arm of Mercury International Group. Speculation a clearing bank might break ranks and lead the way lower were confounded today. There was excitement a fall in the weekly Treasury Bill rate to 9.7 pct from 10.2 pct last Friday might mean the Bank had changed its mind. This followed the imposition of penal lending rates of 11 3/4 pct on the discount houses yesterday and was the lowest since base rates were at 10 pct early last October. However with this Bill rate pertaining to three-months money banking sources said the market could not take the cut as a guide to the Banks intentions on short term rates. REUTER | BANK OF ENGLAND PRESSURE HOLDS BASE RATES |
SHULTZ AND SHEVARNADZE TO MEET IN MOSCOW IN MID-APRIL, U.S. SOURCES SAY |
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U.S. Agriculture Secretary Richard Lyng said he is very disappointed by a Canadian government finding that U.S. corn has injured Ontario Corn growers. This action is not helpful in the context of the ongoing U.S.-Canada free trade talks or in the new round of multilateral trade negotiations Lyng said in a statement. The Canadian government today said Ottawa would continue to apply a duty of 84.9 cents per bushel on U.S. corn imports. Lyng said the U.S. made a case that U.S. corn imports are not the cause of any problem of Canadian corn producers adding that U.S. corn exports to Canada are declining. Apparently they (Canada) have ignored the fact that Canadian corn and other coarse grain production is rising faster than consumption Lyng said. Reuter | LYNG DISAPPOINTED BY CANADA CORN INJURY DECISION |
Bancroft Convertible Fund Inc the target of an unfriendly cash offer by <Zico Investment Holdings Inc> said its shareholders approved proposals requiring a 66-2/3 pct affirmative vote of all outstanding shares before fundamental changes in its status could be made. Previously only a simple majority of outstanding shares was needed to change Bancrofts investment status from a diversified to a non-diversified fund among other things. Bancroft said its board continues to recommend that stockholders not tender their shares to Zico a British Virgin Islands company which it said had ties to South Africa. Reuter | BANCROFT <BCV> SHAREHOLDERS REBUKE ZICO OFFER |
International Totalizator Systems Inc Vice President of Finance Joel Graff said he expects to report an improved first quarter compared to the 377000 dlr loss reported in the year ago quarter. A profit looks quite favorable Graff said. Last week the automated ticket systems supplier reported a loss of 1.2 mln dlrs for the 1986. Graff said we invested heavily in 1986 which we believe will result in higher future growth and earnings for the company. Reuter | INT'L TOTALIZATOR <ITSI> SEES BETTER 1ST QTR |
Chief Soviet arms negotiator Yuli Vorontsov said Soviet-American talks on cutting medium-range nuclear missiles had made a breakthrough. Vorontsov said he expected a treaty would be ready for signing within three to four months following the latest talks in Geneva. He told a news conference here all the elements point to optimism and only technical work on treaty language remained outstanding. REUTER | SOVIET NEGOTIATOR REPORTS ARMS TALKS BREAKTHROUGH |
The world trade body GATT said its negotiators in Geneva are discussing a possible agreement for a ceiling on agricultural subsidies. GATT director-general for agriculture Jean-Marc Lucq told reporters here that the talks had not got anywhere yet as the participants were still reluctant to lay all their cards on the table. He said the ceilings under discussion would only be applied to those members of the General Agreement on Tariffs and Trade with high subsidy spending. Lucq said a survey by the Organisation for Economic Co-operation and Development showed that its 24 member western industrialised countries subsidised their agriculture by a total average of more than 100 billion dlrs a year from 1979-81. Within that total the U.S. Spent 26 billion dlrs Japan 24 billion and the European Community 57 billion dlrs. Yves Berthelot an official for the United Nations Conference on Trade and Development said the suppression of agricultural subsidies in temperate countries which would allow a resurgence of world prices and a lowering of domestic prices would be difficult but inevitable. Reuter | GATT STUDYING AGRICULTURAL SUBSIDIES CEILING |
Walker Energy Partners said restructuring of the partnership is being negotiated with <Tipperary Corp> which is considering a capital infusion into the partnership. Walker Energy said Tipperarys investment will be conditioned upon restructuring of the partnerships debt. Walker Energy said it and Tipperary are negotiating toward definitive agreements that will result in a major restructuring of the master limited partnership. It said the transactions if made will result in Tipperary acquiring control of the partnerships general partner and making a substantial capital infusion into the partnership. Walker said it had requested indications of interest from several investment sources and selected the Tipperary offer after a careful review of all offers received. Reuter | TIPPERARY NEGOTIATING WALKER <WEP> INVESTMENT |
Secretary of State George Shultz and Soviet Foreign Minister Eduard Shevardnaze will meet in Moscow in mid-April administration sources said. The sources said they will meet April 13 to 16 and are expected to discuss the full range of U.S.-Soviet issues. But arms control is expected to be the major focus of the talks with a breakthrough widely expected on removing medium-range nuclear missiles from Europe. Reuter | SHULTZ, SHEVARDNADZE SAID TO MEET IN APRIL |
Chief Soviet arms negotiator Yuli Vorontsov said Soviet-American talks on cutting medium-range nuclear missiles had made a breakthrough. Vorontsov said he expected a treaty would be ready for signing within three to four months following the latest talks in Geneva. He told a news conference here all the elements point to optimism and only technical work on treaty language remained outstanding. Reuter | SOVIET NEGOTIATOR REPORTS ARMS TALKS BREAKTHROUGH |
Outboard Marine Corps top executives are making sales presentations to portfolio managers and analysts ahead of a planned two mln share offering expected soon company officials said. Chairman Charles Strang and Wayne Jones vice president for strategic planning are meeting with portfolio managers in New York and Boston to line up interest for the offering underwritten solely by Morgan Stanley the officials said. Outboard Marine has been the subject of recurring takeover rumors with one rumor this week naming Sun Chemical as the potential suitor for 40 dlrs a share. Sun Chemical is said to have 4.9 pct of Outboard and is conducting a study on whether to bid for control of the marine engine and boatbuilding company. A Sun Chemical spokesman declined to comment. Stanley Fishman analyst at Fahnestock and Co said it is better for a suitor to bid for Outboard before the two mln shares are sold. Outboard now has 17 mln shares outstanding. Even though Outboard would use proceeds from the share offering to pay down debt and there would be less debt the acquiring company would assume it still means more shares the suitor must buy to acquire the company he said. Fishman who has heard the Sun Chemical rumor said a 40 dlrs a share would just open the bidding. Outboard Marine today was trading at 33-5/8 down 5/8. There are only two companies that count in the marine leisure business Brunswick Corp <BC> being the first. But you cant play down number two He said. Its a growing field. Theres a lot of leisure money out there. I think 40 would be a minimum price. It will be higher. A Morgan Stanley spokesman said the offering has been approved by the Securities and Exchange Commission but a kick-off date and price have not been set. Reuter | OUTBOARD MARINE <OM> OFFICIALS HAWKING STOCK |
