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Widcom Inc said effective immediately it has cut the U.S. price for its Video Teleconferencing System by 32 pct to 49950 dlrs. It said it will consider volume discounts on orders of more than 10 systems. Reuter | <WIDCOM INC> CUTS TELECONFERENCE SYSTEM PRICE |
This months endorsement by International Business Machines Corp <IBM> of two desktop publishing software products should add some much-needed standards to one of the fastest growing segments of the computer industry analysts say. Desktop publishing is a relatively new market but industry analysts estimate that sales will reach one billion dlrs this year and jump to six billion dlrs by 1990 fueled by the rush of corporations to bring their printing and publishing needs in-house rather than to more expensive outside printers. Printing is a big expense for most companies. Analysts estimate U.S. corporations will spend about six to 20 pct of their total operating budgets on publishing expenses this year. At a desktop publishing conference in Chicago earlier this month IBM said it will adopt Adobe Systems Incs Postscript typesetting language in future electronic printing products. IBM also said it will support Microsoft Corps Windows operating environment as the graphics interface standard in future publishing announcements rather than its own Topview environment. IBMs announcement will give tremendous stimulation to the development of the desktop publishing market said David Goodstein president of the consulting firm Interconsult Inc. It gives users permission to go ahead and buy products that are already available without being afraid that they will not be compatible with whatever IBM does he said. The advent of personal computers laser printers and graphics software has allowed users to design and print brochures newsletters and a host of other communications at their desks for a fraction of the cost of an outside printing firm. Analysts credit Apple Computer with creating desktop publishing when it introduced its Macintosh personal computer four years ago with its easy-to-use formats and excellent graphics capabilities. Since then Digital Equipment Corp Xerox Corp Apollo Computer Inc and a number of other vendors have identified desktop publishing as a major growth area. IBM entered the market only last July when it formed its Publishing Systems Business Unit. IBMs embrace of the already-widely used Postscript a language that interprets computer commands and translates them into instructions for the printer was an acknowledgment of what is already a de facto standard. Both users and makers of electronic publishing systems said the support of the worlds largest computer maker was critical to the languages ultimate acceptance by users. John Warnock president of Palo Alto Calif.-based Adobe said Ten pct of corporations have (moved) into desktop publishing but 90 pct are still sitting back and waiting for an IBM announcement. IBM entered a licensing pact with Adobe for Postscript but its support of Windows was not quite so broad. IBM recognizes Windows as a standard but would not comment on the extent of its commitment to the software. Windows a program integrator allows personal computer users to run a number of different applications simultaneously. Reuter | TECHNOLOGY/DESKTOP PUBLISHING |
Whippany Paper Board Co Inc said shareholders at a special meeting approved a merger into NPN Inc for 2.50 dlrs per share. NPN acquired control of Whippany in a recent tender offer. Reuter | <WHIPPANY PAPER BOARD CO INC> MERGER APPROVED |
Privately-held <Pilot Air Freight> said it met with officials of Northern Air Freight Inc to try to negotiate a friendly acquisition of Northern but Northerns management had no interest in the proposal. Northern has annual revenues of about 60 mln dlrs and is based in Seattle. Reuter | NORTHERN AIR FREIGHT <NAFI> GETS, REJECTS, BID |
Los Angeles Securities Group said the <National Association of Securities Dealers> has decided not to delist its securities from the NASDAQ system for now as it had threatened. The company said the NASD has granted it an undetermined period of time to resolve issues raised by the NASD on market-making in its own common stock. Reuter | LOS ANGELES SECURITIES <LSGA> TO STAY ON NASDAQ |
Summit Energy Inc said it has extended to April Three from March 13 its offer to exchange six common shares for each of its 569200 outstanding shares of 1.80 dlr cumulative convertible preferred stock. The company said through Friday it had received 302669 of the shares or 53.2 pct. Reuter | SUMMIT ENERGY <SUM> EXTENDS EXCHANGE OFFER |
