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DeSoto Inc said it sold the plant inventory and certain other assets of some of its industrial chemical operations to Plastic Specialities and Technologies Inc a privately-held company headquartered in Parsippany New Jersey. Terms were not disclosed. Desotos industrial chemical operations are based in Fort Worth Texas and has annual sales of about 17 mln dlrs. Reuter | DESOTO <DSO> SELLS INDUSTRIAL CHEMICAL ASSETS |
Volkswagen AG <VOWG.F> supervisory board chairman Karl Gustaf Ratjen said entire data tapes had been erased and complete programs altered in forged transactions amounting to around 480 mln marks. In this case a degree of criminal energy has been brought into play which until now was unimaginable in a German company he said in a radio interview. He could not completely rule out the possibility that losses would exceed 500 mln marks but said there were currently no signs that they would be higher than the 480 mln announced on Tuesday. Some 70 to 80 mln marks had probably been lost through disregard for internal instructions he added but did not elaborate. However the remainder had definitely been lost through criminal action and forgery in 1984. Ratjen said the affair would lead to consequences up to the board room. He would recommend that those under suspicion of being involved in criminal acts would have to go immediately. Those who had not exercised checking functions sufficiently would also have to go. But Volkwagen management board chairman Carl Hahn was not involved in the affair he said. A Volkswagen spokesman said the company had made sufficient provision in previous years to cover the losses from the fraud. Its 1986 profit would therefore match 1985 world group net profits of 595.6 mln marks. Volkwagen disclosed the existence of the fraud on Tuesday saying it was possible that documents about currency hedging had been falsified and that those responsible may have come from outside Volkswagen and may have been assisted by company staff. Criminal complaints on suspicion of fraud breach of trust and forgery of documents had been filed it added. The company spokesman said the supervisory board would meet on April 9 to examine the precise extent of the losses and to approve the year-end results. Ratjen said it was important for Volkwagen to maintain a degree of internal integrity on account of its 200000 employees particularly as shop floor elections were coming up. On the one hand one fights for every single mark of income. And here is a case where hundreds of millions are being just thrown away he added. Reuter | DATA TAPES ERASED IN VW FRAUD, CHAIRMAN SAYS |
It could be months before major assistance is provided for Earthquake-stricken Ecuador although the International Monetary Fund and the development banks have already taken the first steps monetary sources and U.S. officials said. They said the IMF had informed the Ecuadorean government that it was prepared under its emergency system to provide about 50 mln dlrs or about 25 per cent of the countrys quota in the agency but it is up to Ecuador to request the money. At the same time the World Bank and the Inter-American Development Bank have dispatched missions to the region hit by last Thursdays quake to determine what the countrys needs are and how they can speed up disbursement of funds from programs already approved. The World Bank estimates that of the over one billion dlrs it has approved for Ecuador in recent years some 277 mln dlrs has yet to be disbursed and a portion of this could potentially be made available. The bank said that the programs it has approved are for rural development agriculture water and sewerage electrical power and others. If the assistance that is needed can be fit into these general categories the funds could be then provided for from expedited disbursements Reuter | IMF, DEVELOPMENT BANKS, TO ASSIST ECUADOR |
Shr loss 30 cts vs profit 12 cts Net loss 2374000 vs profit 970000 Revs 15.7 mln vs 13.4 mln Year Shr loss 13 cts vs profit 46 cts Net loss 1054000 vs profit 3425000 Revs 61.8 mln vs 49.9 mln Note: Full name Safeguard Health Enterprises Inc. Current qtr and year figures include 2.9 mln dlr reserve for estimated loss from proposed divestment of one-third of existing 40 offices. Reuter | SAFEGUARD HEALTH <SFGD> 4TH QTR LOSS |
There has been slight progress towards reaching a rubber pact the chairman of a United Nations conference on a new International Natural Rubber Agreeement INRA Manaspas Xuto of Thailand said. There has been some slight progress but it is not the end of the road yet he said. The conference which began Monday is seen as the last effort to adopt an accord to replace the current one which expires in October. Some 40 producing and consuming countries are taking part in the two-week meeting. Xuto said if the key outstanding issues are not resolved by tomorrow he would hold weekend meetings. At the beginning of the conference the fourth such meeting in nearly two years Xuto said it was imperative to settle those issues this week so that technical drafting work can be done next week. Conference sources said it is highly unlikely that producers will accept a pact that will provide for any possible downward adjustment of the floor price as proposed by consumers under certain circumstances. The sources said this means that any possible adjustment would centre on the reference price and the may buy (or may sell) and must buy (or must sell) levels without changing the lower indicative price (or floor price) of 150 Malaysian/Singapore cents a kilo in the present pact. The present five-day average of the indicator price is around 192 Malaysian/Singapore cents. Consumers are seeking an adjustment of the reference price set in the current accord at 201.66 Malaysian/Singapore cents a kilo and of the lower indicative price if the buffer stock currently 360000 tonnes rises to 450000 tonnes. Consumers want price reviews at 12-month intervals instead of the 18 at present and the price revision mechanism to respond automatically to market trends. At present if the market price has been above or below the reference price for six months the reference price is revised by five pct or by an amount decided by the International Natural Rubber Organisation council. Consumers say that in these circumstances the adjustment be automatic at five pct or more. Producers have resisted reducing the role of the council in the price adjustment procedure and have expressed concern that changes proposed by consumers would weaken the present pact. Reuter | RUBBER TALKS CHAIRMAN CITES SLIGHT PROGRESS |
Cummins Engine Co said it will temporarily recall about 150 production workers at its Columbus-area plants because it sees a moderate upturn in North American demand for heavy-duty truck engines. The company said the recalls will begin March 30. Production rates for Cummins heavy-duty truck engines have increased about 10 pct over fourth-quarter levels and should stay at these levels through the first half of 1987 Cummins said. The company also reported some upswing in demand for its components and service parts. Reuter | CUMMINS <CUM>RECALLS WORKERS ON SIGNS OF UPTURN |
The new British one ounce gold coin the Britannia will be priced on the basis of the gold price on the day of purchase plus a competitive premium Treasury officials said. Value added tax will be levied on all purchases by members of the U.K. Public as is currently the case with foreign coins although transactions between members of the London Gold Market and all exports of the coins will be zero-rated. No decision has yet been taken on the face value of the coins. Although a number of gold coins especially the Canadian Maple have been issued elsewhere in an attempt to take the place of the South African krugerrand the British government still feels that there is a gap in the market for a British one ounce gold coin. The only British gold coin available at present is the sovereign which contains 0.2354 ounces of gold. Gold from South Africa or the Soviet Union will not be used in the coin officials said adding that bullion would be bought on the world gold market. But analysts said it would be difficult to ascertain the origins of such purchases. No details are yet available on how many coins will be issued or how much gold will be bought but traders said that the amounts involved would be unlikely to move the gold price. There were some enquiries on the Britannia from coin dealers today but value added tax would prove a major factor in the success of the coin with the 15 pct tax likely to put off many investors traders said. Some said that the Britannia had come too late with the Canadian Maple Leaf the American Eagle and other gold coins already well established. Reuter | "BRITANNIA" COIN TO SELL AT PREMIUM |