Hadson Corp said it intends to file a registration with the Securities and Exchange Commission within one week covering an offering of 3750000 common shares. The company had 14260000 shares outstanding on December 31 and 75.0 mln shares authorized. It said proceeds of the offering are intended to be used to finance expansion of existing operations for acquisitions and for working capital. Reuter | HADSON <HADS> PLANS 3,750,000 SHARE OFFERING |
<BOC Group Inc>s Airco Distributor Gases finalized the sale of its Virginia-based gas appaturs business to <Controls Corp of America> a newly formed investment group organized by former Airco employees. Under the terms of the sale Airco said Controls will continue to make the gas apparaturs product line under the Airco brand name marketing the products exclusively through the Aircos distributor network. Reuter | BOC GROUP COMPLETES SALE OF UNIT TO CONTROLS |
New Jersey Resources Corp said it filed with the Securities and Exchange Commission to offer 1.3 mln common shares through managing underwriters Merrill Lynch Capital Markets and E.F. Hutton and Co. The utility holding company said the offering should be completed in late March or early April. Net proceeds will be used to reduce debt at the companys main subsidiary New Jersey Natural Gas Co. Reuter | NEW JERSEY RESOURCES <NJR> FILES TO OFFER STOCK |
The central bank recommended a major change in the traditional ownership structure of Swedish commercial banks that bankers said would inevitably lead to the takeover of remaining small regional banks. The recommendation was prompted by a recent proposal by the <Proventus> financial group to create a new holding company that will control the third-largest commercial bank <Gotabanken and Wermlandsbanken> a small regional bank. The central bank gave its approval and said financial groups should be allowed to have banking subsidiaries as long as the groups did not include industrial or trading companies. The central bank was commenting on a proposed new bill governing Swedish financial groups. It recommended that insurance companies should not be allowed to own banks until a separate inquiry into the problem was completed. Swedens two biggest insurance companies have both said they would like to enter the banking business. Swedens commercial banks on the other hand have long wanted to buy up insurance companies. Bankers said the recommendations would mainly bring the rules up to date with new circumstances created by the extensive de-regulation of the Swedish financial markets since 1982. Bankers said it was clear that others would follow the Proventus example and that this would lead to a shake-up in the banking system with the remaining small regional banks being absorbed by larger banking groups. The central bank also recommended banks be allowed to operate their stockbroking departments as subsidiaries which bankers said would lead to banks taking over small stockbroking firms. Banks have long complained the ban on splitting off the broking departments forced them to operate at a disadvantage because they could not match the partnerships and large salaries stockbrokers could offer their staff. REUTER | BANKERS PREDICT SHAKEOUT IN SWEDISH BANKING SYSTEM |
McDonnell Douglas said it will open a regional office in New York occupying 38366 square feet in midtown Manhattan. It said the office will bring together about 100 employees in its Information Systems Group who currently work at three separate New York offices. The group had 1986 sales of 1.2 billion dlrs. McDonnell said the move follows a series of similar consolidations in San Jose and San Francisco Calif. Atlanta and Denver to reduce costs and consolidate the groups operations in major metropolitan areas. Reuter | MCDONNELL <DM> OPENS REGIONAL N.Y. OFFICE |
The U.S. National Association of Wheat Growers (NAWG) urged the Reagan administration offer the Soviet Union wheat under the export enhancement program (eep). In a letter to Agriculture Secretary Richard Lyng NAWG stated its strong support for an eep offer to Moscow. We believe that a solid case continues to exist for Soviet EEP eligibility and the recently announced and reported Soviet purchases of U.S. corn indicate a Soviet willingness to purchase U.S. grain if it is competitively priced NAWG said. Consequently we believe it is important to renew the U.S. eep offer and do all that is reasonably possible to ensure mutual adherence to the terms of the U.S.-Soviet grain agreement the letter said. Reuter | U.S. WHEAT GROWERS WANT EEP TO SOVIET UNION |
Algemene Bank Nederland N.V. <ABNN.AS> chairman Robertus Hazelhoff said the banks 10.3 pct increase in net 1986 profit to 527 mln guilders from 478 mln in 1985 was encouraging in view of the sharply lower dollar. Hazelhoff speaking at a press conference after the release of ABNs 1986 results said a sharp decrease in foreign earnings had been compensated by a strong domestic performance notably in the securities business. He said the bank was also proposing a one for 10 share-split which should facilitate trade in the banks stock. News of the split sparked a 14 guilder rise in ABNs share price on the Amsterdam bourse to a close of 517 guilders. Prospects for 1987 hung on three uncertainties namely the future trend of the dollar the level of interest rates and ABNs share of equities trade Hazelhoff said. Provisions for general contingencies were reduced in 1986 by 4.1 pct to 575 mln guilders while taxes increased by 2.1 pct to 242 mln guilders he added. Lower global interest rates in 1986 had nipped earnings margins via traditional lending activities he said. Hazelhoff said ABN was unlikely to continue reducing risk provisions in the future but he noted the bank was not overly concerned about default by Latin American debtors a factor which brokers say has distanced Dutch insititutions from bank stocks recently. He said that of the banks estimated 25 financially troubled sovereign debtors about one quarter were Latin American countries. These would ultimately pay up he said. He added that losses incurred through loans to tin producers in the wake of the tin council crisis at end-1985 had been written off. REUTER | ABN SAYS PROFIT RISE ENCOURAGING IN VIEW DOLLAR |
CANADIAN MONEY SUPPLY M-1 RISES 217 MLN DLRS IN WEEK, BANK OF CANADA SAID |
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Canadian narrowly-defined money supply M-1 rose 217 mln dlrs to 32.80 billion dlrs in week ended February 25 Bank of Canada said. M-1-A which is M-1 plus daily interest chequable and non-personal deposits rose 556 mln dlrs to 75.19 billion dlrs and M-2 which is M-1-A plus other notice and personal fixed-term deposit rose 651 mln dlrs to 176.87 billion dlrs.s M-3 which is non-personal fixed term deposits and foreign currency deposits of residents booked at chartered banks in Canada rose 992 mln dlrs to 216.03 billion dlrs. Chartered bank general loans outstanding rose 481 mln dlrs to 124.99 billion dlrs. Canadian liquid plus short term assets fell 854 mln dlrs to 35.40 billion dlrs and total Canadian dollar major assets of the chartered banks fell 118 mln dlrs to 221.20 billion dlrs. Chartered bank net foreign currency assets fell 23 mln dlrs to minus 1.92 billion dlrs. Notes in circulation totalled 16.24 billion dlrs up 76 mln dlrs from the week before. Government cash balances fell 565 mln dlrs to 4.31 billion dlrs in week ended March 4. Government securities outstanding rose 1.25 billion dlrs to 224.09 billion dlrs in week ended March 4 treasury bills rose 950 mln dlrs to 74.55 billion dlrs and Canada Savings Bonds fell 57 mln dlrs to 44.34 billion dlrs. Reuter | CANADIAN MONEY SUPPLY RISES IN WEEK |
