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Frank B. Hall and Co Inc said the superintendent of insurance of New York as liquidator of Union Capital Indemnity Insurance Co of New York has filed a lawsuit against the company Touche Ross and Co a group of Hall units and former officers and directors of Union Indemnity seeking damages of 140 mln dlrs in connection with Unions insolvency. Union Indemnity was a unit of Hall prior to being placed into liquidation by the New York Insurance Department in July 1985. Hall said it intends to oppose this action vigorously. Reuter | FRANK B. HALL <FBH> SUED BY NY INSURANCE DEPT |
Advanced Tobacco Products Inc said it will make an announcement regarding its stock halt this morning on NASDAQ. The company said lawyers are preparing the release with company officials and should be making the announcement within the hour. The stocks last bid was 3/8 and last ask 1/2. Reuter | ADVANCED TOBACCO <ATPI> TO MAKE ANNOUCEMENT |
Barclays Bank Plc <BCS.L> and Midland Bank Plc <MDBL.L> said they are cutting their base lending rates to 10.5 pct from 11 pct. The cuts follow a similar move by National Westminster Bank Plc <NWBL.L> The rate changes take effect tomorrow. The base rate reductions came after the Bank of England cut its dealing rates this morning in a signal to the money markets that it would not resist a half percentage point drop in bank base lending rates market sources said. Until the end of last week the central was holding out staunchly against market pressures for lower rates in an apparent effort to preserve the expected rate cuts for around the time of the governments annual Budget on March 17. Sterling remained firm around 1.59 dlrs compared with its close here on Friday at 1.5865 dlrs. REUTER | BARCLAYS, MIDLAND FOLLOW NATWEST BASE RATE CUT |
The U.S. Mint said it is seeking offers on 4784000 lbs of special high-grade zinc that it intends to purchase. It said selling offers will be due at 1100 hrs EST March 24. The Mint said two increments of 1300000 lbs each are for delivery the weeks of April 13 and april 20 to Ball Corp Greeneville Tenn. and two increments of 1092000 lbs each are to be delivered the weeks of April 20 and April 27 to LaSalle Rolling Mills LaSalle Ill. Firms in submitting offers may elect to receive payment from the Mint by standard check or by wire transfer. Awards will be based on whichever method is most cost advantageous to the goverment at the time the awards are determined. The offers will have a minimum acceptance period of 10 calendar days the Mint said. Reuter | U.S. MINT SEEKING 4,784,000 LBS ZINC |
Led by the non-residential sector Canadian building permits issued in November rose 0.7 pct to 2.18 billion dlrs seasonally adjusted from 2.16 billion dlrs in October Statistics Canada said. Residential permits fell 3.9 pct to 1.25 billion dlrs from 1.30 billion dlrs in October while the number of units approved fell to 17552 from 19079 units. The value of non-residential projects rose 7.6 pct to 927.6 mln dlrs in the month. Reuter | CANADA BUILDING PERMITS RISE IN NOVEMBER |
Cambridge Medical Technology Corp said pursuant to a letter of intent signed between it and <Panbaxy Laboratories> an AIDS test will be jointly manufactured by the two companies. Cambridge said that before the test may be used for human clinical purposes it must undergo extensive clinical and human testing and receive approval for marketing from the U.S. Food and Drug Administration. The company said it is unable at this time to predict when the test will become available. Reuter | CAMBRIDGE MEDICAL <CMTC> ADDS INFO ON AIDS TEST |
Dixie Yarns Inc and <TI-CARO Inc> jointly said they signed a merger agreement calling for Dixie to acquire all TI-CAROs stock in exchange for three mln of Dixies common. The companies said the previously announced merger has been approved by TI-CAROs board and is expected to close by early April. They said the revenues of the combined companies will be over 600 mln dlrs and Dixie said the merger will not dilute its 1987 results. TI-CARO was taken private in 1984 in a management led leveraged buy-out. Reuter | DIXIE YARNS <DXYN> TO ACQUIRE TI-CARO INC |
<Ciba-Giegy Corp>s Ciba-Giegy Pharmaceuticals division said it had an agreement with <Gipharmex S.P.A.> (Giuliani Group) of Milan Italy to develop and eventually market in the U.S. a new gallstone dissolving drug. The company said the drug ursodeoxycholic acid is a naturally occurring bile acid and has been approved for marketing in most European countries and in Japan. The division said it holds a patent on the use of the drug to dissolve gallstones. Reuter | CIBA-GIEGY IN PACT TO MAKE GALLSTONE DISSOLVER |
A decision on final dumping duties on frozen orange juice from Brazil may not be issued until tomorrow Commerce Department officials said. They said the department has until midnight tonight to set the duty but may not make the finding public until tomorrow. A preliminary duty of 8.54 pct was set last Oct. 17. The final duty will be based on more detailed information the officials said. reuter | U.S. HAS TO MIDNIGHT TO SET ORANGE JUICE DUTIES |
The National Weather Service said warnings of gale force winds remained in effect over lakes Erie Huron and Michigan. Also warnings have been posted for large waves and beach erosion along the shores of the Lakes. Winds gusting to 45 mph caused four to six foot waves along the western and southern shores of Lake Michigan during the morning. Advisories for low wind chill temperatures have also been posted across portions of upper Michigan and northern lower Michigan. Early morning gusty winds brought the wind chill to 15 and 25 degrees below zero. Freezing rain was scattered over central Colorado by mid morning also over central Kansas and northeast Illinois. Snow reached from south central Montana across Wyoming western Nebraska and western Kansas. Snow also extended across northern Wisconsin upper Michigan and northern lower Michigan. Rain reached along the northern Pacific Coast across northwest Utah Maryland Deleware Virginia the Carolinas Georgia and northern Alabama. Reuter | GALE FORCE WINDS BUFFET GREAT LAKES |
The Bank of England said it was taking onto its books a further one billion stg tranche of 8-3/4 pct Treasury Loan stock due 1997 payable 40 stg pct on application. The stock was issued to the Bank at 96.50 stg pct and will be available for dealings from March 11 with the remainder of the amount payable on May 5. The Bank said the bonds would yield 9.28 pct at the issue price and would be free of tax to residents overseas. The issue would be designated 8-3/4 pct Treasury Loan 1997 B. A further 100 mln stg was reserved for the National Debt Commissioners. The market dropped by up to 1/2 point following the Banks announcement with the Treasury 13-1/2 pct stock due 2004/08 quoted one full point lower at 134-12/32 stg pct around 20 minutes after the news. Dealers said the announcement had to be viewed against the backdrop of intense pressure for lower U.K. Interest rates which had built up over the past two weeks as a result of sterlings strength. The Bank this morning finally signalled it was prepared to see lower rates and U.K. Clearing banks this afternoon announced cuts in their base lending rates to 10.5 pct from 11 pct. The Bank had initially been reluctant to countenance a rate cut because dealers said the authorities had wished to delay a reduction until around the time of the U.K. Budget on March 17 thereby preserving the full impact of Chancellor of the Exchequer Nigel Lawsons package of measures. However in the face of sterlings apparently inexorable climb the authorities today decided to cede to pressure and allow a half-point cut. Todays one billion stg tap issue was viewed by the market as a move by the Bank to eradicate hopes for a further early rate cut which might arise as a result of strong sterling. Most market participants believe that Lawson will now foster a further half point interest rate reduction at the time of the budget although one or two said they would not be surprised to see a full point decline at this stage. Dealers noted that as part of the authorities attempts last week to ease pressure for lower rates the Bank had issued a one billion stg tap stock with a view to subduing the Government bond market. To the surprise of most participants the issue was sold out within hours of becoming available for trading and the market pushed on to register further sharp gains. Dealers said that at this stage it seemed unlikely that the issue announced today would be absorbed by the market as rapidly as last weeks. However they noted that although sterling had edged down from its highs following the base rate cut it had still closed on a trade-weighted basis at 72.4 well ahead of Fridays final 71.8 and only just beneath the peak of 72.5 touched at 1300 GMT. REUTER | U.K. ISSUES ONE BILLION STG BOND TRANCHE |
