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VTX Electronics Corp said it signed a distribution agreement with American Telephone and Telegraph Co under which it will act as an agent for ATTs electronic cable and wire fiber-optic cable and related products to original equipment manufacturers in the Northeast. Terms of the contract reached with ATTs Network Systems Group were not disclosed. Reuter | VTX <VTX> TO DISTRIBUTE ATT <T> PRODUCTS |
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. Reuter | ROLLS ROYCE SEEKS 250 MLN STG CREDIT FACILITY |
Spectrum Digital Corp said it installed its first multi-node ISDX T-1 multiplexer. The company said the T-1 system was installed at the University of North Carolinas Education Computing Service at Research Triangle Park N.C. Reuter | SPECTRUM DIGITAL <SPDG> INSTALLS FIRST SYSTEM |
White House spokesman Marlin Fitzwater said President Reagans record in opposing tax hikes is long and strong and not about to change. Were opposed to tax increases.... We will fight tax increases.... We will deal with it politically in every forum possible said Fitzwater when questioned about whether there was any change in the administrations position. Fitzwater said Reagans strong feelings against a tax hike included opposition to an oil import fee. The Presidents position is that he is opposed to it he said. REUTER | FITZWATER SAYS REAGAN STRONGLY AGAINST TAX HIKE |
Supermarkets General Corp said it received an unsolicited proposal from a third party to acquire the company at 41.75 dlrs per share in cash. Supermarkets also said it retained Shearson Lehman Brothers Inc to advise its board of directors on the proposal. Supermarkets General currently has about 38.5 mln shares outstanding. Its stock is currently trading at 34-1/4 on the New York Stock Exchange. The Woodbridge N.J. supermarket operator of over 180 supermarkets and other specialty retail stores convenience food stores and drug stores. For the nine months ended November 30 Supermarkets reported net income of 41.7 mln dlrs. Reuter | SUPERMARKETS GENERAL <SGL> GETS UNSOLICITED BID |
Japanese crushers bought 5000 to 7000 tonnes of Canadian rapeseed in export business over the weekend for April shipment trade sources said. Japanese crushers continue to concentrate on rapeseed purchases since it converts to a higher percentage of oil than other oilseeds they said. A glut of feed meals makes other oilseeds such as soybeans less desirable because they would add to already large meal stocks. Reuter | JAPANESE CRUSHERS BUY CANADIAN RAPESEED |
Total U.S. slab zinc stocks held by smelters rose to 24735 short tons at the end of February from 22120 short tons at the end of January the American Bureau of Metal Statistics reported. Zinc production increased to 26732 short tons in February from 25786 short tons in January. Shipments from smelters plants declined to 23560 short tons in February from 24564 short tons in January. Reuter | ABMS SAYS U.S. ZINC STOCKS HIGHER IN FEBRUARY |
Jefferies and Co Inc said it intends to make a market in the stock of Diamond Shamrock Corp when as and if distributed. Diamond Shamrock has offered to repurchase twenty miillion shares of its common stock at 17 dlrs per share until midnight EST March 9. Reuter | JEFFERIES <JEFG> MARKETS DIAMOND SHAMROCK <DIA> |
Holiday Corp said its Holiday Inn Hotel Group will soon introduce a chain of limited-service hotels in international markets. The company said the chain which will be launched initially in Western Europe will usually feature 60 to 150 guest rooms and a small restuarant/lounge area but will offer fewer services and amenities than typical Holiday Inn hotels. It said the new hotels will cater to commercial travelers in smaller cities and suburbs. Reuter | HOLIDAY CORP <HIA> TO OPEN NEW CHAIN IN EUROPE |
Diamond Shamrock Offshore Partners said it has started development drilling on West Cameron 178 block off Louisiana in the Gulf of Mexico after a significant natural gas find on the block. It said the discovery well there encountered 46 feet of net natural gas pay. No flow tests have been conducted it said. Diamond Shamrock Offshore said it has a 46.15 pct interest in the block Phillips Petroleum Co 28.85 pct and Santa Fe Energy Partners LP <SFP> 25.00 pct. Diamond Shamrock Corp <DIA> owns 80.3 pct of Diamond Shamrock Offshore. Reuter | DIAMOND SHAMROCK OFFSHORE <DSP> IN FIND |
Lead stocks held by U.S. refiners rose to 37295 short tons at the end of February from 34224 short tons (revised higher) at the end of January the American Bureau of Metal Statistics reported. Production of lead decreased to 33619 short tons in February from 38759 short tons in January. Shipments from plants increased to 30467 short tons in February from 27041 short tons (revised lower) in January the ABMS said. Reuter | U.S. LEAD INVENTORIES RISE IN FEBRUARY - ABMS |
Technology Research Corp said an unidentified marketing company agreed to sell its products and placed an initial order for about six mln dlrs. It said the company will sells its product that protects against serious electrical shock. The product will be sold through mass merchandisers and retail hardware stores it said. The company also said it won an additional contract worth 500000 dlrs boosting its total current backlog to about 14 mln dlrs. Reuter | TECHNOLOGY RESEARCH <TRCI> WINS CONTRACT |
BCI Holdings Corp said it named Stephen Rowley president of Day-Timers Inc a subsidiary of the companys Beatrice Consumer Durables effective immediately. It said he replaces Robert Dorney founder and former president who will remain as senior vice president new product development of the company which produces time management systems. Reuter | BCI HOLDINGS UNIT PRESIDENT NAMED |
The Federated Group Inc said its four-week March 1 sales totaled 25.7 mln dlrs down eight pct from the same period a year ago. The company said sales in the 13 weeks ended March 1 rose 11 pct to 136.6 mln dlrs. In the 52-weeks ended March 1 sales totaled 430.2 mln dlrs up 18 pct from a year earlier the company said. Reuter | THE FEDERATED GROUP <FEGP> 4-WEEK SALES DOWN |
Wings West Airlines said its load factor remained constant in February at 42.7 pct. The company said it boarded 39812 passengers in February up from 22141 a year ago. Revenue passenger miles in February totaled 6146787 up 51.8 pct from a year ago while available seat miles rose 62.2 pct to 14385113 the company said. Reuter | WINGS WEST AIRLINES <WING> LOAD FACTOR UNCHANGED |
Sharon Steel Corp said it extended from March six to March 31 the expiration date for its debt exchange offer to allow time to complete the sale of its Mueller Brass Co unit and to meet other conditions of the offer. The exchange offer covers Sharons outstanding 13.5 pct subordinated sinking fund debentures due 2000 and its 14.25 pct subordinated sinking fund debentures due 1990. Sharon said that as of March six 31.6 pct of the 13.5 pct notes and 20.9 pct of the 14.25 pct notes were tendered. The Mueller sale is conditioned on receipt of 80 pct of the notes. Reuter | <SHARON STEEL CORP> EXTENDS EXCHANGE OFFER |
U.K. Insurers could face more than 30 mln stg of insurance claims following the Zeebrugge ferry disaster a spokesman for Lloyds of London said. It could take weeks before the extent of the compensation claims for passengers crew and cargo was known and also before it was known how much if any of the ship could be salvaged said David Larner of Lloyds. The hull and machinery of the Herald of Free Enterprise were valued at 25 mln stg and were insured by Townsend Thoresens parent company Peninsular and Oriental Steam Navigation Co Plc <PORL.L>. The vessel was in turn reinsured in the London market with Lloyds and various other companies Larner said. Passengers crew and cargo were insured by the Standard Steamship Protection and Indemnity Association one of several shipowners mutual insurance funds worldwide. These were also underwritten by Lloyds and other companies. Larner said claims from passengers could be expected to total at least five mln stg given the number of deaths and the normal level of liability set by the Athens Convention of 1974 of between 30000 stg and 50000 in case of death. Shipping sources said however that these claims could soar if a court found there was negligence or design faults involved. Larner said estimates of compensation claims were pure guess work at this time. But if the ship could not be salvaged the claims would total at least 30 mln stg. Shares of insurances on the London stock exchange fell across the board in a generally weak market. General Accident fell 21p to 936 Royal Insurance dropped 18p to 966 and Prudential fell 9p to 888. P and O shares stood at a late 616 27p lower on the day. REUTER | FERRY DISASTER CLAIMS COULD TOP 30 MLN STG |