Export Development Corp is issuing a 15 billion yen eurobond due August 28 1992 paying 4-1/2 pct and priced at 101-7/8 pct lead manager Bank of Tokyo International said. The bond is available in denominations of one mln yen and will be listed in Luxembourg. Fees comprise 1-1/4 pct selling concession and 5/8 pct management and underwriting combined. REUTER | EXPORT DEVELOPMENT CORP ISSUES EUROYEN BOND |
Shr 35 cts vs 44 cts Net 1311000 vs 1619000 Revs 125.2 mln vs 117.2 mln NOTE: American Building Maintenance Industries Inc. Reuter | AMERICAN BUILDING MAINTENANCE <ABM> 1ST QTR NET |
Renouf Corp International said it has extended the expiration of its offer to pay 31 dlrs a unit to buy all outstanding units of Benequity Holdings a California Limited Partnership to March 24 from March 13. As of March 13 Renouf said about 3847375 units had been tendered. Renouf pointed out this exceeds the minimum number sought in the offer but its statement gave no reason for the extention. Benequity has 5.7 mln units outstanding. Reuter | RENOUF EXTENDS BENEQUITY HOLDINGS <BH> OFFER |
Commodity Futures Trading Commission CFTC chairman Susan Phillips said the agency opposed efforts to set up a federal regulatory framework over futures and options margins. Phillips told the National Grain and Feed Association yesterday that futures margins are best set by the exchanges. Earlier this year Securities and Exchange Commission Chairman John Shad suggested that futures volatility might be dampened if federal regulators could set margins. Phillips predicted Congress would discuss the issue in the context of program trading of stock index futures and options. Reuter | CFTC OPPOSES U.S. FEDERAL FUTURES MARGIN SETTING |
Debt securities issued by major U.S. banks are under pressure in the secondary market as investors shy away from the paper because of Brazils suspension of interest payments last month analysts and traders said. On February 20 Brazil said it would suspend interest payments on 68 billion dlrs owed to foreign commercial banks. No date was established for the renewal of payments. Buyers have backed away from bank paper. These securities have become very difficult to sell despite a rise in their yields said one corporate bond trader. Debt issues of major money center banks will probably continue to trade off until such time as the Brazil situation is resolved said Loretta Neuhaus a vice president with Merrill Lynch Capital Markets. I have not told any of our investors to stay away from the banks in general she added. But I have not received too many inquiries by prospective buyers lately either. Traders said debt securities of U.S. banks that are perceived by investors to be heavily exposed to Latin American debtor nations declined moderately in price last week. They said the difference between bids and offers widened. There is not much trading of bank issues these days an underwriter said referring to the wider bid/offer spreads. However he and others pointed out that the secondary market has not seen heavy selling by institutions funds and other investors. The selling has been steady over the past couple of weeks. But it has been far from panicky said another trader. In addition institutional sources told Reuters on Friday that Salomon Brothers Inc lowered its investment ratings on the stocks of all U.S. money centers. But the sources said it is understood the action is not a sell recommendation. While institutional sources said Salomon lowered the ratings to M from O-plus on bank stocks bond traders said this carried over to the secondary market and further undermined confidence in bank paper. The banks affected by Salomons change in investment coding were Bank of New York Co Inc <BK> Bankers Trust Co <BT> Chase Manhattan Corp <CMB> Chemical New York Corp <CHL> Citicorp <CCI> Irving Bank Corp <V> Manufacturers Hanover Corp <MHC> J.P. Morgan and Co Inc <JPM> Marine Midland Banks Inc <MM> Republic New York Corp <RNB> Bank of Boston Corp <BKB> and First Chicago Corp <FNB> sources said. The institutional sources said Salomon cited a filing with the Securities and Exchange Commission by Citibank the lead bank of Citicorp. Citibank said Friday it told the SEC its earnings could be reduced by 50 mln dlrs after-tax in the first quarter and 190 mln dlrs in the year if it has to declare 3.9 billion dlrs of medium- and long-term Brazilian loans non-performing. I believe there will be some renegotiation along the way between Brazil and the banks such that the banks will not have to charge off their loans to Brazil Merrill Lynchs Neuhaus commented. But until then investors are widely expected to remain leery of buying bank paper according to analysts and traders. In an unrelated development RJR Nabisco Inc <RJR> paid what some bond traders said amounted to a penalty fee when the company tapped the domestic debt market on Friday. RJR Nabisco sold 500 mln dlrs of sinking fund debentures due 2017 via lead manager