President Reagans denial that he knew proceeds from Iran arms sales were diverted to Nicaraguan contra rebels might be challenged by his former national security adviser according to the Washington Post. The paper said yesterday that John Poindexter who resigned last November when the illegal transfer of up to 20 mln dlrs was disclosed was ready to break the silence he has so far maintained over the affair. The Post said he might tell a special Senate committee investigating the Iran scandal that he told Reagan twice in 1986 that money from Iran sales was being used for aid to the contras. It said the panel was considering granting Poindexter immunity from prosecution over the fund diversion which was illegal under a Congressional ban in force at the time against aid for the contras. Poindexter has so far invoked the Fifth Amendment to the Constitution which protects people from giving evidence which could be self-incriminating. Reagan has said he authorized the sale of arms to Iran in the hope of establishing links with Iranian moderates but has denied knowing that proceeds were ending up in Nicaraguan rebel hands. A White House spokesman had no comment on the Post story but David Abshire who is coordinating White House handling of the affair said Reagan would never approve any illegal action. Abshire on the CBS television show Face the Nation did not comment directly on the Post story but said: He (Reagan) is deeply honest he is deeply dedicated he tells the truth and when he says he has no knowledge he has no knowledge. The Post quoted a source close to Reagan as saying the White House expected Poindexter will say he had direction and authority directly or indirectly from the president for the diversion of funds. The paper said the former security advisers testimony could damage the presidents claim he was unaware of the funds diversion. It quoted a legal source as saying Poindexter and his lawyers planned to contend that twice in 1986 he told Reagan that the arms sales were generating money for the contras. The paper quoted the source as saying Poindexter did not tell Reagan there was an illegal diversion of funds but that help for the contras was an ancillary benefit of the sales. The Posts sources also said the Senate committee could grant immunity from prosecution this month to Oliver North who was fired from the National Security Council on the same day that Poindexter resigned. Reuter | PAPER SAYS POINDEXTER MAY LINK REAGAN TO FUNDS |
Italian President Francesco Cossiga asked veteran Christian Democrat politician Giulio Andreotti to try to form a new government officials said. They said Andreotti had reserved his reply on whether to accept the mandate normal procedure until he has ascertained whether he can form a government. Cossiga nominated Andreotti sole candidate of the majority Christian Democrats despite stiff opposition from the Socialists of outgoing Prime Minister Bettino Craxi. REUTER | ANDREOTTI ASKED TO FORM GOVERNMENT |
AMC SAYS IT IS "STUDYING" CHRYSLER BUYOUT PROPOSAL AND WILL COMMENT WHEN "APPROPRIATE" |
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Petro-Canada Canadas state-owned oil company said it will drill two delineation wells this summer at the Terra Nova oil field offshore Newfoundland. Evaluation of test results and preliminary engineering work should put Petro-Canada in a position to propose a development plan for the Terra Nova field in 1988 the company said. Depending on time required for regulatory approvals construction could begin in 1989 with first oil production as early as 1991 Petro-Canada said. We have a high degree of confidence that the western portion of the (Terra Nova) field contains at least 11 mln cubic meters of recoverable oil or more than 70 mln barrels and that we could produce it economicly using a floating production system Petro-Canada said. The Terra-Nova field lying 350 kilometers east of St. Johns and 35 kilometers southeast of Hibernia field was discovered by Petro-Canada in 1984. Weve had encouraging results from the eastern portion of the field and we hope this summers drilling will prove up additional reserves there the company said. Petro-Canada believes Terra Nova field is a good commercial prospect and the company wants to move some of those resources towards development so it can start generating a return on investments Petro-Canada said. Petro-Canada which will act as operator of the two wells has a 75 pct interest in the western portion of Graven block of the Terra Nova field and a 26 pct interest in the fields East Flank block a company spokesman said later. Other field participants include Canterra Energy Ltd Mobil Oil Canada Ltd Gulf Canada Resources Inc ICG Resources Ltd Trillium Exploration Corp and general partnership PAREX. Petro-Canada estimates reserves in the Terra Nova fields Graven block of between 68 mln and 70 mln barrels of oil company spokesman Bob Foulkes said from Petro-Canadas Calgary office. Combined reserves for Graven Block and the fields East Flank block are estimated between 70 mln and 130 mln barrels he added. Petro-Canada expects to spend about 500 mln Canadian dlrs to bring the field to production by about 1991 and the development budget could double if the company builds a production system combining both blocks in the field he said. Petro-Canada estimates the Terra Nova field Graven block would produce between 25000 and 26000 barrels average daily production with a production system that would have maximum capacity of 40000 bpd company spokesman Foulkes said in answer to a query. The company estimates a production system combining both Graven and East Flank blocks in the Terra Nova field could produce about 45000 bpd average daily production he said. Reuter | PETRO-CANADA TO DRILL TWO TERRA NOVA TEST WELLS |
Kingdom of Sweden is issuing a 100 mln stg bond due April 15 1997 carrying a coupon of 9-1/2 pct and priced at 101-1/4 said Baring Brothers and Co Ltd as lead manager. The issue is payable on April 15 1987. The bond is callable after seven years at 100-1/8 pct and it will be listed on the London Stock Exchange. Fees are a 1-3/8 pct selling concession and 5/8 pct combined management and underwriting fee. REUTER | KINGDOM OF SWEDEN ISSUES 100 MLN STG BOND |
(Charan Industries Inc) a distributor of toys and other consumer products expects 1987 net profit to rise at least 50 pct over last years 6.1 mln dlrs president Earl Takefman told reporters before the annual meeting. We grew basically 100 pct last year Im not sure were going to be able to grow 100 pct again this year but we certainly will grow at least 50 pct over last year Takefman said. Charan reported profit of 3.0 mln dlrs in 1985. Takefman said he expects sales to rise to about 100 mln dlrs this year from 57.3 mln dlrs in 1986. Fiscal 1985 ended September 30 while fiscal 1986 ended November 30. Takefman said the company is actively looking for acquisitions in the consumer products industry likely in Canada. The company said it expects to resolve delivery problems this year which last year hindered the growth of its toy distribution business which accounts for about one-third of revenues. Charan is the exclusive distributor in Canada for <Worlds of Wonder> toys which include the Teddy Ruxpin voice-activated talking plush bear. Takefman said new products this year which will be on the shelves for Christmas include a smaller version of Teddy Ruxpin a talking Mickey Mouse toy dancing plush toys a doll with a voice activated by sound touch light and heat and talking books. The company is also marketing an extended line of laser tag kits which shoot rays of light and tell you when youve hit someone. Other products include a recorder device which allows students to leave taped messages in each others school lockers retailing for about 60 dlrs. Reuter | CHARAN SEES AT LEAST 50 PCT RISE IN 1987 PROFIT |
Mayfair Super Markets said its sales for the second qtr ended Feb 28 were 122.0 mln dlrs an increase of more than 15 pct compared to sales of 105.9 mln dlrs in the comparable quarter last year. The company said sales for the first six months of the year were 242.0 mln dlrs more than 15 pct above the 210.1 mln dlrs reported in the same period last year. This was the 12th consecutive quarterly gain the company said. The company said it expects to release earnings in April. Reuter | MAYFAIR SUPER MARKETS <MYFRA> SALES INCREASED |
Timeplex Inc said it completed its previously-announced redemption of its 7-3/4 pct convertible subordinated debentures due 2008. The company said there had been 35 mln dlrs total principal amount of debentures outstanding. Debenture holders were entitled to convert their debentures into shares of the companys common stock at a 22.50 dlrs per share or 44-4/9 shares of common stock per 1000 dlrs principal amount of debentures. Reuter | TIMEPLEX INC <TIX> COMPLETES REDEMPTION |
PPG Industries Inc said a group of investors led by <Sterling Group> of Houston said it has agreed to acquire PPGs ethylene products business including its inteest in an ethylene glycols joint venture with du Pont Co <DD> in Beaumont Texas for undisclosed terms. The company said completion is expected in the second quarter. It said the business had sales of over 50 mln dlrs in 1986. Reuter | PPG INDUSTRIES <PPG> SELLS ETHYLENE INTERESTS |