Engineering industry employers in North Rhine-Westphalia state said they made an unprecedented offer on pay and working hours. The offer which came amid warning strikes by some 33000 workers was the first time since World War Two that employers have proposed cutting working hours and is seen as averting a repeat of the nationwide strike of 1984 which brought the auto industry to a standstill for seven weeks union sources said. The employers propose a half-hour cut in the 38.5 hour working week from July 1 1988 and a pay rise of 2.7 pct from April 1 and a further 1.5 pct from July 1 1988. The engineering union IG Metall Europes largest union wants a five pct wage rise and a 35-hour week at full pay. It called todays warning strikes mostly involving work stoppages of up to one hour after more than 50 rounds of talks since December failed. The employers offer was seen breaking the deadlock in negotiations even though the union said the half-hour cut is not enough union sources said. The offer applies to workers in North Rhine-Westphalia and it was unclear if further offers would be presented in talks between unions and employers of other West German states. REUTER | GERMAN EMPLOYERS MAKE SURPRISE OFFER TO ENGINEERS |
<Citibank NA> said it has cut its British base lending rate to 10.5 pct from 11 pct with effect from tomorrow. This move follows similar cuts by four major British clearing banks led by National Westminster Bank Plc <NWBL.L>. Lower rates were signalled by the Bank of England this morning in an attempt to curb recent upward pressure on the pound market sources said. REUTER | CITIBANK FOLLOWS U.K. BASE RATE CUT TO 10.5 PCT |
Crane Co said it will redeem on March 31 all 75 mln dlrs of its outstanding 8-3/4 pct convertible senior debentures due October 1 2005 at 107.875 pct. It said accrued interest to March 31 will be paid on that date to holders of record as of March 15. The debentures may be converted into common stock at 28.80 dlrs per share through March 24. Reuter | CRANE <CR> TO REDEEM CONVERTIBLE DEBENTURES |
Oglethorpe Power Corp said it does not plan to raise its electric rates to cover higher construction costs at the Alvin W. Vogtle Nuclear Plant in which Oglethorpe holds a 30 pct interest. Earlier today Southern Cos <SO> Georgia Power Co said it raised the estimated cost of building the plant by nearly six pct to roughly 8.87 billion dlrs. Oglethope said its share of the increased costs amounts to about 147.5 mln dlrs. We do not plan to raise rates to the 39 Electric Membership Corporations we serve in 1987 as a result of this budget increase the company said. Reuter | <OGLETHORPE POWER CORP> SEES NO RATE INCREASE |
The Bank of Zambia has paid out foreign exchange arrears from three auctions conducted last year a bank spokesman said. We have now cleared three auctions and are left with only four worth eight mln dlrs the spokesman said without specifying the amount paid out. The bank had not paid foreign exchange to private firms since it suspended the weekly auctions on January 28. It has said the auctions were suspended because it planned to introduce a modified system after talks with the World Bank and the International Monetary Fund. President Kenneth Kaunda announced last month that the auction would be retained for allocating foreign exchange to approved private sector bidders but would not be used to determine the kwachas exchange rate. Last week he said the auction had run into trouble because of a shortage of foreign exchange. The government has fixed the exchange rate at nine kwacha per dollar effectively revaluing the kwacha by 67.7 pct. REUTER | BANK OF ZAMBIA PAYS OUT FOREIGN CURRENCY ARREARS |
A small investor group led by Melvyn Gelch a Providence R.I. surgeon told the Securities and Exchange Commission it has acquired 60840 shares of Datarex Systems Inc or 5.5 pct of the total outstanding common stock. The Gelch group said it bought the stake for about 935000 dlrs for investment purposes only. Reuter | INVESTORS HAVE 5.5 PCT OF DATAREX SYSTEMS <DRX> |
<Amoskeag Co> said Joseph B. Ely II became chairman in addition to his duties as chief executive officer succeeding Albert B. Hunt who served in that position since 1972. It also said James M. Fitzgibbons currently executive vice president and chief operating officer will beomce president a position Ely also held. Reuter | AMOSKEAG CO NAMES NEW CHAIRMAN |
The Ghana Cocoa Board said it purchased 1323 tonnes of cocoa in the 21st week ended February 26 of the 1986/87 main crop season compared with 1961 tonnes the previous week and 1344 tonnes in the 21st week ended March six of the 1985/86 season the board said. Cumulative purchases so far this season stand at 216095 tonnes still up on the 201966 tonnes purchased by the 21st week of last season the Board said. Reuter | GHANA COCOA PURCHASES FALL, CUMULATIVE STILL UP |
Barton Valve Co Inc said shareholders at the annual meeting approved a name change to Barton Industries Inc and a reduction in board size to three members from five. Reuter | BARTON VALVE <BART> HOLDERS APPROVE NAME CHANGE |
Wm. Wrigley Jr Co expects the cost of technological improvements and renovation projects to push 1987s capital expenditures up considerably from last years 25.4 mln dlrs President William Wrigley told the annual meeting. In 1985 the companys spending totaled 26.8 mln dlrs. He also said the pace of the companys marketing activity set in 1986 will continue this year with advertising and merchandising expenditures to exceed the 1986 level which Wrigley said was somewhat over 100 mln dlrs. Wrigley said product line extensions would continue in 1987 although the company has no immediate plans to venture into areas outside of chewing gum. He said Wrigleys overall share of the gum market is a little less than 50 pct. In answer to a question Wrigley said there have been no buyout offers for the company. He also said the company will continue to strengthen its international presence. Reuter | WM WRIGLEY JR <WWY> SEES HIGHER 1987 SPENDING |
The following import levies for white and raw sugar are effective tomorrow in European currency units (ecu) per 100 kilos. White sugar denatured and non-denatured 49.70 versus 50.05 previously. Raw sugar denatured and non-denatured 41.35 versus 41.35 previously. The rate for raws is based on 92 pct yield. Reuter | EC SUGAR IMPORT LEVIES |
Leon Greenblatt a Chicago investor told the Securities and Exchange Commission he has acquired 89450 shares of Technology Development Corp or 5.3 pct of the total outstanding common stock. Greenblatt said he bought the stock for 350000 dlrs soley as an investment and has no intention of seeking control of the company. Reuter | INVESTOR HAS TECHNOLOGY DEVELOPMENT <TDCX> STAKE |
A group of brokerage executives with a 25.25 pct stake in the cumulative convertible preferred stock of Piezo Electric Products Inc said it will seek two seats on the companys board of directors. In a filing with the Securities and Exchange Commission Providence Securities Inc a Providence R.I. brokerage firm and two executives said they will seek the seats that opened because of a dividend payment default to preferred holders. The firm its president Thomas DePetrillo and its vice president Vincent DiGuilio also said they may seek additional representation on the companys board. The Cambridge Mass. research firm defaulted on dividends to preferred holders on January 31 which automatically gives preferred holders the right to elect two directors the executives said. The firm and its two executives who hold a combined 104500 preferred shares said they originally bought their stake as an investment but are also trying to motivate the company into reinstating dividends. DePetrillo said he has proposed that the preferred conversion rate change to 85-to-one from 10-to-one and that dividends be cut to 10 cts a share from 1.10 dlrs. Reuter | PIEZO <PEPI> PREFERRED HOLDERS SEEK BOARD SEATS |
Vneshtorgbank the Soviet Foreign Trade bank is seeking an increase to 250 mln stg from the original 150 mln for a five year sterling bankers acceptance facility arranged last autumn Lloyds Merchant Bank Ltd said as arranger. The facility has a 10 basis point facility fee and there is a 15 basis point maximum cap on the margin. Banking sources said syndication for the increase was proceeding very well so far although the syndication would not necessarily be confined to banks participating in the original group. Banking sources said that one reason for the increase was that Vneshtorgbank had been very impressed by the relatively low cost of financing by means of eligible bills rather than through more traditional instruments priced in relation to London Interbank Offered Rates (LIBOR). The facility is Vneshtorgbanks first ever sterling-denominated bankers acceptance facility. Banking sources noted that Vneshtorgbank now has two facilities in the market since First Chicago Ltd was awarded a mandate last week to arrange a 200 mln dlr eight year loan at 1/8 point over LIBOR. Reuter | VNESHTORGBANK SEEKS INCREASE FOR FACILITY |