Rochester Gas and Electric Co said it now estimates Unit Two of the Nine Mile nuclear power plant will not start commercial operation until 1988s first quarter. The utility said this estimate is based on the Nuclear Regulatory Commissions advisory to the plants operator Niagara Mohawk Power Corp <NMK> a more through demonstration of the main steam isolation valves acceptablility will be needed before the plants power ascension program can proceed. Rochester Gas disclosed the further delay in the operation of Nine Mile Unit Two in the preliminary prospectus describing its proposed offering of 300000 preferred shares par value 100 dlrs. A spokesman said Niagara Mohawk had been projecting commercial operation of the plant in September adding this projection was scheduled for review upon completion of the main steam isolation valve testing program which company officials still expect next week. In the past Niagara Mohawk has put the cost of delays in Nine Mile Unit Two at two mln dlrs per day. Niagara Mohawk has a 41 pct interest in the nuclear power plant while Rochester Gas owns 14 pct. In a statement released today Rochester Gas said the NRC based on progress of the valve testing program had advised Niagra Mohawk a more through demonstration of the acceptability of the valves and their ability to meet regulations and technical specifications will be required before the power ascension program can proceed. The Niagara Mohawk spokesman said the utility would have not immediate response to the Rochester Gas statement. Reuter | ROCHESTER GAS <RGS> SEES FURTHER NUCLEAR DELAYS |
The government plans to go ahead with a three billion franc package to help the long-term unemployed with the aim of guaranteeing social security payments to everyone becoming redundant government officials said. At present only about one-third of the countrys 2.6 mln jobless corresponding to 10.9 pct of the workforce receive unemployment benefit. Prime Minister Jacques Chirac told a television interviewer As soon as the law is approved and it will be in a matter of weeks all workers made redundant will have the right to social benefits. The money which will be used to alleviate unemployment through retraining or project finance will come from a 7.5 billion franc government fund set up last month to finance spending on special areas of concern. Apart from unemployment these include relief to farmers hit by European Community cost-cutting measures. French unemployment has risen by more than 40 pct from 1.8 mln when socialist President Francois Mitterrand took office in 1981. REUTER | FRENCH GOVERNMENT TO STEP UP AID TO JOBLESS |
The Reagan administration continues to debate whether to offer subsidized wheat to the Soviet Union but would need assurances from the Soviets that they would buy the wheat before the subsidy offer would be made a senior U.S. Agriculture Department official said. I think it still is under active debate whether or not it would be advisable to make an the export enhancement offer to the Soviets Thomas Kay administrator of the departments Foreign Agriculture Service told Reuters. Wed need some assurances from them (the Soviets) that they would buy if offered the wheat under the subsidy plan he said. Kay called reports that such an offer was imminent premature. The Reagan administrations cabinet-level Economic Policy Council is set to meet today to discuss among other matters agricultural policy but is not expected to address a wheat subsidy offer to the Soviet Union administration officials said earlier. Reuter | USSR WHEAT BONUS OFFER SAID STILL UNDER DEBATE |
Oper shr profit nine cts vs loss seven cts Oper net profit 628000 vs loss 491000 Sales 50.7 mln vs 41.8 mln Avg shrs 7033000 vs 6557000 Note: Oper net excludes extraordinary profit of 423000 dlrs or six cts a shr and 110000 dlrs or one ct a share respectively in 1987 and 1986 quarters from utilization of tax loss carryforwards. Reuter | SUN ELECTRIC CORP <SE> 1ST QTR JAN 31 OPER NET |
U.S. trade representative Clayton Yeutter said Canadas finding announced today that U.S. corn imports injure Canadian farmers is totally unjustified. U.S. corn exports to Canada are so small that it is inconceivable that they injure Canadian corn farmers by any reasonable measure Yeutter said in a statement. He said if other countries follow Canadas lead it could result in a rash of protectionist actions throughout the world. French corn growers have recently indicated they will challenge U.S. corn gluten feed shipments to Europe. Yeutter said the U.S. will examine the Canadian decision closely and if the U.S. believes the decision was not based on facts will carefully evaluate appropriate responses. Yeutter did not say what steps the U.S. may take in response. Reuter | CANADA CORN DECISION UNJUSTIFIED - YEUTTER |
Oper shr two cts vs eight cts Oper net 41000 vs 153000 Sales 7456000 vs 7965000 Year Oper shr 22 cts vs 50 cts Oper net 434000 vs 1103000 Sales 31 mln vs 33.6 mln Note: Current qtr and year figures exclude loss from discontinued operations of 384000 dlrs or 20 cts per share. Prior qtr and year figures exclude losses from discontinued operations of 1.9 mln dlrs or 88 cts per share and 2.3 mln dlrs or 1.07 dlrs per share respectively. Reuter | CETEC CORP <CEC> 4TH QTR NET |
Shr 18 cts vs 39 cts Net 507000 vs 762000 Sales 11.3 mln vs 11.7 mln Avg shrs 2789000 vs 1961000 Nine mths Shr 39 cts vs 90 cts Net 1076000 vs 1752000 Sales 32.9 mln vs 33.3 mln Avg shrs 2771000 vs 1955000 Reuter | RICHTON INTERNATIONAL CORP <RIHL> 3RD QTR JAN 31 |
Shr 18 cts vs 19 cts Net 400413 vs 421451 Revs 9343228 vs 8213449 Nine mths Shr 39 cts vs 46 cts Net 853891 vs 1011999 Revs 24.6 mln vs 22.3 mln Reuter | VALTEK INC <VALT> 3RD QTR JAN 31 NET |
Moet-Hennessy <MHSP.PA> is issuing an 800 mln French franc 10-year eurobond with share warrants lead-manager Lazard Freres et Cie said. The issue will be priced at par with a one pct coupon and each 10000 franc bond will carry 18 warrants each giving the right to subscribe to Moet-Hennessy shares over a three-year period at 2720 francs each. The high equity content of the issue accounts for the low coupon. Moet-Hennessy shares closed on the Paris Bourse today at 2678 francs up 38 from yesterdays close. The issue is being co-lead managed by Credit Lyonnais Banque Nationale de Paris (BNP) and Credit Suisse First Boston. Payment date will be April 8. REUTER | MOET-HENNESSY ISSUING CONVERTIBLE EUROBOND |
Shr loss 30 cts vs profit 11 cts Net loss 1247000 vs profit 454000 Revs 12.3 mln vs 17.5 mln Year Shr loss 24 cts vs profit 32 cts Net loss 979000 vs profit 1303000 Revs 60.6 mln vs 61.7 mln Reuter | THE WRITER CORP <WRTC> 4TH QTR LOSS |
WHITE HOUSE SAYS SHULTZ TO VISIT MOSCOW APRIL 13-16 |
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Dec 31 Shr loss one ct Net loss 176639 Revs 150300 NOTE: Company went public in April 1986. Reuter | ROCKY MOUNTAIN MEDICAL CORP <RMEDU> 1ST QTR LOSS |
Shr 91 cts vs 1.25 dlrs Net 8710000 vs 11.7 mln Avg shrs 9526287 vs 9362379 NOTE: Share adjusted for 10 pct stock dividend in May 1986. Net includes loan loss provisions of 12.7 mln dlrs vs 2400000 dlrs. Reuter | FIRST AMERICAN BANK AND TRUST <FIAMA> YEAR NET |