Shearson Lehman Brothers Inc. The debentures had an 8-5/8 pct coupon and were priced at 98.675 to yield 8-3/4 pct or 115 basis points over the off-the-run 9-1/4 pct Treasury bonds of 2016. The yield and premium over Treasuries was greater than a similar financing in January. On January 22 Nabisco sold 500 mln dlrs of same-maturity same-rated sinking fund debentures priced to yield 8.62 pct or 107 basis points over the 9-1/4 pct Treasury bonds. Both issues were rated A-1 by Moodys and A by S and P. Bond traders noted that Nabisco has called for redemption around 1.2 billion dlrs of its 11.20 pct notes of 1997. Nabisco will buy them back at 107.50 traders said. The redemption of an attractive double-digit yield issues has tainted Nabisco in investors eyes said one trader. Obviously a lot of prospective buyers believe Nabisco should pay a higher yield because of that. Traders also asserted that the higher yield in Fridays pricing reflected the total debt issuance of one billion dlrs so far this year by Nabisco. Investors may be showing some signs of indigestion remarked one trader. Traders said they expect Nabisco will float more debt in the coming weeks to finance the redemption of the 11.20 pct notes. Officers on Shearsons syndicate desk declined to comment. IDD Information Service said the 30-day corporate visible supply rose to 3.28 billion dlrs last week from 1.79 billion dlrs in the previous week. Reuter | U.S. CORPORATE FINANCE - BANK PAPER PRESSURED |
Shr 32 cts vs 21 cts Net 4717000 vs 2587000 Revs 72.9 mln vs 37.9 mln Avg shrs 14.7 mln vs 12.6 mln Year Oper shr 75 cts vs 41 cts Oper net 10.7 mln vs 4642000 Revs 188.9 mln vs 106.6 mln Avg shrs 14.2 mln vs 1.4 mln NOTE: 1985 year net excludes 495000 dlr tax credit. Reuter | NEW WORLD PICTURES LTD <NWP> 4TH QTR NET |
Shr profit 17 cts vs loss two cts Net profit 520000 vs loss 51000 Sales 11.1 mln vs 6897000 1st half Shr profit 34 cts vs profit 12 cts Net profit 951000 vs profit 320000 Sales 20.6 mln vs 14.9 mln Reuter | LOWRANCE ELECTRONICS INC <LEIX> 2ND QTR JAN 31 |
Shr 16 cts vs 22 cts Net 1574000 vs 1725000 Sales 104.2 mln vs 116.0 mln Avg shrs 10.1 mln vs eight mln 1st half Shr 37 cts vs 37 cts Net 3675000 vs 2925000 Sales 244.5 mln vs 230.6 mln Avg shrs 10.0 mln vs eight mln Reuter | COMMTRON CORP <CMR> 2ND QTR FEB 28 NET |
Indonesia has imported palm oil this year and is likely to take more trade sources said. They were commenting on a weekend Jakarta report quoting a Ministry of Trade spokesman as saying Indonesia had not issued licences to import the commodity. He also said there was no sign of a shortage of palm oil in Indonesia. A major palm oil dealer said he shipped Malaysian palm oil to Indonesia in February additional vessels were loading this month and other vessels had been earmarked for April. Other operators claimed they had palm oil booked for Indonesia but would not disclose tonnages. Traders said palm oil production in Indonesia this year had been below expectations and current stocks were low. They said licences were issued at the start of the year to import crude palm oil but were subsequently revised to include RBD olein and RBD oil. Last week there were rumours in European markets that Indonesia had issued licences to import around 135000 tonnes of palm oil for deliveries commencing April. An Indonesian Ministry of Trade official said this was incorrect. Some traders here said the total could be more. Others said they could include those issued earlier this year and applications not yet granted. Reuter | INDONESIA HAS IMPORTED PALM OIL, TRADERS SAY |
Shr profit two cts vs loss 16 cts Net profit 558000 vs loss 580000 Sales 66.2 mln vs 29.5 mln Avg shrs 4476000 vs 3615000 Year Shr loss 61 cts vs loss 79 cts Net loss 1760000 vs loss 2180000 Sales 158.4 mln vs 76.3 mln Avg shrs 4475000 vs 2751000 Reuter | WHOLESALE CLUB INC <WHLS> 4TH QTR JAN 31 NET |
Shr profit four cts vs loss two cts Net profit 247970 vs loss 57341 Revs 2393622 vs 2627612 Avg shrs 5958423 vs 2440100 Year Shr profit 71 cts vs loss 35 cts Net profit 3213310 vs loss 849180 Revs 14571434 vs 9099767 Avg shrs 6177666 vs 2440083 NOTE: 1986 earnings include a loss from carryforward of investment tax credits of 85000 dlrs in the quarter and a gain of 250000 dlrs or four cts a share for the year Reuter | MSA REALTY CORP <SSS> 4TH QTR NET |