The Federal Reserve is expected to intervene in the government securities market to add temporary reserves via customer repurchase agreements economists said. Most economists said the Fed will add 1.5 to two billion dlrs of temporary reserves via customer repurchase agreements but some said there is a slim chance the Fed will inject permanent reserves via three-day system repurchase agreements. Federal funds opened at 6-1/16 pct and firmed to 6-1/8 pct in early trading. Funds averaged six pct on Friday. Reuter | FED EXPECTED TO ADD TEMPORARY RESERVES |
Barclays Bank Plc <BCS.L> and Midland Bank Plc <MDBL.L> said they are cutting their base lending rates to 10.5 pct from 11 pct. The cuts follow a similar move by National Westminster Bank Plc <NWBL.L> The rate changes take effect tomorrow. The base rate reductions came after the Bank of England cut its dealing rates this morning in a signal to the money markets that it would not resist a half percentage point drop in bank base lending rates market sources said. Until the end of last week the central was holding out staunchly against market pressures for lower rates in an apparent effort to preserve the expected rate cuts for around the time of the governments annual Budget on March 17. Sterling remained firm around 1.59 dlrs compared with its close here on Friday at 1.5865 dlrs. Reuter | BARCLAYS, MIDLAND FOLLOW NATWEST BASE RATE CUT |
Ecology and Environment Inc said an initial public offering of one mln common shares is under way at 15 dlrs a share. The company is selling 919948 shares and shareholders the rest. <Prudential-Bache Securities Inc> is sole underwriter. Reuter | ECOLOGY/ENVIRONMENT <EEI> INITIAL OFFER STARTS |
About 8000 West German farmers marched through the northern city of Kiel today in a protest against European Community (EC) agricultural policies organisers said. The demonstrators burned straw effigies of the two West German members of the ECs 17-man Commission Karl-Heinz Narjes and Alois Pfeiffer and demanded their removal from office. Speakers at a rally also called on the government to take a tougher stance in dealings with the Commission. The protest was the latest of several by West German farmers against Commission proposals to cut EC farm spending.The farmers say the proposals will put many of them out of business. Reuter | WEST GERMAN FARMERS MARCH AGAINST EC POLICIES |
UNITED AUTO WORKERS UNION SAYS IT SUPPORTS CHRYSLER-AMC MERGER |
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RLR Financial Services said it will be releasing a statement shortly concerning the company. RLRs stock was halted this morning for news pending by the NASDAQ. Reuter | RLR FINANCIAL SERVICES <RLRF> TO MAKE STATEMENT |
Angola and Uruguay have established diplomatic relations at the ambassadorial level according to a joint communique signed by their U.N. representatives and circulated here today. Reuter | ANGOLA, URUGUAY ESTABLISH DIPLOMATIC RELATIONS |
Lloyds Bank Plc <LLOY.L> said it is cutting its base lending rate to 10.5 pct from 11 pct effective tomorrow. The reduction follows similar moves from the three other British clearing banks. National Westminster Bank Plc <NWBL.L> led the way this morning after the Bank of England lowered its dealing rates in a signal that it would tolerate a half percentage point reduction. The central banks surprise signal followed its strenuous efforts last week to prevent market forces from bringing down base rates before the U.K. Budget on March 17. REUTER | LLOYDS BANK MATCHES BASE RATE CUT TO 10.5 PCT |
Norcros <NCRO.L> Plc said it has no intention of proceeding any further with talks on Williams Holdings Plcs suggestion that there would be benefits arising from a merger between the two groups. Norcros said any such benefits could be achieved through normal trading and did not warrant a closer formal association. Norcros shares firmed 30p to 342p after the news on investor speculation of a possible hostile bid from Williams dealers said. Williams rose 2p to 742. Williams earlier informed Norcros that it holds some 2890000 of its ordinary shares or 2.2 pct of those issued. Reuter | NORCROS BREAKS OFF MERGER TALKS WITH WILLIAMS |
The Burton Group Plc <BRTO.L> said trading will commence in the U.S. In Burton Group American Depositary Receipts (ADRs). Burton said it expected the ADRs to increase significantly the North American demand for Burtons shares. A programme to promote the ADRs with presentations in the U.S. Is due soon. Burton shares here were 6p firmer at 306p. Reuter | BURTON GROUP ADRS START TRADING TODAY |
Lloyds Bank Plc <LLOY.L> said it is cutting its base lending rate to 10.5 pct from 11 pct effective tomorrow. The reduction follows similar moves from the three other British clearing banks. National Westminster Bank Plc <NWBL.L> led the way this morning after the Bank of England lowered its dealing rates in a signal that it would tolerate a half percentage point reduction. The central banks surprise signal followed its strenuous efforts last week to prevent market forces from bringing down base rates before the U.K. Budget on March 17. Reuter | LLOYDS BANK MATCHES BASE RATE CUT TO 10.5 PCT |
The West German Intervention Board said it accepted 962192 tonnes of grain from the start of the current agricultural year to the end of last month compared with 1.8 mln tonnes during the July/February period in 1985/86. It said it accepted 336097 tonnes of bread wheat (nil in the year-earlier period) 16818 (nil) tonnes of high quality wheat 33623 (523625) tonnes of feed wheat 3426 (168682) tonnes of rye 88494 (32766) tonnes of high quality rye 2313 (105005) tonnes of summer barley and 481421 (972794) tonnes of winter barley. Reuter | LESS GRAIN FLOWS INTO WEST GERMAN INTERVENTION |
Lloyds Bank Plc said it is cutting its base lending rate to 10.5 pct from 11 pct effective tomorrow. The reduction follows similar moves from the three other British clearing banks. National Westminster Bank Plc led the way this morning after the Bank of England lowered its dealing rates in a signal that it would tolerate a half percentage point reduction. The central banks surprise signal followed its strenuous efforts last week to prevent market forces from bringing down base rates before the U.K. Budget on March 17. Reuter | LLOYDS BANK MATCHES BASE RATE CUT TO 10.5 PCT |
FRENCH 13-WEEK T-BILL AVERAGE RATE FALLS TO 7.37 PCT FROM 7.69 PCT - OFFICIAL |
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The Hamburg fishmeal market saw little movement in the past week with demand slack as in other protein feed sectors trade sources said. Prices edged up on firmer origin offering levels and the stronger dollar. Sellers quoted 64 pct fishmeal at between 640 and 650 marks per tonne free on truck for spot and between 630 and 640 marks for April/Dec. International demand was also slow but some inquiries from Far Eastern buyers were noted in South American producer countries the sources said. Chile is said to have good catches in northern and southern fishing grounds with offers unchanged at 330 dlrs per tonne c and f North German ports. Perus catches differ regionally and stocks are low. Sellers quoted a nominal offering level of 320 dlrs per tonne c and f north German ports. Ecuador was not in the market and catches are said to be poor. Denmark has seasonally low catches with 72 pct meal offered at 315 crowns per 100 kilos cif North European ports for April/Oct deliveries. Iceland has good catches and sellers quoted a price of 5.45 dlrs per percentage point protein cif North European ports. Norway was not in the market. Reuter | LITTLE MOVEMENT ON HAMBURG FISHMEAL MARKET |
Banque Francaise du Commerce Exterieur (BFCE) is issuing a 150 mln dlr seven pct bond due April 1 1992 at par lead manager Societe Generale said. The issue of unsecured unsubordinated debt is guaranteed by France. Fees are 1-1/4 pct for selling 1/4 pct for management and 3/8 pct for underwriting. Payment date is April 1 listing is in Luxembourg and denominations are of 1000 and 10000 dlrs. The launch spread is 53 basis points over equivalent five-year treasuries. REUTER | FRANCE'S BFCE ISSUES 150 MLN DLR EUROBOND |
A half point cut in base lending rates was announced by the big four clearing banks today after the Bank of England finally endorsed such a move following weeks of downward pressure dealers said. During its routine intervention in the market the bank trimmed the rates at which it deals with the discount houses by half a point and National Westminster led the other clearing banks in reducing its base rate to 10-1/2 pct from 11 pct. The timing of the Bank of England move took operators by surprise after its recent action seemingly designed to dampen hopes of a base rate cut ahead of the U.K. Budget on March 17. For some time fundamentals have led the market to push for a one point cut in base lending rates to 10 pct but the central bank has declined to follow wholesale money market rates down. Although political considerations -- the governments wish to see a fall in base rates coincide with the Budget -- had been suggested by operators last week as reasons for the Banks delaying action worries about the real strength of sterling and perhaps about the markets reaction to the content of the Budget may have been behind the central banks caution dealers said. In the event sterling continued firm after the rate cut leaving the market still looking for another half point fall. Consequently rates in the money market eased during the day one-month interbank sterling shedding 5/16 point to 10-9/16 7/16 and three-months trading 1/16 point down at 10-5/16 3/16 pct. Sterling cds were similarly down between 5/16 point in one month and 1/8 point in one year. Overnight interbank money for tomorrow was indicated at around 11 pct almost a point below the levels ruling at the end of last week. Today overnight touched a high of some 11-3/4 pct after the Bank took out 228 mln stg of an estimated 300 mln stg shortage. REUTER | UK MONEY RATES FALL AS BANK APPROVES BASE RATE CUT |