CytRx Corp said its 60 pct owned CytRx Biopool Ltd subsidiary has acquired Biopool AB of Umea Sweden for undisclosed terms. It said former shareholders of Biopool AB own the remaining 40 pct in CytRx Biopool Ltd. Biopool AB develops cardiovascular and fibrinolytic products for diagnostic applications. The company said CytRx Biopool is studying the possible combination of CytRx Corps RheothRx drug to reduce platelet aggregation and viscosity in blood with Biopool ABs drug t-PA for dissolving blood clots. Reuter | CYTRX <CYTR> UNIT BUYS SWEDISH COMPANY |
CANADA 91-DAY T-BILLS AVERAGE 7.03 PCT, MAKING BANK RATE 7.28 PCT |
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North American Holding Corp said it expects to have record fourth quarter earnings and for sales to exceed 10 mln dlrs. For the fourth quarter ended March 30 1986 the company reported net income of 631720 dlrs on sales of 5.2 mln dlrs. It also said it expects revenues for the year to exceed 30 mln dlrs. For fiscal 1986 North American reported a net loss of 126900 dlrs on sales of 12.8 mln dlrs. Reuter | NORTH AMERICAN <NAHL> SEES RECORD FOURTH QTR |
A group of investment firms told the Securities and Exchange Commission they raised their stake in Intermedics Inc to 1721900 shares or 16.8 pct of the total outstanding from 1565900 shares or 15.2 pct. Bessemer Securities Corp a New York investment firm Cilluffo Associates L.P. a New York investment partnership and related entities said they bought 156000 Intermedics common shares between February 24 and March 9 for 1.4 mln dlrs. Reuter | INVESTORS UP INTERMEDICS <ITM> STAKE TO 16.8 PCT |
Qtly div six cts vs 4-1/4 cts prior Pay April 10 Record March 23 Reuter | WAL-MART STORES INC <WMT> RAISES QUARTERLY |
S/P DOWNGRADES FIRST INTERSTATE BANCORP'S 1.3 BILLION DLRS OF DEBT |
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A proposal the London Metal Exchange LME change its new clearing system due to start May 29 was made today at a meeting of LME members and International Commodities Clearing House ICCH representatives. Amalgamated Metal Trading Ltd AMT proposed that a daily cash-cleared system common to all other markets should be adopted rather than the system currently planned whereby prompt dates are settled when they mature. AMT claims the margin requirements for the latter will be costly. Opposition to the proposal came mainly from trade and industry representatives who as traditional users of the Exchanges hedging facilities said a cash-cleared system would be more costly for them. LME Board Chairman Jacques Lion said any major alterations to the planned new clearing system would have to be referred to the Securities and Investment Board SIB and this could be time consuming bearing in mind the May 29 start-up. There was also a risk of the Exchange losing its greatest asset its trade hedging business he said. Lion accepted a proposal that while clearing with the ICCH continue as planned details of AMTs cash clearing system be circulated for consideration and discussion by LME Board Committee and members for possible introduction at a later date. The LME also said that Japanese yen contracts will now be excluded from clearing as they are not used widely enough to warrant inclusion. Reuter | LME CONSIDERING CHANGES TO CLEARING SYSTEM |
S/P AFFIRMS W.R. GRACE AND CO'S 575 MLN DLRS OF DEBT AFTER ITS 4TH-QTR LOSS |
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Home Shopping Network Inc announced it agreed with underwriter Drexel Burnham Lambert Inc to amend its recent filing for an offering of 400 mln dlrs of 15-year convertible subordinated debentures in order to accommodate demand from Europe. The firm said it now plans to offer 150 mln dlrs of convertible subordinated debentures in the Eurodollar market. It will file an amended domestic registration statement for the Eurodollar offering and reduce the size of the domestic offering to 300 mln dlrs. Drexel Burnham Lambert International Ltd is sole underwriter for the European issue. Reuter | HOME SHOPPING<HSN> MAKES OFFER FIT EURO DEMAND |
S/P AFFIRMS RESORTS INTERNATIONAL INC'S 600 MLN DLRS OF DEBT |
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<New York Life Insurance Co> said it will invest up to 30 mln dlrs in properties purchased by <NYLIFE Realty Income Partners I L.P.> a newly formed real estate limited partnership. The partnership is co-sponsored by New York Lifes NYLIFE Realty Inc and a subsidiary of <Linclay> a national real estate firm which has developed properties in 25 cities. A New York Life spokesman said the companys 30 mln dlr commitment along with projected investment by the partnership is expected to result in a total investment of 80 mln dlrs. Reuter | NEW YORK LIFE SETS REAL ESTATE INVESTMENTS |
Shr 13 cts vs 50 cts Net 651397 vs 2602120 Revs 26.4 mln vs 21.6 mln NOTE: 1986 net includes gain 291027 dlr gain from quantity discount rebates on purchases of materials in prior years. Reuter | OPTROTECH LTD <OPTKF> YEAR NET |
Shr loss 20 cts vs loss 14 cts Net loss 352000 vs loss 248000 Revs 285000 vs 681000 Year Shr loss 92 cts vs loss 49 cts Net loss 1613000 vs loss 842000 Revs 1523000 vs 2557000 NOTE: Full name is North Atlantic Technologies Inc Reuter | NORTH ATLANTIC TECHNOLOGIES <NATT> 4TH QTR |
E-Systems Inc said John W. Dixon will retire April 21 as chairman and chief executive officer but remain on the board as chairman emeritus. The company said president and chief operating officer David R. Tacke will succeed Dixon as chairman and chief executive and senior vice president E. Gene Keigger will become president and chief operating officer. Reuter | E-SYSTEMS <ESY> CHAIRMAN TO RETIRE |
A member of the board which regulates the Farm Credit System predicted the troubled farm lender may lose about 900 mln dlrs in the first half of 1987 hastening the need for a federal rescue this year. Speaking to the House subcommittee responsible for farm credit issues Farm Credit Administration (FCA) board member Jim Billington said My recommendation is that legislation (aiding the system) must be moved prior to June 30 1987 or it will be difficult to close the (farm credit system) books. Billingtons loss prediction is gloomier than either the system or its regulator had previously admitted. The system itself has so far predicted losses for all of 1987 will reach only 1.1 billion dlrs down from 1.9 billion in 1986 and 2.7 billion in 1985. However Billington said the system is losing in excess of 400 mln dlrs per quarter implying total losses for 1987 of more than 1.6 billion. Losses of that magnitude would exhaust the 1.4 billion dlrs in capital surplus the system held at the end of 1986. The system also has 4.2 billion dlrs in capital held by its member borrowers called borrower stock which theoretically could be used as capital. Billington said by the end of 1987 more than 1.6 billion dlrs of the 4.2 billion in borrower stock would be downgraded in value because of the mounting losses. Chairman of the FCA board Frank Naylor urged that Congress begin to consider legislation rescuing the system by Easter and that a bill be completed by the fall. Chairman of the House subcommittee Rep. Ed Jones (D-Tenn.) said today the time has arrived to consider assistance to save the system. The Senate Democratic leadership indicated last month that it would begin drafting a bailout bill by Easter. FCA board members differed on whether a direct government infusion of cash will be needed to rescue the system. FCA chairman Naylor said a federal guarantee of both borrower stock and system bonds held by investors might avoid the need to provide hard capital to the system. However Billington said its not really that simple in my opinion adding that government funds may be needed to rescue the system. Neither regulator estimated how much money might be needed. Reuter | FARM CREDIT LOSS PUT AT 900 MLN FIRST HALF 1987 |