A year after squeezing to power with a narrow bare coalition majority Gaullist Prime minister Jacques Chirac has swept away a cobweb of controls and regulations choking the French economy. But France is still waiting for a promised industrial recovery the government says will follow from its free market policies. Company profits and the stock market are rising. But so is unemployment. Growth is stagnant at about two pct a year and the outlook for inflation held to a 20-year low of 2.1 pct in 1986 is uncertain. Forced last month to cut the governments 1987 growth target and raise its inflation estimate Finance Minister Edouard Balladur ruled out action to stimulate the economy. But some government supporters say they fear time for an economic miracle may be running out. The political clock is ticking towards Presidential elections due by April next year. Frances economic performance led by a mixed cast of right-wing ministers and a socialist President has won mixed reviews from non-partisan analysts. For Michel Develle Director of Economic Studies at newly-privatised Banque Paribas the governments outstanding achievement has been to launch a veritable intellectual revolution breaking the staid habits formed by centuries of state control. The figures may look mediocre -- neither good nor bad -- but set in their context of structural reforms they are excellent Develle said. But some analysts say they fear that Balladur chief architect of the governments free market policies may be pursuing a mirage. The belief that economic liberalism will produce an explosion of economic forces is ideological said Indosuez chief economist Jean Cheval. Personally I think its an illusion. Dirigisme (direction) is a basic fact of the French system from school onwards. Ultra-liberalism is impossible. Illusion or not the government has pushed its vision hard. Over the past year foreign exchange and consumer price controls have been largely abolished labour regulations have been pruned to ease the sacking of redundant workers and a hugely popular programme has been launched to sell state-owned banks and industries to private investors. Since December nearly five mln French investors have bought shares in Cie Financiere de Paribas <PARI.PA> and glass maker Cie de Saint-Gobain SA <SGEP.PA> the first two state companies brought to the stock market under the 300 billion franc five-year privatisation plan. Encouraged by an amnesty for past illegal exports of capital and the lifting of most currency controls money has flooded into the Paris stockmarket from abroad helping to lift the market 57 pct last year and another 12.5 pct since December. At the end of last year the government abolished price controls that had existed for 42 years on services such as car repairs and hairdressing freeing from state intervention small businesses which account for some 60 pct of the French economy. The immediate result was a 0.9 pct rise in consumer prices in January partly responsible for a forced revision in the official 1987 inflation forecast to 2.5 pct from two pct or less. But even 2.5 pct would be a fantastic result when you consider that prices are now free for the first time since 1945 commented Develle of Paribas. Other achievements include a major reduction in the states foreign debts and a cut in the state budget deficit to 141.1 billion francs last year 2.5 billion francs below target and down from 153.3 billion in 1985. But despite a healthy balance of payments surplus and a gradual improvement in industrial productivity the French franc was forced by speculators in January into a humiliating three pct devaluation against the West German mark its second since Chirac took power. A recent report by the Organisation for Economic Cooperation and Development pilloried French industry for failing to produce the goods that its potential customers wanted. Outside the mainly state-controlled high technology sectors French industrial goods were increasingly ill-adapted to demand and over-priced the report said. French economists including Cheval at Indosuez agreed with the report. One of the assumptions of the government is that if you give them freedom the employers will invest and modernise....But nine out of ten will say yes they like freedom and then wait to be told which way to go he said. And despite rising industrial investment and the introduction of special incentives to boost youth employment the end-1986 number of jobless was reported at a record 2.7 million some 300000 more than a year earlier. The problem for the government is that there may be little more it can do to prod the economy into faster growth. French producers failed more than most to take advantage of last years oil price falls and growth hopes now rest on the shaky prospects of expansion in other industrial countries like West Germany and Japan they say. REUTER... | ECONOMIC SPOTLIGHT -FRANCE AWAITS ECONOMIC LIFT |
