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Xyvision Inc said it has received 1900000 dlrs in orders for its computer-integrated publishing systems from nine commercial customers. Reuter | XYVISION <XYVI> GETS 1.9 MLN DLRS IN ORDERS |
<Jannock Ltd> said it acquired a 50 pct interest in Intercon Security Ltd for five mln dlrs and Intercon founders Brian Legge and Richard Grange will hold the remaining 50 pct and will continue to manage the company. Intercon Security employing 850 people provides a full range of security equipment and services Jannock said. Reuter | JANNOCK ACQUIRES 50 PCT OF INTERCON SECURITY |
Petro-Canada the state-owned oil company said it raised the contract price it will pay for crude oil 64 Canadian cts a barrel effective March six. Petro-Canadas posted price for the benchmark light sweet grade Edmonton/Swann Hills at 40 api gravity now stands at 21.95 Canadian dlrs/bbl. Their light sour grade is posted at 19.88 Canadian dlrs/bbl. Earlier today Shell Canada <SHC> said it raised its crude postings about 47 Canadian cts/bbl bringing Edmonton light sweet to 21.95 Canadian dlrs/bbl and the light sour crude to 19.95 Canadian dlrs/bbl. Imperial oil <IMO.A> a 70 pct owned subsidiary of Exxon Corp said that effective March five it also raised its light sweet crude posting to 21.95 Canadian dlrs/bbl. Reuter | CANADIAN OIL COMPANIES RAISE CRUDE PRICES |
FORD MOTOR CO, FORD MOTOR CREDIT MAY BE RAISED BY MOODY'S, AFFECTS 23 BILLION DLRS OF DEBT |
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DART GROUP SAID IT OFFERS TO BUY SUPERMARKETS GENERAL AT 41.75 DLRS/SHR |
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The Agriculture Department will have to release an estimated 1.6 billion dlrs worth of in-kind certificates or certs to corn farmers this fall if USDA decides to maintain an equal split of total 1986 feedgrain deficiency payments in cash and certs USDA officials said. Final 1986 crop deficiency payments will be available to feed grain producers in October. Wheat deficiency payments for the 1986 crop now complete were made in a 50/50 cash-certificate split and USDA officials have indicated they want to do the same for feedgrains. Over 3.2 billion dlrs of an estimated 6.0 billion in corn deficiency payments have already been announced with 1.42 billion dlrs (43 pct) set in certificates. The final payment must be 1.6 billion dlrs in certs (57 pct) for a 50/50 split. However the release this month of almost 600 mln dlrs of deficiency payments was equally divided in cash and certs doing nothing to bring up the percentage of certs. Some USDA analysts said the payments reflected hesitation from the Office of Managament and Budget to allow another huge release of certs onto the market. Bills are pending in Congress to move up the final feedgrain deficiency payment to as soon as five months after harvest as possible rather than the current year lag time. Neither Rep. Edward Madigan (R-Ill.) nor Sen. Bob Dole (R-Kans.) sponsors of the bills have brought the legislation forward. Aides said timing will depend on budget discussions. Reuter | FINAL 50/50 CORN CERTS SEEN AT 1.6 BILLION DLRS |
Singer Co said its flight simulator designed to train pilots in dealing with wind shear was endorsed by the Federal Aviation Administration FAA. The wind sheer profile will be available on all of Singers SimuFlite Training International Phase II jet simulators by mid-1987 the company said. While the company can use the device to train pilots without the FAA evaluation and qualification it said the FAA act is an endorsement. Reuter | FAA ENDORSES SINGER <SMF> WIND SHEAR SIMULATOR |
J.W. Mays Inc said it made the final payment of 84519 dlrs due its unsecured creditors under its reorganization plan. The company said it has been out of bankrputcy since February 14 1984 and has now made its final payment to creditors. Mays said it had until March 1 1988 to pay certain interest due to unsecured creditors but has elected to prepay that interest now. Reuter | J.W. MAYS INC <MAYS> COMPLETES PAYMENTS |
<BCI Holdings Corp> said its <Beatrice U.S. Food Corp> retained Shearson Lehman Brothers Inc to assist in the sale of its national bottled water business. It said products of the subsidiary based in Monterey Park Calif. are sold under the Arrowhead brand name in California and Arizona the Ozarka name in Texas and the Great Bear name in 11 northeastern states. Reuter | BCI HOLDINGS TO SELL BOTTLED WATER DIVISION |
The first 23 members have been elected to the joint traded options facility of the London Commodity Exchange (LCE) and the International Petroleum exchange (IPE) the exchanges said in a statement. More firms have applied and the final tranche will be admitted on April one and trading is planned to start in early June on the new trading floor on Commodity Quay. Traded options need a volatile and liquid futures base to succeed and chairman of the joint formation committee Jack Patterson said the existing LCE cocoa coffee sugar and IPE gas oil contracts should have no difficulty in providing this. Reuter | LCE AND IPE ELECT FIRST TRADED OPTIONS MEMBERS |
USDA ESTIMATES 1986/87 USSR GRAIN IMPORTS 26.0 MLN TONNES VS 23.0 IN FEB, 29.9 IN 1985/86 |
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USDA ESTIMATES 1986 SOVIET GRAIN CROP AT 210 MLN TONNES VS 210 IN FEB, 192 YEAR-AGO |
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Dart Group Corp said it offered to buy Supermarkets General Corp for 41.75 dlrs per share in cash. Earlier Supermarkets General said an unsolicited third party had made the offer. Analysts estimated the value at about 1.6 billion dlrs based on 38.5 mln shares outstanding. Kidder Peabody and Co Inc told Dart that Kidders affiliate will be prepared to advance up to 750 mln dlrs on a subordinated basis. | DART <DARTA> MAKES OFFER FOR SUPERMARKETS <SGL> |
The U.S. Agriculture Department forecast the Soviet 1986/87 wheat crop at 92.30 mln tonnes vs 92.30 mln tonnes last month. It put the 1985/86 crop at 78.10 mln tonnes vs 78.10 mln tonnes last month. Soviet 1986/87 coarse grain production is estimated at 103.30 mln tonnes vs 103.30 mln tonnes last month. Production in 1985/86 is projected at 100.00 mln tonnes vs 99.99 mln tonnes last month. USSR wheat imports are forecast at 15.00 mln tonnes in 1986/87 vs 14.00 mln tonnes last month. Imports in 1985/86 are put at 15.70 mln tonnes vs 15.70 mln tonnes last month. USDA estimated Soviet 1986/87 coarse grain imports at 10.00 mln tonnes vs 8.00 mln tonnes last month and 1985/86 imports at 13.70 mln tonnes vs 13.70 mln tonnes last month. | USDA ESTIMATES SOVIET WHEAT, COARSE GRAINS |
The U.S. Agriculture Department projected an average yield of 1.47 gallons of frozen concentrated orange juice per box (42.0 degree brix equivalent) from Floridas 1986/87 crop. That compares with 1.46 gallons per box previously and 1.38 gallons per box from the 1985/86 crop. The crop reporting board said the estimates for the 1986/87 season are based on maturity and yields tests as of March 1. Reuter | USDA ORANGE JUICE YIELD ESTIMATE |
Standard and Poors Corp said it is reviewing debt of Caesars World Inc with negative implications following New York investor Martin Sosnoffs 725.2 mln dlr bid to buy the Caesars World common shares he does not yet own. The issues include Caesars Worlds BB-rated senior debt and single-B-plus subordinated debt and Caesars World Finance Corps B-plus subordinated debt guaranteed by the parent. About 230.8 mln dlrs of debt is affected. S and P said that if successful the debt financed acquisition would greatly increase the firms financial risk and cause a marked drop in earnings and cash flow. Reuter | S/P MAY DOWNGRADE CAESARS WORLD <CAW> DEBT |
The U.S. Agriculture Department estimated 1987 winter potato production based on March 1 conditions at 2788000 cwts (100 lbs) vs 2764000 cwts indicated last month and 2991000 cwts last year. The department estimated winter potato area for harvest at 11900 acres vs 11900 acres last month and 12300 acres in 1986. The yield per harvested acre for winter potatoes is estimated at 234 cwts per acre vs 243 cwts last year. The department also projected 1987 spring potato crop area planted at 79300 cwts vs 77400 cwts last year and area for harvest at 76700 acres vs 75900 acres harvested last year. Reuter | USDA WINTER/SPRING POTATO ESTIMATES |