Over 240 mln bushels of government grain have been allocated in redemptions for commodity certificates since the program began April 30 according to the Commodity Credit Corporation. Redemptions included 11.4 mln bushels of corn valued at 17.0 mln dlrs or an average per-bushel price of 1.492 dlrs since the current grain catalogs were issued December 1 by CCC. Wheat redemptions totaled 9.6 mln bushels valued at 23.7 mln dlrs since December 1. More | GRAIN CERTIFICATE REDEMPTIONS PUT AT 240 MLN BU |
American Motors Corp said it is studying a proposed merger with Chrysler Corp. American Motors said it received a letter from Chrysler Corp advising us of their proposal to enter into a merger transaction with American Motors Corp. In a brief statement the company said We are studying the proposal. We will have further comment when it is appropriate. Reuter | AMC <AMO> STUDYING CHRYSLER <C> PROPOSAL |
Den Danske Bank af 1871 A/S said it was issuing the first certificates of deposit from a Danish bank and that the CDs will be for six nine and 12 months or a negotiable period. They will come in denominations of 10 mln crowns without commission to the bank. Interest will be linked to money and capital market rates and paid on a discount basis with certificates sold below par and maturing at par a bank statement said. The certificates are not liable to stamp duty. They will be a flexible supplement to negotiated deposits and will give companies and institutional investors better chances to organise liquidity the statement said. Bank spokesman Arne Lund said We could not do it earlier because it was not possible for the tax authorities to say if the certificates were liable to stamp duty or not. He said the issue should be assisted by high short-term interest rates. REUTER | DANSKE BANK IS FIRST DANISH BANK TO ISSUE CDS |
International Geosystems Corp a subsidiary of Golden Tech Resources said recent orders of its TianMa Chinese Language word processing system have brought year-to-date sales to more than 2900000 Canadian dlrs. Reuter | GOLDEN TECH RESOURCES <GTS.V> UNIT NOTES SALES |
American Express Cos stock fell sharply reflecting in part investors disappointment that the company did not make an announcement about its plans for brokerage unit Shearson Lehman Brothers traders said. The company has said it is studying options for its Shearson unit. Traders said many investors anticipated an announcement this weekend that it would spin off Shearson Lehman. Also they said a flurry of arbitrage related sell programs that pounded the general market today accelerated the selloff of American Express a component of the Dow Industrial Average. American Express fell 3-1/8 to 77-3/8. It was part programs and part that there was anticipation of an announcement of a spinoff or something with Shearson this weekend and that announcement never happened one trader said. In the last few minutes of trading on Friday another trader said the stock jumped to close up 3-3/8 largely on anticipation that the company would make a weekend announcement. Reuter | WALL STREET STOCKS/AMERICAN EXPRESS <AXP> |
Infotron Systems Corp said it elected Robert E. Purcell chairman of the board a position held vacant for several years. Reuter | INFOTRON <INFN> NAMES NEW CHAIRMAN |
UAL'S UNITED AIRLINES FEBRUARY LOAD FACTOR RISES TO 63.2 PCT FROM 58.9 PCT |
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Ranger Oil Ltd said it completed on March 2 the previously announced sale of its U.S. oil and gas properties held by subsidiaries Ranger Oil Co and Ranger Inc to Ampol Exploration Ltd of Australia for 18.5 mln U.S. dlrs. Ranger said that under the deal it would retain a five pct gross overriding royalty on its stake from blocks east cameron 65 and 82 in the Gulf of Mexico offshore Lousiana. It said the sale did not include U.S. properties acquired from <Berkeley Exploration and Production PLC> last December. Reuter | RANGER <RGO> COMPLETES U.S. PROPERTY SALE |
AMOCO'S FIRST SOUTH CHINA SEA EXPLORATORY WELL FLOWS 2,240 BARRELS OF OIL DAILY |
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Kingdom of Sweden is issuing a 100 mln stg bond due April 15 1997 carrying a coupon of 9-1/2 pct and priced at 101-1/4 Baring Brothers and Co Ltd said as lead manager. The issue is payable on April 15 1987. The bonds are callable after seven years at 100-1/8 pct and it will be listed on the London Stock Exchange. Fees are a 1-3/8 pct selling concession and 5/8 pct combined management and underwriting. REUTER | KINGDOM OF SWEDEN ISSUES 100 MLN STG BOND |
In an unusual move Standard and Poors Corp downgraded a U.S. corporate debt issue soon after it was priced for offering late last week. But unlike a similar action in September 1986 which investment bankers said disrupted the financing the agencys rate reduction had no effect this time traders said. S and P announced Friday afternoon that it cut to B from B-plus a 900 mln dlr issue of senior notes due 1994 of Holiday Inns Inc a unit of Holiday Corp <HIA>. The notes were priced late Thursday by sole manager Drexel Burnham Lambert Inc. In a release Standard and Poors said the action reflected a change in the note issues terms to an unsecured form of debt from secured. That change was made after the agency rated the notes on February 20 S and P stated. We took action as we became aware that the issues structure had changed said Robert Nelson of S and P. We generally make a distinction between secured and unsecured debt and this was the key factor in our downgrade. A spokesman for Drexel said the action did not affect the Holiday Inns deal which had already sold out to investors by late Friday afternoon. The Holiday notes are trading at 100.50 on a when-issued basis the Drexel spokesman said soon after S and Ps announcement. The 10-1/2 pct notes had been priced at par. That is a far cry from late September when S and P downgraded a 215 mln dlr issue of subordinated sinking fund debentures due 1998 of New World Pictures Ltd <NWP> just hours after the pricing. Because of the rating cut to CCC-plus from B-minus the underwriter halted sales and repriced the issue. Sole manager L.F. Rothschild Unterberg Towbin initially gave the debentures a 12-1/4 pct coupon and par pricing. It then repriced the issue at 97 to yield 12.74 pct. New World Pictures had increased the issue to 215 mln dlrs from an original offering of 150 mln dlrs and that brought in S and P. The agency cited the larger financing in its action and said it believed the issuers cash from existing operations would not be enough to adequately service debt. An officer with S and P said at the time the rating agency was not told beforehand that the issue had been increased in size. Usually issuers and underwriters alert the rating agencies to any changes in debt offerings he said. In both cases Moodys Investors Service Inc declined to follow suit bond traders noted. Indeed Moodys announced Friday that its original rating of B-1 for the Holiday Inns notes remained appropriate. Moodys pointed out that while the seven-year notes would be unsecured obligations of Holiday Inns the issue would benefit from a negative pledge provision and a call for specified collateral under certain circumstances. The agency also said the B-1 rating continued to recognize a highly leveraged debt structure that would result from Holidays recapitalization program as well as the companys dependence on property sales to produce adequate cash flow for near-term debt service. Aside from Holiday Inns and New World Pictures I cannot remember the last time an issue was downgraded so soon after the pricing remarked one corporate bond trader. Holiday Inns also sold Thursday via Drexel 500 mln dlrs of subordinated debentures due 1999 with an 11 pct coupon and par pricing. The debentures ratings of B-2 by Moodys and B-minus by S and P were left unchanged on Friday. The combined offering of 1.4 billion dlrs was the second-largest junk bond deal ever brought to market underwriters and traders said. They said the biggest was BCI Holdings 2.35 billion dlr offering on April 10 1986. That the Holiday Inns deal sold out quickly underscored the appetite of many investors for high-yield securities. People are hungry for yield. They are not worried about downside risk at all especially for junk bonds issued by well-known companies said one portfolio manager. As a result investors are expected to snap up this weeks planned offerings by Allied Stores Corp of 200 mln dlrs of senior notes due 1992 rated B-2/B and 600 mln dlrs of senior subordinated debentures due 1997 rated B-3/CCC-plus. Lead underwriter First Boston Corp said Friday it has tentatively scheduled the securities for pricing today. Reuter | U.S. CORPORATE FINANCE - S/P CUT HAS NO EFFECT |