Teletimer International Inc said it successfully closed its new issue at the maximum 3500000 dlrs. Teletimer said it intends to offer a computerized subscription energy management service that is delivered to homes and businesses over cable television systems. Subscribers will be charged an annual subscription fee the company said. Reuter | TELETIMER INTERNATIONAL INC <TLTM> CLOSES ISSUE |
Thermwood Corp said its common stock has begun trading on the Pacific Stock Exchange under the symbol THM. In February its stock began trading on the Boston Stock Exchange. Reuter | THERMWOOD <THM> TRADES ON PACIFIC EXCHANGE |
Selm-Societa Energia Montedison is to close its Priolo crude refining units from March 15th to March 28th for maintenance a company spokesman said. Throughput at the refinery is currently estimated at 140-150000 bpd although total capacity is nearer 200000 bpd. Several other Mediterranean refineries are currently shutdown for maintenance most of which were scheduled some months ago. But industry sources said that shutdowns may have been rearranged to avoid running negative-netback crude. Tighter availabilities of products as a result of the shutdowns in the Med is helping to keep products markets bullish particularly for March deliveries oil traders said. Garrones refinery at San Quirico (capacity 130000 bpd) is due to shutdown on March 14th for three weeks and the jointly-owned ISAB/Garrone refinery at Mellili capacity 220000 bpd is due to start up around March 20-25th following its closure for maintenance a month ago a company spokesman said. The Esso Italiana refineries at Augusta and Siracusa will not be closing this spring a spokesman for the company said. In France the distillation unit at Societe Francaise de BPs Lavera refinery has been closed for maintenance since March 2 and is due to restart early April. Total capacity is 181900 bpd. It is currently operating at around 50 pct capacity a company spokesman said. Shell Francaises Berre lEtang refinery will shut down in early April until mid-June a company spokesman said. Capacity is around 150000 bpd. Compagnie Francaise de Raffinage (CFR) will close the visbreaker at its La Mede refinery in early April but would not affect crude throughput at the refinery a company spokesman said. Current capacity is 136000 bbl/day. Despite current bullish sentiment in the Med however traders noted that crude netbacks are beginning to look more attractive and most maintenance shutdowns should be finished in two to three weeks. As a result oil industry sources suggest that the situation may ease by mid-April. Reuter | MONTEDISON, OTHER REFINERIES TO SHUT FOR WORK |
Standard and Poors Corp said it downgraded First Interstate Bancorps 1.3 billion dlrs of debt because of higher levels of non-performing assets. S and P also cited net charge-offs especially in real estate energy and consumer loans. However the agency said First Interstate has high liquidity and is less vulnerable to Latin American credits than its peers. Cut were the companys senior debt to AA-minus from AA and subordinated debt to A-plus from AA-minus. Long-term deposits of several of the parents banks were reduced to AA-minus from AA but short-term deposit ratings were left at A-1-plus. Reuter | FIRST INTERSTATE <I> DEBT DOWNGRADED BY S/P |
Standard and Poors Corp said it affirmed the ratings on W.R. Grace and Cos 575 mln dlrs of debt following its fourth-quarter 1986 loss of 560 mln dlrs. Affirmed were the companys BBB-minus senior debt BB-plus subordinated debt and A-3 commercial paper. S and P pointed out that the fourth-quarter loss resulted from the write-off of nearly 600 mln dlrs in assets especially in agricultural chemicals and natural resources. Because that write-off had no effect on Graces cash S and P affirmed the current ratings noting that Grace intends to sell its agricultural business. Proceeds from the sale of the agricultural segment could be used to reduce Graces debt Standard and Poors said. However S and P said it is less clear whether Grace can also extricate itself from the project debt from its phosphate mining joint venture at Four Corners. Despite todays rating affirmation S and P cautioned that Grace has greater-than-usual vulnerability to rating change in the next year or two. Uncertainty abounds as to the firms future ownership management and direction the rating agency said. Reuter | W.R. GRACE <GRA> DEBT AFFIRMED BY S/P |
Designs Inc said it intends to make an initial public offering of common stock in late spring or early summer depending on market conditions. The company opoerates 27 retil clothing stores under the name Designs exclusively Levi Strauss and Co along the Eastern Seaboard. Reuter | <DESIGNS INC> TO MAKE SHARE OFFERING |
Continuous rebel raids against oil pipelines and foreign exploration camps endanger Colombias present oil bonanza Franciso Chona manager of the state-run oil company Ecopetrol said. It seems the subversion wants to end with our oil bonanza he told reporters. He was speaking after a meeting with Defense Minister Rafael Samudio military chiefs and Mines and Energy Minister Guillermo Perry to review the security situation in the light of a recent upsurge of leftist guerrilla attacks in the oil-rich Arauca region bordering Venezuela. Ecopetrol chief of security Retired General Carlos Narvaez said security measures would be stricter and that the armed forces were closely collaborating but gave no details. Samudio said new plans had been designed and hoped they would be effective. Samudio stressed that despite the most recent attacks which cost more than four mln dlrs in damage the overall situation had improved compared with last December when initial measures were taken to combat a wave of attacks. Repeated bombings of a vital pipeline from the Cano Limon oilfield to the Caribbean then led to a loss of 51000 barrels of crude. Reuter | ATTACKS AFFECT COLOMBIA'S OIL OUTLOOK-ECOPETROL |
Standard and Poors Corp said it affirmed the ratings on 600 mln dlrs of debt of Resorts International Inc and Resorts International Financing Inc. Developer Donald Trump has agreed to pay 101 mln dlrs for all of Resorts Internationals class B shares representing 93 pct voting control S and P noted. Trump said he would not tender for the 5.7 mln shares of publicly held class A stock. The agreement is subject to approval by the New Jersey Casino Control Commission. S and P pointed out that Resorts aggressive debt leverage is offset by the firms extensive real estate holdings in Atlantic City N.J. Affirmed were the B-minus subordinated debt of Resorts International and its financing unit. Standard and Poors noted that Resorts International remains highly leveraged with significant near-term financing requirements for the completion of its new casino/hotel in Atlantic City the Taj Mahal. While operations are profitable the interest burden of debt along with unusual charges net of gains led to a 30.6 mln dlr net loss in 1986 S and P pointed out. Longer-term Resorts is expected to benefit from a strengthened competitive position S and P added. Reuter | RESORTS INTL <RT.A> DEBT RATINGS AFFIRMED BY S/P |
Perus biggest state mining firm Centromin SA said today there was no immediate force majeure possibility on its copper shipments after guerrillas blew up a railway line interrupting train traffic from the Cobriza copper mine to the Pacific coast. A Centromin spokesman said the managers of the mine at Cobriza could always ship the the mineral by road to the coast for export if the train line continued interrupted. Cobriza produced the equivalent of around 40600 fine tonnes of copper last year. Maoist guerrillas using dynamite interrupted train traffic two days ago when they blew up railway tracks and derailed a train laden with minerals 225 km (135 miles) east of Lima at Chacapalca between the coast and Cobriza. An official at Minero Peru Comercial Minpeco Perus state minerals marketing firm confirmed there had been no declaration of force majeure on the shipments from Cobriza. Officials at National Train Company Enafer headquarters in Lima the Peruvian capital declined to comment on when train traffic would be restored to Cobriza. But an Enafer official reached by telephone in the central Andean city of Huancayo near Chacapalca said traffic could be restored by Saturday. Reuter | PERU'S CENTROMIN SAYS NO COPPER FORCE MAJEURE |