CheckRobot Inc said it recieved four mln dlrs in financing through the private placement of convertible preferred stock. It said 2.8 mln dlrs of the financing has already been funded from existing shareholders <Sensormatic Electronics Corp> and <Southeast Venture Capital Limited II>. Reuter | CHECKROBOT <CKRB> GETS FINANCING |
Tracor Inc said its Tracor Aerospace Inc unit won three follow-up contracts worth 1.9 mln dlrs from the U.S. Air Force. It said the unit will conduct special studies and modifications in systems components for flight tests on the Peacekeeper Missle. Tracor said it previously received 49.3 mln dlrs worth of contracts from the defense program. Reuter | TRACOR <TRR> UNIT WINS U.S. FOLLOW-UP CONTRACTS |
University Patents Inc said 4344 of its Aleges soft bifocal contract lenses were sold in February after allowances for exchanges and returns up from 3011 in January. It said 1800 opthalmologists and optometrists were fitting the product last month up from 1600 a month before. Sales of the lens started in May 1986. Reuter | UNIVERSITY PATENTS <UPT> LENS SALES RISE |
ANALYST SAYS DART GROUP LIKELY BIDDER FOR SUPERMARKETS GENERAL |
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WearEver-ProctorSilex Inc said it will relocate is corporate headquarters from Chillicothe to Richmond Va. beginning this fall and ending by early 1988. The company said Richmond was chosen because it is centrally located to its main operating facilities which will reduce travel and other costs. About 150 headquarters employees will be offered the chance to relocate the company said. WearEvers cookware plant in Chillicothe will not be moved and its sales and marketing offices will remain in Englewood N.J. Reuter | WEAREVER <WRPS> TO RELOCATE HEADQUARTERS |
<Angio-Medical Corp> said it filed with the Securities and Exchange Commission for an initial public offering of 1666667 units of one share of common and one redeemable warrant to buy one share of common at six dlrs per unit. It said Keane Securities Co Inc <KEAN> is the underwriter. The company said its securities are proposed for trading on NASDAQ under the symbol <ANGMU>. Reuter | ANGIO-MEDICAL IN INITIAL OFFERING |
Bear Stearns Cos Inc said it was relocating its Wall Street headquarters to a mid-town location on Park Ave. and signed a lease with <Olympia and York>. The firm said it will occupy 537000 square beginning January 1988 under a 15 year lease. It will begin to move into the new offices later this year. It said the space will accommodate the increase in personnel which has grown 30 pct since the firm went public in October 1985. It will centralize all of its executive offices at the new location. Reuter | BEAR STEARNS <BSC> TO RELOCATE HEADQUARTERS |
Harris Associates L.P. a Chicago investment advisory firm said it cut its stake in Cyclops Corp to 437425 shares or 11.1 pct of the total outstanding common stock from 524775 shares or 13.3 pct. In a filing with the Securities and Exchange Commission Harris said it sold 87350 Cyclops common shares between Jan 6 and March 2 at prices ranging from 65.75 to 91.00 dlrs a share. Harris said its dealings in Cyclops common stock were made on behalf of its advisory clients. Reuter | HARRIS CUTS CYCLOPS <CYL> STAKE TO 11.1 PCT |
Lotus Development Corp said it has received a 30 mln dlr order from Micro D Inc for a number of Lotus software products. It said the order is the largest it has ever received and is to be delivered over six months. Reuter | LOTUS <LOTS> GETS ORDER FROM MICRO D <MCRD> |
Chrysler Corp said it valued its proposed buyout of American Motors Corp at 757 mln dlrs not counting the effect of a contingent payment that could reach 350 mln dlrs based on AMCs future profits. A Chrysler spokesman told Reuters that the letter of intent signed with Renault AMCs controlling shareholder with a 46.2 pct direct stake includes a provision for Renault to be paid 35 mln dlrs in cash for AMCs finance subsidiary and 200 mln dlrs in the form of an eight pct note. He said he did not know the maturity of the note. Reuter | CHRYSLER <C> VALUES AMC <AMO> AT 757 MLN DLRS |
Dart Group <DARTA> is likely seeking to buy Supermarkets General <SGL> analysts said. Theres been rumors that theyve taken a position in the company said Wood Gundie analyst Edward Comeau. Last year Dart Group owner of Auto Trak INc and Crown Books competed against Kohlberg Kravis to acquire Safeway Stores INc. The company later reached an accord under which it would buy 20 pct of the company after Kohlberg Kravis completed its leveraged buyout of the company. The company later sold its 20 pct stock for about 180 mln to 200 mln dlrs according to analysts. Dart Group Corp was not immediately available for comment. Jerry Ballan analyst with Conner Ballan division of Edward Viner and Co said They <Dart> has been rumored to be buying some other supermarkets as well such as Stop and Shop. My guess is that Supermarkets General does not want to be bought out said Ballan. Analysts however said Supermarkets General is facing problems due to its Purity Supreme and Rickels operations which might make it difficult to thwart a bid. Supermarkets General is expected to report about 1.70 dlrs a share compared to a 1.73 dlrs a share reported for 1985 on a post stock split basis. For the first quarter Comeau predicts the company will earn 39 cts a share from 35 cts a share a year ago and should earn about 2.05 dlrs for 1987. But that estimation could go to a 1.80 dlrs easily due to Purity Supreme in New England Comeau said. He said competition among supermarkets is getting heated in that area and that the company has had difficulty with integrating Purity Supreme with its Pathmark store operations. Rickels a home center business has faced problems due to the state of that industry and has reported lower returns as an operating unit according to analysts. Analysts said that if Dart buys Supermarkets General it would probably divest the companys operations. Analyst Comeau said supermarkets general may seek a combination with another supermarket company. | DART SAID LIKELY SUPERMARKETS GENERAL SUITOR |
ADVO-System Inc said it could report a break even second quarter ending March 28 1987 compared with a loss of 1.8 mln dlrs or 16 cts a share in fiscal 1986s second quarter ended March 29 1986. ADVO said it previously announced it would report a net loss for the quarter. Reuter | ADVO-SYSTEM INC <ADVO> SEES BREAK-EVEN 2ND QTR |
National Franchisors Inc a franchise development and consulting business said it will launch its first project the Shoesmith shoe-care and repair shop. The company said it is negotiating for several shopping center locations for initial franchise sites and that it will soon open a pilot Shoesmith shop and training center. It also said it signed an agreement with <Sutton-Landis Shoe Machinery Co> St. Louis to supply the franchises with machinery and support services. Reuter | <NATIONAL FRANCHISORS INC> TO LAUNCH FRANCHISE |
<British Airports Authority Plc> which will be privatised later this year is seeking a 200 mln stg multiple option facility banking sources said. The facility will incorporate a 100 mln stg revolving standby credit and a 50 mln stg swingline credit both of which will be available for seven years. There also will be an uncommitted tender panel for the issue of sterling and multi-currency advances and sterling acceptances. A minimum of 65 pct of the revolving credit will be immediately available with a facility fee of six basis points. Up to 35 pct of the revolving credit will be available subject to two months notification. There will be a facility fee of three basis points while this is not utilised after which the fee rises to six basis points. Drawings will be at 10 basis points over the London Interbank Offered Rate plus mandatory liquid asset requirements or a 10 basis point sterling acceptance commission. The swingline will be available for a maximum of seven days. There will also be a participation fee of five basis points for 12.5 mln stg. The financing is being arranged by Samuel Montagu and Co Ltd and is being syndicated on a restricted basis among a group of the borrowers relationship banks. REUTER | BRITISH AIRPORTS AUTHORITY SEEKS CREDIT FACILITY |