The U.S. Department of Agriculture will probably decrease its estimate of the 1986/87 Florida orange crop today to as low as 123 mln boxes from 129 mln boxes analysts and industry sources said. The Department is scheduled to release the new estimate at 1500 hrs EST (2100 gmt) today. Analysts said the market is anticipating a downward revision and much of the bullish impact has been discounted. The estimate which the USDA has left unchanged since October should be affected this time by recent evidence of a shortfall in the early and midseason crop now that those harvests are complete. Analysts said based on earlier USDA projections the harvests should have been five to seven mln boxes larger than they were. They are going to cut their estimate said Bob Tate an FCOJ broker with Dean Witter Reynolds in Miami. The only question is whether they will admit the whole thing in this estimate. Tate said it is possible the USDA will lower its estimate by a lesser amount perhaps three mln boxes and continue to drop the estimate in subsequent reports as the crop picture clarifies. The late season harvest consisting mostly of Valencia oranges has not yet started he noted. Theyll temper it said Judy Weissman FCOJ analyst with Shearson Lehman Bros. The main drop will probably come in July. She expects todays estimate will be 126 mln boxes. Reuter | TRADERS SAY USDA MAY LOWER ORANGE CROP ESTIMATE |
Moodys Investors Service Inc said it downgraded 50 mln dlrs of debt of Florida National Banks of Florida Inc and its lead bank Florida National Bank. Moodys cut the parents subordinated debt to Baa-1 from A-3 and the lead banks long-term deposit obligations to A-1 from Aa-3. Affirmed were Florida Nationals commercial paper at Prime-2 and the units short-term deposits at Prime-1. The rating agency cited elevated levels of non-performing assets that are concentrated in real estate lending. Moodys pointed out that losses escalated throughout 1986 and said it expects only a partial improvement this year. Reuter | FLORIDA NATIONAL <FNBF> DOWNGRADED BY MOODY'S |
Perry Drug Stores Inc said February sales were up 19.5 pct to 52 mln dlrs from 43 mln dlrs a year earlier with same-store sales up five pct. It said sales for the first four months of its fiscal year were up 17.0 pct to 241 mln dlrs from 206 mln dlrs a year before with same-store sales up five pct. Reuter | PERRY DRUG <PDS> FEBRUARY SALES UP 19.5 PCT |
The United Auto Workers <UAW> union said it supports Chrysler Corps proposal to buy American Motors Corp as creating a good match that potentially points the way to a more secure future for workers at both companies. We believe our members interests can be well served within the Chrysler family and we are committed to making that happen UAW president Owen Bieber and vice president Marc Stepp said in a statement. We believe Chryslers purchase is a logical and sound step for all concerned the union said. The UAW is negotiating with AMC over the carmakers demand for economic concessions covering workers at its Wisconsin operations without which AMC has said it would cease vehicle production at its Kenosha Wisconsin assembly plant by 1989. Reuter | UAW SAYS IT BACK CHRYSLER <C>, AMC <AMO> MERGER |
A Transworld Airlines Inc official said the airline has no comment on USAir Group Incs planned buyout of Piedmont Aviation Inc. TWA however has pursued its application with the Department of Transportation for a takeover of USAir according to Mark Buckstein TWA general counsel and vice president. TWA filed a revised application today following the DOTs rejection Friday of an incomplete application filed last week. Earlier USAir said it agreed to buy Piedmont for 69 dlrs cash per share. | TWA <TWA> DECLINES COMMENT ON USAIR <U> |
Moodys Investors Service Inc said it may downgrade 120 mln dlrs of debt of Piedmont Aviation Inc because of the airlines agreement to be acquired by USAir Group Inc <U>. The rating agency said its review would focus on the effect of the acquisition on Piedmonts financial leverage and its debt-service requirements. Moodys said it is also examining the potential use of the airlines borrowing capacity to finance the merger. Piedmont currently carries Baa-2 preferred stock and Prime-2 commercial paper. Reuter | MOODY'S MAY DOWNGRADE PIEDMONT AVIATION <PIE> |
The chairman of the conference on a new International Natural Rubber Agreement (INRA) Manaspas Xuto of Thailand said it was imperative to try to settle the main outstanding issues this week. The INRA renegotiation conference which resumed today under the auspices of the United Nations Conference on Trade and Development (UNCTAD) is scheduled to last until March 20. Xuto told delegates this session of the conference presented a promising opportunity to conclude a new pact but it had to be the last before the current accord expires in October. Xuto said in his consultations with representatives of major exporting and importing countries over the last few months I have found a constructive attitude and willingness to be flexible on the part of all concerned. It is imperative that we try to settle the major outstanding issues in the course of this week since a considerable amount of technical drafting work will remain to be completed. He said he will immediately start consultations with producers and consumers. The last October negotiations collapsed in disagreement over buffer stock operations. Consumer demands for tighter buffer stock controls aimed at preventing INRA from following the collapse of the International Tin Agreement (ITA) were rejected by producers who argued for unchanged INRA terms. The tin pact failed when its buffer stock manager ran out of funds to support prices. Three previous rounds of talks between rubber producers and consumers for a new five-year pact ended without agreement. The INRA originally due to expire in October 1985 was extended to October 1987 to facilitate renegotiation. Wong Kum Choon head of the Malaysian delegation said he was cautiously optimistic that together we should be able to save INRA and prevent it from being scuttled. Without INRA he added prices of natural rubber would become more volatile. Calling on delegates to show a sense of purpose and reality he said There is no reason why we could not put aside differences and come up with a successor agreement. Reuter | RUBBER PRODUCERS, CONSUMERS START NEW PACT TALKS |
Highland Superstores Inc said its February sales rose 14 pct to 46.5 mln dlrs from 40.9 mln dlrs a year ago. The company said on a comparable store basis considering stores open for at least 24 months sales declined 10 pct. It said it currently operates 53 stores. Reuter | HIGHLAND SUPERSTORES <HIGH> FEBRUARY SALES RISE |
Moodys Investors Service Inc said the 212.75 mln dlrs of debt of USAir Group Inc and its USAir Inc unit remain under review for possible downgrade. The rating agency cited USAir Groups proposed acquisition of Piedmont Aviation Inc <PIE> as well as Trans World Airlines Incs <TWA> proposed cash merger with USAir. However the status of TWAs bid for USAir Group is currently uncertain. The U.S. Transportation Department has rejected TWAs application to acquire USAir on deficiency grounds but TWA has said it will file a revised application Moodys noted. Under Moodys review for possible downgrade are USAir Groups Baa-1 senior debt and Baa-2 subordinated debentures along with the USAir units A-3 senior debt and Baa-1 subordinated debentures. Moodys said it would examine the effects of the proposed mergers on USAir Groups financial measurements as well as potential damage to the companys financial flexibility because of the probability of increased debt-service requirements. Reuter | USAIR <U> AND UNIT REMAIN UNDER MOODY'S REVIEW |
Enterra Corp said its bank group has reduced its revolving credit agreement to 40 mln dlrs from 60 mln dlrs. Also the company said it and its units granted the group a security interest in their assets. Enterra said the change resulted from Enterras previously announced agreement to sell its Hale Fire Pump Co and Macomson Machine Co for about 27 mln dlrs as part of its restructuring. Reuter | ENTERRA <EN> CREDIT LINE CUT |
FED SETS 2.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS |
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Royal Bank of Canada <RT.TO> said it is extending its discount brokerage service which has been available to Ontario residents since last year to Quebec investors. The bank said the success of the Ontario service is also prompting it to consider making the service available in several other provinces. Royal Bank said the service offers cuts of up to 75 pct on standard brokerage commissions toll-free up-to-the-minute stock quotes and margin loans in U.S. or Canadian dollars at competitive rates. Reuter | ROYAL BANK/CANADA EXTENDS BROKERAGE SERVICE |