Commerce Secretary Malcolm Baldrige said he would not object to the sale of computers to Iran because the technology was that of U.S.-designed personal computers developed ten years ago. We have no reason not to ship it Baldrige told reporters after a Senate Banking Committee hearing on export controls. Baldrige said the Defense Departments objection that the computers would be used in newspaper production was not a reason to bar the granting of an export license. This is not a reason for denying it on foreign policy grounds he said. Reuter | BALDRIGE WILL NOT OBJECT TO COMPUTERS FOR IRAN |
PARKER DRILLING SUSPENDS QUARTERLY DIVIDEND |
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FIRST GRANITE BANCORP INC AGREES TO BE ACQUIRED BY MAGNA GROUP INC FOR STOCK |
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Diasonics Inc said the U.S. Food and Drug Administration has given premarket approval to <Instrumentarium Corp> of Finlands ULF magnetic resonance imaging system. Diasonics already distributes the system in several countries and will distribute it in the U.S. as well. Reuter | DIASONIWS <DNC> SAYS IMAGING SYSTEM APPROVED |
Argentine Vegetable oils shipments during January/November 1986 totalled 1693951 tonnes against 1469208 tonnes in the same 1985 period the Argentine grain board said. The breakdown was: cotton 4000 (27900) sunflower 929847 (816727) linseed 113827 (132954) groundnutseed 26248 (25508) soybean 603335 (448344) tung 8402 (10633) olive 2234 (3465) maize 6058 (3677) rapeseed nil (nil) grape nil (nil) the board added. Shipments during November 1986 amounted to 138257 tonnes against 109250 tonnes in the same month of 1985. The breakdwon was in tonnes cotton nil (nil) sunflower 27715 (43064) linseed 5228 (4473) groundnutseed 819 (3647) soybean 104314 (56901) tung 20 (nil) olive 161 (858) maize nil (307) rapeseed nil (nil) grape nil (nil) the board said. The ten principal destinations during January/November 1986 with comparative figures for the same 1985 period in brackets were in tonnes: Holland 201660 (204391) Iran 182042 (181228) Soviet Union 163150 (266389)Egypt 158119 (159350) Algeria 116330 (11492) Brazil 101116 (59430) South Africa 94700 (101062) Cuba 89957 (98740) United States 80109 (nil) India 67182 (17403) the board added. REUTER | ARGENTINE VEGETABLE OILS SHIPMENTS IN JAN/NOV 1986 |
Parker Drilling Co said its board of directors voted to suspend the payment of dividends to shareholders. Parker Drilling said it has been paying a quarterly dividend of one ct a share of common stock. The company said it expects to save 1.3 mln dlrs a year through the dividend suspension. Reuter | PARKER DRILLING <PKD> SUSPENDS PAYOUT |
Shr nine cts vs 22 cts Net 700000 vs 2200000 Revs 5400000 vs 5700000 Avg shrs 7589344 vs 10.1 mln 12 mths Shr 43 cts Net 3500000 Revs 21.6 mln NOTE: 12 mth figures not available for 1985 since company started operations March 31 1985. Reuter | EQK REALTY INVESTORS <EKR> 4TH QTR NET |
Qtly div nine cts vs nine cts previously Pay May 11 Record April 17 Reuter | MASCO CORP <MAS> REGULAR DIVIDEND SET |
Qtrly div 41.5 cts vs 41.5 cts prior Pay July 29 Record June 15 | EQK REALTY INVESTORS I <EKR> SETS PAYOUT |
A member of the board which regulates the Farm Credit System predicted the troubled farm lender may lose about 900 mln dlrs in the first half of 1987 hastening the need for a federal rescue this year. Speaking to the House subcommittee responsible for farm credit issues Farm Credit Administration (FCA) board member Jim Billington said My recommendation is that legislation (aiding the system) must be moved prior to June 30 1987 or it will be difficult to close the (farm credit system) books. Billingtons loss prediction is gloomier than either the system or its regulator had previously admitted. The system itself has so far predicted losses for all of 1987 will reach only 1.1 billion dlrs down from 1.9 billion in 1986 and 2.7 billion in 1985. However Billington said the system is losing in excess of 400 mln dlrs per quarter implying total losses for 1987 of more than 1.6 billion. Losses of that magnitude would exhaust the 1.4 billion dlrs in capital surplus the system held at the end of 1986. The system also has 4.2 billion dlrs in capital held by its member borrowers called borrower stock which theoretically could be used as capital. Billington said by the end of 1987 more than 1.6 billion dlrs of the 4.2 billion in borrower stock would be downgraded in value because of the mounting losses. Chairman of the FCA board Frank Naylor urged that Congress begin to consider legislation rescuing the system by Easter and that a bill be completed by the fall. Chairman of the House subcommittee Rep. Ed Jones (D-Tenn.) said today the time has arrived to consider assistance to save the system. The Senate Democratic leadership indicated last month that it would begin drafting a bailout bill by Easter. FCA board members differed on whether a direct government infusion of cash will be needed to rescue the system. FCA chairman Naylor said a federal guarantee of both borrower stock and system bonds held by investors might avoid the need to provide hard capital to the system. However Billington said its not really that simple in my opinion adding that government funds may be needed to rescue the system. Neither regulator estimated how much money might be needed. Reuter | U.S. FARM CREDIT LOSS PUT AT 900 MLN IN 1ST HALF |
<American Cyanamid Corp> is to set up a herbicide production plant in the recently-created Dunkirk enterprise zone an official for the Dunkirk port authority said. He told Reuters the announcement was made by Industry Minister Alain Madelin during a visit to the zone today. The plans involve investment of around 70 mln francs. The enterprise zones created on the sites of naval shipyards closed down last year and which also include zones at La Ciotat and La Seyne provide for exemption from corporate taxes for 10 years and other incentives. Reuter | AMERICAN CYANAMID TO SET UP PLANT IN DUNKIRK |
MacMillan Bloedel Ltds share price rose 4-1/2 dlrs to 79-1/4 after climbing by as much as 5-1/4 dlrs in trading earlier on the Toronto Stock Exchange. Company officials were not immediately available to comment on the steep gain. Forestry analyst Rick Sales at Vancouver British Columbia-based Odlum Brown Ltd said the strength partly reflected the buoyant forest products industry the companys proposed three-for-one stock split and strong 1987 earnings prospects. He predicted MacMillan Bloedel would earn eight dlrs a share this year. The companys 1986 net profit after a 1.45 dlr extraordinary gain rose to 4.66 dlrs a share from 54 cts a share in 1985 due to lower costs and stronger markets. Sales added that investors might also be expecting a major dividend increase. The company paid 75 cts a share in regular common stock dividends last year. MacMillan Bloedels 49 pct-owner <Noranda Inc> needs cash and they do have people on (MacMillans) board of directors said Sales. Noranda said earlier this week it planned a public share offer in its Noranda Forest Inc unit which holds Norandas stake in MacMillan Bloedel. Sales discounted previous speculation that Noranda might try to sell its stake in MacMillan. Noranda would rather probably like to raise its stake Sales said although he added such a move could meet opposition from the British Columbia government which limited Toronto-based Noranda to a minority stake in its 1981 takeover bid for MacMillan Bloedel. Reuter | MACMILLAN BLOEDEL <MMBLF> STOCK UP SHARPLY |
The United States subsidises its agricultural industry much more than the European Community according to an internal USDA report Marcel Cazale President of the French Maize Producers Association (AGPM) said. He told reporters that according to what he described as a confidential report prepared by the USDA which he had seen the US took the leading place regarding agricultural subsidies ahead of the EC. Cazale said according to the report Argentina and Australia were the only countries not to subsidise their agriculture at all or only by a small amount. Cazale said in Argentina subsidies were granted for exports but for a very small amount while in Australia subsidies were also only for exports amounting to 15 to 30 pct. But Cazale said Australian agriculture received disguised aid to the extent that fuel and fertilisers benefited from tax reductions and transport electricity and telephones in the sector had special tariffs. He did not elaborate. Reuter | FRENCH FARMERS SAY U.S. SUBSIDISES MORE THAN EC |
 SUN RAISES CRUDE POSTINGS 50 CTS EFFECTIVE TODAY WTI TO 17.50 dlrs/bbl  | |