About 800 members of the United Food and Commercial Workers Union UFCWU struck John Morrells Sioux City Iowa pork processing plant at midnight Sunday a spokesman for the UFCWU national said. Meatpackers at the plant have been working without a contract since the old pact expired January 31 UFCWU spokesman John Mancuso said. The plant can slaughter and process about 13000 to 14000 hogs a day he estimated. The UFCWU bargaining committee and full membership rejected in late January a contract proposal by John Morrell a subsidiary of United Brands Inc he said. | MEATPACKERS STRIKE MORRELL SIOUX CITY PLANT |
Chrysler Corp said over the next two years it will phase out production at its Indianapolis Electrical Plant which currently employs 975 hourly hourly and salaried workers. The company said that its recently concluded study indicated the plant now operating at less than 50 pct capacity could not be competitive in an increasingly competitive automotive market in the production of electro-mechanical automotive components. | CHRYSLER <C> TO CLOSE INDIANA ELECTRICAL PLANT |
MTS Acquisition Corp said it will need about 907 mln dlrs to acquire the 31781461 Caesars World Inc shares not owned by its owner Martin T. Sosnoff. The estimate came in MTS Acquisitions proxy statement to Caesars World shareholders describing its offer of 28 dlrs a share for their stock which was announced this morning. In that announcement MTS Acquisition said its bank and investor bankers felt they could provide financing totaling 975 mln dlrs for the offer. Sosnoff is Caesars Worlds largest shareholders with 4217675 of the companys shares. That is about 11.7 pct of the outstanding stock on a fully diluted basis the proxy said. Besides being the sole owner of MTS Acquisition Sosnoff owns 61 pct of Atalanta/Sosnoff Capital Corps <ATL> stock and is chairman of that investment management and brokerage firm. Reuter | CAESARS WORLD <CAW> BID VALUED AT 907 MLN DLRS |
Moodys Investors Service Inc said it is reviewing the long-term debt ratings of Ford Motor Co and Ford Motor Credit Co for possible upgrade. About 23 billion dlrs of debt is affected. Moodys said it recognizes Fords recent superior operating results and is assessing whether this performance can be expected to continue. The rating agency will focus on Fords long-term competitive business and financial condition. Ratings under review include Ford Motors A-1 rated senior long-term debt the Credit units A-1 rated senior debt and its A-2 rated subordinated debt. Reuter | FORD <F> DEBT RATINGS MAY BE RAISED BY MOODY'S |
Carolin Mines Ltd said recent assays of tailings at its Hope British Columbia mine ranged from 0.50 to 0.64 ounces of gold per ton. There were only trace amounts of platinum and palladium the company said. Carolin said the results sharply disagreed with an earlier assay performed by Intergold U.S.A. Inc which showed 1.0 ounce of gold per ton and 0.50 ounce of platinum per ton. Carolin also said it expects to receive results of further tests and assays of the tailings within two to three weeks. Reuter | CAROLIN MINES HAS NEW GOLD ASSAY RESULTS |
The Commodity Credit Corporation CCC has authorized 25.0 mln dlrs in credit guarantees to North Yemen to cover purchases of U.S. wheat under the Intermediate Export Credit Guarantee Program (GSM-103) the U.S. Agriculture Department said. Under the program credit terms extended must be in excess of three yeras but not more than seven years. All sales under the line must be registered and exports completed by September 30 1987 the department said. Reuter | CCC WHEAT CREDIT GUARANTEES FOR NORTH YEMEN |
The Commodity Credit Corporation CCC has accepted one bonus offer from an exporter on the sale of 4400 tonnes of barley malt to Nigeria the U.S. Agriculture Department said. The department said the bonus awarded was 100.00 dlrs per tonne and was made to Rahr Malting Co and will be paid in the form of commodities from the inventory stocks of the CCC. The barley malt is scheduled for shipment during April 1987. An additional 76300 tonnes of barley malt are still available to Nigeria under the Export Enhancement Program initiative announced December 10 1986 it said. Reuter | CCC ACCEPTS EXPORT BONUS BARLEY MALT TO NIGERIA |
<Guinness PLC> said William G. Pietersen has been named president of Guinness America Inc in addition to his role as president of the companys North American Wine and Spirits operations. Guinness also said John M. Huston has been named vice president finance of the North American unit which has also created the offices of vice president general counsel and vice president human resources. It said the office of general counsel will be filled on an interim basis by Donald J. Lunghino the recently retired general counsel of Unilever United States. Reuter | GUINNESS NAMES OFFICIALS FOR U.S. OPERATIONS |
Bank of Ireland said it has mandated Barclays de Zoete Wedd Ltd (BZW) to arrange a 300 mln stg committed certificate of deposit issuance facility. The facility will be used to fund Bank of Irelands new U.K. Home mortgage subsidiary BankAmerica Finance Ltd which will be renamed shortly. The certificates will be sold through an uncommitted tender panel but the facility will be fully underwritten for five years by a syndicate of banks formed by BZW. Four banks-- Barclays Bank Plc Canadian Imperial Bank of Commerce Lloyds Bank Plc and Standard Chartered Bank-- have agreed to underwrite the credit in a pre-syndication agreement and will act as lead managers in syndication due to begin soon. Bank of Ireland also said it has appointed BZW as sole dealer on a separate 100 mln stg certificate of deposit program. Reuter | BANK OF IRELAND SEEKS 300 MLN STG CD FACILITY |
Carolin Mines Ltd said recent assays of tailings at its Hope British Columbia mine indicated that ounces of gold per ton ranged from 0.64 to 0.50. There were only trace amounts of platinum and palladium the company said. Carolin said the results sharply disagreed with an earlier assay performed by Intergold U.S.A. Inc which showed one ounce of gold per ton and 1/2 ounce of platinum per ton. Carolin also said it expects to receive results of further tests and assays of the tailings within two to three weeks. Reuter | CAROLIN MINES <CRLNF> HAS NEW ASSAY RESULTS |
Bausch and Lomb Inc said it began marketing a new product designed to lubricate and protect the cornea of the eye for post-surgical and other patients. The company said the product the Bio-Cor Fyodorov Collagen Corneal Shield will be manufactured and distributed through its newly formed surgical products unit located in Clearwater Fla. The corneal shield was approved by the U.S. Food and Drug Administration in January the company said. Reuter | BAUSCH/LOMB <BOL> MARKETS CORNEA PRODUCT |
Brazilian marines were today working on the unloading of ships at the local port as a national strike by 40000 seamen entered its 10th day without signs of an agreement. The halt the first national strike by seamen in 25 years started on February 27 and union leaders said they would not return to work unless they received a 275 pct pay rise. Shipowners have offered a 100 pct raise which the seamen rejected. Television reported that the port was operating at full speed but thats not true a striking seaman told Reuters. The marines are doing their best but they dont have the manpower nor the experience to control the situation in such a quick period he said. Port officials said the national halt had already caused losses estimated at 1.5 mln dlrs. Despite the presence of marines there were no reports of incidents. Reuter | SEAMAN'S STRIKE CONTINUES, MARINES UNLOAD SHIPS |
The U.S. Agriculture Department increased its estimate of Soviet 1986/87 grain imports to 26 mln tonnes from last months projection of 23 mln tonnes. In its monthly USSR Grain Situation and Outlook USDA said the increase reflected the return of the Soviet Union to the U.S. corn market and continued purchases of both wheat and coarse grain from other major suppliers. USSR wheat imports were projected at 15 mln tonnes up one mln from last months estimate and 700000 tonnes below the preliminary 1985/86 figure. Soviet grain for feed use was estimated at a record 129 mln tonnes. Record or near-record livestock inventories along with a dry fall which likely reduced late season pasturage and a cold winter have increased feed demand USDA said. USSR meat and egg production in January rose only slightly from the previous Januarys level while milk production increased by nearly six pct. Unusually cold weather in January and smaller increases in roughage supplies during 1986 than in 1985 kept livestock production from expanding as much as it did a year earlier USDA said. Reuter | USDA RAISES SOVIET GRAIN IMPORT ESTIMATE |