Standard and Poors Corp said it expects downgrades of corporate debt ratings to ease this year from the lofty levels of 1986 and 1985. However the rating agency said upgrades will probably stay at about the same level as in the past few years. The narrowing of the gap between downgrades and upgrades would reflect a calming in takeover frenzy less volatile energy markets and slow but steady economic growth S and P said. In particular S and P expects that the industrial and banking sectors would have a less turbulent year than in 1986. S and P noted that 60 pct of 1986s downgrades were concentrated in the industrial sector where the most negative factor was takeover fever that led to debt-financed mergers and acquisitions and costly defenses to fend off takeovers. It said takeovers appear to be on the decline this year. While S and P noted that the energy markets have stabilized after last years collapse it stressed that 1987 would not mark a turnaround for this industry. In addition S and P does not expect any big shocks to hit the junk bond market this year especially of the magnitude of 1986s unexpected LTV Corp <LTV> bankruptcy filing. Utilities which were a positive influence in the overall 1986 trend should be a pocket of strength again this year. But like last year gas utilities could buck this trend S and P said. The rating agency said that downgrades would continue to outpace upgrades among financial institutions. But 1987s rating changes will not be as skewed as 1986s 2.1 to one ratio of downgrades to upgrades S and P predicted. S and P said debt ratings for the transportation industry would remain stable aside from changes because of mergers. A detailed report will appear in the March 9 S/P Creditweek. Reuter | S/P SAYS CORPORATE DOWNGRADES MAY EASE THIS YEAR |
Nicaraguan rebel leader Adolfo Calero has for the first time linked payments received for his forces to a dummy company controlled by former White House aide Oliver North legal sources said. The company Lake Resources Inc was established by North and his ally retired Air Force major General Richard Secord and had a Swiss bank account into which proceeds from secret arms sales to Iran were deposited. Calero yesterday made public bank statements showing his group has received 32 mln dlrs since mid-1984 but said he has no idea who donated the money. Calero head of the Nicaraguan Democratic Force known by its Spanish initials as FDN provided the same records to a grand jury investigating the Iran arms scandal that has shaken the Reagan administration. The bank statements he showed reporters ended with March 1985 so they shed no light on whether Iran arms profits were diverted to contra rebels since shipments of U.S. arms to Iran did not begin until September 1985. But last night Calero told Cable News Network that he had just discovered deposits made in late October 1985 by Lake Resources into a contra account in the Cayman Islands. This came at a time when proceeds from the Iran arms sales were being funneled to the Swiss bank account. I just found out he said. Legal sources confirmed that Calero had turned over the newly disclosed information which was brought to his attention after one of his lawyers noticed the two desposits made by Lake Resources buried in the mass of bank records. They said that Calero has promised to review in more detail the bank statements and pass along any further information on possible deposits by the North-Secord groups. The Tower commission said in its report that up to 19.8 mln dlrs from the sale of U.S. weapons to Iran was unaccounted for and may have been diverted to the contras. Caleros FDN is the largest of the contra rebel groups that are fighting to overthrow the left-wing Sandinista government of Nicaragua. On the advice of his lawyer Calero declined to go into details about what he told the grand jury. Reuter | CONTRA LEADER LINKS MYSTERY DLRS TO ARMS SALE |
India has called a fresh buying tender for up to four 13000 tonne cargoes of white sugar on March 11 traders here said. The tender calls for one cargo of prompt sugar and two to three with March/April shipment sugar or the same as the eight cargoes bought at a tender two days ago. That tender originally only sought two to three cargoes but resulted in the sale of eight. India also granted the sellers options to sell twice that amount at the same price but for April/May shipment. Depending on prices traders said it would be likely for India again to buy more than the tonnage formally sought. Reuter | INDIA AGAIN IN MARKET FOR SUGAR - TRADE |
Shr profit nil vs loss nil Net profit 28565 vs loss 204553 Revs 507529 vs 6563 Nine mths Shr loss nil vs loss nil Net loss 404011 vs loss 649495 Revs 938345 vs 32535 Reuter | <WARRANTECH CORP> 3RD QTR DEC 31 NET |
The Pioneer Group Inc said its 70 pct-owned Teberebie Goldfields Ltd venture has been granted an additional concession of land in Ghana to look for and mine gold. The State Gold Mining Corp of Ghana granted the venture an additional 14.5 square kilometers in Teberebie Ghana contiguous to 11.5 square kilometers granted earlier the company said. The original concession appears to have a substantial amount of gold bearing material containing about 2 grams or 6/100 ounces of gold per metric ton. But the venture has no firm estimates on the costs of extracting the gold and no assurances can be given that the reserves can be mined profitably the company said. It said Teberebie Goldfields has not conducted tests on the newly granted land but added the land seems to be similar in geological characteristics to the original land. Reuter | PIONEER GROUP <PIOG> UNIT GETS MORE LAND |
Insituform Group Ltd of Guernsey Channel Islands said it has exercised an option to convert a 250000 stg loan to affiliate Insituform Permaline Ltd to common shares raising its stake in the unit to 75 pct from 50 pct. The remainder is held by Permalines management and an investment group. Insituform also said James Colclough has resigned from its board for health reasons and secretary Scott Saltpeter has resigned effective June Five. Reuter | INSITUFORM <IGLSF> RAISES STAKE IN UNIT |
The worlds major copper producing and consuming countries have reached a degree of consensus on objectives and functions of a future study group aimed at reviewing the world copper market officials said. Governments represented at a meeting to consider a proposed forum for copper have recommended that another session be held in September to consider further the nature of such a group a spokesman for the United Nations Conference on Trade and Development (UNCTAD) said. The one-week meeting which ended today was held to examine a U.S. Initiative to set up a copper study group. The new body would not aim at negotiating measures to stabilise depressed world prices. Its objectives would include increasing market transparency through improved statistics and undertaking activities aimed at developing the copper market and contributing to improvement of demand. UNCTADs spokesman said Once they have agreed on detailed functions and objectives then the way will be cleared to setting up the body. Reuter | COPPER MEETING AGREES GOALS OF STUDY GROUP |
Total futures and options turnover on the London International Financial Futures Exchange (LIFFE) fell slightly during February although daily average Eurodollar volume set a new record LIFFE said today. Total futures and options turnover last month was 822378 contracts down from Januarys 881778 but sharply above the comparative February 1986 figure of 463146 lots it said. Eurodollar turnover during February was 140417 lots against Januarys 100941 and the year ago figure of 81648. The daily average was a record 7020 lots up four pct from the previous record set in March 1985. February trading encompassed a new daily record of 66087 contracts on the 19th of the month exceeding the previous record of 61398 which had been set on February 6 LIFFE said. FT-SE 100 index futures volume was sharply higher during February with 22109 contracts trading against Januarys 15279 and the year-ago level of 8181. Open interest also set new records last month in Eurodollars at 29372 contracts in FT-SE 100 at 4898 and in short sterling interest rate futures at 19846 lots. Key futures volumes as detailed by LIFFE were: Feb87 Jan87 Feb86 Long gilt 424865 525354 134420 Eurodollar 140417 100941 81648 Short sterling 94720 87619 67640 T-bond 84694 87980 133766 FT-SE 22109 15279 8181 Currencies 2799 2112 7737 Short gilt 74 85 6516 Key options volumes as detailed by LIFFE were: Feb87 Jan87 Feb86 Long gilt 44640 54329 ---- Eurodollar 3580 1720 2844 T-bond 1737 3479 ---- Sterling 1466 2223 18191 FT-SE 1277 657 ---- Total options 52700 62408 23238 (Long gilt T-bond and FT-SE index options were not trading in February 1986). Reuter | LIFFE FEBRUARY VOLUMES DOWN, BUT EURODOLLARS UP |