Qtrly div nine cts vs nine cts prior Pay May 1 Record April 9 Reuter | IPCO CORP <IHS> SETS REGULAR PAYOUT |
First Granite Bancorp Inc said it agreed in principle to become a wholly owned subsidiary of Magna Group Inc <MAGI>. Under terms of the agreement First Granite shareholders will receive 2.175 shares of Magna for each First Granite share held. First Granite shareholders will be asked to approve the tranaction in late summer. First Granite which has 675000 shares outstanding as of Dec 31 1986 had assets of 186.5 mln dlrs. It owns First Granite City National Bank and Colonial Bank of Granite City Ill. Magna Groups as of Dec 31 1986 had assets of 1.47 billion dlrs. It owns 13 banks a data services company a mortgage company and a trust company serving St. Louis as well as Springfield Centralia and Decatur Ill. Reuter | FIRST GRANITE <FGBI> AGREES TO BE ACQUIRED |
Sharedata Inc said it signed a letter of intent with an investment banking firm for financing up to 2500000 dlrs. In return the investment banking firm will be entitled to name a member of Sharedatas board of directors the company said. It added it must seek the authority of its shareholders for a one-for-four reverse split of its common stock. Reuter | SHAREDATA <SDIC> TO GET FINANCING |
CANADIAN IMPERIAL BANK OF COMMERCE CUTS PRIME RATE TO 8.75 PCT FROM 9.25 - TOMORROW |
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The following proposed securities offerings were filed recently with the Securities and Exchange Commission: Caterpillar Financial Services Corp subsidiary of Caterpillar Inc <CAT> - Shelf offering of up to 300 mln dlrs of debt securities including debentures and notes through underwriters that may include Goldman Sachs and Co. PacifiCorp <PPW> - Shelf offering of up to six mln shares of no par serial preferred stock with a total liquidation preference of 150 mln dlrs. Hadson Corp <HADS> - Offering of 3.75 mln shares of common stock through Shearson Lehman Brothers Inc and PaineWebber Inc. Hydrogen Power Inc - Initial public offering of three mln shares of Class B common stock with a minimum of two mln shares at five dlrs each needed to be sold. Reuter | PROPOSED OFFERINGS RECENTLY FILED WITH THE SEC |
Shr three cts vs three cts Net 165798 vs 143872 Sales 1787561 vs 1072686 Six mths Shr four cts vs four cts Net 175928 vs 191310 Sales 3137695 vs 2723557 Avg shrs 4862046 vs 4722150 Reuter | THERMWOOD CORP <THM> 2ND QTR JAN 31 NET |
Qtly div 15 cts vs 12 cts in prior qtr Payable June 25 Record May 28 Reuter | PERINI INVESTMENT PROPERTIES <PNV> RAISES PAYOUT |
Sun Co said it raised the contract price it will pay for crude oil 50 cts a barrel effective today. The increase brings Suns posted price for the West Texas Intermediate and West Texas Sour grades to 17.50 dlrs/bbl. The Light Louisiana Sweet grade was also raised 50 cts to 17.85 dlrs/bbl. Sun Co last changed its crude postings on March 4. Reuter | SUN <SUN> RAISES CRUDE POSTINGS 50 CTS |
Interim income dividend 20 cts. Last paid 1.14 dlrs February 27 including capital gains of 50 cts. Pyable April 20 Record April eight Reuter | PETROLEUM AND RESOURCES CORP <PEO> DIVIDEND |
ROYAL BANK OF CANADA LOWERS PRIME RATE TO 8-3/4 PCT, DOWN 1/2 |
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The Department of Trade and Industry DTI has issued insider dealing charges against a former employee of British and Commonwealth Shipping Co Plc <BCOM.L> a DTI statement said. DTI is charging Ronald Richard Jenkins until recently employed by British and Commonwealths subsidiary Cayzer Irvine and Co Ltd. He is to appear April 27 in a London court. The summons is the second insider dealing prosecution launched by the government under recent legislation. The charges allege two insider dealing offences in securities of B and C and <Steel Brothers Holdings Plc>. A DTI spokesman said plans to prosecute follow a probe into the matter since mid-December by a lawyer and a London Stock Exchange official who were officially appointed by the DTI as inspectors. In November B and C said an unnamed employee had resigned after he was discovered buying shares in Steel Brothers just before B and C announced an agreed bid for the 55 pct of Steel which it did not already own. The attempted trade which was subsequently cancelled covered 2500 Steel shares purchase at 595p compared with a bid price at 630p. Reuter | U.K. GOVERNMENT ISSUES INSIDER DEALING SUMMONS |
Shr 11 cts vs nine cts Net 677498 vs 461485 Revs 6271010 vs 5135729 Year Shr 81 cts vs 20 cts Net 4406065 vs 973967 Revs 26.5 mln vs 14.1 mln Avg shrs 5457339 vs 4978965 Reuter | NEW LINE CINEMA CORP <NLN> 4TH QTR NET |
Minister of State for Finance Tom Hockin said he has asked the Canadian Bankers Association an industry lobby group for an explanation of the level of credit card interest rates. Hockin said he hopes to here the associations response on the important issue soon. Hockin was responding to questions in the House of Commons about why credit card rates which run as high as 28 pct per year remain high when other rates are falling. Today the Canadian bank rate fell to 7.28 pct from 7.54 pct last week and the Canadian Imperial Bank of Commerce cut its prime rate effective tomorrow to 8.75 pct from 9.25 pct. Reuter | OTTAWA SEEKS EXPLANATION OF CREDIT CARD RATES |
Qtly div nine cts vs nine cts in prior qtr Payable May one Record Apreil nine Reuter | IPCO CORP <IHS> REGULAR DIVIDEND |
ASAMERA INC YEAR OPER SHR LOSS 48 CTS VS PROFIT 50 CTS |
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A former broker at PaineWebber Inc was charged by a federal grand jury with involvement in a 700000 dlr money-laundering scheme according to indictment papers. Gary Eder 41 a former vice-president at PaineWebber was charged with conspiracy and falsifying brokerage records in the two-count indictment. According to the indictment Eder produced more brokerage commissions than any other broker at PaineWebber and was its most highly-paid broker between 1982-86. Eder is charged with conspiring with unnamed supervisors at PaineWebber to prevent the filing of Currency Transaction Reports with the Internal Revenue Service. Federal law requires that reports be filed with the IRS for any single cash transaction in one day of more than 10000 dlrs. Asked about the charges a Painewebber spokeswoman said the company had not seen the indictment and had no comment. She said Eder was suspended January 22 and resigned from the firm on february 17. David Spears the federal prosecutor in charge of the case said Eder received cash from individual customers in amounts ranging up to 70000 dlrs at a time but avoided filing reports by depositing the cash into the customers accounts in amounts just under 10000 dlrs on several different days. If convicted Eder could receive a maximum jail term of ten years and 260000 dlrs in fines. Reuter | PAINEWEBBER <PWJ> BROKER INDICTED IN SCHEME |
DIAMOND SHAMROCK RAISED CRUDE BY 50 CTS/BBL TODAY. WTI UP TO 17.50 DLRS. |
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WHITE HOUSE ASKS CONGRESS TO REFLECT COST OF U.S. LOAN SUBSIDIES IN BUDGET |
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Essex Chemical Corp said it filed with the Securities and Exchange Commission a registration statement covering a 60 mln dlr issue of convertivble subordinated debentures due 2012. Proceeds will be used to redeem the companys outstanding 11-3/8 pct subordinated debentures due 1998 and repay all long and short-term notes payable to banks as well as for working capital Essex Chemical said. The company named Thomson McKinnon Securities Inc as lead manager and PaineWebber Inc as co-manager of the offering. Reuter | ESSEX CHEMICAL <ESX> TO SELL CONVERTIBLE DEBT |
Alleghney International Inc said the plaintiffs in the existing lawsuits opposing its sale requested an amendment to their complaint to include a class action count. Alleghney said the suit filed in the U.S. District Court for the Western District of Pennsylvania was aimed at blocking the sale of Alleghney to an affiliate of First Boston Inc. Allegheney said the additional count sought by the plaintiffs alleges the price to be offered for AIs common stock 24.60 dlrs is grossly unfair and one the purposes of the proposed sale is to absolve the individual defendants of liability in the lawsuit. The additional count among other forms of relief requests an injunction against the defendants from taking any steps to accomplish the proposed sale Alleghney said. Reuter | ALLEGHNEY INTERNATIONAL <AG> FACES ADDED COUNT |