This year will see a pickup in U.S. economic growth and inflation the Shadow Open Market Committee said in its semi-annual policy statement. The SOMC a group of basically monetarist private economists said that economic growth will accelerate in 1987 in response to powerful stimulative actions by the Federal Reserve. The group said the Feds actions have been excessive. As a result it said that inflation and ultimately another recession now loom on the horizon. The SOMC said that central bank policies that rely on progressively larger swings in monetary expansion will not lead to sustainable economic growth and stable prices. The group made no specific nominal forecasts of economic or inflation growth in its policy statement. However the Committee at its Sunday policy-making meeting said it was basically in accord with projections by Jerry Jordan who is a member of the SOMC and economist at First Interestate Bancorp. Jordan expects real GNP growth to be about one percentage point higher than in the past two years. He expects consumer prices to rise about 4-1/2 pct this year. The SOMC said in recent months rapid money growth has been a principal cause of the devaluation. To avoid another costly inflation and disinflation the SOMC urged the Fed to abandon its inflationary policy and set the growth rate of the monetary base on the path toward sustained lower inflation. The Fed in February said it would no longer target the narrow M-1 money supply because the link between M-1 and economic growth has been largely severed. | FED WATCHERS SEE U.S. ECONOMIC, INFLATION UPTURN |
CANADIAN PACIFIC LTD 4TH QTR OPER NET 30 CTS VS 20 CTS |
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London Stock Exchange officials feel confident that problems arising from a New York Stock Exchange NYSE rule which might limit the trading activities in London of NYSE members can be solved a London Exchange spokeswoman said. The situation will be sorted out during the regular contacts between the two exchanges she added. Recent press reports raised the possibility that an NYSE rule could bar its members from trading jointly listed stocks on the London Exchange during hours when the NYSE was open. London plans to close its trading floor in due course but the NYSE only recognises foreign exchanges which possess a trading floor. | LONDON SEES NYSE RULE PROBLEM BEING SETTLED |
The Dutch current account surplus fell 5.4 billion guilders last year to a provisional 12.1 billion guilders the Finance Ministry said in a statement. The surplus is expected to fall further in 1987 the statement said but gave no details. Earlier today the official planning agency CPB said it expected the surplus to fall to six billion guilders during 1987. The visible goods surplus excluding energy fell by 5.6 billion guilders in 1986 to 11.4 billion due to declining terms of exchange while more goods were imported as consumer spending and investment increased. While the energy trade balance surplus rose by 5.4 billion guilders 4.7 billion of this gain was caused by temporary improvements of terms of exchange and was aided by the delay between the fall in oil and gas prices. The current account showed a 5.2 billion guilder deficit on invisibles compared with a balance in 1985 the Finance Ministry said noting the surplus on transport services was reduced substantially due to the lower dollar and oil price falls. The fourth quarter current account showed a deficit for the first time since 1980 of 700 mln guilders it said. REUTER | DUTCH CURRENT ACCOUNT SURPLUS FALLS IN 1986 |
Honeybee Inc said it knows of no reason for the recent rise in its stock price. There are no corporate or business developments announced or unannounced the company said in a statement. Business is continuing as usual it said adding that it is not engaged in any merger or acquisition discussions. The companys stock is trading up 2-1/8 points at 14-1/4. Honeybee said it plans to release later this month preliminary financial results for the year ended January 30. Reuter | HONEYBEE <HBE> SEES NO REASON FOR STOCK RISE |
Consolidated Grandview Inc said it acquired a 60 pct stake in <All Ticket Group PLC> of London for undisclosed terms. The seller was also undisclosed. All Ticket is a special events travel company with exclusive European rights to UAL Inc <UAL>s United Airlines Apollo system booking all United Airlines flights in Britain and Europe. All Ticket and its subsidiaries will also co-sponsor various events this year including the British Open golf tournament and rowings Henley Regatta. Its 1986 revenues totaled 12 mln Canadian dlrs. Reuter | GRANDVIEW ACQUIRES CONTROL OF U.K. TICKET GROUP |
United Cities Gas Co said it has acquired Lyle Propane Gas Co a Cairo Ga. propane gas distributor for undisclosed terms. It said Lyle has sales of about four mln gallons annually and serves about 4000 customers in seven counties in southwest Georgia and north Florida. Reuter | UNITED CITIES <UCIT> MAKES ACQUISITION |
The U.S. Treasurys weekly auction is expected to produce an average rate of 5.63-65 pct for three-month bills and one of 5.59-61 pct for six-month bills dealers said. Shortly before auction time on the new bills the rate on the outstanding three-month bills was unchanged at 5.64 pct bid while the rate on the six-month bills was one basis point higher at 5.68 pct bid. Reuter | U.S. BILL AUCTIONS SEEN AT 5.63-65, 5.59-61 PCT |
The board of Medical Properties Inc said it has declared an initial monthly cash dividend of 11-1/2 cts a share and has adopted a monthly dividend policy. The initial dividend will be payable April 10 to shareholders of record March 31. Reuter | MEDICAL PROPERTIES <MPP> SETS MONTHLY DIVIDEND |
Barter Resources said it formed a television home shopping unit Television Catalogue Inc. The company said an investor group paid 500000 dlrs in funding for a 51 pct interest in the unit. Barter said 100000 dlrs of the funding has been paid with the balance due within sixty days. Reuter | <BARTER RESOURCES> FORMS HOME SHOPPING UNIT |
wheat Ria Luna 20000 mt Norrkoping and Djuron/EC Mexico 12.50 dlrs option loading Uddevalla at 50 cents less 4000/1500 16-23/3 Continental. Reference New York Grain Freights 2 of March 6 brokers say the charterer of the Saturn from US Gulf to Japan is reported to be Nordstrom and Thulin while the Antigone is reported to have been arranged from Tilbury to the Black Sea by Soviet charterers. Reuter | LONDON GRAIN FREIGHTS |
Air Wis Services Inc said February load factor fell to 42.9 pct from 44.2 pct a year before. The company said revenue passenger miles rose 2.1 pct to 22.2 mln from 21.7 mln a year before with available seat miles up 5.3 pct to 51.8 mln from 49.2 mln. Reuter | AIR WIS <ARWS> FEBRUARY LOAD FACTOR FALLS |
Immucor Inc said its board of directors has declared a five-for-four stock split in the form of a 25 pct stock dividend payable April 15 to shareholders of record March 27. Reuter | IMMUCOR <BLUD> SPLITS STOCK |
Bermuda Star Line Inc said it has agreed in principle to acquire 815-passenger SS Liberte from Barnstead Shipping Ltd for use in its New York/Montreal Northeast Passages cruises starting this summer. The company said it is working to conclude a lease financing or other financing for the purchase of the 23500 ton vessel which is to be delivered in early April and renamed Canada Star. Terms were not disclosed. Reuter | BERMUDA STAR LINE <BSL> TO MAKE ACQUISITION |
Municipal Assistance Corp of New York said its planned offering later this week of 670 mln dlrs of Series 62 bonds would probably be the last time it taps the market until the third quarter. The bonds will be sold by a syndicate led by Salomon Brothers Inc. Their maturity will be set at the pricing. Proceeds will be used to redeem all outstanding Series 50 53 and 54 bonds each with final maturities of 2008 and bearing interest at 10 pct 9-7/8 pct and 9-3/8 pct. Municipal Assistance said it will buy back at 102 the Series 50 bonds in July 1994 and the Series 53 and 54 bonds in July 1995. Reuter | MUNICIPAL ASSISTANCE CORP OF NY TO SELL BONDS |
<MTS Acquisition Corps> 28-dlr-per-share offering price for Caesars World Inc is thought to be much too low and is likely to attract other suitors for the hotel/casino company industry analysts said. I think someone else will probably come in or they (MTS) will have to raise their bid said Marvin Roffman an analyst at Janney Montgomery Scott Inc. MTS a company formed by Martin Sosnoff Caesars Worlds largest shareholder today began a tender offer valued at 725.2 mln dlrs for all shares Sosnoff doesnt already own. I think the offer is too low by at least five points said Roffman who described Caesars World as the operator of one of the finest casinos in the world. Sosnoff a New York investor already owns 13.3 pct of Caesars Worlds 30.3 mln shares. Following news of the tender offer Caesars Worlds shares were trading at 27-7/8 up 3-3/8. A Caesars World spokesman said the company was declining comment on the Sosnoff move for the moment but Caesars may issue a public statement after it has studied the offer. Roffman said Caesars World has considerable growth potential and he is forecasting fiscal 1988 earnings of two dlrs per share. Caesars World owns casino hotels in Nevada and honeymoon resorts in Pennsylvanias Pocono Mountains. It also controls Caesars New Jersey Inc <CJN> which owns an Atlantic City N.J. casino hotel. For its fiscal year ended July 31 Caesars World reported net income of 41 mln dlrs or 1.36 dlrs per primary share. The company reported second quarter net income of 12.6 mln dlrs or 41 cts per share compared with income of 7.5 mln dlrs or 25 cts per share a year earlier. Daniel Lee an analyst at Drexel Burnham Lambert Inc said that although Sosnoffs relatively low bid may attract other suitors willing to pay a higher price for Caesars there is little likelihood that a competing bid would start a battle for the company. | TALKING POINT/CAESARS WORLD <CAW> |