Hartford National Corp said the China Industry Commerce and Development Corp agreed to work exclusively with its Connecticut National Bank unit in banking business between China and all six New England states. The company said China Industry Commerce will provide import and export assistance economic and business information contacts and introductions. Reuter | HARTFORD NATIONAL UNIT <HNAT> SETS CHINA PACT |
up to 300 people were feared dead and more than 15000 people left homeless by thursdays earthquake which will cost Ecuador close to 800 mln dlrs in lost petroleum revenues authorities said. They estimated the cost of repairing a damaged oil pipeline at 150 mln dlrs. the magnitude of the damages caused by the earthquake is gigantic president leon febres cordero said after inspecting the damages in napo the hardest-hit jungle province 100 miles from here. The quake damaged 40 km of an oil pipeline forcing this opec nation to suspend crude exports for four months president febres cordero said in a statement issued today by the presidential press office. The country would lose an estimated 800 mln dlrs in crude exports until the pipeline was repaired the president said. It would cost 150 mln dlrs to repair the pipelline which carries oil from jungle oil fields over the andes to Balao a pacific ocean port. Crude traditionally accounts for up to two-thirds of ecuadors exports. the quake triggered landslides swelling the aguarico river which burst it banks carrying away homes and huts in napo province health minister jorge brancho told reuters. we fear that up to 300 people died in napo though there is no way of now knowing the exact figure because many people have disappeared he said. Other estimates ranged as high as 500 dead. So far 20 corpses have been recovered bracho said. Information Minister Marco Lara told reporters: the number of dead and injured is not known ... because we do not know how many people lived in the homes hit by the landslides. Bracho said at least 15000 were left homeless in the cayambe district. Reuter | ECUADOR QUAKE TO CUT OIL REVENUES 800 MLN DLRS |
BUSINESS EDITOR THEODORE CROSS OFFERS 34 DLRS SHARE FOR HARPER AND ROW |
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The U.S. Agriculture Department estimated Canadas 1986/87 wheat crop at 31.85 mln tonnes vs 31.85 mln tonnes last month. It estimated 1985/86 output at 24.25 mln tonnes vs 24.25 mln last month. Canadian 1986/87 coarse grain production is projected at 27.62 mln tonnes vs 27.62 mln tonnes last month. Production in 1985/86 is estimated at 24.95 mln tonnes vs 24.95 mln last month. Canadian wheat exports in 1986/87 are forecast at 19.00 mln tonnes vs 18.00 mln tonnes last month. Exports in 1985/86 are estimated at 17.71 mln tonnes vs 17.72 mln last month. Reuter | USDA ESTIMATES CANADIAN CROPS |
The U.S. Agriculture Department forecast Australias 1986/87 wheat crop at 17.30 mln tonnes vs 17.50 mln tonnes last month. It estimated 1985/86 output at 16.13 mln tonnes vs 16.13 mln last month. Australian wheat exports in 1986/87 are forecast at 14.50 mln tonnes vs 15.00 mln tonnes last month while exports in 1985/86 are estimated at 15.96 mln tonnes vs 15.96 mln last month. Reuter | USDA ESTIMATES AUSTRALIA WHEAT CROP |
Theodore Cross editor of Business and Society Review a business publication said an investor group he heads has offered to buy Harper and Row Publishers Inc for 34 dlrs a share cash. In a filing with the Securities and Exchange Commission Cross said he proposed the takeover to the board of the New York publishing house today. Cross whose investor group includes his wife Mary said they already hold 261650 Harper and Row common shares or 6.0 pct of the total outstanding common stock. They said they have spent 3.5 mln dlrs on their stake so far. Cross said he proposed in a letter to Harper and Row that the company be merged into a company Cross is forming. Suggesting that the total cost of completing the merger would be 190 mln dlrs Cross said he would use 20 mln dlrs of his own money for the deal and up to 170 mln dlrs which would be borrowed from the First National Bank of Boston under a revolving credit facility the bank has agreed to provide. | BUSINESS EDITOR OFFERS 34 DLRS FOR HARPER <HPR> |
French maize producers will ask the EC Commission to grant permanent maize export rebates following the recent EC/U.S. Accord guaranteeing the U.S. An annual export quota of two mln tonnes of maize for Spain over four years the French maize producers association AGPM said. The Commission has already decided to accord rebates for the export of 500000 tonnes of French maize of which rebates for around 100000 tonnes have been granted. The request will be made when export certificates have been granted for all the 500000 tonnes the AGPM said. The association said that the request would cover exports to all destinations adding that the Soviet Union which has important maize needs is currently excluded from the list of destination countries for the 500000 tonnes of French maize. The U.S. Agriculture Department has forecast Soviet maize imports for the 1986/87 campaign at 4.90 mln tonnes against 10.40 mln in 1985/86. Reuter | FRANCE TO REQUEST PERMANENT MAIZE REBATES |
The dollar will decline over the next two to three years but this is unlikely to result in a complete reduction of the U.S. current account deficit said Anthony Solomon chairman of S.G. Warburg (USA) Inc and former president of the Federal Reserve Bank of New York. In a presentation to the Japan Society Solomon said without elaboration that he expects a significant decline in the dollar within the next three years. The dollar will fall more but the current account deficit will stop being reduced when it reaches its structural core he said. Solomon described the structural core as about one-half of the current 150 billion dlr annual deficit. He cited several factors which will prevent an elimination of the deficit. For one thing it is unlikely that there will be any new investment in those manufacturing industries that shrank when the dollar was at uncompetitive levels he said. In addition he said that the U.S. has an increased propensity to import in order to satisify consumer tastes. Solomon forecast inflation at 4.5 pct by year-end but said it could be kept below five pct in the medium-term if oil prices are stable and commodity values remain low. Reuter | U.S. PAYMENTS GAP TO PERSIST, EX-FED CHIEF SAYS |
The Commodity Credit Corporation CCC has accepted a bonus offer from an exporter on the sale of 13 head of dairy cattle to Morocco the U.S. Agriculture Department said. The department said the bonus awarded was 1505.00 dlrs per head and was made to Brown Swiss Enterprises Inc. It will be paid in the form of commodities from CCC inventories. The cattle are for delivery during March 9-September 30 1987. The department said the purchase completes the Export Enhancement Program initiative for dairy cattle to Morocco announced on April 16 1986. Reuter | CCC ACCEPTS EXPORT BONUS DAIRY CATTLE TO MOROCCO |
The Commodity Credit Corporation CCC has accepted a bonus offer from an exporter on the sale of 75 head of dairy cattle to the Canary Islands the U.S. Agriculture Department said. The department said the bonus awarded was 1459.00 dlrs per head and was made to T.K. International Inc. It will be paid in the form of commodities from the inventory of CCC stocks. The cattle are for delivery during March-June 1987 it said. An additional 3925 head of dairy cattle are still available to the Canary Islands under the Export Enahcnement Program initiative announced July 28 1986 it said. Reuter | CCC EXPORT BONUS DAIRY CATTLE FOR CANARY ISLANDS |
U.S. CONSUMER CREDIT ROSE 536 MILLION DLRS IN JAN VS 144 MILLION DEC GAIN |
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Marathon Petroleum Company a subsidiary of USX Corp <X> said it raised the contract price it pays for three grades of crude oil effective March 6. Illinois Sweet and Indiana Sweet are both being raised 50 cts a barrel to 16.75 dlrs/bbl and the Southern Michigan grade is being raised 25 cts/bbl also to 16.75 dlrs a bbl. The West Texas Intermediate grade was unchanged. Reuter | USX <X> UNIT RAISES SOME CRUDE POSTINGS |
UNITED BRANDS INC 4TH QTR SHR PROFIT SIX CTS VS LOSS 11 CTS |