PHILLIPS RAISES CRUDE POSTINGS 50 CTS EFFECTIVE TODAY, WTI TO 17.50 dlrs/bbl |
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The number of seismic crews searching for oil and gas in the United States dropped by nine to a total of 151 crews a decrease of six pct from January the Society of Exploration Geophysicists said. The February total represented a 49 pct decrease from February 1986. Worldwide the associations monthly survey showed that seismic exploration for oil and gas increased to 395 in February up three from the month before. Africa added three seismic crews the Middle East increased by two and the Far East added one while reductions were reported in Central and South America Europe and the United States. Reuter | U.S. SEISMIC CREW COUNT DROPS 6 PCT IN FEBRUARY |
 BULL AND BEAR EQUITY INCOME FUND <BULAX> DIV NEW YORK March 12 Qtly div eight cts vs eight cts prior Payable March 31 Record March 18 Reuter  | |
Assistant Defense Secretary Richard Perle resigned to complete work on a novel and said he was confident the United States and Soviet Union were headed for a verifiable arms control agreement. Perle 45 one of the most outspoken and controversial critics in the Reagan administration of past superpower weapons treaties told reporters he would continue to do consulting work for the government on arms control. Im leaving in order to do other things including finish negotiations (with publishers) on my novel. I also plan to do some other writing said Perle. Reuter | PERLE QUITS AS PENTAGON ARMS CONTROL EXPERT |
Pessimism over the effects of a prolonged dry spell on the coming Bahian temporao cocoa crop is rising with trade forecasts generally in the 2.0 mln to 2.5 mln bag range against 2.5 mln to 3.0 mln a fortnight ago. Trade sources told Reuters from the state capital of Salvador that despite scattered rains since mid-February which broke a six week drought plantations have not picked up as hoped and very little cocoa is expected to be gathered in the first three months of the May/September crop. The sources said arrivals from May through July might only reach around 600000 bags whereas in normal years a figure of 1.0 mln to 1.5 mln bags might be expected. Arrivals from then should start to pick up sharply as pods from current flowering are gathered. However the sources noted a late temporao is always more susceptible to pod rot which flourishes if conditions turn cold and humid and which is more likely from late July on. This years crop is doubly susceptible because poor prices mean farmers were not encouraged to invest in fertilisers and insecticides and are also unlikely to treat against pod rot. A severe attack of pod rot can cause the loss of over 500000 bags in a very short period one source said. Because of the increased exposure to pod rot damage estimates of the final outcome of the temporao are extremely vulnerable and production could easily drop to below the 2.0 mln bag mark if the disease hits. Although flowering was good following the start of the rains pod setting was not up to expectations possibly because the drought had caused a drop in the insect population which pollinates flowers the sources said. However reports from farms indicate moisture levels are now generally back to near normal levels and that current flowering and pod setting is good which should result in mature fruit from August through September. The sources said they expect no break in the harvesting of beans between the end of the temporao and the beginning of the main crop which officially starts on October 1. The cut-off date is completely artificial. If things go well from now on we should see heavy harvesting without a break from August through November or even December one said. If predictions of a 2.0 to 2.5 mln bag temporao prove accurate this would be below the 2.7 mln bag average for the past 10 years. The last poor temporao was in 1984 when prolonged drought and later pod rot cut production to 1.79 mln bags the lowest since 1974. Good growing conditions the following year produced a temporao of 3.12 mln bags just below the 1983 3.17 mln bag record while last years output which also suffered some drought damage was 2.77 mln bags. Figures for the coming temporao might be distorted upwards by the inclusion of undeclared current main crop beans. The sources said large quantities of beans are believed to have been undeclared from this years record total harvest and they were unsure how much of this would be unregistered by the end of the official crop year on April 30. Recent official arrivals figures have been swollen by the inclusion of beans which had been delivered previously to port warehouses but not declared. Because of the high turnover of beans this year significant amounts have deteriorated because they were stored too long at the back of warehouses. Some of these are expected to be held for mixing in with early temporao arrivals. With official arrivals figures for the 1986/87 temporao and main crops totalling over 6.1 mln bags and over seven weeks still to go to the end of the year the total outturn should be at least a record 6.5 mln bags if all production is declared the sources said. This would compare with the previous record set last year of 6.03 mln. However there is no way of telling how many current crop beans will be declared after the May 1 start of the temporao and thus the true size of the 1986/87 harvest may never be officially registered. Reuter | PESSIMISM MOUNTS OVER BAHIAN TEMPORAO COCOA CROP |
Anheuser-Busch Cos Inc said it will issue 150 mln dlrs in principal amount of 8-1/2 pct sinking fund debentures due March 1 2017. It said the offering will be through an underwriting syndicate managed by Dillon Read and Co Inc. They debentures will be offered at 99.0 pct of the face amount to yield 8.59 pct to maturity. It said the debentures are being issued under a previously announced shelf registration. Reuter | ANHEUSER-BUSCH <BUD> DEBENTURES ISSUED |
Shr 37 cts vs 37 cts net 7.6 mln vs 7.5 mln Revs 383.9 mln vs 326.3 mln Year Shr 1.17 dlrs vs 99 cts Net 24.0 mln vs 20.3 mln Revs 1.2 billion vs 1.0 billion Reuter | ROSE'S STORES INC <RSTO> 4TH QTR JAN 28 |
U.S. EXPORTERS REPORT 120,000 TONNES WHEAT PURCHASED FROM FOREIGN SELLERS FOR 1987/88 |
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Phillips Petroleum said it raised the contract price it will for all grades of crude oil 50 cts a barrel effective today. The increase brings Phillips posted price for the West Texas Intermediate and West Texas Sour grades to 17.50 dlrs a bbl. Phillips last changed its crude oil postings on March 4. The price increase follows similar moves by USXs <X> subsidiary Marathon oil and Sun Co <SUN> earlier today. Reuter | PHILLIPS <P> RAISES CRUDE POSTINGS 50 CTS |
Oper shr loss 48 cts vs profit 50 cts Oper net loss 11.3 mln vs profit 18.1 mln Revs 262.8 mln vs 399.7 mln Note: 1986 net excludes tax gain of 1.1 mln dlrs or three cts shr vs yr-ago gain of 5.6 mln dlrs or 17 cts shr. 1986 net includes 15 mln dlr charge for reduction in carrying value of refinery and related assets. 1985 net includes 10.8 mln dlr gain on sale of Canadian natural gas property. U.S. dlrs. Reuter | ASAMERA INC <ASM> YEAR LOSS |
Oper shr profit two cts vs loss 19 cts Oper net profit 523000 vs loss 2191000 Revs 102.5 mln vs 39.9 mln Avg shrs 20.0 mln vs 11.1 mln Year Oper shr profit 11 cts vs loss 29 cts Oper net profit 2240000 vs loss 2884000 Revs 304.4 mln vs 50.3 mln Avg shrs 19.4 mln vs 9759000 NOTE: 1986 4th qtr and year oper net excludes a gain of 492000 dlrs and 1241000 dlrs respectively for carryforwards and a loss of 135000 dlrs and 533000 dlrs respectively for early extinguishment of debt. 1985 4th qtr and year oper net excludes a loss of 1457000 dlrs or 14 cts per share and loss 1735000 dlrs or 18 cts per share respectively for discontinued operations. Reuter | LVI GROUP INC <LVI> 4TH QTR OPER NET |