Merck and Co Inc said it will spend more than 530 mln dlrs this year on research and development up 11 pct from the 480 mln dlrs it spent in 1986 on research and development. Reuter | MERCK <MRK> UPS 1987 RESEARCH BUDGET 11 PCT |
Allegheny International Inc said its chairman and chief operating officer will remain in their positions following the merger of the company with an affiliate of First Boston Corp. It is expected that Oliver S. Travers will continue as chairman president and Chief executive officer and Thomas J. Albani will continue as chief operating officer said an Allegheny spokesman. Allegheny today said it agreed to a buyout from First Boston at 24.60 dlrs per share. The transaction was valued at 500 mln dlrs. Its stock rose 8-5/8 to 24 in active trading. Reuter | ALLEGHENY <AG> OFFICERS TO RUN COMPANY |
Imperial Continental Gas Association <ICGS.L> IC Gas said its board is not making a recommendation on the partial tender offfer at 710p per share announced by <Tractebel SA> and <Groupe Bruxelles Lambert SA>. At the same time however the board would not recommend a general offer for all the shares at a price of 710p the statement added. Shareholders wondering whether to tender either to the Tractebel consortium or to the rival 700p per share partial offer from <SHV Holdings NV> should consult professional advisers. Reuter | IC GAS MAKES NO RECOMMENDATION ON TRACTEBEL OFFER |
ALC Communication Services Inc said its Allnet Communications Corp will consolidate its two data centers and relocate at a Southfield Michigan office center. The new facility will employ more than 300 people and is expected to absorb employees from the existing centers in Birmingham and Chicago a company spokesman said. Start-up of the consolidated computer data center is expected in late June it said. Reuter | ALC'S <ALCC>ALLNET TO CONSOLIDATE DATA CENTERS |
National Heathcare Inc said it signed an agreement to sell five rural hospitals to a private corporation for about 18 mln dlrs including the assumption of six mln dlrs of debt. The company said it plans to complete the sales which are subject to various regulatory approvals by the end of July. National Healthcare said it expects no material gain on loss on the sales and that substantially all proceeds will be used to reduce debt. Reuter | NAT'L HEALTHCARE <NHCI> TO SELL FIVE HOSPITALS |
USX Corp chairman David Roderick called for a lower value for the U.S. dollar against other currencies to help speed a correction in the U.S. trade deficit which last year reached 170 billion dlrs. In remarks prepared for a speech before the Economic Club of Detroit Roderick said There should be total resolve that the dollar versus other major currencies as well as the currencies of other nations having a substantial trade surplus with us must continue to decline so that the correction in our trade deficit starts on the road to recovery. Roderick said the U.S. should be understanding of the economic pain our trading partners experience as a result of a falling dollar. But he added As painful as the correction may be to our trading partners it is less painful than leaving the problem uncorrected because that would lead us into an inevitable lengthy and steep world recession. Roderick said between February 1985 and December 1986 the dollar fell by more than 40 pct in real terms against major industrial currencies and by 30 to 35 pct against a broader group of currencies of nearly all developing nations. At the end of 1986 he said the value of foreign assets in the U.S. exceeded the value of U.S. assets abroad by 240 billion dlrs compared to five years ago when the U.S. had a surplus in assets of 141 billion. A company spokesman said the data were provided by economic consultants to USX. The primary reason for the trade imbalance was the 70 pct rise of the dollar between 1980 and 1985 although other factors were involved Roderick said. But it is wrong he said to attribute the massive trade deficit to a fundmental deterioration of U.S. productivity or of American product quality. These areas need to be improved but they are not the root cause of the trade gap problem Roderick said. He urged American manufacturers to become more competitive so they can compete in global markets. In the speech the USX chairman also called for changes in securities laws to curb what he called abuses by corporate raiders and speculators. Among his proposals which he presented to the Senate Banking Committee in testimony last week were a requirement that raiders give 24-hour notice for every one pct of stock they acquire in a company. Roderick proposed that tender offers must be made for all cash to all stockholders on equal terms and that raiders be required to have financing in place before a tender is made. Further raiders should be required to make an all-cash tender offer once they acquire 10 pct of a target companys stock he said. And payment of greenmail or a preferential price by a target company to buy back a raiders stake should be prohibited under the revised laws. Roderick said changes were necessary to curb abuses but that he did not want laws that would hurt the financial markets or discourage fair price to all takeovers. Reuter | USX <X> CHAIRMAN CALLS FOR LOWER DOLLAR |
Utilization of offshore mobile rigs in the Gulf of Mexico was unchanged at 35.6 pct during the past week a level that has remained relatively steady since January due largely to a reduction of nine rigs in the Gulf fleet Offshore Data Services said. The total number of working rigs was 83 for the week compared to 83 last week and 129 rigs one year ago. Offshore Data Services said the worldwide utilization rate fell 0.3 pct to 53.9 pct with a total of 335 idled rigs. The number of rigs contracted worldwide was 392. In the European-Mediterranean area rig utilization also remained unchanged at 41.3 pct during the past week with 64 of 155 rigs contracted. Reuter | GULF OF MEXICO RIG COUNT UNCHANGED THIS WEEK |
Canadian Pacific Ltd said fourth quarter 1986 operating profit rose to 91.6 mln dlrs or 30 cts a share from 50.7 mln dlrs or 20 cts a share a year ago. The statement confirmed released preliminary earnings figures the company released in February. A 102.6 mln dlr gain on the sale of CPs Cominco Ltd interest helped raise final 1986 fourth quarter profit to 193.8 mln dlrs or 65 cts a share. The company said a drop in 1986 full-year operating profit to 150.1 mln dlrs from a restated 252.7 mln dlrs in 1985 was due mainly to lower world oil prices. The company said its CP Rail division reported 1986 net income of 119.4 mln dlrs compared with 133.4 mln dlrs in 1985. It said grain traffic recovered from drought-affected levels of a year ago but was offset by weakness in other traffic areas and increased expenses. It said the net loss from its Soo Line increased to 33.5 mln dlrs loss from 8.7 mln dlrs loss in 1985 mainly due to restructuring charges. Canadian Pacific said favorable developments during the year included reduced bulk shipping losses as a result of a recovery in tanker markets and a turnaround in the forest products sector. Reuter | CANADIAN PACIFIC (CP) CONFIRMS EARNINGS |
U.S. drilling activity slowed significantly in Texas and Oklahoma last week resulting in the number of U.S. active rotary rigs to plunge by 35 to a total of 766 against 1212 working rigs one year ago Hughes Tool Co. said. Most of the decrease came among rigs used for onshore drilling which dropped to a total of 671 from last weeks 707. A total of 78 rigs were active offshore and 17 were working in inland waters during the week Hughes Tool said. Among individual states Texas lost 23 working rigs Oklahoma dropped by 13 Louisiana was down three and New Mexico dropped by one. Wyoming Kansas and California reported gains of six five and four rigs respectively. In Canada the rig count was up 16 to 180 against 398 one year ago. Reuter | HUGHES' U.S. RIG COUNT FALLS BY 35 TO 766 |