President Reagan announced he is sending Secretary of State George Shultz to Moscow for talks with Foreign Minister Eduard Shevardnadze next month. Arms control is expected to be the major topic. The announcement said the talks will take place April 13-16 and would review the entirety of our relationship. Reuter | PRESIDENT SAYS SHULTZ TO HEAD FOR MOSCOW TALKS |
Colombian oil installations were not damaged by an earthquake which shook Ecuador and southern Colombia last night and there are no plans to suspend exports a spokesman for the state-run oil company Ecopetrol said. He said no damage was reported unlike in Ecuador where indefinite force majeure was declared on crude exports. Colombia currently produces about 360000 barrels per day (bpd) of crude. Exports in january totalled 123000 bpd. The quake which in Colombia measured between 6.5 and seven on the 12-point international Mercalli scale caused panic among residents but no injuries were reported. Reuter | COLOMBIAN OIL EXPORTS NOT AFFECTED BY QUAKE |
Chicago Milwaukee Corp said it welcomed an investment by Shearson Lehman Brothers Inc in its company. Yesterday Shearson Lehman a subsidiary of American Express Co (AXP) disclosed in a Securities and Exchange Commission filing that it holds a 5.35 pct interest in Chicago Milwaukee. Chicago Milwaukees stock edged up 2-1/8 to 138 on turnover of 8100 shares as one of the biggest gainers on the NYSE. The stock has been trading in a 154 to 128 range for the last 52 weeks. Edwin Jacobson Chicago Milwaukee president declined to comment on movement of the companys stock but saidFrom an investment point of view we are pleased to have Shearson Lehman as a substantial investor. Shearson Lehman purchased the shares for investment purposes and may continue buying shares depending on market conditions according to the filing. Chicago Milwaukee which sold its railroad interests to Soo Line Railroad Co (SOO) in February 1985 currently manages and sells its real estate which consists of 28000 parcels in 11 states. Reuter | CHICAGO MILWAUKEE <CHG> GREETS SHEARSON STAKE |
Dauphin Deposit Corp said it has signed a letter of intent to acquire Colonial Bancorp Inc of New Holland Pa. in an exchange of 3.6 to 4.4 Dauphin shares for each colonial share depending on the market value of Dauphin shares just before the merger takes place. The company said the acquisition is subject to approval by Colonial shareholders and regulatory authorities. Colonial had assets at year-end of about 150 mln dlrs. Reuter | DAUPHIN DEPOSIT <DAPN> TO MAKE ACQUISITION |
UNC Inc said its board has approved a change in state of incorporation to Delaware from Virginia subject to approval by shareholders at the April 24 annual meeting. It said it expects to make the change around April 30. Reuter | UNC <UNC> TO CHANGE STATE OF INCORPORATION |
Qtly div 27-1/2 cts vs 27-1/2 cts prior Pay May One Record April 17 Reuter | VAN DORN CO <VDC> SETS QUARTERLY |
Qtly div 10 cts vs 10 cts prior Pay March 31 Record March 16 Reuter | M.D.C. HOLDINGS INC <MDC> SETS QUARTERLY |
Qtly div 42 cts vs 42 cts prior Pay April Seven Record March 20 Reuter | CHUBB CORP <CB> SETS QUARTERLY |
Mellon Bank Corp is raising 150 mln dlrs via an offering of deposit notes due 1992 with a 7.45 pct coupon and par pricing said sole manager First Boston Corp. That is 73 basis points more than the yield of comparable Treasury securities. The issue has a one-time call after three years First Boston detailed. If Mellon does not redeem the notes at that time they will be non-callable to maturity. Moodys Investors Service Inc rates the debt Aa-2 and Standard and Poors Corp rates it AA. Reuter | MELLON BANK <MEL> SELLS FIVE-YEAR DEPOSIT NOTES |
U.S. crude oil prices rose above 18 dlrs a barrel this week and industry analysts said the price could rise another dollar as inventories fall. OPEC is keeping its production down and in the cash market there is tight supply of crude with short transportation time to major refining centers said Daniel McKinley oil analyst with Smith Barney Harris Upham and Co. That could send prices 50 cts to a dollar higher he added. The U.S. benchmark crude West Texas Intermediate rose to 18.15 dlrs a barrel today a rise of 1.50 dlrs this week. The rally in oil prices this week came after prices fell in February more than two dlrs from its high of 18.25 dlrs a barrel. Oil traders were pulling prices down on the assumption that oil stocks were building and OPEC was producing well above its 15.8 mln bpd quota but now both of those assumptions have come under question McKinley said. Yesterday the International Energy Agency in its monthly report said that oil stocks in the OECD area or in industrialized nations were drawn down by 1.3 mln bpd during the first quarter of this year. IEA estimates that the draw in oil stocks during the first quarter of this year will come largely from oil companies whose inventory levels by April one will be an estimated 326 mln tonnes or about 74 days consumption. Industry analysts also said the estimate of a 3.5 mln bpd draw in stocks made by Shell Chairman Peter Holmes yesterday fed speculation that other major companies were destocking. Traders said the destocking has come about as a result of a so-called buyers strike which kept refiners from buying officially priced OPEC oil in an effort to get the organization to offer discounts to the official price. This struggle between the companies and OPEC is the ultimate game of chicken but it will be resolved relatively soon. I would imagine by about the middle of the month (March) the general trading manager of an international oil company told Reuters in a telephone interview. For its part OPEC has moved to win this game by cutting excess supplies from the market by a reduction of its own output traders said. A Reuter survey estimates OPEC output to be 14.7 mln bpd this week. Also an earthquake in Ecuador yesterday led it to suspend oil exports indefintiely and force majeure its shipments. This will reduce short-haul availabilities by about 250000 bpd almost immediately and the longer the suspension continues the larger the draw in stocks will be for companies expecting it to be there McKinley said. International oil traders said that other short-haul crudes such as North Sea Brent were also scarce because Asian refiners bought the oil after absorbing a lot of the readily available Mideast crudes earlier this week. If this pattern continues then oil companies will bid up the price of oil as they purchase for their refineries trading managers at several companies told Reuters. But there were skeptics who said they wondered how long OPEC can retain its unity if buyer resistance continues. Stephen Hanke chief economist at Friedburg Commodity Management said OPEC production was lower because of the Saudi cut (to 3.1 mln bpd) and this could spell trouble if it gives other members an incentive to exceed their quotas. He added The Saudis will be picking up the tab for other members who produce over their quota and the drain on the Saudis will continue forcing them to cut output maybe as low as 2.5 mln bpd to support the 18 dlrs average price he added. There are also signs of some OPEC crudes being sold in the spot market at below OPEC official prices traders said. Oil traders said Nigerian Brass River sold for delivery into the U.S. Gulf at a price related to North Sea brent which traded this week at 17.60 dlrs far below the official price of 18.92 dlrs for the similar quality Bonny Light. Iranian oil is also surfacing in the U.S. Gulf and the Far East at reported discounts to its 17.50 dlrs official price. There is a lot of oil priced on government-to-government deals which are below official prices and this is probably being resold one international trader said. Reuter | CRUDE OIL PRICES UP AS STOCKS, OUTPUT FALL |