Spectra Pharmaceutical Services Inc said current clinical studies of its proposed dry eye drug Tretinoin have not produced encouraging results based on preliminary indications. The compnay said the tests are being conducted for submission to the Food and Drug Administration for the drug which has the trade name Lacramore. Spectra said earlier studies showing dramatic improvements in isolated cases have still occurred. However the overall evaluation of a large number of patients with dry eye syndrome do not demonstrate consistantly beneficial results it added. Spectra said it will continue its current studies while at the same time undertaking a review of the feasability of the proposed product Spectra a development stage company also said it has introduced its first proprietary product a hyo-allergenic noniirritating cleanser for the cleaning of eyelids and eyelashes. The company said it has also begun marketing a line of ophthalmic drugs. Reuter | SPECTRA <SPCT> TESTS OF NEW DRUG NOT ENCOURAGING |
BECOR WESTERN GETS OFFER TO BE ACQUIRED BY NEW GROUP FOR 15.50 DLRS SHARE |
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Shr profit nine cts vs loss 58 cts Net profit 738000 vs loss 4643000 Sales 50.9 mln vs 43.8 mln Year Shr profit 1.50 dlrs vs loss 61 cts Net profit 12.1 mln vs loss 4875000 Sales 195.3 mln vs 174.2 mln NOTE: 1985 net both periods includes 4952000 dlr provision for plant closing. 1985 net includes gains on sale of West Los Angeles real estate of 650000 dlrs in quarter and 1471000 dlrs in year. 1986 year net includes gains on sale of West Los Angeles real estate of 9903000 dlrs. Reuter | EVEREST AND JENNINGS INTERNATIONAL <EJA> 4TH QTR |
The Independent Federation of Flight Attendants said U.S. District Judge Howard F. Sachs entered a temporary restraining order prohibiting Trans World Airlines Inc from refusing to recognize and deal with the union. The union said the order also prohibits TWA from denying union representatives access to the companys property. The union said the Kansas City judge acted on its complaints made seeking to enforce a recent U.S. Court of Appreals decision reinstating contractural provisions which existed at the time of the 70-day strike which ended in May 1986. The flight attendants union said it petitioned the district court because of TWAs ongoing refusal to allow union representatives on the airlines property. The union said the court order also requires TWA to post notices of a temporary restraining order throughout its system and to districute copies of the order to all its flight-attendant employees. The union said the order requires the airline to appear in U.S. District Court in Kansas City March 20 to show cause why a preliminary injunction should not be granted. Reuter | UNION GETS ORDER AGAINST TRANS WORLD <TWA> |
Gold is expected to continue its rise this year due to renewed inflationary pressures especially in the U.S. Hamburg-based Vereins- und Westbank AG said. It said in a statement the stabilisation of crude oil prices and the Organisation of Petroleum Exporting Countries efforts to achieve further firming of the price has led to growing inflationary pressures in the U.S. Money supplies in the U.S. Japan and West Germany exceed central bank limits and real growth of their gross national products it added. Use of physical gold should rise this year due to increased industrial demand and higher expected coin production the bank said. Speculative demand which influences the gold price on futures markets has also risen the bank said. These factors and South Africas unstable political situation which may lead to a temporary reduction in gold supplies from that country underscore the firmer sentiment it said. However Australias output is estimated to rise to 90 tonnes this year from 73.5 tonnes in 1986. Reuter | GERMAN BANK SEES HIGHER GOLD PRICE FOR 1987 |
<MAXCOM Corp> said it elected Ugo de Fusco to the newly-created positions of chairman and president. MAXCOM said de Fuscos last post was a vice president of a European division of International Business Machines Corp <IBM>. Reuter | MAXCOM APPOINTS CHAIRMAN, PRESIDENT |
Britains ruling Conservatives have a nine point lead over the main opposition Labour Party their biggest in two years according to an opinion poll published yesterday in the Sunday Times. The MORI polls findings were the latest in a series of setbacks for Labour and are bound to encourage talk that Prime Minister Margaret Thatcher may call a general election in June. The poll gives the Conservatives a rating of 41 pct against 32 pct for Labour and 25 pct for the centrist Liberal-Social Democratic Alliance -- enough to give Thatcher an overall majority of 46 seats in the 650-seat House of Commons. The poll follows a survey by Marplan last week giving the Conservatives a six-point lead over Labour. Reuter | THATCHER PARTY HAS NINE POINT POLL LEAD |
ENDOTRONICS SEES HEAVY LOSSES IN QTR FROM WITHDRAWAL OF JAPAN DISTRIBUTOR |