Bally Manufacturing Corp said it expects a charge to earnings in the first quarter of this year of 17.3 mln dlrs as a result of its deal to buy back 2.6 mln of its common shares from real estate developer Donald Trump. In a filing with the Securities and Exchange Commission the Chicago-based hotel casino gambling and amusement concern also said the anticipated charge against first quarter earnings will not be deductible for federal income tax purposes. Under a February 21 deal Bally agreed to buy 2.6 mln of the 3.06 mln shares held by Trump at 24 dlrs a share or 62.4 mln dlrs while Trump agreed not to try to seek control of Bally. The agreement also calls for Bally to pay Trump another 6.2 mln dlrs for certain agreements claims and expenses related to his purchase of the Bally common stock Bally said. Trump agreed not to buy any more Bally stock or to try to seek control of the company for 10 years it said. Bear Stearns and Co Inc signed a similar standstill agreement with Bally for three years Bally said. But it can still deal in Bally stock as a broker it said. The deal also obligates Bally to buy Trumps remaining stake in the company for 33 dlrs a share if the stock price does not reach that level by February 21 1988 it said. Reuter | BALLY <BLY> TO TAKE 17.3 MLN DLR 1ST QTR CHARGE |
SHELL CANADA SAID IT RAISED CRUDE PRICES BY 47 CANADIAN CTS A BARREL TODAY |
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Hudson Bay Mining and Smelting Co Ltd said it cut prices for all grades of zinc sold in North America by one U.S. cent a pound and by one Canadian cent a pound effective immediately. The new price for high grade zinc is 37 U.S. cents and 49-1/2 Canadian cents a pound the company said. Special high grade prime western and continuous galvanizing grade with controlled lead now costs 37-1/2 U.S. cents and 50 Canadian cents a pound. The new price for continuous galvanizing grade alloyed with controlled lead and aluminum additions is 37-3/4 U.S. cents and 50-1/4 Canadian cents a pound. Reuter | HUDSON BAY MINING CUTS U.S., CANADA ZINC PRICES |
The Federal Reserve entered the U.S. Government securities market to arrange 2.5 billion dlrs of customer repurchase agreements a Fed spokesman said. Dealers said Federal funds were trading at 6-3/16 pct when the Fed began its temporary and indirect supply of reserves to the banking system. Reuter | FED ADDS RESERVES VIA CUSTOMER REPURCHASES |
WHITE HOUSE SPOKESMAN REITERATES PRESIDENT REAGAN'S OPPOSITION TO TAX HIKE |
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An appeal by Buitoni SpA against a court ruling that an accord under which it was to acquire Italian state food firm SME - Societa Meridionale Finanziaria was not contractually binding has been rejected court officials said. An appeal court rejected Buitonis claim that the 497 billion lire accord with the state industrial company IRI - Istituto per la Ricostruzione Industriale was a binding contract. The decision upholds a court ruling of last July. Buitoni is controlled by CIR - Compagnie Industriali Riunite an investment company itself controlled by Ing C Olivetti EC SpA (OLIV.MI> chairman Carlo De Benedetti. Reuter | COURT REJECTS BUITONI APPEAL OVER IRI FOOD UNIT |
American Electric Power Co (AEP) said its 1.3 mln kilowatt Mountaineer Plant at New Haven W. Va. will be taken out of operation March 13 for routine maintenance. AEP said Mountaineer is owned and operated by Appalachian Power Co one of the AEP Systems seven operating companies. Reuter | AMERICAN ELECTRIC <AEP> PLANT TO BE SHUT DOWN |
Allegheny International Inc the consumer products concern that today announced a merger agreement with a First Boston Corp <FBC> affiliate in a deal worth about 500 mln dlrs said it intends to divest more units as a way to increase profits. Were going to reduce AI to a size consistent with our financial resources said Chairman Oliver S. Travers. We have made a conscious strategic choice to become a smaller financially sound consumer products company which operates predominantly in the stable political and economic environment of North America he said. | ALLEGHENY <AG> AIMS TO DIVEST MORE BUSINESSES |
Hamilton Oil Corp said reserves at the end of 1986 were 59.8 mln barrels of oil and 905.5 billion cubic feet of natural gas or 211 mln barrels equivalent up 10 mln equivalent barrels from a year before. Reuter | HAMILTON OIL <HAML> SAYS RESERVES RISE |
Computer Sciences Corp said it has joined American Telephone and Telegraph on a bid for a 4.50-billion-dlr ten-year contract to provide the federal government with a telecommunications network. AT and T will be the prime contractor. The General Services Administration will award the contract by the end of the year. Computer Sciences Corp will be responsible for design development and maintenance of a software system that would issue customer bills under the contract. AT and T said it is also using resources from Boeing Co <BA> and seven regional holding companies that were formerly Bell Operating Cos for work on the contract bid. Reuter | COMPUTER SCIENCES <CSC> JOINS ATT <T> ON BID |
Rohr Industries Inc is raising 150 mln dlrs through an offering of subordinated debentures due 2017 with a 9-1/4 pct coupon and par pricing said lead manager Dillon Read and Co Inc. That is 160 basis points over the yield of the off-the-run 9-1/4 pct Treasury bonds of 2016. Non-refundable for 10 years the issue is rated Baa-2 by Moodys and BBB by S and P. A sinking fund beginning in 1998 to retire five pct of the debt annually can be increased by 200 pct at the companys option giving the debentures an estimated minimum life of 13.9 years and estimated maximum life of 20.5 years. Reuter | ROHR <RHR> SELLS DEBENTURES AT 9-1/4 PCT |
Life Technologies Inc said it signed a two mln dlr technology transfer and licensing agreement with Toray Industries Inc a Tokyo-based maker of synthetic fibers and industrial consumer and medical products. Under terms of the agreement Life said Toray purchased exclusive rights to market Lifes hepatitus B detection technology in Japan Korea and Taiwan. Moreover Life said the companies agreed to begin a joint research and development program to develop other human diagnostic products. Reuter | LIFE TECHNOLOGIES <LTEK> IN LICENSING AGREEMENT |
UAL Inc said its United Airlines units load factor for February rose to 63.2 pct from 58.9 pct the year before. The airline said scheduled capacity for the month rose 27.7 pct to 7.60 billion available seat miles from 5.95 billion while traffic rose 37 pct to 4.80 revenue passenger miles from 3.50 billion. February 1987 figures include its new Pacific routes acquired from Pan American World Airways in early 1986. Reuter | UAL'S <UAL> AIRLINE FEBRUARY LOAD FACTOR RISES |
Graham-McCormick Oil and Gas Partnership said it completed the sale of interests in two major oil and gas fields to <Energy Assets International Corp> for 21 mln dlrs. The company said it sold about one-half of its 50 pct interest in the Oak Hill and North Rucias fields its two largest producing properties. It said it used about 20 mln dlrs of the proceeds to prepay principal on its senior secured notes. Semi-annual principal payments on the remaining 40 mln dlrs of notes have been satisfied until December 1988 as a result it said. The company said the note agreements were amended to reflect an easing of some financial covenants and an increase of interest to 13.5 pct from 13.0 pct until December 1990. It said the noteholders exercise price for 1125000 warrants was also reduced to 50 cts from 1.50 dlrs. The company said Energy Assets agreed to share the costs of increasing production at the Oak Hill field. Reuter | GRAHAM-MCCORMICK <GOP> SELLS OIL AND GAS STAKE |
<Fujitsu America Inc> a subsidiary of Fujitsu Ltd said it will form a joint company with <GTE Communication System> to develop and market voice and data business communication systems to the North American market place. The new company Fujitsu GTE Business Systems Inc will be headquartered in Tempe Ariz. and is scheduled to begin operations April 11. Fujitsu said the new company will be 80 pct owned by Fujustu of America and 20 pct by GTE Communication. No other terms of the financial transaction were being disclosed the company said. | FUJITSU LIMITED UNIT SIGNS JOINT VENTURE PACT |
Advanced Tobacco Products Inc said it has ended talks on being acquired by Sterling Drug Inc <STY> but has resumed acquisition talks with other parties. The company had previously announced that a major U.S. based company that it did not identify was evaluating its nicotine technology. Advanced said Sterlings board has decided not to enter the nicotine product market. It said it received a 200000 dlr payment to deal exclusively with Sterling through March Six. Advanced said it had suspended merger talks with other parties as a result of the exclusivity agreement. Reuter | ADVANCED TOBACCO <ATPI> MERGER TALKS END |
Mixed media group Bertelsmann AG <BETG.F> said its subsidiary Publicsoft GmbH has agreed to market Apple Computer Incs <AAPL.O> software products to the specialized West German computer retail trade. The cooperation agreement between Publicsoft and Apples West German subsidiary Apple Computer GmbH did not involve either company taking any kind of financial stake in the other a Bertelsmann spokesman said. He declined to say how much the agreement was worth. Reuter | BERTELSMANN TO MARKET APPLE SOFTWARE IN GERMANY |