The attempt by International Paper Co <IP> and Stone Container Co <STO> to raise linerboard prices could stick industry analysts said citing strong demand and tight capacity. But they said rising inventories hurt the odds. It remains to be seen whether the increases will be accepted but I think the odds are better than 50-50 they will Mark Rogers paper analyst for Prudential Bache said. Mead Corp <ME> and Union Camp Corp <UCC> said they are also considering price increases. Rogers who has been aggressively recommending Stone and International Paper for several months said the increases could stick because plants are running full tilt and little new capacity is coming on stream. The operating rates in linerboard are running at about 97 to 98 pct of capacity but demand continues to climb Gene Cartledge chairman and chief executive officer of Union Camp said The industry is essentially sold out. Cartledge said domestic linerboard shipments in January hit about 1.6 mln tons six pct higher than January 1986 while exports hit 170000 tons three to four pct higher. Nevertheless rising inventories could nip the increase in the bud Lawrence Ross forest products analyst for Paine Webber said. Containerboard inventories have been growing for the past three months Ross said. Over that time inventories rose from 4.8 weeks worth of supplies to 5.9 weeks most recently. Also Ross said that the Jacksonville Fla. paper mill 49 pct owned by Stone is planning to come on stream again soon which may help alleviate some of the supply constraints. The plants capacity by itself is about two pct of the industry total Ross said. But Rogers said the Jacksonville mill wont be enough to significantly ease tight capacity this year. The price increase is necessary he said to attract more investment. Rates of return in the industry have been too low in recent years to merit inventment in new capocity Rogers said adding that he sees prices climbing to the 400 dlrs-a-ton range this year. The consensus on the Street is changing he said from whether there will be increases to when is the next increase and how much. Reuter | TALKING POINT/ PAPER STOCKS |
The Minneapolis Grain Exchange (MGE) will start trading futures contracts in high fructose corn syrup on April 6 if the Commodity Futures Trading Commission (CFTC) approves the contract as expected next week. Pat Henderson spokesperson for the MGE said the exchange expects contract approval at CFTCs Tuesday meeting. It has been under review since the exchange submitted the proposal in December 1985. The proposed contract is based on 48000 pound lots of 55-pct high fructose corn syrup the equivalent of one tank truck of the sweetening agent derived from corn in the wet milling process. The syrup commonly called HFCS-55 is most commonly used as a sweetener in soft drinks and other beverages. Delivery would be by shipping certificate from production facilities designated by the exchange. The contract designated by the symbol HF would trade from 0900 to 1315 CST. Months traded would correspond with the Chicago corn futures months of March May July September and December. Contract price will be quoted per hundred weight with a minimum price fluctuation of one cent and maximum fluctuation of one dlr per CWT. We hope the producers and users of fructose will be actively involved those producers being the large processors the corn wet millers and the users being the beverage bottlers Henderson said. But there are potentials for all types of people to use it. There is quite a list of industries that utilize fructose. Reuter | MGE PLANNING APRIL 6 START UP OF HFCS CONTRACT |
Concorde Capital Ltd Inc said it has signed an agreement to establish a minimum of 40 Heidis Frozen Yogurt Shoppes in South Florida over the next 48 months. It said it signed the agreement with <Zenith Capital Inc> which received 3890000 Concorde shares or a 10 pct interest for the exclusive franchise rights from Orlando south in Florida. Zenith now has seven company owned and 44 franchised Heidis open and another 90 franchises sold. Concorde said it expects to change its name soon to Heidis Frozen Yogurt Shoppes of Florida Inc. Reuter | <CONCORDE CAPITAL LTD INC> IN FRANCHISE PACT |
Qtly div four cts vs four cts prior Pay March 31 Record March 20 NOTE: First Federal Savings and Loan Association of Brooksville. Reuter | FIRST FEDERAL BROOKSVILLE <FFBV> SETS QUARTERLY |
Energy Ventures Inc said it formed a new subsidiary EVI Inc that will seek to fund growth of and offer financial services to oil service and equipment companies. The new unit is majority owned by Energy Ventures. Simmons and Co Finance an affiliate of Houston-based Simmons and Co International is minority shareholder. Initial capital of 25 mln dlrs was provided by Energy Ventures with an additional one mln dlrs contributed by Simmons. Reuter | ENERGY VENTURES <ENGY> FORMS NEW ENERGY UNIT |
Qtly div 30 cts vs 30 cts in prior qtr Payable May 25 Record May one Reuter | ALUMINUM CO OF AMERICA <AA> REGULAR DIVIDEND |
Technigen Platinum corp said it initial results of a 13-hole drilling program on its R.M. Nicel platinum property in Rouyn-Noranda Quebec indicate extensive near-surface zones highly enriched in gold platinum and palladium were found in rocks on the periphery of a sulphide deposit. It said values of up to 0.073 ounce of platinum 0.206 ounce palladium three pct copper and 4.5 pct nickel were found over a drill section of 13 feet. More | <TECHNIGEN PLATINUM CORP> IN METALS FIND |
Telecom Plus International Inc said <Siemens AG>s Siemens Information Systems wants to amend its agreement to purchase Telecoms 65 pct interest in Tel Plus Communications to delay payment of 25 mln dlrs for 11 months. Telecoms shareholders are scheduled to vote on the 165 mln dlr transaction Monday. Telecom said it advised Siemens it intends to close the transaction on March 16 as scheduled if it is approved by shareholders. A spokesman said this means Telecom will decide before the 16th whether or not to accept the proposed change. Explaining its request for the amendment Siemens informed Telecom it had recently become aware of information causing concern with respect to certain accounting and other matters. Siemens said it will therefore need to continue its review beyond March 16 to determine whether certain representations and warranties are true. Telecom said it advised Siemens it knows of no information which would make its representations and warranties untrue. Siemens already owns the remaining 35 pct of Tel Plus. The 65 pct represenmts Telecoms principal operating asset. A Telecom spokesman said the agreement calls for payment of all but 29 mln dlrs of the price at closing. Of this 21 mln dlrs was to be paid 11 months later and two mln dlrs per year on the anniversary date of the transaction. He said Siemens is now proposing that 25 mln dlrs be added to the 21 mln dlrs to be paid in 11 months. Telecom said the proposed amendment would also permit Siemens to defer repayment of up to an additional 50 pct of certain intercompany debt until completion of the review. Telecom said it estimates this to ba about 15 mln dlrs. Reuter | SIEMENS WANTS TO AMEND TELECOM PLUS <TELE> PACT |