Ford Motor Cos stock rose 1-1/4 to 82-1/4 after analyst Maryann Keller of Furman Selz Mager Dietz and Birney raised earnings estimates on the company traders said. Keller said that she expects the companys 1987 earnings to rise to between 13.50-to-14 dlrs a share as compared to 12.32 dlrs a share earned last year. She said Fords already good market share is expected to remain favorable and earnings from overseas are expected to improve. In addition Keller said the company is selling more of its expensive model cars which are more profitable. The non-automotive operations including Ford Motor Credit are also expected to post improved earnings this year. Keller said she expects the company to split its stock and raise its dividend to at least three dlrs a share this year. She noted that Chrysler Corps <C> announcement of a merger proposal for American Motors Corp <AMO> should have no short term effect on Ford but could cut into Fords share of the truck market in the long term. Reuter | FORD <F> SHARES RISE ON HIGHER EARNING ESTIMATE |
Italy has shown interest in British new crop wheat recently but the actual volume booked so far by Italian buyers has not been large traders said. They put purchases at around 50000 tonnes for Sept/Dec shipments but said some of the business was transacted at the start of the year. Italian interior home markets have been active in recent weeks and traders said around 200000 tonnes have traded between dealers and home consumers. Some of this has been covered in the market here and more possibly will be traders said. Reuter | ITALY SHOWS INTEREST IN U.K. NEW CROP WHEAT |
Dutch food retailer Ahold NV <AHLN.AS> expects unchanged profits in 1987 but said it will take advantage of the lower dollar to expand further in the U.S. Turnover will grow but net profits are expected to remain around the 1986 level of 132.4 mln guilders due to higher Dutch taxes and a three-year expansion plan Ahold Chairman Albert Heijn told a news conference. The profit forecast allows for a dollar rate around current levels of just over three guilders. Turnover and net profit in 1986 were hit by the dollar which fell to an average 2.46 guilders from 3.35 in 1985. Reuter | DUTCH RETAILER AHOLD SEES UNCHANGED 1987 PROFIT |
Flying Tigers said it has expanded its air cargo routes to include Asia-to-Europe jetfreighter flights. The company also said it is launching a jetfreighter service to Milan Italy. Both routes will operate weekly. Reuter | FLYING TIGERS <TGR> ADDS AIR CARGO ROUTES |
Pitt-Des Moines Inc said it will receive a qualified opinion from auditors on its 1986 and 1985 financial statements. It said the qualification related to its inability to determine the effects if any of the final resolution of a suit filed against it by <Washington Public Power Supply System>. The 1985 suit was dismissed in a 1986 lower court action but the ultimate outcome of the matter is still uncertain since Washington Public Power has appealed to the U.S. Court of Appeals. Reuter | PITT-DES MOINES <PDM> GETS QUALIFIED AUDIT |
Reading Co said it has agreed in principle to convey properties it owns in and around the Philadelphia Convention Center site to the city of Philadelphia and the Philadelphia Convention Center Authority. It said in exchange it will receive about 23 mln dlrs in cash rights to acquire 22 acres adjacent to the Philadelphia International Airport and an option to acquire the development rights over the Gallery II shopping mall on Market Street in downtown Philadelphia. Reading said it will be responsible for the demolition and cleanup of certain of the properties for which a portion of the cash proceeds will be escrowed. The company said it will continue to own and operate the Reading Terminal Market in Philadelphia. The land it is giving up amounts to about seven acrease and includes part of the Reading Terminal Train Shed it said. Reuter | READING <RDGC> TO SELL PHILADELPHIA PROPERTIES |
Montedison SpA <MONI.MI> has acquired a 70 pct stake in <Plant Cell Research Institute - PCRI> of California from Atlantic Richfield Co <ARC.N> for several tens of millions of dollars a senior Montedison executive said. Renato Ugo a member of Montedisons management committee told reporters that <Stanford Research Institute International> of Menlo Park California had acted as a partner in the purchase itself acquiring a stake in PCRI of under 10 pct. PCRI based in Dublin California has a biotechnology research laboratory. Ugo said the price paid included outlays for the laboratory technology and staff. He said other negotiations were under way with biotechnology companies in the health care and diagnostics sectors through Montedisons health care subsidiary <Erbamont NV> but gave no details. We hope they will be concluded by the year end he said. Montedison currently invests around 30 billion lire a year in biotechnology research and expects to increase this figure to around 50 billion lire in the next few years. Reuter | MONTEDISON ACQUIRES ARCO RESEARCH UNIT |
The London Meat Futures Exchange LMFE will cease trading in its deliverable pigmeat contract from April 3 the LMFE said. The move will enable the exchange to concentrate on the cash settled contracts introduced last year. This allows the exchange and its members to concentrate our marketing on the pig and live cattle contracts LMFE official Peter Freeman said. These two have already shown their effectiveness for hedging and the trade in both contracts is increasing he added. Using the futures market allows better planning and forward price fixing that our industry needs chairman Pat Elmer said. Some 131 pig contracts were settled against the Meat and Livestock Commissions Average All Pigs Price in February which represents hedging for over 13000 pigs more than twice the number cash-settled in January the LMFE said. Cash settlement on the new cattle and pig contracts was introduced last June in the expectation that the appeal of the futures market to farmers abattoirs and users of meat would increase because of the absence of a delivery requirement. Reuter | LMFE TO CONCENTRATE ON CASH SETTLED CONTRACTS |
White House communications director John Koehler resigned after just one week in the job saying President Reagans new chief of staff Howard Baker had a right to appoint his own team. Koehler was hired to replace Patrick Buchanan as Reagans communications chief a few days before Donald Regan quit as the presidents top aide. I dont feel Ive been jerked around ... I recognize that Senator Baker must have people around him for the next 22 months that hes known for a long time that he understands that hes comfortable with and who are comfortable with him said Koehler during an appearance in the White House press room. Reuter | KOEHLER RESIGNS AFTER ONE-WEEK AS REAGAN AIDE |
A senior Iraqi official said today Iran had exaggerated reports of fighting on the Gulf war northern front to make up for failure in the south and to encourage anti-Baghdad Kurdish rebels to support its troops. The head of the defence ministry political department Abdul Jabbar Muhsen told Reuters in a telephone interview that fighting continues in the Kurdistan mountain region where Iran launched its northern offensive last Tuesday night. Asked about the silence of Iraqi war communiques on the battle he said Small units are taking part the biggest of which is brigade size. | IRAQ SAYS IRAN EXAGGERATES FIGHTING IN NORTH |
<TCN Inc> a long distance phone service said it has completed installing it state-of-the-art switching system. TCN also said it began building a fiber optic transmission network to initially link San Antonio Austin Dallas and Houston Texas. TCN said the service will expand during the second quarter 1987 to include service to California and Florida. Reuter | TCN COMPLETES INSTALLATION OF SWITCHING SYSTEM |
The USDAs weekly export inspection report is expected to show a decline in soybean exports and steady to slightly lower corn and wheat exports according to CBT floor traders forecasts. Traders projected soybean exports at 15 mln to 16 mln bushels down from 20.3 mln bushels a week ago and 25.5 mln bushels a year ago. Corn guesses ranged from 20 mln to 25 mln bushels compared with 21.9 mln bushels a week ago and 28.2 mln a year ago. Wheat guesses ranged from 13 mln to 18 mln bushels compared with 14.1 mln bushels a week ago and 17.9 mln a year ago. Reuter | CBT TRADERS SEE LOWER SOYBEAN EXPORT INSPECTIONS |