Purolator Courier corps stock rose on specualtion that a disgruntled former Purolator director would find a new suitor for the company traders said. Purolator agreed in late February to a 35 dlr-a-share 265 mln-dlr offer from E.F. Hutton LBO Inc and certain members of its Purolator courier divisions management. The stock today hit 36-1/4 up one. Today Purolator revealed in a filing with the Securities and Exchange Commission that director Doresy Gardner resigned from its board of directors in a letter dated March 10. The letter from Gardner said he resigned the board because the merger agreement with Hutton barred directors from soliciting new offers and he believes shareholders might get a better deal. Gardner said he believes a better offer might be found if the company would agree to be sold to some other entity or if it could sell off all or part of its U.S. courier division. Basically (the courier division) is a company that has 450 mln dlrs in revenues. Its a very large company and its being sold for 50 or 60 mln dlrs said Gardner in a telephone interview with Reuters. Gardner is an official of Kelso Management a firm associated with Fidelity International Ltd. A group of Fidelity companies owns eight pct of Purolator and Gardner said he personally owns 20000 shares. A Purolator official said the company has no comment on the letter from Gardner. Arbitragers speculated another overnight messenger service may emerge as a likely bidder for Purolator. Before the transaction with Hutton LBO was announced analysts had also speculated another courier company would be the most likely suitor. While one arbitrager acknowledged there in fact may be no new bidders he said the possibility one could appear pushed the stock into play again. Theres no shortage of possibilities. Its just a question of managements willingness to let the process continue said one arbitrager. Arbitragers said a new buyer might be found because they believe Hutton LBO has taken on no risk in the transaction. Hutton has begun a tender for 83 pct of Purolator at 35 dlrs cash per share. The balance of Purolators stock will be bought for securities and warrants in a new company holding the U.S. courier operations. The arbitragers said tender offer documents show that Hutton does not need to use its cash in the transaction and will emerge with a giant majority equity interest in Purolator. As far as I can tell from the public documents from the deal thats on the table Hutton is basically putting up zero. One always likes a situation like that. You always like to think if they can do this deal at no risk there should be someone else in the world that could do it higher said one arbitrager. The firm however is supplying temporary financing and sources close to the transaction disputed the claim that the firm will not end up paying for its equity position. While one scenario mentioned in the tender offer document did note that the E.F. Hutton Group subsidiary may not have to keep cash in the transaction the sources said there is some risk to the firm. There are a variety of contingencies and restricted cash and all sorts of things that make it very speculative said one of the sources adding there are also severance payments to employees. The E.F. Hutton Group subsidiary is supplying 279 mln dlrs in so-called bridge financing for the transaction. The bridge financing is a temporary loan from Hutton. The financing is to be replaced with permanent financing expected to come from banks. However it may take some time to replace the financing the source said resulting in what could be a substantial expense to the firm. Gardner said Hutton stands to gain fees of 10 to 20 mln dlrs from the transaction but sources close to the transaction said fees are at the low end of the scale. Its a very complex transaction but basically what happens is they ostensibly put up money but the fees recapture any investment they might have once the merger takes place Gardner said. Reuter | TALKING POINT/PUROLATOR COURIER CORP <PCC> |
The U.S. Agriculture Department said private U.S. exporters reported purchases from foreign sellers of 120000 tonnes of wheat for delivery to unknown destinations. The wheat consisting of 60000 tonnes of hard red winter and 60000 tones of soft red winter is for delivery during the 1987/88 season which begins June 1. A purchase from a foreign seller is a transaction in which a U.S. exporter contracts to buy U.S.-produced commodities from a foreign firm the department said. Reuter | USDA SAYS WHEAT PURCHASED FROM FOREIGN SELLERS |
FCC PANEL VOTES 1.50 DLR HIKE IN MONTHLY RESIDENTAL PHONE SUBSCRIBER LINE CHARGE |
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VOLCKER SEES NO CLEARCUT EVIDENCE THAT U.S. TRADE DETERIORATION HAS YET BEEN REVERSED |
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Diamond Shamrock said it raised the contract price it will pay for crude oil 50 cts a barrel effective today. The increase brings the companys posted price for the benchmark grade West Texas Intermediate to 17.50 dlrs/bbl. Diamond Shamrock last changed its postings on March 4. Reuter | DIAMOND SHAMROCK <DIA> RAISES CRUDE POSTINGS |
VOLCKER SEES SEVERE PROBLEMS IN SOME SECTORS OF THE U.S. ECONOMY |
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TORONTO DOMINION BANK CUTS PRIME RATE TO 8-3/4 PCT FROM 9-1/4 PCT - TOMORROW |
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BANK OF MONTREAL CUTS PRIME RATE TO 8-3/4 PCT FROM 9-1/4 PCT, EFFECTIVE FRIDAY |
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R.P. Scherer Corp said it is offering 1.6 mln shares of 5-3/4 pct convertible exchangeable preferred stock at 25 dlrs a share. Each stock is convertible into the companys common stock at 23.60 dlrs a share which represents a conversion premium of 24.2 pct over the last sale price of 19 dlrs a share on March 11. Goldman Sachs and Co is lead underwriter for the offering. Scherer said one of its directors Richard Manoogian said he will buy 200000 shares of the preferred stock at the same 25 dlrs a share. The company said proceeds will be used for general corporate purposes including funding an increasing commitment to research and development on new drug formulations and delivery systems. Reuter | R.P. SCHERER <SCHS> OFFERS PREFERRED STOCK |
VOLCKER SAYS FED REMAINS CONCERNED ABOUT THE POSSIBILITY OF RENEWED INFLATION |
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ASSETS OF MONEY MARKET MUTUAL FUNDS FELL 35.3 MLN DLRS IN LATEST WEEK TO 237.43 BILLION |
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Defense Secretary Caspar Weinberger will join Commerce Secretary Malcolm Baldrige in fighting Fujitsu Ltds <ITSU.T> plan to buy 80 pct of <Fairchild Semiconductor Corp> Pentagon officials said. He (Weinberger) opposes it. It is not in the best interests of the country to have more of the micro-electronics business leaving the United States one of the Pentagon officials who asked not to be identified told Reuters. Commerce Department officials told Reuters yesterday that Baldrige opposed the planned sale and that the White House Economic Policy Council will take up the matter within weeks. Commerce and defense officials said Baldrige and Weinberger feared the U.S. military is already leaning too heavily on foreign electronic support. But the Defense Department also said today that Weinberger and Baldrige differed on the proposed sale of U.S. computer equipment to Iran. The Commerce Department advised the Pentagon recently that defense objections to two proposed sales -- to an Iranian power company and the Islamic Republic of Iran News Agency -- were not valid and the sales of small and medium computers would go through unless more evidence was presented. Reuter | WEINBERGER OPPOSES FUJITSU BUYING U.S. FIRM |
A former account executive and registered representative at Merrill Lynch Co Inc was charged by a federal grand jury with diverting 8400 dlrs of the companys funds for his own use according to court papers. Bentley Whitfield 31 was accused by the Grand Jury of mail fraud stemming from a scheme in which he deposited a check payable to Merrill Lynch into a trading account that he opened under a ficticious name. The grand jury found he withdrew 8400 dlrs from the account and used the money in a real estate deal. He faces a maximum five years in jail and 1000 dlr fine. Reuter | FORMER MERRILL LYNCH <MER> EMPLOYEE CHARGED |