LUCKY STORES SAYS IT AND INVESTOR EDELMAN REACHED STANDSTILL AGREEMENT |
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The Pioneer Group Inc said its 70 pct-owned Teberebie Goldfields Ltd venture was granted an additional concession of land in Ghana to seek and mine gold. The State Gold Mining Corp of Ghana granted the venture an additional 14.5 square kilometers in Teberebie Ghana contiguous to 11.5 square kilometers granted earlier. The original concession appears to have a substantial amount of gold bearing material containing about 2 grams or 6/100 ounces of gold per tonne. But the venture has no firm estimate on the costs of extracting the gold and no assurances can be given that the reserves can be mined profitably the company said. It said Teberebie Goldfields has not conducted tests on the newly granted land but added the land seems to be similar in geological characteristics to the original land. Reuter | PIONEER GROUP UNIT GETS MORE GHANA GOLD LAND |
A counter-proposal from creditor banks to Argentinas request for rescheduling its 50 billion dlr foreign debt was faulty an Argentine observer at negotiations said. The negotiations are not going to prosper if (the creditor banks) do not change the counter-proposal put to Argentina as it is a Swiss cheese full of holes ruling Radical Party Deputy Raul Baglini said. Baglini who was recently observing negotiations with the steering committee for Argentinas creditor banks in New York spoke to reporters in Mendoza 600 miles west of Buenos Aires. Baglini said the counter-proposal did not take into account Argentinas request for a 2.15 billion dlr loan to meet four pct growth targets in 1987. He said the steering committee wanted only to discuss some aspects of the request while Argentinas negotiators were laying emphasis on a global pacakge. The United States said last week it would back a 500 mln dlr bridge loan to Argentina. Reuter | DEBT PROPOSAL FAULTED BY ARGENTINE OBSERVER |
Qtly div 29-1/2 cts vs 29-1/2 cts prior Pay April 15 Record March 27 Reuter | INTERNATIONAL MULTIFOODS CORP <IMC> DIVIDEND |
International Business Machines Corp said it has named James A. Cannavino president of its Data Systems Division succeeding IBM vice president Edward M. Davis who is retiring June 30 and until then will be IBM vice president technology competitiveness. The Data Systems Division is responsible for worldwide development and U.S. manufacturing of IBMs large systems and associated software. Cannavino had been vice president of the division and general manager of the IBM Poughkeepsie N.Y. manufacturing and development facility. Reuter | IBM <IBM> NAMES NEW PRESIDENT FOR DIVISION |
Shr profit four cts vs loss 99 cts Net profit 545000 vs loss 13.1 mln Revs 75.3 mln vs 37.9 mln Avg shrs 14.8 mln vs 13.1 mln Year Shr profit 34 cts vs profit 34 cts Net profit 4908000 vs profit 4487000 Revs 216.8 mln vs 117.7 mln Avg shrs 14.6 mln vs 13.1 mln NOTE: 1985 net included gain on sale of foreign properties of 15.5 mln dlrs or 1.19 dlrs per share and a writedown of oil and gas properties of 12.5 mln dlrs or 96 cts per share. 1985 4th qtr net included writedowns of oil and gas properties. Reuter | HADSON CORP <HADS> 4TH QTR NET |
Finance Minister Dilson Funaro currently on a global tour to seek governmental support for his efforts to solve Brazils 108 billion dlrs foreign debt crisis said creditors have expressed willingness to help. In an interview with the Globo television network transmitted from Rome Funaro said he had proposed a four-year plan to the creditors which would include a rescaling of the commitments derived from its debt. After visiting the U.S. England France West Germany Italy and Switzerland Funaro is now on his way to Tokyo where he is to arrive on Sunday for talks with Japanese government officials as well as private bankers. Reuter | FUNARO SAYS CREDITORS WILLING TO HELP BRAZIL |
Lucky Stores Inc said it and investor Asher Edelman agreed on a settlement that prohibits Edelman and his group from taking specified actions to obtain control of the company and that limits the Edelman groups ownership of Luckys stock to less than five pct of any voting securities. The arrangement also provides for the dismissal of pending litigation between the parties Lucky Stores said. The settlement also calls for the withdrawal of Edelmans motion to intervene in pending shareholder actions against Lucky Stores and its directors the company said. In addition the standstill provisions also apply to Hancock Fabrics after it is spun off to Lucky stockholders the company said. Lucky Stores said the arrangement also calls for the company to submit to stockholders at a special meeting set for December 31 a proposal from Edelman seeking their views concerning repeal of a charter provision that limits the voting power of substantial Lucky stockholders. Edelman who owns about five pct of Lucky Stores stock last year was rebuffed in his effort to acquire the company. Last October Lucky Stores implimented a restructuring program that included the repurchase of 28 pct of its own common shares and reincorporation in Delaware. The spinoff of Hancock Textile Co a chain of 324 retail stores was one of the key parts of the restructuring program. Edelman and his Plaza Securities Co partnership subsequently sued in an attempt to block the proposed reincorporation which was a condition of the repurchase and restructuring plan. Under this latest arrangement Lucky Stores said it agreed to reimburse the Edelman group for 2.8 mln dlrs of out-of-pocket expenses which include litigation and other costs. This agreement serves the interests of Lucky stockholders by avoiding the significant cost of continued litigation and the accompanying demands on management time Lucky Stores chairman John Lillie said in a statement. Reuter | LUCKY STORES <LKS>, EDELMAN IN STANDSTILL PACT |
American Telephone and Telegraph Cos proposal to deregulate its long distance phone service is unlikely to produce a radical change in phone rates but it should help the companys profits analysts said. Deregulation will mean more pricing discounts for large volume users but status quo for residential users said PaineWebber Group analyst Jack Grubman. But the proposals will scrap the pricing formula that has constrained the companys profits in the long distance business leading to higher profit margins analysts said. ATT has long pushed for deregulation of its long-distance business the profits of which have been limited by a regulated rate-of-return on the companys investments. The rate was cut last year to 12.20 from 12.75 pct. Earlier today the company proposed to the Federal Communications Commission to scrap the formula cut the amount of time needed to approve rate proposals and leave it up to its competitors to oppose it filings. MCI Communications Corp <MCIC> made a similar filing yesterday saying greater the moves would increase competition in the telephone business. Analysts said the proposals will allow ATT to cut costs in the long-distance unit and increase its profit margins previously constrained by the rate of return. But many said they did not expect the proposals to lead to higher prices in the industry simply because of the competition the phone industry giant faces. You probably wouldnt see as much of a price decline said Gartner Group analyst Fritz Ringling. But you wouldnt see a rise. Grubman said the proposals will allow ATT to selectively raise or lower prices depending on the market. It will give ATT a lot more flexibility he said. ATT now faces a period of comment in which a number of companies will be able to respond to the proposals in FCC hearings. It may face at least one strong opponent U.S. Sprint the long distance joint venture between GTE Corp <GTE> and United Telecommunications Inc <UT>. We think the Congress of the FCC should establish a reasonable rate of return. Someone should establish it a U.S. Sprint spokesman said. But he added the company was not opposed to greater competition. It may also take some time for the proposals to go through and in the process they may be altered by the various constituencies affected by the move. Theres so much complexity so much inertia so much bureacracy that stricly speaking about the mechanisms it wont happen that fast said analyst Victor Krueger of the Gartner Group. Reuter | ATT <T> PHONE PROPOSAL TO HELP PROFITS |