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National Fuel Gas Co said its board has approved a two-for-one stock split and will consider an increased cash dividend at its June meeting. The company also said management will recommend at the June board meeting an increase of 12 cts per share in the current annual dividend rate of 2.28 dlrs a share raising it to 2.40 dlrs per share or 1.20 dlrs a share after the split. National Fuel Gas said the split will be paid to holders of record May 29. A spokeswoman said the distribution date for the split has not been determined. The company said the split is subject to approval of the Securities and Exchange Commission under the Public Utility Holding Act. The company now has 11928871 shares outstanding. Reuter | NATIONAL FUEL GAS <NFG> SETS SPLIT, HIGHER PAYOUT |
Sensormatic Electronics Corp said it upped its investment in CheckRobot Inc in the form of 2.5 mln dlrs of convertible preferred stock raising its stake in CheckRobot to 42 pct from 37 pct on a fully diluted basis. Reuter | SENSORMATIC <SNSR> UPS CHECKROBOT <CKRB> STAKE |
Emergy Air Freight Corp said its shipments rose 12 pct to 1190000 last month from 1067000 in February 1986. The company said the weight of these shipments was up 20 pct to 52.7 mln pounds from 44.0 mln a year earlier. Reuter | EMERY AIR <EAF> FEBRUARY SHIPMENTS UP 12 PCT |
The New York Shipping Association and International Longshoremens Association said they agreed to cut cargo assessments at the Port of New York and New Jersey by more than 50 pct on some labor intensive cargos. The charges on cargo handled by union workers will be reduced to 2.85 dlrs a ton from 5.85 dlrs a ton effective April one according to the agreement between the union and shippers. The assessments are used to fund workers benefits. What were doing is lowering the price to get more bulk cargo flowing through here a spokesman for the New York Shipping Association said. | UNION, SHIPPERS AGREE TO CUT N.Y. PORT COSTS |
Treasury balances at the Federal Reserve rose on March 6 to 3.879 billion dlrs from 3.467 billion dlrs the previous business day the Treasury said in its latest budget statement. Balances in tax and loan note accounts fell to 12.453 billion drls from 14.350 billion dlrs on the same respective days. The Treasurys operating cash balance totaled 16.332 billion dlrs on March 6 compared with 17.817 billion dlrs on March 5. Reuter | TREASURY BALANCES AT FED ROSE ON MARCH 6 |
CSX Corps Sea-Land Corp unit said it will offer improved containership services between Puerto Rico and the East Coast and Gulf Coast of the United States beginning March 16. The carrier said it will provide shorter door-to-door transit times more convenient cargo availability and better rail connections for traffic moving between Puerto Rico and North America. Reuter | CSX <CSX> UNIT SETS IMPROVED SHIPPING SERVICE |
Oshkosh Truck Corp (OTRKB) has received a 64.0 mln dlr contract for work on 432 diesel engine drive MK-48 series vehicles the Army said. REUTER | OSHKOSH TRUCK GETS 64.0 MLN DLR ARMY DEAL |
a confidential world bank report on the peruvian economy said the governments strategy does not offer good prospects for medium and long-term growth and is likely to quickly lead to inflation. The report published today by an economic monthly the peru report said the success of president alan garcias government in stimulating output last year to achieve eight pct gross domestic product growth represents gains in the short term at the expense of the long. Government officials had no immediate comment on the report which advised a reduction in the overall size of the public investment programme and greater emphasis on the preservation of perus export potential. The report said that although the government had succeeded in cutting inflation 50 pct a year in the first half of 1985 to under 70 pct its stabilisation and reactivation programme was encountering increasing difficulties. an early renewal of inflationary pressures linked to monetary expansion exchange rate devaluation and an easing of price controls appears not improbable it added. | WORLD BANK REPORT CRITICISES PERU ECONOMIC PLAN |
European Community finance ministers discussed the economic outlook for the 12-nation bloc and many said a recent gloomy forecast by the EC Commission was too pessimistic. The Commission the ECs executive authority two weeks ago cut its forecast for economic growth in the Community to 2.3 per cent for this year from 2.8 per cent predicted last autumn. It said economic prospects had been less promising over the past few months because of a sharp fall in the value of the dollar and a slowing of world trade -- factors which would restrain Community exports. But diplomats said several member states led by West Germany Britain and France felt the forecast was too gloomy especially since it was drafted before a recent agreement between the leading Western economic powers to stabilise currencies around current levels. Many delegations feel the (Commissions) report is rather too pessimistic said Belgian Finance Minister Mark Eyskens who chaired the meeting. The Commission which slashed its growth forecast for West Germany to two per cent from 3.2 per cent has made clear it feels Bonn has room to introduce additional measures to stimulate its economy that would benefit the rest of Europe. But two top German officials State Secretaries Otto Schlecht and Hans Tietmeyer told reporters Bonn saw no need at the moment for action to bolster the ECs biggest economy. The diplomats said they were backed by Britain and France while Italy Greece and Denmark supported the Commissions view that Bonn should bring in new measures to aid EC growth. | MINISTERS FEEL EC FORECASTS TOO PESSIMISTIC |
U.S. consumer instalment credit rose a seasonally adjusted 536 mln dlrs in January after a revised rise of 144 mln dlrs in December the Federal Reserve Board said. The annual rate of growth in January was 1.1 pct up from 0.3 pct in December. Previously the Fed said consumer credit rose 105 mln dlrs in December. Among the credit categories auto credit fell in January to 1.02 billion dlrs from 2.06 billion dlrs in December the Fed said. Revolving credit in January fell by 366 mln dlrs after rising by 552 mln dlrs in December. Mobile home credit was up by 130 mln dlrs after falling by 21 mln dlrs in December. The category referred to as other covering bank and credit union loans fell by 250 mln dlrs in January after declining by 2.44 billion dlrs in December the Fed said. Before seasonal adjustment consumer credit outstanding totaled 580.37 billion dlrs at the end of January compared with 531.29 billion dlrs at the end of January 1986. Reuter | U.S. CONSUMER CREDIT ROSE 536 MLN DLRS IN JAN |
CONOCO RAISES CRUDE OIL PRICES UP TO ONE DLR BARREL, WTI AT 17.50 DLRS |
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Systemhouse Inc said it won a contract valued at 2.6 mln dlrs from Genstar Stone Products a Hunt Valley Md. supplier of building materials to design install and operate Genstars data center in Baltimore. The data center is scheduled to begin operating in May. The pact is a three-year deal the company said. Reuter | SYSTEMHOUSE <SHKIF> WINS DATA CENTER CONTRACT |
The chiefs of Viacom International Inc and <National Amusements Inc> said they met and agreed to work together to complete the previously announced merger of the two companies as expeditiously as possible. A spokeswoman for Viacom declined to say if the executives had set a timetable for closing the deal. Viacom last week agreed to be acquired by National Amusements for a combination of cash and stock with an estimated value of 53 dlrs a share or a total of about 3.4 billion dlrs. | VIACOM <VIA>, NAT'L AMUSEMENTS SEEK FAST MERGER |
Officials of major brokerage firms expressed dismay at a New York Stock Exchange decision to force strict compliance with a rule barring members from trading in NYSE-listed issues in London during New York trading hours. Most major brokerage houses said they had seen no formal notice from the NYSE on the interpretation of rule 390. Officials of the NYSE were unavailable to explain the timing or the technical details of enforcement of rule 390. Its a step backward said Samuel Hunter senior vice president for equity trading at Drexel Burnham Lambert Inc. Hunter said any perceived problems caused by overlapping trading ought to be addressed by a search for equitable solutions instead of hiding behind legalistic and technical definitions. The NYSE evidently feels some traders use London to circumvent rules preventing short sales on minus ticks Hunter said. But he believes simultaneous printing of trades in London and New York would be a way to have dual trading with an element of fairness. Im a great advocate of the view that the greater the volume the better the market will be he said. Reuter | BROKERS SAY NYSE RULE SHIFT LIMITS FLEXIBILITY |