Implementation of a one-year 0/92 pilot program for wheat and feedgrains was strongly promoted today by the chairman of a key house agriculture subcommittee as a way to cut farm costs and simultaneously give farmers another option when making their planting decisions. We have a budget driven farm policy. It may be a shame but we are locked into this said Dan Glickman (D-Kans.) chairman of the subcommittee on wheat soybeans and feed grains. We need to look at ways to cut costs and not hurt the farmer. A 0/92 plan if properly done could do both. Glickman announced this week plans to introduce a 0/92 bill for 1987 and 1988 wheat and feedgrains. An aide to Glickman said that it will probably be introduced next week. Glickman said a 0/92 program which allows a farmer to forego planting and still receive 92 pct of his deficiency payment would not be a major revision of the 1985 farm bill -- only an extension of the 50/92 option already provided under the current bill. It is premature to make any major changes in the farm bill he said but if agriculture has to make further cuts to meet budget goals a voluntary 0/92 plan would be better than sharply cutting target prices as USDA has proposed. A 0/92 plan however would not be decoupling but simply a different type of acreage diversion program Glickman said. Decoupling -- delinking planting decisions from government payments -- is too much of a policy change to approve at this point he said. I dont think there is any interest in pursuing a decoupling bill this year. Period. Unequivocal Glickman said at the hearing. Sen. Rudy Boschwitz (R-Minn.) cosponsor of the Boren/Boschwitz decoupling plan said he supports a short term 0/92 program as a move to a more permament decoupling plan. Boschwitz plans to introduce a 0/92 plan in the senate. His plan would guarantee a certain deficiency payment to participating farmers require that idled acreage be put to conservation use only prohibit haying and grazing on extra idled acreage limit participation to a certain number of acres in a county and provide tenant protection provisions. I know we cannot obtain complete decoupling in 1987 but we can at least move in that direction Boschwitz said. Robbin Johnson vice president of Cargill Inc. testified in favor of decoupling. Decoupling would end the current bias in U.S. farm policy towards overproduction and reduce farmers dependency on the government he said. A 0/92 plan does not go far enough in decoupling Johnson said and would still encourage farmers to plant. Officials from the National Corn Growers Association and the National Cattlemens Association said their groups oppose any 0/92 or decoupling plan due to concerns about reopening the farm bill and creating more confusion among farmers. But when asked if his association were forced to choose between a ten pct cut in target prices or a 0/92 program Larry Johnson of the Corn Growers said they would agree to 0/92 rather than take sharp cuts in target levels. Reuter | GLICKMAN PUSHES HARD FOR 0/92 FARM PLAN |
Director of the Office of Management and Budget James Miller said the Reagan administration had no intention of raising taxes in order to reduce the federal budget deficit. There will be no tax increases he said three times before a Management Briefing luncheon of Southern Methodist Universitys Edwin L. Cox School of Business. The budget deficit which is currently slated at 173 billion dlrs for fiscal 1988 is supposed to be reduced to 108 billion dlrs under the provisions of the Gramm-Rudman Act which calls for a balanced budget by fiscal 1991. Miller said he believes the budget deficit can be reduced but added the surest way to put us in a pickle would be to raise or ease the Gramm-Rudman goal. If we were to raise taxes so soon after tax reform it would create enormous uncertainty on the financial markets he said adding that giving up on the will to reduce the deficit would also create uncertainty. Miller reiterated the presidents budget proposal that the deficit could be reduced by a total of 42 billion dlrs through increased revenues and spending cuts. An additional 23 billion dlrs from economic growth is expected to result in the budget deficit being reduced to the 108 billion dlr target. Miller said it was possible the Administration might support an oil import fee but added that the President was concerned that such a move might have more adverse results than benefits. He also said the Administration was seeking to spin off Amtrak which costs the government about 500 mln dlrs a year but added that he did not expect it to be accomplished this year. Reuter | MILLER SAYS NO U.S. TAX HIKES TO CUT DEFICIT |
Hanover Insurance Co said Joseph Henry has been elected financial vice president of the company and its subsidiary the Massachusetts Bay Insurance Co. Henry is a former partner of Peat Marwick Mitchell Hanover said. Reuter | HANOVER INSURANCE CO <HINS> GETS NEW EXECUTIVE |
Safeguard Scientifics Inc said it made a 2.5 mln dlr equity investment in <Sanchez Computer Associates Inc> a private computer software firm based in Malvern Pa. Safeguard said the investment gives it a major ownership position in Sanchez which specializes in software products for financial institutions. Reuter | SAFEGUARD SCIENTIFIC <SFE> IN EQUITY DEAL |
Shr 20 cts vs 22 cts Net 1948000 vs 2124000 Sales 40.9 mln vs 41.0 mln Six mths Shr 40 cts vs 50 cts Net 3864000 vs 4835000 Sales 81.7 mln vs 79.9 mln NOTE: 1986 results include gain on sale of land of 571000 dlrs or six cts a share 1986 results include loss from discontinued operations of 403000 dlrs or four cts a share in the quarter and 598000 dlrs or six cts a share in the six months Reuter | CORE INDUSTRIES INC <CRI> 2ND QTR FEB 28 NET |
A Federal Communications Commission (FCC) board recommended raising the two-dollar monthly subscriber line charge for residential telephone customers by 1.50 dlrs over the next two years. The subscriber line charge was first levied by the FCC in June 1985 in an effort to more acurately reflect the cost of providing phone service as a part of phone deregulation. The recommendation by the board composed of federal and state utility regulators was expected to be approved by the FCC in a seperate decision in the next few weeks. The subscriber line charge for residences and businesses with single phone lines will rise to 2.60 dlrs in June 1987 3.20 in September 1988 and 3.50 dlrs in April 1989. The staff of the FCC said at a public meeting that the increase in the charge would make possible a reduction in long-distance phone rates of 15 pct or 17 billion dlrs over six years. Supporters of the subscriber line charge have argued that long distance phone rates had been subsidizing local phone service which would lead to abandonment of the phone network by large commercial phone customers. Reuter | FCC PANEL RECOMMENDS PHONE FEE HIKE |
Moodys Investors Service Inc said it cut to Caa from B-2 Allegheny Beverage Corps 112 mln dlrs of subordinated debt. The rating agency cited Alleghenys high leverage and poor operating performance as well as reduced cash flow. Moodys said the companys prospects for improvement are limited by increasing competition in the food service industry and decreasing demand for the vending services that Allegheny provides. Moodys also said a renegotiated bank agreement includes accelerated amortization requirements that exacerbate Alleghenys already weakened ability to service its debt. Reuter | ALLEGHENY BEVERAGE <ABEV> DOWNGRADED BY MOODY'S |
<Musikahn Corp> said it filed a reorganization plan with the U.S. Bankruptcy Court for itself and its subsidiary Jack Kahn Music Co. The company said both entities have been operating as debtors in Chapter 11 since Oct 22 1985. The plan provides for payment in full of administration expenses and priority claims and secured claims the companies said. In addition priority claims of governmental units will be paid in full over a period of six years. The companies said unsecured creditors will receive up to 25 pct of their claims. Reuter | MUSIKAHN CORP FILES FOR REORGANIZATION |
First Financial Management Corp said its board declared a three-for-two stock split of its common stock. The split will be effected by a 50 pct stock dividend for shareholders of record March 23 to be distributed on April six. Reuter | FIRST FINANCIAL <FFMC> IN STOCK SPLIT |
BANK OF NOVA SCOTIA CUTS PRIME RATE TO 8-3/4 PCT FROM 9-1/4 PCT, EFFECTIVE TOMORROW |
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Command Airways said its February load factor rose to 40.4 pct from 39.0 pct available seat miles rose to 9.6 mln from 7.1 mln last year and revenue passenger miles rose to 3.9 mln from 2.8 mln. For the year to date Commands load factor rose to 40.6 pct from 38.1 pct revenue passenger miles rose to 37.0 mln from 27.8 mln and available seat miles rose to 91.2 mln from 72.7 mln. Reuter | COMMAND AIRWAYS <COMD> FEBRUARY TRAFFIC ROSE |
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