MTech Corp said it filed with the Securities and Exchange Commission a registration statement covering a 75 mln dlr issue of convertible subordinated debentures due 2012. The company named Alex Brown and Sons Inc as lead manager with First Boston Corp and Shearson Lehman Brothers Inc as co-managers of the offering. MTech said it granted the underwriters an option to buy an additional 11.25 mln dlrs in principal amount of the debentures to cover over-allotments. Reuter | MTECH <MTCH> FILES CONVERTIBLE DEBT OFFERING |
British Airways said it is introducing a short-stay fare called On The Town permitting passengers to book a theater holiday in London at the last minute and spend up to four days in England. British Airways said the packages are available beginning today and ending April 16 from New York Boston Chicago and Detroit for 468 dlrs midweek and 518 dlrs on weekends. The airline also said packages from Pittsburgh Baltimore and Washington D.C. will be priced at 499 dlrs midweek and 549 dlrs on weekends and Philadelphia for 479 dlrs midweek and 529 on weekends. Reuter | BRITISH AIRWAYS <BAB> OFFERING HOLIDAY PACKAGE |
T.H.E. Fitness INc said it agreed to buy Livingwell Incs manufacturing unit Powercise INternational Inc for 11.0 mln T.H.E. Fitness shares valued at about 30 mln dlrs. This acquisition includes all of Livingwells rights to its recently announced Powercise fitness equipment. IN a separate transaction Livingwell INc an operator of 300 health clubs placed a six mln dlrs order with Powercise INternational to install the Powercise equipment in all of its clubs. Reuter | T.H.E. FITNESS <RFIT> BUYS LIVINGWELL UNIT |
Oil traders in the New York area said Exxon Corps Exxon U.S.A. increased the price it charges contract barge customers for heating oil in New York harbor by 1.5 cts a gallon effective Saturday March 7. They said the increase brought Exxons contract barge price to 50 cts a gallon. Traders said the price hike followed higher spot and futures market prices for heating oil. Reuter | EXXON <XON> RAISES HEATING OIL PRICE, TRADERS |
RLR Financial Serivces Inc said the National Association of Securities Dealers intends to delist it because the NASD beleieves market sales of RLRs broker/dealer subsidiary RLR Securities Group Inc are not being made under an effective registration statement as required by the Securities Act of 1933. RLR said the NASD intends to delist it on March 12 unless RLR demonstrates compliance with the law. RLR said it believes the action is without merit because there is an effective registration statement for the RLR Financial securities involved and it intends to defend itself in the matter. RLR said it has asked the NASD to stay any deletion of its securities from NASDAQ pending its continuous review of the matter and a possibility of a hearing on the merits. RLR said it has stopped market making in its own securities pending resolution of the matter. It said a delisting from NASDAQ could have an adverse effect on the market and prices for its securities. Reuter | RLR FINANCIAL <RLRF> TO BE DELISTED FROM NASDAQ |
<Hudson Bay Mining and Smelting Co Ltd> said it cut prices for all grades of zinc sold in North America by one U.S. ct a pound and by one Canadian ct a pound effective immediately. The new price for high grade zinc is 37 U.S. cts and 49-1/2 Canadian cts a pound the company said. Special high grade prime western and continuous galvanizing grade with controlled lead now costs 37-1/2 U.S. cts and 50 Canadian cts a pound. The new price for continuous galvanizing grade alloyed with controlled lead and aluminum additions is 37-3/4 U.S. cts and 50-1/4 Canadian cts a pound. Reuter | HUDSON BAY MINING CUTS U.S., CANADA ZINC PRICES |
BankAmerica Corps Bank of America unit said it completed the previously announced sale of BankAmerica Finance Ltd to <Bank of Ireland> for an expected pre-tax gain of 23 mln dlrs. BankAmerica Finance provides residential mortgages in south east England. Its total assets at the end of 1986 were about 1.2 mln dlrs. Reuter | BANKAMERICA <BAC> COMPLETES MORTGAGE UNIT SALE |
Rolls Royce the U.K.s state-owned car and aircraft engine maker is seeking a 250 mln stg multiple option facility to provide it with additional sources of financing banking sources said. They said the facility which will be syndicated among a small group of the borrowers relationship banks is being put in place ahead of the privatisation of Rolls Royce in April or May. At the borrowers request terms will not be disclosed until later this week when bankers expect the syndication to close. But while the terms are in line with the market they are somewhat tight bankers said. The bankers noted that although Rolls Royces debt will be negligible after privatisation it wants to have a range of financing arrangements available to allow it to take advantage of market opportunities when they become available. The financing will involve a 150 mln stg five-year committed tranche and will be backed by an uncommitted tender panel through which Rolls Royce will be able to issue bills or multi-currency advances. S.G. Warburg and Co Ltd is arranger for the financing the bankers said. REUTER | ROLLS ROYCE SEEKS 250 MLN STG CREDIT FACILITY |
SUPERMARKETS GENERAL GETS UNSOLICITED BID FOR 41.75 DLRS/SHR CASH |
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The Treasury Department is due to release funds for the Brazilian Coffee Institute IBC to pay for the coffee purchased from local producers the IBC said in a statement. IBC production director Oripes Gomes said in the statement that payment would be made within the official guarantee prices. The statement said the IBC is sending a document to the National Monetary Council asking the government to set a budget for the purchase by the Institute of up to five mln bags of coffee until June 30. Gomes said in the statement there have been no problems in the concession of funds by the Treasury for payment of the coffee delivered to the IBC warehouses by the producers. He said producers have already delivered 2.2 mln bags of which 1.5 mln bags have been paid for. In the future according to an agreement to be signed with the Treasury the Institute will no longer need to seek approval by the Treasury to seek the release of additional funds to buy coffee the statement said. Reuter | BRAZIL TREASURY TO RELEASE COFFEE BUYING FUNDS |
West German private banks in the latest twist in a long-running battle over the size of their holdings in industry have said the holdings were falling and rejected calls for tighter limits on these participations. Under West Germanys banking system banks can hold shares in non-banking companies giving them seats on company supervisory boards and administer the holdings of small shareholders in safe custody accounts. Holdings of over 25 pct which give a veto right in the supervisory board of a company must be disclosed. The claim that the concentration of power has intensified as made by the Monopolies Commission therefore turns out not to be accurate ... There is no reason to impose further legal restrictions on the acquisition of holdings by banks it said. The Associations letter is the latest skirmish in a long running battle between banks on the one hand and a range of government offices and political lobbies on the left and right. The number of holdings above 10 pct in public companies with a nominal share capital of over one mln marks held by these 10 banks fell to 86 in 1986 from 129 in 1976 it said. Of these 43 reductions 41 represented holdings of over 25 pct in 1976. The banks holdings of nominal share capital fell to 1.70 billion marks in 1986 or 1.34 billion adjusted for capital changes in the past 10 years from 1.80 billion in 1976. Over this period total West German nominal share capital rose to 235 billion marks from 136 billion so that the holding of banks in German companies fell to 0.7 pct from 1.3 pct. The nominal share capital of listed non-bank companies rose to an estimated 49 billion marks in 1986 from 35.58 billion in 1976 with banks holdings falling to 1.57 billion marks or 3.2 pct from 1.61 billion marks or 4.5 pct the Association said. It argued that bank representatives were in a minority on the supervisory boards of the 100 biggest German companies and in most cases could be blocked by non-banking representatives. The survey covered Deutsche Bank AG <DBKG.F> Dresdner Bank AG <DRSD.F> Commerzbank AG <CBKG.F> Bayerische Vereinsbank AG <BVMG.F> and Bayerische Hypotheken- und Wechsel-Bank AG <BHWG.F>. It also covered Berliner Handels- und Frankfurter Bank <BHFG.F> <Berliner Bank AG> <Industriekreditbank AG> Vereins- und Westbank AG <VHBG.F> and <Baden-Wuerttembergische Bank AG>. Deutsche holds by far the largest number of such stakes including 28.5 pct of Daimler-Benz AG <DAIG.F>. Criticism of the bank holdings has not only come from the Monopolies Commission and left-wing parties. An advisory commission in a report late last year to the Economics Ministry urged implementation of the five pct proposed by the Monopolies Commission to promote competition and avoid interest conflicts. The Economics Ministry has been controlled by the liberal Free Democrat Party junior partner in the centre-right coalition government and increasingly in favour of deregulation. Furthermore the West German Supreme Court recently supported an action by a private Deutsche shareholder demanding more transparency in the banks balance sheet. The shareholder argued that the banks ability to declare industrial stakes of more than 25 pct as only temporary holdings evaded the statutory requirement to report them in full. If a bank declares stakes temporary it does not have to disclose them but can include them under securities holdings. The case is due to be heard again by the Frankfurt higher regional court. REUTER | GERMAN BANKS SAY COMPANY HOLDINGS FALLING |