The Agricultural Stabilization and Conservation Service (ASCS) bought 25.7 mln pounds of wheat flour at a cost of 2.8 mln dlrs for domestic shipment April 1-15 and April 16-30 an ASCS spokesman said. ASCS also bought 11.1 mln pounds of bakers flour for 1.1 mln dlrs 1.9 mln pounds of pasta for 408258 dlrs 1.4 mln pounds of processed cereal products for 304043 dlrs 4.8 mln pounds of corn products for 474944 dlrs and 16.3 mln pounds of milled rice for 2.0 mln dlrs. Reuter | ASCS BUYS PROCESSED PRODUCTS FOR DOMESTIC USE |
GENERAL CINEMA CORP 1ST QTR OPER SHR 43 CTS VS 47 CTS |
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The Federal Home Loan Bank Board said interest rates on both fixed rate and adjustable rate home mortgage loans were down substantially in early February. The bank board said the average effective commitment rate for fixed mortgages with a maturity of at least 15 years for new home purchases dropped to 9.54 pct in early February a 30 basis point decline from early January. The commitment rate on adjustable rate mortgages declined by 16 basis points in the same period bringing the average rate to 8.5 pct the bank board said. The average effective interest rate on all loans closed by major lenders declined 27 basis points from early January to 9.26 pct in early February the lowest rate since March 1978 the bank board said. The average effective rate for fixed mortgages was was 9.51 pct down 30 basis points from the early January level. The average effective rate for adjustable rate mortgages declined 22 basis points to 8.61 pct the bank board said. Reuter | BANK BOARD SAYS MORTGAGE RATES DOWN IN FEBRUARY |
Cullinet Software Inc said it reached a marketing agreement with <Epic Data Corp> under which both companies will sell data collection and software products for inventory management. Epic makes data collection equipment while Cullinet is a software developer. The initial product developed under the accord is expected to be available later this year they said. Separately Cullinet said it bought a fixed assets system from <Computer Associates International> for 440000 dlrs. The system will be designed to run with its data base software and will be help its customers with asset control. Reuter | CULLINET SOFTWARE <CUL> SETS MARKETING PACT |
S/P MAY DOWNGRADE 6.6 BILLION DLRS OF CHRYSLER DEBT DUE TO PLANNED AMC PURCHASE |
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NORANDA TO SPIN OFF FOREST INTERESTS INTO SEPARATE COMPANY |
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American Petroleum Institute President Charles DiBona said no options should be rejected to combat growing U.S. dependence on foreign oil. No action should be ruled out--import fees or quotas floor prices tax incentives or other alternatives--while a national dialogue on the issue continues DiBona said at a paper institute conference in New York today. DiBona said there is no unanimity within the industry on how to stimulate energy production but there is consensus on removing several government policies that hinder investments in new prospects. DiBona said the windfall profit tax should be abolished immediately and current proposals for increased environmental regulations on acid rain and waste disposal should be not adopted. He also suggested that the Arctic National Wildlife Refuge in Alaska should be opened up for leasing to oil companies DiBona said. This is a battle the industry cannot afford to lose if the nation is to continue to benefit from Alaskan oil DiBona said. Since 1986 U.S. oil production has fallen while consumption rose and that has raised dependence on imported oil particularly from OPEC DiBona said. Reuter | API PRESIDENT SEES OPTIONS TO AVERT OIL CRISIS |
U.S. SELLS 3-MO BILLS AT 5.63 PCT, STOP 5.64 PCT, 6-MO 5.59 PCT, STOP 5.60 PCT |
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A top Treasury official said he does not expect any comprehensive Congressional reform of the U.S. banking industry until after the 1988 presidential election due to political pressures and to a lesser extent the insider trading scandal on Wall Street. George Gould Under Secretary of the Treasury told a Wall Street Planning Group luncheon legislation is not going to happen before the election ... (people) do not like to vote on controversial issues in election years. It may take a while in the next administration ... to get something done he added. Calls for a major overhaul of the U.S. banking industry which would probably feature wider investment banking powers for commercial banks has met strong opposition from private interest groups such as the Securities Industry Association. These discussions have nothing to do with merit ... these groups are trying to cloak self-interest in public policy terms Gould said. It is easier to stop something than it is to get it going. He also described current concern about insider trading as a major impediment to further progress ... it is not a helpful backdrop to accomplish financial reform. Similarly Gould said lobbying by such groups as the U.S. League of Savings Institutions would probably mean that the Reagan Administrations proposal for the recapitalization of the Federal Savings and Loan Insurance Corp would be watered down. Gould foresaw a five billion dlr injection over two years compared with the original request for 15 billion dlrs over three years. Gould ruled out any new government initiative on banking reform but said that some broad guidelines to address these issues would be made public over the next few months. Reuter | TOP U.S. OFFICIAL SEES DELAY IN BANK REFORM |
National Distillers and Chemical Corp said it completed the sale of Almaden Vineyards Inc to Heublein Inc for about 128 mln dlrs. Heublein a former subsidiary of RJR Nabisco Inc <RJR> was recently acquired by <Grand Metropolitan PLC>. Almaden based in San Jose Calif. makes and sells table wines champagnes and brandies as well as some premium wines under the Charles Lefranc Cellars label. Reuter | NATIONAL DISTILLERS <DR> CLOSES ALMADEN SALE |
SoftTech Inc said it received a 24.8 mln dlr five-year contract from the U.S. Air Force Aeronautical Systems Division to assist in tracking and controlling the development and modification of Modular Automatic Test Equipment Systems Products. The MATE program is a system for defining acquiring and supporting automatic testing capabilities within the Air Force the company said. SofTech said its role includes the development and maintenance of a MATE master plan aimed at keeping it current with evolving technology. Reuter | SOFTECH INC <SOFT> GETS AIR FORCE CONTRACT |
Standard and Poors said it placed 6.6 billion dlrs of Chrysler Corp securities on CreditWatch with negative implications because of its plan to acquire the outstanding common shares of American Motors Corp <AMO> from Renault Acceptance BV for about two billion dlrs. Among the ratings under review is Chryslers BBB grading for senior debt. The AMC purchase is larger and riskier than current ratings anticipate but any downgrade would be small and Chrysler would remain investment grade S and P said. American Motorss CCC preferred stock rating was also added to CreditWatch but with positive implications. Standard and Poors said that in return for its two billion dlr investment Chrysler would be receiving a business with questionable prospects. The Jeep line is a worthwhile extension for Chryslers product line but the presumed price seems hard to justify. The additional production facilities inlcude both modern and antiquated plant all of which will add to Chryslers fixed overhead and increase its breakeven point at a time that the industry faces a glut of automaking capacity. Chrysler will be challenged to integrate these facilities and the distribution network it is acquiring S and P said. Reuter | S/P MAY DOWNGRADE CHRYSLER <C> |
CEASARS WORLD SAYS IT IS STUDYING UNSOLICITED 28 DLR-PER-SHR OFFER BY MARTIN SOSNOFF |