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Shr profit seven cts vs loss five cts Net profit 303000 vs loss 205000 Revs 16945000 vs 7695000 Nine mths Shr profit 27 cts vs profit 19 cts Net profit 1161000 vs profit 787000 Revs 39.2 mln vs 22.8 mln NOTE: Profits include gains of 130000 dlrs or three cts a share in quarter and 490000 dlrs or 11 cts a share vs 52000 dlrs or one cent a share in nine months from tax loss carryforward Reuter | ALPINE GROUP INC <AGI> 3RD QTR JAN 31 NET |
Banca della Svizzera Italiana <BISZ.Z> said it expected business to be good again this year after 1986s 15.2 pct increase in net profit to 42 mln Swiss francs. Chief Executive Giorgio Ghiringhelli told reporters he expected almost all important sectors to expand well in 1987. An important exception would be its securities business which would grow more slowly. Ghiringhelli also said the bank planned to convert its representation in London into a subsidiary at the end of this year and further expand activities at its New York subsidiary particularly in private banking. Reuter | BSI SAYS EXPECTS ANOTHER GOOD YEAR IN 1987 |
DIAMOND SHAMROCK SETS 27 PCT PRORATION FACTOR FOR TENDERED SHARES |
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Brazilian bank workers voted to launch a nationwide strike this month compounding labour unrest arising from the failure of the governments anti-inflation plan. At a rally in this city about 100 km northwest of Sao Paulo about 5000 bank workers voted to strike on March 24 unless their demand for 100 pct pay rises is met. Wilson Gomes de Moura president of the national confederation which groups the bank employees 152 unions representing 700000 workers told Reuters the indefinite stoppage would affect all banks. The vote came as a stoppage by seamen entered its third week and as 55000 oil workers threatened action against the state-owned petroleum company Petrobras. Reuter | BRAZILIAN BANK WORKERS DECIDE ON NATIONAL STRIKE |
Becor Western Inc said <Investment Limited Partnership> of Greenwich conn. and Randolph W. Lenz are offering to acquire Becor for 15.50 dlrs per share subject to Becors receipt of at least 110 mln dlrs from the proposed sale of its Western Gear Corp subsidiary. Becor said it has also received expressions of interest from other parties seeking information about Becor. Becor had previously agreed to sell Western Gear for at least 110 mln dlrs and to be acquired by BCW Acquisition Inc for 10.45 dlrs in cash and four dlrs in debentures per Becor share. BCW was formed by Becor executives and <Goldman Sachs and Co>. Both deals are subject to shareholder approval. Reuter | BECOR WESTERN <BCW> GETS OFFER TO BE ACQUIRED |
Clark Equipment Co said it was informed by Arthur M. Goldberg acting on behalf of a group of investors that the group had accumulated 1262200 shares or about 6.7 pct of Clarks outstanding common stock. It said Goldberg recently approached Clark to repurchase the shares. However negotiations for the block repurchase were unsuccessful and have been terminated. Reuter | CLARK EQUIPMENT <CKL> STAKE ACQUIRED |
Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating todays hog slaughter at about 295000 to 302000 head versus 293000 week ago and 309000 a year ago. Cattle slaughter is guesstimated at about 123000 to 126000 head versus 123000 week ago and 121000 a year ago. Reuter | HOG AND CATTLE SLAUGHTER GUESSTIMATES |
U.S. roastings of green coffee in the week ended March 7 were about 325000 (60-kilo) bags including that used for soluble production compared with 290000 bags in the corresponding week of last year and about 315000 bags in the week ended February 28 George Gordon Paton and Co Inc reported. It said cumulative roastings for calendar 1987 now total a 3295000 bags compared with 3620000 bags by this time last year. Reuter | PATON REPORTS U.S. GREEN COFFEE ROASTINGS HIGHER |
<Avia Group International Inc> stockholders filed a class a action suit in Multnomah County Circuit court seeking to halt the sale of Avia to Reebok International Ltd <RBOK>. Avia stockholders also seek to receive compensation from the defendants who include most of Avia directors according to court papers. The suit grew out a meeting of several dozen dissatisfied minority stockholders of Avia following the announcement of Reeboks proposed acquisition of Avia and the sudden drop in the price of Avia stock. The complaint was filed on behalf of Clem Eischen a Portland-area resident who owns 500 shares of Avia and Robert Withers also of the Portland-area who owns 954 shares and other individuals who held stock at the time of Reeboks announcement. A jury trial has been requested. The actions of the small group that contral Avia have hurt the little guy said Eischen. The stockholders according to a statement have organized a steering committee. The complaint reviews the price action of Avia stock from March 1986 and noted the plaintifs who purchased stock between 19 dlrs and 25 dlrs per share. The price fell from 24 dlrs to 16.50 dlrs a share following the Reebok announcement. The complaint asked the defendants be enjoined from proceeding with the Reebok acquisition of Avia. It also requests damages to be determined at the time of trial. Avia said it had not seen the court papers and said it had no comment on the suit. Reuter | AVIA STOCKHOLDERS SEEK TO BLOCK SALE TO REEBOK |