Two new eurosterling bonds were launched today making a total of 10 new deals in the sector so far this month as borrowers rush to cash in on a bull sterling market fueled by the strength of the pound and pre-budget euphoria. The Bank of England finally gave way to a 1/2 point cut in banks base lending rates earlier today but dealers said this had been largely discounted and was not likely to detract from the current popularity of sterling-denominated investments. Sterling in any shape or form is flavor of the month and were set to see many more eurosterling deals one dealer said. Todays new eurosterling bonds were a 10-year 100 mln stg deal for Sweden at 9-1/2 pct and priced at 101-1/4 pct lead by Baring Brothers and Co Ltd and a 14 year 60 mln stg convertible deal for Storehouse Plc launched by SBCI International Ltd. We thought we saw a proverbial flood of new deals with the 14 we had last month but it seems March will beat February hands down with 10 already one eurosterling specialist said. Optically psychologically these single figures are much more attractive for the borrower. Eurosterling looks like a cheap and attractive way to raise your money he added. This accounts for the wide variety of borrowers who have tapped the sector recently ranging from sovereigns such as the Kingdom of Sweden today continental banks including Commerzbank and Deutsche Bank and British corporations. Another U.K. Merchant bank analyst noted that the current vogue for eurosterling enabled several corporate borrowers last month to offer paper priced below comparative gilt yields. A Storehouse official confirmed that the issue was aimed at Swiss and German investors who were showing good interest. This is the first entry into the long term international capital markets by Storehouse British designer Terence Conrans retail conglomerate which incorporates U.K. Chain stores Mothercare British Home Stores and Habitat. We have been considering the move for quite some time now and the current strength of the eurosterling sector provided the perfect opportunity and spur for us to finally tap the market Lance Moir corporate treasurer at Storehouse Plc told Reuters. | PRIMARY EUROSTERLING MARKET BOOMS DESPITE RATE CUT |
McDonnell Douglas Corp said recent talks with Airbus Industries about joint development and production of a new jetliner with the European aircraft manufacturing consortium have been very informal. If there have been talks they were casual at best said a source at the company. There is nothing going on that would lead to immediate or near-term collaboration on a new plane. Senior officials at the aerospace firms St. Louis headquarters were unable to comment more specifically on weekend published reports from Europe that talks about a joint venture have resumed after they broke off last fall. McDonnell Douglas and Airbus last spring and summer had discussed jointly developing and building a long-range aircraft to compete with Boeing Co <BA> 747 wide-body jetliner or its successor. Talks ended when neither side wanted to forego plans to launch its own widebody jetliner projects - McDonnell Douglas with its MD-11 and Airbus with its A340. McDonnell Douglas has since launched the MD-11 jetliner a successor to its DC-10 and has more than 100 orders and options. Airbus wants to launch its program this spring and is now seeking customers for the long-range A340 and a companion plane the shorter-range A330. I dont want to say were not interested because we are in any collaboration that benefits McDonnell Douglas without it giving up anything the source told Reuters. There just havent been in-depth discussions. He said any joint venture would not affect the MD-11 program already underway. McDonnell Douglas last month claimed Airbus tried to overturn pledges made by airlines to buy the MD-11 by offering cut-rate prices for the A340. The firm said Airbus in an effort to line up enough customers to launch the program is engaging in predatory practices with prices substantially below those needed to recover the cost of developing and building the plane. U.S. government and aerospace industry officials believe Airbus can offer low prices because the consortium gets government subsidies that cover many of its costs. The Reagan Administration decided last month to consult the General Agreement on Tariff and Trade GATT to determine whether Airbus is unfairly subsidized. Under GATT rules an enterprise can be subsidized but only if it will make a profit. U.S. officials say Airbus countries have poured 15 billion dlrs into Airbus since the early 1970s and the consortium has yet to make a profit. Reuter | MCDONNELL <MD> SAID TALKS AT INFORMAL STAGE |
The volume of European exports to South Africa carried by container line vessels has declined 40 pct in the last two years British shipping executive Antony Butterwick said. Butterwick told reporters that despite the drop and low freight rates the shipping conference he heads will increase the frequency of sailings to South Africa as a very strong act of faith and confidence in the countrys future. He is chairman of the Europe South and South-East African Conference Lines and joint managing director of P and O Containers Ltd. A statement issued by the conference here said frequency of Southern Africa/Europe container service sailings is being increased from nine to seven days. This is the most positive development on the shipping front between South Africa and its main trading partners in Europe for more than four years when the service last operated weekly it said. Reuter | EUROPE SHIPPING EXPORTS TO S AFRICA OFF 40 PCT |
European consortium <Airbus Industrie> said it had no comment on press reports that it had resumed talks with U.S. <McDonnell Douglas Corp.> over a possible joint development and production of airliners. A spokesman at Airbus headquarters in Toulouse said in a telephone interview: We have no knowledge of talks and have no comment to make. Talks broke off last autumn after the two rivals failed to agree on cooperation over a new long-range jet. McDonnell Douglas wanted Airbus to help build its MD-11 while Airbus insisted McDonnell drop the MD-11 and cooperate over its A340. Reuter | AIRBUS HAS NO COMMENT ON MCDONNELL TALKS |
Mathematical Applications Group Inc said it has signed a letter of intent to sell all of its operating business and will propose a plan of liquidation following the sale. If the company is unsuccessful in obtaining the approvals needed for the sale and liquidation it said the company may be required to initiate reorganization proceedings under federal bankruptcy law to facilitie the distribution of its assets. Mathematical Applications said it tentatively agreed to sell its direct marketing business to Pagex Inc for 400000 dlrs plus an amount equal to the working capital of the business at closing as well as a 1.7 mln dlr note payable in installments over six years. Mathematical Applications said the business working capital is estimated to be about 600000 dlrs. Pagex has been formed by Paul A. Goldner the owner of Pagex Systems Inc which is also engaged in the direct marketing computer service business. Mathematical Applications said the tentative agreement calls for Pagex to buy substantially all of the assets and liabilities related to the direct marketing business and continue to use the Mathematical Applications name. It said the sale is also subject to renegotiation of a real estate lease and approval of a definitive agreement by the companys board stock holders and debenture holders. The company said it has obtained waivers from holders of its six mln dlrs principal amount of debentures due March 31 1993 to defer interest payments aggregating 270000 dlrs through March 31 1987. The company said it will seek waivers to defer these interest payments and those due March 31 for enough time to enable the company to accomplish the proposed sale of its operations. Mathematical Applications said it is talking to debenture holders its landlord a lessor of equipment to the marketing operation and holders of other liabilities not being assumed by Pagex to arrange distribution of assets after the proposed sale adding that these assets will be significantly less than its liabilities. The company said it has obtained waivers from holders of its six mln dlrs principal amount of debentures due March 31 1993 to defer interest payments aggregating 270000 dlrs through March 31 1987. The company said it will seek waivers to defer these payments and those due March 31 for enough time to accomplish the proposed sale of its operations. Mathematical Applications said it is talking to debenture holders its landlord a lessor of equipment to the marketing operation and holders of liabilities Pages is not assuming to arrange distribution of assets after the proposed sale adding these assets will be significantly less than its liabilities. As part of the distribution of assets the company said it expects shareholders to receive an amount based on the bid price of the companys stock which was 1/16 on March five. Reuter | MATHEMATICAL APPLICATIONS SETS OPERATIONS SALE |
UNION CARBIDE FILES TO OFFER 500 MLN DLRS OF DEBT |