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The U.S. Treasury said its weekly auction of three-month bills produced an average rate of 5.63 pct with a 5.59 pct rate on six-month bills. These rates compared with averages of 5.47 pct for the three- and 5.51 pct for the six-month bills sold last week. The bond-equivalent yield on three-month bills was 5.81 pct. Accepted bids ranges from 5.61 pct to 5.64 pct and 29 pct of the bids at the high or stopout rate were taken. For six months the yield was 5.85 pct and the bids ranges from 5.56 pct to 5.60 pct with 30 pct of the bids accepted. The Treasury said it received 30.9 billion dlrs of bids for the three-month bills including 1.0 billion dlrs in non-competitive bids from the public. It accepted 6.6 billion dlrs of bids including 2.2 billion dlrs from the Federal Reserve and 9.1 mln dlrs from foreign and international monetary authorities. Some 25.7 billion dlrs in bids for six-month bills were received including 785 mln dlrs in non-competitives. The Treasury accepted 6.6 billion dlrs including 1.9 billion dlrs from the Fed and 942 mln dlrs from foreign and international authorities. The average price for the three-month bills was 98.577 and prices ranged from 98.574 to 98.582. The average price for the six-months bills was 97.174 and prices ranged from 97.169 to 97.189. The average yield on the three-month bills was the highest since 5.66 pct on Feb 17. The average yield on the six-month bills was the highest since 5.70 pct on Feb 17. Reuter | U.S. BILL AUCTION RATES AVERAGE 5.63, 5.59 PCT |
Prime Minister Brian Mulroney said the government was considering selling Petro-Canada and the sale would proceed if it were in the national interest to do so. Mulroney told the House of Commons assets of the huge oil company would be examined before a decision was made just as other state-run companies were studied before being sold under Ottawas privatization program. The government is going to examine assets of this nature to ascertain if they continue to play an appropriate role in public policy and we will make a determination as we have in other cases Mulroney told the daily question period. Asked by opposition members to clairify Finance Minister Michael Wilsons statement on Friday that Petro-Canada no longer has any pubilic policy role Mulroney said his government has long promised to sell off companies that could be better run by the private sector. Outside the House Energy Minister Marcel Masse said Petro-Canada would be worth between three and four billion dlrs and because of the size could be difficult to sell. He also said he would prefer to see Canadians participating in any privatization but would not give any details on timing of a sale. Reuter | CANADA MULLING SELLING PETRO-CANADA - MULRONEY |
Moodys Investors Service Inc said it may downgrade 12 billion dlrs of debt of Chrysler Corp and its units including Chrysler Financial Corp. It cited Chryslers proposed acquisition of American Motors Corp <AMO>. Moodys said it would also review Americans B-1 preferred stock for possible upgrade. Moodys will assess the effect of the proposed transaction on Chryslers capital structure. Under review are the parents Baa-1 senior long-term debt the finance units Baa-1 senior debt Baa-2 senior subordinated debt and Baa-3 junior subordinated debt and Chrysler Canadas Baa-1 Eurobonds. Reuter | MOODY'S MAY DOWNGRADE CHRYSLER <C> AND UNITS |
The Supreme Court left intact a ruling that vacated a judgment ordering China to pay 41.3 mln dlrs for allegedly defaulting on a 1911 loan to finance construction of a railroad from Peking to Canton. The Imperial Government of China issued bonds in 1911 to help construct a section of the so-called Hukuang railroad in an agreement with British German French and American banks. According to court documents payments on the loan were made until the mid-1930s when China was torn by civil war. The present government which came to power in 1949 has never acknowledged the debt. Nine U.S. bondholders sued China for repayment of the loan in 1979 less than a year after the normalization of relations between Washington and Peking. A U.S. District Court in Alabama in 1982 issued a judgment that the bondholders were entitled to all unpaid interest and principal on the bonds totaling 41.3 mln dlrs. But a U.S. Court of Appeals last July vacated the award ruling that the Chinese government was entitled to sovereign immunity and dismissed the lawsuit. Supported by the Reagan administration China argued that it could not be held liable for a debts involving bonds issued in 1911 and that it enjoyed absolute immunity. The Supreme Court without comment declined to hear an appeal by the bondholders seeking to reinstate their lawsuit. Reuter | U.S. COURT LETS CHINESE BOND SUIT DISMISSAL STAND |
Texas Air Corps Continental Airlines said it will begin service in April to Bakersfield Calif. and Eugene and Medford Ore. from its hub at Denver. From Denver Continental will fly a daily nonstop and a one-stop flight to each of the three cities the company said. Service to the Oregon cities will start April 5 and to Bakersfield April 22. Reuter | TEXAS AIR <TEX> UNIT TO EXPAND SERVICE |
<Noranda Inc> said the company planned a public share offer within three months of its Noranda Forest Inc unit which holds Norandas forest products interests. Size of the offer is still undetermined Noranda said. Noranda said Noranda Forest would operate as a freestanding subsidiary of Noranda. Noranda Forest holds 100 pct of Fraser Inc James Maclaren Industries and Noranda Forest Sales and 50 pct stakes in MacMillan Bloedel Ltd <MMBLF> and Northwood Pulp and Timber. Noranda Forests consolidated 1986 revenues were more than three billion dlrs with earnings of 158 mln dlrs. | NORANDA TO SPIN OFF FOREST SUBSIDIARIES |
The News Corp said the South China Morning Post Ltd of Hong Kong become a wholly-owned subsidiary March 7 as previously announced. Reuter | NEWS CORP <NWS> COMPLETES PURCHASE OF NEWSPAPER |
Richmond Hill Savings Bank and <Riverhead Savings Bank FSB> said they terminated their previously announced merger negotiations. The banks gave no reason for ending the talks which began on January 14. Reuter | RICHMOND HILL<RICH>, RIVERHEAD END MERGER TALKS |
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 |
General Cinema Corp said lower attendence at its theatres against last years record Christmas season lowered its first fiscal quarter operating earnings nine pct to 15.9 mln dlrs. While we are not off to as good a start in fiscal 1987 as we would like business has picked up in the last few weeks chairman Richard Smith said. He said that the company expected net pricing to be higher and unit volume to improve in the remaining quarters of the fiscal year. The company added that operating earnings in its theatre unit will be higher in fiscal 1987 if the important summer season film releases perform well. In addition its other key business General Cinema Beverages is expected to achieve record operating results for the full year Smith said. The companys superstar video business which rents video cassettes in supermarkets continues to operate at an expected loss the company added. General Cinema said the financing costs associated with its purchase of 3.5 mln Carter Hawley Hale Stores Inc <CHH> shares for 177.9 mln dlrs and its 89.7 mln sterling investment in <Cadbury Schweppes PLC> lowered first quarter net. But it said the loss was offset by a 2.5 mln dlr gain on the sale of common shares of Sea-Land Corp a unit of CSX Corp <CSX>. Reuter | GENERAL CINEMA <GCN> POOR SEASON LOWERS NET |
Ceasars Wold Inc said its board is studying the unsolicited and conditional tender offer for all its common shares at 28 dlrs per share from Martin T. Sosnoff. A company spokesman said the board expects to make a recommendation shortly but could not specify a time period. Ceasars World Chairman Henry Gluck in a statement urged shareholders not to take any action with respect to the offer prior to the boards recommendation. Sosnoff made the offer directly to shareholders in a newspaper advertisement through a company he formed called MTS Acquisition Corp. It expires April 3. Reuter | CEASARS WORLD <CAW> STUDYING SOSNOFF OFFER |
Americus Trust For Bristol Myers shares announced an initial dividend of 68.75 cts payable May 12 for shareholders of record April 3. Reuter | AMERICUS TRUST <BYU> <BYP> INITIAL QTRLY DIV |
Moodys Investors Service Inc said it is reviewing the B-2 debt ratings of Resorts International Inc and of Resorts International Financing Inc for possible downgrade. Approximately 505 mln dlrs of debt is affected. Moodys said the review was prompted by the recent bid by Donald Trump to acquire control of the company. The rating agency said its review is focusing on the effects the acquisition is likely to have on Resorts Internationals leverage and ability to service its debt. Moodys said Resorts already has a highly leveraged capitalization. Reuter | MOODY'S MAY DOWNGRADE RESORTS INTERNATIONAL <RT> |