 U.K. MONEY MARKET GIVEN 451 MLN STG AFTERNOON HELP LONDON March 16 - The Bank of England said it provided the money market with a further 451 mln stg assistance. This brings the banks total help today to 571 mln stg and compares with its estimate of the deficit in the system which was earlier revised down to 1.10 billion stg from 1.15 billion. The central bank bought 108 mln stg of bills for resale to the market in equal amounts on April 1 2 and 3 at 10-7/16 pct. It also made outright purchases comprising 326 mln stg of bank bills in band one at 10-3/8 pct 15 mln stg of bank bills in band two at 10-5/16 pct and two mln stg of local authority bills in band one at 10-3/8 pct. REUTER  | |
STONE CONTAINER ESTABLISHES ONE BILLION DLR BANK CREDIT FACILITY |
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Zambias talks with the World Bank and International Monetary Fund (IMF) on a financial rescue package have run into difficulties on the issue of food subsidies an official newspaper said. The Times of Zambia which is run by the ruling United National Independence Party (UNIP) quoted official sources as saying the IMF and World Bank had refused to continue financing food subsidies and were pressing the government to explain how it proposes to pay for them. President Kenneth Kaunda tried to abolish maize subsidies last December in line with IMF recommendations but the move caused maize meal prices to double overnight and led to riots. The subsidies were immediately restored as part of moves to quell the disturbances. The Times of Zambia said another major issue in the governments current talks with the IMF and World Bank was the remodelling of Zambias foreign exchange auction. The central banks weekly auction of foreign exchange to the private sector has been suspended since the end of January pending modifications to slow down the rate of devaluation and dampen fluctuations in the exchange rate. The kwacha slid to around 15 per dollar under the auction losing 85 pct of its value in 16 months but since the end of January has been revalued to a fixed rate of nine per dollar. Banking sources said Zambia was persuaded by the World Bank and IMF to lift its proposed ceiling of 12.50 kwacha per dollar on the currencys devaluation once the auctions restart. Reuter | ZAMBIA, IMF TALKS STALL ON FOOD SUBSIDIES |
Oper shr profit 17 cts vs profit 10 cts Oper net profit 5146000 vs profit 2691000 Revs 269.5 mln vs 274.4 mln Avg shrs 20.5 mln vs 17.0 mln Nine mths Oper shr profit 14 cts vs loss 45 cts Oper net profit 4131000 vs loss 7148000 Revs 802.8 mln vs 766.0 mln Avg shrs 20.4 mln vs 16.9 mln NOTE: Net excludes discontinued operations loss 1667000 dlrs vs profit 42000 dlrs in quarter and loss 2123000 dlrs vs profit 1334000 dlrs in nine mths. Net excludes gains on insurance recovery of 54000 dlrs vs 91000 dlrs in quarter and 1289000 dlrs vs 218000 dlrs in nine mths. Prior year net excludes 1103000 dlr loss from change in accounting for textiles inventories. Prior year results for discontinuance of apparel segment and change in accounting for textile inventories. Share adjusted for stock dividends. Net includes pretax unrealized loss provision recoveries related to marketable securities of 580000 dlrs vs 824000 dlrs in quarter and recovery 640000 dlrs vs provision 366000 dlrs in nine mths. Prior nine mths net includes pretax gain on sale of marketable securities of 493000 dlrs. Net includes tax credits 5738000 dlrs vs 494000 dlrs in quarter and credit 4194000 dlrs vs provision 11.2 mln dlrs in nine mths. Reuter | DWG CORP <DWG> 3RD QTR JAN 31 NET |
Diamond Shamrock Corp said it will accept about 27 pct of the 73653000 shares of its common stock tendered in response to the companys offer to pay 17 dlrs a share for 20 mln shares. The company said it expects to mail checks representing the purchase price of the 20 mln shares purchased later this week and will be returning unpurchased shares shortly thereafter. Reuter | DIAMOND SHAMROCK <DIA> SETS PRORATION FACTOR |