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With the death of Sen. Edward Zorinsky (D-Neb.) Midwestern grain farmers have lost an ally who from his senior post on the Senate Agriculture Committee had fought hard against cutbacks in farm benefits. Zorinskys passing could trim the Democrats majority in the Senate and change the makeup of the Senate farm panel. Zorinsky who died of a heart attack last Friday was the second-ranking Democrat on the Senate Agriculture Committee and chairman of the crucial subcommittee on agricultural production and stabilization of prices. Once a Republican Zorinsky was fiscal conservative. But he was an outspoken critic of Reagan administration proposals to trim target prices and at the time of his death was girding himself for another push for mandatory supply controls. If Melcher decides however to continue as chairman of the subcommittee on agricultural research conservation forestry and general legislation other Democrats would have a crack at the vacated chairmanship. By order of seniority those senators would be David Pryor (Ark.) David Boren (Okla.) Howell Heflin (Ala.) and Tom Harkin (D-Iowa) a forceful advocate of mandatory supply controls. Reuter | SEN. ZORINSKY'S DEATH RAISES POLICY QUESTIONS |
Financial Corp of Americas American Savings and Loan Association said it completed the previously announced purchase of 16 retail savings branches from Great Western Financial Corps <GWF> Great Western Savings. American Savings said the purchases boost its deposits by about 550 mln dlrs but do not affect its asset base. Reuter | FINANCIAL CORP <FIN> UNIT COMPLETES PURCHASE |
American and Soviet arms negotiators will resume talks on curbing medium-range nuclear missiles here tomorrow a U.S. Spokesman said. The negotiations on nuclear and space arms formally recessed their seventh round last Friday. But both sides agreed that the group dealing with Intermediate Nuclear Forces (INF) would continue its work following proposals introduced last week by both superpowers for deep cuts in those weapons. Reuter | U.S., SOVIETS TO RESUME TALKS ON MEDIUM-RANGE MISSILES |
Central bankers said they were generally satisfied with the response to the Paris accord two weeks ago to stabilize currencies at around current levels. Speaking after a meeting at the Bank for International Settlements (BIS) which reviewed the agreement they also welcomed interest rates cuts in France and todays drop in British rates. One top official said the rate cuts would help to stimulate growth generally in Europe and welcomed that countries other than West Germany were seen to be helping sustain the economy. The central bankers who spoke on the condition they not be named said the meeting of governors from the Group of 10 countries also heard a report from Michel Camdessus the new managing director of the International Monetary Fund on the IMFs latest assessment of the debt crisis. In particular they discussed Brazils debt moratorium. But there was no sense of urgency they said and Brazil had made no appeal for bridging loans from the BIS or central banks. Reuter | CENTRAL BANKERS SATISFIED WITH PARIS ACCORD |
Union Carbide Corp said it filed a registration statement with the Securities and Exchange Commission covering 250 mln dlrs of senior subordinated notes due 1994 and 250 mln dlrs of convertible subordinated debentures due 2012. The notes which will be callable after 1992 will be underwritten by First Boston Corp. First Boston is co-lead underwriter with Morgan Stanley and Co of the debentures which will be convertible into Union Carbide common at any time prior to maturity unless previously redeemed. Union Carbide said it will use the proceeds of the issues to repay debt incurred in connection with a recapitalization plan unveiled in November 1986. The plan was aimed at reducing debt levels and interest expense strengthening the chemical companys finances and increasing its operating flexibility. Reuter | UNION CARBIDE <UK> FILES 500 MLN DLR DEBT OFFER |
The Student Loan Marketing Association said it priced its 300 mln dlr short-term floating rate note offer at par to yield 25 basis points above the bond-equivalent yield of the 91-day Treasury bill. Sallie Mae said previously interest on the notes which are for settlement March 12 and are due Sept 10 1987 will be reset the day following each weekly T-bill auction. When-issued trading is expected to begin at 0930 hrs EST tomorrow it said. Sallie Mae said it generally offers short-term floating rate notes each month. Reuter | SALLIE MAE PRICES SHORT-TERM FLOATING RATE NOTES |
Johnson Products Co Inc said it completed the sale of Debbies School of Beauty Culture Inc and the assets of Ultra Precise Beauty Boutique Inc to management. It said the sale price of 2533000 dlrs consisted of 700000 dlrs cash a secured promissory note for 1506000 dlrs and the forgiveness of a debt of 327000 dlrs owed by Johnson Products to Debbies School. Reuter | JOHNSON PRODUCTS <JPC> SELLS TWO SUBSIDIARIES |
A newly formed credit rating agency based in London EuroRatings Ltd said it will begin providing evaluations of the quality of eurobond offerings including the first-ever ratings of some of the U.K. And Irish clearing banks. The agency said that already it has published ratings on 90 issues of 45 euromarket issuers. Among the bank issues never rated publicly are long-term debt securities of LLoyds Bank PLC Allied Irish Banks Bank of Ireland and Bank of Scotland. Shareholders in the new firm are Fitch Investors Service inc a U.S.-based rating agency and Compagnie Belge DAssurance- Credit S.A. A credit insurance firm which is a subsidiary of Societe Generale de Belgique. Reuter | NEW AGENCY TO GIVE CREDIT RATINGS ON EUROBONDS |
Eli Lilly and Co said it obtained approval from the U.S. Food and Drug Adminstration to market the natural sequence human growth hormone humatrope made by recombinant DNA technolgoy. The company said humatrope is identical in chemistry and structure to the growth hormone produced by the human body. It is the only commercially available biosysnthetic human growth hormone that is identical to naturally-occurring growth hormone according to the company. It said humatrope is indicated only for the long term treatment of children who have growth failure due to an inadequate secretion of the bodys own normal growth hormone. Humatrope joins humulin human insulin in Eli Lilly and Cos line of human health care products of recombinant DNA origin. Reuter | ELI LILLY AND CO <LLY> GETS DRUG APPROVAL |
USAir Group Inc said it seeking two billion dlrs in bank debt to complete its takeover of Piedmont Aviation Inc <PIE> and its pending acquisition of PS Group Incs Pacific Southwest Airlines. In a filing with the Securities and Exchange Commission that details its proposed 69 dlr a share cash tender offer for Piedmont USAir said Manufacturers Hanover Trust Co <MHC> indicates its willingness in a March 6 letter to provide up to 500 mln dlrs of the financing. Manufacturers Hanover would also to act as agent for a bank group to raise the rest of the financing USAir said. USAir said a Manufacturers Hanover affiliate is currently agent for its 400 mln dlrs revelving credit facility which would be replaced by the proposed two billion dlr financing. USAir put its total cost of completing the tender offer at 1.7 billion dlrs. Its Pacific Southwest takeover which has received federal approval and is due to come up for shareholder approval later this month is for 17 dlrs a share or 400 mln dlrs total. USAir said it has already bought 2.3 mln Piedmont common shares or 9.9 pct of the total outstanding from Norfolk Southern Corp <NSC> for 161.9 mln dlrs. The tender offer which is being made through a USAir subsidiary USAG Acquisition Corp would not be valid unless USAir is left with more than half of Piedmonts total outstanding common stock after the April 3 expiration. While negotiations on terms and interest rates of its bank loans are not yet complete USAir said it expects them to be in the form of a one billion dlr two-year term loan and a one billion dlr seven-year revolving credit facility. The company said it expects to repay the two-year loan through equity preferred and debt offerings and possibly internal funds and the sale and/or leaseback of aircraft. Reuter | USAIR <U> SEEKS TWO BILLION LOAN FOR TAKEOVERS |
U.S. EXPORT INSPECTIONS, IN THOUS BUSHELS SOYBEANS 18,616 WHEAT 16,760 CORN 25,193 |
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Pitney Bowes Incs Dictaphone Corp subsidiary said it has contracted the exclusive right to sell <Sudbury Systems Inc>s RTAS digital dictation system in medical markets in the United States. Inaddition Dictaphone said it will market RTAS in non-medical marekts on a non-exclusive basis. RTAS is a centralized system which provides users with 24-hour instant access to dictated reports from any remote location. Dictaphone has been selling the RTAS system since 1984. Reuter | PITNEY BOWES <PBI> UNIT TO MARKET SUDBURY SYSTEM |
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