United Security Financial Corp of Illinois said it has signed a letter of intent to buy Robert Co. Brown and Co Incs <RCBI> MAGIC Insurance Group unit. Robert C. Brown and Co would receive newly issued United Security stock. United Security said it is anticipated that such stock would represent a substantial majority of the shares outstanding after the merger. United Securitys principal subsidiary is United Security Life Insurance Co of Illinois. The MAGIC Group owns Pilgrim Life Insurance Co of America and Middle Atlantic Life Insurance Co. Reuter | UNITED SECURITY <UNSE> TO BUY ROBERT BROWN UNIT |
Moodys Investors Service Inc said it may downgrade 215 mln dlrs of debt of Caesars World Inc and its unit Caesars World Finance Corp. Moodys said the review was prompted by the recent bid by investor Martin Sosnoff to acquire control of the company. While Sosnoffs bid depends on several factors including licensing by both the Nevada and New Jersey gaming commissions the deal could result in a significant increase in Caesars Worlds leverage the rating agency said. Caesars currently carries B-1 convertible debt and the finance has same-rated subordinated debentures. Reuter | MOODY'S MAY DOWNGRADE CAESARS <CAW> AND UNIT |
There were three grain ships loading and two ships were waiting to load at Portland according to the Portland Merchants Exchange. Reuter | GRAIN SHIPS LOADING AT PORTLAND |
(Warrington Inc) said it sold its shoe divisions to Montreal-based (Taurus Footwear Inc) for undisclosed terms. The divisions manufacture and distribute Greb Hush Puppies Kodiak and Santana brand shoes and had revenues of about 69 mln dlrs last year Warrington said. It said the sale of the shoe divisions and the previous sale of its ski boot businesses will result in an unspecified net gain. Warrington said it plans to concentrate on its Canstar Sports Group Inc skate and athletic footwear division the largest ice skate manufacturer and distributor in the Western world. Warrington said it decided to rationalize the balance of its ski businesses which is expected to result in a divestment loss which could outweigh the net gains on the sales of its shoe and ski boot divisions. Taurus said the acquisition is expected to increase its annual sales to about 100 mln dlrs and make it Canadas largest footwear manufacturer. Reuter | WARRINGTON SELLS SHOE DIVISIONS |
Up to 300 people were feared dead and more than 15000 were left homeless by Ecuadors earthquake whose economic cost is at least 950 mln dlrs in damages authorities said. The magnitude of the damages caused by the earthquake is gigantic President Leon Febres Cordero said after inspecting the damages in Napo the hardest-hit jungle province. Shaking loose earth from hills the thursday night quake triggered landslides swelling the Aguarico river which burst it banks carrying away homes and huts in Napo province health minister Jorge Brancho told reuters. We fear that up to 300 people died in napo though there is no way of now knowing the exact figure because there are many disappeared. Reuter | ECUADOR QUAKE CAUSES 950 MLN DLRS IN LOSSES |
Conoco Inc a subsidiary of DuPont Corp said it was increasing its contract prices for crude oil between 10 cts and one dlr a barrel effective today. Conoco said the increase brings its price for the U.S. benchmark crude West Texas Intermediate to 17.50 dlrs a barrel up one dlr. South Louisiana Sweet also up one dlr is now 17.85 dlrs. West Texas Sour was up 10 cts to 16.60 dlrs a barrel. Conoco was the last company to raise prices following a series of increases initiated last week by Sun Co <SUN> which reversed the posted price cuts made at the end of February. Reuter | DUPONT <DD> UNIT RAISES CRUDE OIL PRICES |
Chicago Board of Trade (CBT) agricultural and financial futures markets could be in for a period of major upheaval later this year if the exchange goes ahead with planned renovation. A CBT spokesman told Reuters the exchange was looking at a number of options to identify the most cost effective and efficient way to proceed including one which would involve moving the entire grains floor out of the building and into the nearby MidAmerica Commodity Exchange. One of (CBT Chairman) Karsten Mahlmanns agenda items has been to proceed with renovation in the financial futures room the spokesman said. Another CBT official executive vice president George Sladoje said the issue would be discussed this Friday at a special meeting on the exchange floor. A number of presentations have been made with regard to renovating the financial futures room Sladoje said. Weve looked at five or six different alternatives involving such things as flip-flopping the trading rooms he added. It is conceivable that under a couple of these plans we might use the MidAmerica Exchange temporarily for some CBT markets Sladoje said. If we move out of one floor entirely then the construction period will be about a year he said adding that the issue was likely to go to a membership vote first and then be on the drawing board for eight months to a year. The CBT spokesman stressed that discussions were very preliminary at this stage and nothing was likely to begin until this summer at the earliest. In order to renovate the crowded financial futures pits exchange officials have discussed providing them a temporary home next door in the present grains-dominated area. This could involve moving CBT markets in U.S. Treasury Bond futures Treasury Notes Muni-bonds and options on T-Bonds and T-Notes through an adjoining corridor while utilizing the MidAmerica floor for such CBT futures contracts as corn wheat soybeans soybean products and agricultural options. Any such moves could meet with opposition among some CBT members. One senior floor trader said the financial futures room badly needs renovating. There is talk the grains floor will shift to the MidAm and the financials will move to the grains area he said. The CBT spokesman said another option being discussed was to renovate the financial floor in quadrants one quarter at a time. The first step after deciding the most effective way to proceed would be to get architectural and engineering drawings he said. He added that it was difficult at present to determine an exact time frame for any possible moves. This is a major undertaking and a process that would spread out over next year he said. Floor traders at the MidAmerica Commodity Exchange which merged with the CBT about a year ago said they were preparing to vacate their floor at the end of this month. Space has recently been cleared for them at the CBT by moving its Major Market Index pit into the area once reserved for lightly-traded CBT gold and silver futures which now share their trading area. The MidAm specializes in mini-contracts in grains livestock metals financials and foreign currencies as well as some options contracts. Rumor has it that the CBT grains are coming over here because the bonds are too crowded one MidAm trader said. Another source at the MidAm said this change could take place by July or August. Reuter | CBT DISCUSSES MAJOR CHANGES FOR RENOVATION |
Fluor Corp said it won a 197.6 mln dlr contract from the U.S. Army Engineer District with a follow-on option for an additional 450 mln dlrs. Fluors Fluor Constructors Inc unit will perform procurement and construction for Ground Based Free Electron Laser-Technology Integrated Experiment Project at the White Sands Missile Range in New Mexico. Phase I Construction will begin this month and is scheduled for completion in September 1990. Based on its results a Phase II follow-on option may be implemented for an additional two years the company said. Reuter | FLUOR CORP <FLR> WINS 197.6 MLN DLR ARMY CONTRACT |
Standard and Poors Corp said it may cut Piedmont Aviation Incs BBB-minus preferred stock because of USAir Group Incs <U> proposed acquisition of the airline. While the combination would strengthen both airlines market position and enhance revenue generating capability USAir Group would require substantial debt to finance the 1.6 billion dlr acquisition S and P said. USAirs balance sheet and cash flow support of debt among the strongest in the industry would be weakened by financing all-cash acquisitions of Piedmont and PSA Inc. USAirs A-rated senior debt is already on S/P watch for possible downgrade. Reuter | PIEDMONT <PIE> PREFERRED MAY BE CUT BY S/P |