Shell Canada a wholly owned subsidiary of the Royal Dutch/Shell Group <RD> said that it raised crude oil prices by about 47 Canadian cts a barrel today. The increase riased its posted price for Light sweet crude oil to 21.95 dlrs a barrel from its march one level. Light sour crudes were raised to 19.95 dlrs a barrel the company said. Reuter | SHELL CANADA <SHC> RAISED CRUDE OIL POSTINGS |
GHANA COCOA PURCHASES 1,323 TONNES IN LATEST WEEK, CUMULATIVE 216,095 TONNES - OFFICIAL |
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The staff of the Commodity Futures Trading Commission CFTC recommended that the regulatory agency approve the Minneapolis Grain Exchanges application to trade high fructose corn syrup-55 HFCS-55 futures contracts. The commission is expected to approve the application at a meeting tomorrow. The proposed contract would provide for the delivery of 48000 lbs plus or minus two pct of bulk HFCS-55 a liquid food and beverage sweetener produced through processed corn starch by corn refiners. Under proposed rules a shipping certificate has a limited life as it expires 30 days following the last day of trading of the expiring contract month. A premium charge of 14.40 dlrs per contract per day would be assessed under the proposal. Reuter | MGE CORN SYRUP FUTURES CONTRACT CLEARS HURDLE |
The World Bank intends to bring borrowing forward into the first half of 1987 because it expects global interest rates to rise by year end World Bank vice president and treasurer Eugene Rotberg said. He told a news conference that rates in the U.S. Japan West Germany and Switzerland were near their lows. The weight of opinion is (that in a year from now) there is a higher probability there will be one pct higher than one pct lower interest rates he said. The World Bank had not issued floating rate notes so far this year because of the expectation of higher interest rates. The policy of the World Bank was to maintain liquidity at a level that gave the bank flexibility to decide when where and how much to borrow Rotberg said. Cash in hand was now about 50 pct of the next three years anticipated net requirement and comprised 25 pct of outstanding debt and 66 pct of its debt maturing within five years. Although the World Bank had pioneered the swap market it did not intend to launch new financial instruments just for the sake of innovation Rotberg said. Of a total of 74.5 billion dlrs debt outstanding only some eight billion had been swapped into another currency. Many recent innovations were either unfair to investors or unfair to borrowers. Until the World Bank was confident that this was not the case it would not adopt new instruments. The World Bank would raise 90 pct of the funds needed over the next year with methods used before Rotberg said. However for some 10 pct of new requirements the bank would try out new instruments such as bonds with warrants. The World Bank had publicly offered 60 bonds in Germany since the first issue was launched in 1959 he said. | WORLD BANK TO BRING BORROWING FORWARD THIS YEAR |
Comair Inc said February load factor fell to 34.6 pct from 38.0 pct a year before. The company said revenue passenger miles rose 9.5 pct to 10.9 mln from 9962399 a year before and available seat miles rose 20.3 pct to 31.5 mln from 26.2 mln. For the year to date it said load factor fell to 36.2 pct from 40.3 pct a year before as revenue passenger miles rose 3.3 pct to 119.1 mln from 115.3 mln and available seat miles rose 15.0 pct to 328.5 mln from 285.7 mln. Reuter | COMAIR <COMR> FEBRUARY LOAD FACTOR FALLS |
ServiceMaster L.P. approved a second quarter cash distribution of 58 cts payable April 10 record March 23. Previously ServiceMaster said it would pay in 1987 an indicated cash distribution of 1.50 dlrs a share including 95 cts a share which would be paid before April 15 1987. In other action the company set May eight as the date of its annual shareholders meeting. Reuter | SERVICEMASTER <SVM> SETS QUARTER DISTRIBUTION |
Disposable income available to people employed in European Community agriculture rose 0.9 pct in 1986 after an 8.8 pct fall the previous year the EC statistics agency Eurostat said in a report. It said income available to farm holders and members of their family working on the holding rose 2.5 pct after a 13.9 pct fall in 1985. Eurostat said the reason for the increases was higher production with a 1.6 pct increase in crop output and a 0.7 pct rise in animal products compared with 1985. However Eurostat added a 1.6 pct fall in prices for animal products was more than offset by a 3.1 pct increase in those for crops. It said income changes varied widely across the EC in 1986. Disposable income of all those employed in agriculture rose 12.9 pct in West Germany but fell 7.8 pct in Denmark while income available to holders and their families rose 17.0 pct in Britain but fell 9.7 pct in Ireland. Reuter | EC FARMERS' INCOMES ROSE SLIGHTLY IN 1986 |
OEA Inc said it received from a division of Rockwell International Inc <ROK> a contract to design and develop a space shuttle egress slide system which could be used under post-mission landing conditions. OEA said its Inflation Systems International Inc subsidiary will produce ten of the post-landing emergency egress slides. The system is expected to allow the crew to exit the space shuttle through a side hatch on the left side of the crews compartment it said. There is no showing that (the owners) reasonable investment-backed expectations have been materially affected by the additional duty to retain the small percentage that must be used to support the structures protected by (the law) Justice John Paul Stevens wrote for the courts majority. He was joined by Justices William Brennan Byron White Thurgood Marshall and Harry Blackmun. However Chief Justice William Rehnquist joined by Justices Lewis Powell Sandra OConnor and Antonin Scalia argued that the law deprived the owners of constitutionally guaranteed protections. Reuter | OEA <OEA> GETS SPACE SHUTTLE SYSTEM CONTRACT |
Wertheim Schroder and Co Inc said it appointed Steven Kotler 40 president of the investment banking and securities firm. Wertheim said Kotler has been a managing director and member of the executive committee of the firm which is 50 pct owned by <Schroders PLC> of the United Kingdom and 50 pct owned by Wertheim partners. Reuter | <WERTHEIM SCHRODER AND CO INC> NAMES PRESIDENT |
The proposed 757 mln dlr deal under which Chrysler Corp would acquire American Motors Corp was described by analysts as a reasonable deal for both companies. Ronald Glantz of Montgomery Securities said AMC common stock could be fairly valued at just under five dlrs a share given changes brought by tax reform and that Chryslers offer to pay four dlrs a share of Chrysler stock to AMC holders other than Renault as a a good price for Chrysler. AMC common shares opened at four dlrs this morning after the Renault-Chrysler announcement up 3/8 while Chrysler shares lost 1/4 to 52-1/4. Though AMC issued a statement saying that it was studying the proposed buyout and had no other comment Glantz said he regarded the proposal as a done deal because I cant believe anybody else would make a bid. Its a reasonable deal for both sides the analyst told Reuters. Chrysler gets the jeep franchise and the (new AMC) Bramalea Ontario plant and the (new Renault) Premier (mid-sized car) and AMCs sales will go up because buyers will have more confidence that the manufacturer will still be around to service the products Glantz said. Analyst Thomas OGrady said Chrysler would be getting more manufacturing capacity including a brand-new plant in Canada for a bargain price and Renault would be getting some return after its prolonged loss-making investment in AMC. Reuter | WALL STREET STOCKS/CHRYSLER <C>, AMC <AMO> |
South Korean Foreign Trade Minister Rah Woon Bae said his countrys firms have agreed to buy 1.8 billion dlrs worth of U.S. goods during his two-week buying trip to the United States. Rah said most of the purchases represented shifts from Japanese firms to U.S. firms as part of South Koreas effort to reduce its seven billion dlr trade surplus with the United States. South Korea has a five billion dlr trade deficit with Japan. Reuter | KOREANS TO BUY 1.8 BILLION DLRS IN U.S. GOODS |
Trust America Service Corp said it signed an agreement with the First Union Bank of Florida for a 35 mln dlr mortgage warehouse credit line. It said the new agreement more than doubles its previous 14 mln dlrs line of credit. Reuter | TRUST AMERICA <TRUS> SETS CREDIT LINE |
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