The Chicago Mercantile Exchange (CME) board of governors announced today the options on Random Length lumber futures will begin trading on May 29. The contract received Commodity Futures Trading Commission (CFTC) approval on January 21 after being submitted for review last October 13. Initially only January March and May delivery months will be listed for trading. The size of the underlying futures contract is 130000 board feet. Regular trading hours for the contract will be from 0900 to 1305 Central Time. However on the first day of trading the market will open at 1000. On March 4 the CME board amended the contract to eliminate Christmas Eve expirations for the January option. This amendment has been submited to the CFTC the CME said. reuter | CME SETS MAY 29 START FOR LUMBER FUTURES OPTIONS |
TWA CONFIRMS OWNERSHIP OF 15 PCT OF USAIR GROUP |
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The Navy last month grounded half of its A-6E attack jets for wing inspections after a California accident but has since returned half of the grounded planes to service a Navy spokesman said. Kevin Mukri said 186 of the Navys 340 A-6E aircraft built by Grumman Corp were grounded on Feb. 20 after a Jan. 14 A-6E crash during a training flight near El Centro Calif. which killed one of two crewmen aboard. A subsequent inspection of the wreckage at the Naval Research Laboratory in Washington showed an apparent inner wing stress problem Mukri told Reuters. Ninety-seven of the grounded planes have since undergone visual inspections and 91 of those have been cleared to return to service he said. Reuter | U.S. NAVY GROUNDS SOME A-6 ATTACK JETS |
The House and Senate committees investigating the Iran arms scandal said they would like to review tapes of phone conversations between President Reagan and White House officials if such tapes exist. The committees were responding to a magazine article that quoted unidentified sources with first-hand knowledge of U.S. communications intelligence as saying there is an archive of recorded conversations among Reagan administration officials including the president. The article in Progressive magazine also said the government had secretly monitored the home telephone of former National Security adviser Robert McFarlane after he had left government service in late 1985. According to sources with first hand knowledge of U.S. communications intelligence operations the story said the McFarlane intercept grew out of a program that has produced a still-undisclosed archive of recorded conversations involving ... Reagan Vice President George Bush (fired National Security Council aide) Lt Col Oliver North (former National Security Adviser) Adm John Poindexter (former White House Chief of Staff) Donald Regan and other key figures in the Iran-contra arms scandal. It said the monitoring was done for security and record purposes by the top-secret National Security Agency (NSA) and was apparently done with the consent of those monitored. But White House spokesman Marlin Fitzwater denied one premise of the article saying The National Security Agency said it did not monitor any of McFarlanes conversations. He did not comment on the other recorded conversations the Progressive article said were included in the program. Clearly we would be interested in taking a look if indeed such tapes exist a Senate Iran committee aide told Reuters in response to the magazine article. A spokesman for the House Iran committee said the panel would consider a request to the NSA for copies of the telephone-tap archive described in the article. Several legislators said the tapes if it is confirmed that they exist could prove invaluable to the special House and Senate committees that were created in January to investigate Reagans most damaging political crisis. This sort of evidence could be absolutely crucial in getting to the bottom of the affair said Rep. Robert Kastenmeier a Wisconsin Democrat and member of the House Intelligence Committee told Reuters. Reuter | IRAN INVESTIGATORS SEEK REAGAN TAPES |
Struthers Wells Corp said it expects to report a loss without tax benefit of about 16 mln dlrs for the fiscal year ended November 30 1986 versus a profit of 295000 dlrs in fiscal 1985. The company added however that about 13.6 mln dlrs of the loss relates to discontinued operations and disposal of subsidiaries. The company said the loss is part of its previously announced restructuring that includes the sale of its foreign and domestic units. Struthers added that it has filed with the Securities and Exchange Commission for an extension to file its annual report on form 10-K as a result of delays caused by the restructuring. Reuter | STRUTHERS WELLS <SUW> SEES 1986 NOV 30 LOSS |
SOROS GROUP TELLS SEC IT MAY BUY UP TO 49.9 PCT OF FAIRCHILD INDUSTRIES |
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Trans World Airlines Inc said it owns more than four mln USAir Group shares or about 15 pct of the total outstanding. TWA said it may acquire additional shares in the open market in private transactions through a tender offer or otherwise subject to Department of Transportation approval. TWA has offered 52 dlrs per share for USAir Group. USAir rejected the offer yesterday calling it a last-minute attempt to interfere with its takeover of Piedmont Aviation Inc. A TWA spokesman said the company has filed an application for approval on its offer to buy USAir with the Department of Transportation and later today it will file a response to USAirs motion with the DOT to dismiss the TWA application. TWA said it made the statement today on its stock position in USAir in response to inquiries. Traders said they believed TWA Chairman Carl Icahn was the buyer of an 855000 share block crossed today by Salomon Brothers. USAir stock was trading at 50-3/4 up 2-1/4 on heavy volume of 3.1 mln shares. TWA stock fell 3/8 to 30-5/8. While analysts and arbitragers have speculated that Icahn may have made the offer for USAir in order to trigger the acquisition of his own airline Wall Street today began to take Icahns effort more seriously. I think hes going to be the next Frank Lorenzo of Wall Street said one market source. Lorenzo chairman of Texas Air has added to his airline with the acquisitions of Eastern Airlines and People Express Airlines. There was also speculation that Icahn would like to buy USAir and then sell TWA as a merged company. Reuter | TWA <TWA> CONFIRMS OWNERSHIP OF USAIR <U> STOCK |
Silver State Mining Corp said it has corrected its 1986 fourth quarter net income to 485380 dlrs from 528790 dlrs reported earlier today. The company earned 286969 dlrs in last years fourth quarter. Reuter | SILVER STATE MINING <SSMC> CORRECTS NET |
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