Beker Industries Corp said it was unable to confirm its plan for reorganization at a March 5 hearing before the U.S. Bankruptcy Court because necessary agreements had not been reached with its institutional lenders. The company said it could set no specific date for completing its reorganization. At the March 5 hearing the company said it filed a motion for approval of an agreement that has been reached in principal with a unit of Freeport-McMoRan Inc <FTX> for the sale of Bekers facilities in Louisiana and Florida. Reuter | BEKER <BKI> REORGANIZATION PLAN DELAYED |
A group of investment firms led by Far Hills N.J. investor Natalie Koether said it is seeking information about the shareholders of Prime Medical Services Inc over which it has said it is seeking control. In a filing with the Securities and Exchange Commission the group which includes Shamrock Associates included a March 6 letter to Prime which asks for a complete list of all shareholders and their addresses. The group said it wants the information so it can contact shareholders on issues including election of an opposition slate of directors to the board and other proxy contests. The Koether groups letter gives the company five days to respond to its request. If there is no response from Prime Medical the group said it would consider the demand refused and would take other proper steps to get the information. The group said it already holds 1483886 Prime Medical shares or 17.5 pct of the total. It said it has taken legal action to try to force the company to set an annual meeting and require all directors to stand for election. In a previous SEC filing the group has said it has decided to try to seek control of Prime Medical through a tender offer exchange offer proxy contest or other ways. Reuter | GROUP SEEKS PRIME MEDICAL <PMSI> HOLDER LIST |
Grand Metropolitan PLC said its Grandmet USA Inc unit decided to sell its physical fitness and exercise equipment business. The company said Morgan Stanely and Co Inc is advising it on the sale of the business. Reuter | <GRAND METROPOLITAN PLC> UNIT TO SELL BUSINESS |
Chrysler Corps proposed acquisition of American Motors Corp is valued at about 1.55 billion dlrs including the cost of acquisition and the 767 mln dlrs in American Motor debt that Chrysler will assume analysts said. They said Chryslers cost of acquisition was valued at 782 mln dlrs paid in cash notes and Chrysler shares. The analysts told Reuters that at a New York briefing Chrysler treasurer Fred Zuckerman outlined his companys agreement with Renault to assume AMCs debt as well as 332 mln dlrs in unfunded pension liabilities though the latter is not included valuing the transaction. Analysts were generally positive on Chryslers proposed purchase of its much-smaller rival but said they expected the transaction would carry with it a short-term dilution in Chryslers earnings. A Chrysler financial source speaking anonymously told Reuters that the proposed purchase price was smaller than it would have been had a deal been struck last year because the impact of the new U.S. tax law removes Chryslers ability to assume AMCs large reserve of tax-loss carryforwards accumulated from its losses since 1980. There were very serious discussions last fall but we didnt pull it off the source said in a reference to the assassination in November of former Renault chairman Georges Besse. Its too bad because the tax benefits fell on the floor. And Renault could have gotten a much better price if wed done it before the end of last year. In addition to AMCs debt and its pension liabilities the source said Chrysler would also assume any liability from lawsuits over the safety of Jeeps which he called an overhang to the company. Analysts quoted Chrysler officials as having told them that the deal includes payment to Renault of 200 mln dlrs principal in the form of a 10-year note at eight pct interest 35 mln dlrs cash for Renaults equity in AMCs finance subsidiary 25 mln dlrs in cash for transaction fees in connection with the acquisition and 522 mln dlrs worth of Chrysler stock to be paid AMC shareholders. The big number is the 767 mln dlrs in debt assumption analyst Jack Kirnan of Kidder Peabody and Co told Reuters. Moodys Investors Service Inc said it may downgrade 12 billion dlrs of Chrysler Corp and unit debt due to the deal. But the Chrysler source said that in assuming AMCs liabilities his company will refinance at a lower rate any AMC debt that is being carried at non-market rates. He said there were difficulties in negotiating with the previous Renault management on the acquisition because they were committed to the groups business plan of which AMC was an integral part. The new management didnt have that problem - AMC wasnt their baby he said. Reuter | CHRYSLER <C> AMC BUYOUT VALUED AT 1.55 BILLION |
The Philippines bank advisory committee meets tomorrow to discuss its response to a novel proposal by finance minister Jaime Ongpin to pay part of the countrys interest bill with investment notes instead of cash bankers said. Ongpin outlined his plan today to the 12-bank advisory committee headed by Manufacturers Hanover Trust Co. Bankers declined to comment on todays meeting but said the panels response could be crucial to the fate of the talks which are now in their second week. The balls in our court now one banker on the committee said. Under Ongpins rescheduling plan the Philippines would offer to make interest payments in cash at 5/8 pct over the London Interbank Offered Rate. Banks which found this rate unacceptably low would be offered an alternative of LIBOR payments in cash plus a margin of one pct in the form of Philippine Investment Notes PINs bankers explained. These tradable dollar-denominated zero-coupon notes would have a maturity of six years but they would be redeemable at any time at par for pesos to fund investments approved as part of the governments debt-equity scheme. Because banks would be able to sell the PINs to multinational investors at relatively small discounts to face value their total yield would be boosted well above the 5/8 pct cash margin according to the Philippine proposal. Although bankers are eager to foster foreign investment in the Philippines the PINs idea is likely to run into stiff resistance by at least some members of the bank advisory committee because it would establish the precedent of some interest payments being made with paper rather than cash. Ongpin has said that U.S. regulators and accountants had given a green light to his idea but bankers are not so sure. U.S. bankers fear that they would not be able to account for the notes in the same way as accruing cash interest payments and that their profits would suffer accordingly. If the banks reject the proposal out of hand however they run the risk of scuttling the talks for Ongpin has insisted that he would not accept a margin above 5/8 pct. The Phillipines is asking the banks to reschedule 3.6 billion dlrs of debt falling due between 1987 and 1992 and to grant easier terms on 5.8 billion dlrs of previously restructured debt. Reuter | BANKS TO MULL PHILIPPINE DEBT PROPOSAL |
Varity Corp said Perkins Engines Varitys British-based diesel engine subsidiary introduced three families of new industrial diesels ranging from 37 to 400 horsepower. The new models include four and six cylinder units two to 12 liters in displacement Varity said. Reuter | VARITY <VAT> UNIT HAS NEW INDUSTRIAL DIESELS |
Washington National Corps Washington National Insurance Co said it bought the remaining 15 pct of United Presidential Corps <UPCO> outstanding shares at 19 dlrs a share cash. The acquisition of the shares is part of a plan of exchange approved by United Presidential shareholders at a special meeting March 6. The purchase of the remaining United Presidential stake follows Washington Nationals buying 85 pct of United Presidential in a 19 dlrs a share tender offer which terminated December 12. Reuter | WASHINGTON NAT'L <WNT> BUYS UNITED PRESIDENTIAL |
Conagra Inc said it completed the merger of its Sea-Alaska Products Co unit and <Trident Seafoods Corp.> Conagra said the new company in which it holds a 45 pct stake will be called Trident Seafoods Corp. Charles Bundrant president of Trident before the merger was named president of the new company Conagra said. Conagra said it also completed the previously announced acquisition of <Bristol Monarch Corp> and that Trident completed the purchase of the remaining 50 pct stake of <San Juan Seafoods Inc.> Reuter | CONAGRA <CAG> COMPLETES MERGER WITH TRIDENT |
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