A 75 mln stg revolving credit contained in a 100 mln stg multiple facility for Argyll Group Plc has been oversubscribed in syndication and the borrower is considering an increase banking sources said. The facility will allow Argyll to issue sterling acceptances and multi-currency advances and domestic sterling advances. There will be a facility fee of 7.5 basis points on the available part of the facility and a fee of five basis points on the reserved part. There is a front end fee of 1/32 and a utilisation fee of five basis points if more than 50 pct of the revolving credit is drawn. There will be a tender panel for the acceptances and advances. However Argyll will have the option to raise funds through an issuer set placement under which the underwriters can take up to their available commitment under the standby. The available tranche will be determined by Argyll on an annual basis. Drawings under the five year facility will be subject to a cap rate of 1/8 pct over the London Interbank Offered Rate or acceptance commission. Samuel Montagu and Co Ltd is lead manager and agent. REUTER | ARGYLL GROUP CREDIT FACILITY OVERSUBSCRIBED |
Shr loss 2.70 dlrs vs loss 25 cts Net loss 60.6 mln vs loss 3122000 Revs 101.0 mln vs 167.7 mln Note: 1986 includes charge of 44.1 mln dlrs due to writedown of oil and gas interests writeoff of goodwill and patents provision against disposal of surplus inventory losses on disposition of operating units and writedown of assets held for disposal. Reuter | <BRALORNE RESOURCES LTD> YEAR LOSS |
Yugoslav trade union leaders are touring the country in an attempt to quell a wave of strikes following a partial wages freeze official sources said. Eyewitnesses in the northern city of Zagreb reported far more police on the streets than normal after the city and areas nearby experienced the biggest wave of strikes in the country in recent memory. National newspapers in Belgrade have given few details of the strikes. But Zagreb papers said thousands of workers went on strike and thousands more were threatening action over pay cuts. Western diplomats said the strikes appeared to be spontaneous and without unified orchestration. Reuter | UNION LEADERS TOUR YUGOSLAVIA TO QUELL STRIKE |
BANK OF FRANCE LEAVES MONEY MARKET INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL |
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With the April 15 tax return deadline less than a month away confused taxpayers will be converging on H and R Block Incs offices to interpret the new tax codes. Financial results for the nations largest tax preparer are expected to be good in fiscal 1987 but next year could be a bonanza analysts say. For the short term the key word is confusion Block Vice President Tom Bloch said in an interview. When Congress drastically changes laws confusion results and tax preparers benefit Bloch said. Next year when taxpayers take the new forms and place them side by side to compare them more people will throw their hands up and say Im going to get help he said. Tax forms will look very different next year he added. Kidder Peabody analyst Herbert Buchbinder expects Blocks fiscal 1987 year (to end April 30) to show good gains over fiscal 1986 earnings of 60.1 mln dlrs or 2.41 dlrs a share on revenues of 606.7 mln dlrs. He estimates Blocks fiscal 1987 earnings at 2.75 to 2.80 dlrs. Next year Block could have a bonanza Buchbinder said. Based on estimates of a larger work force Block could show a gain of more than five pct in tax forms prepared he said. In the 1986 tax season Block prepared 9215300 U.S. tax returns up 1.5 pct over the previous year. The Internal Revenue Service estimates about 100 mln individual income tax returns will be filed for the 1987 tax season up from last years 94 mln forms. Professional tax preparers accounted for just over 43 million forms according to the IRS. For the longer term while confusion will continue to bring clients into Blocks 8866 tax preparation offices worldwide there are some changes in the act that will have a negative effect Bloch conceded. Certain changes in filing requirements will shorten the tax return and in some cases simplify the form he noted. In addition some low income wage earners will be taken off the tax rolls he said. Block is currently analyzing its price structure to try to offset some of the negatives. Last tax season the average cost for each return in the U.S. amounted to 48.05 dlrs and 45.73 dlrs worldwide Bloch said. This tax season rates will be up about three or four pct in line with the inflation rate he said. Block expects some expansion this tax season of its electronic filing system which directly feeds into the IRS and can speed up the refund process. Block can choose where and by how much it wants to expand into the seven cities made available for the direct filing by the IRS Bloch noted. The IRS estimates about 90000 returns will be directly filed this tax season up from the 26000 returns injected in the 1986 tax season. First Kansas City analyst Jonathan Braatz said that Block will benefit greatly from lower tax rates in fiscal 1988. Braatz expects Blocks advertising budget to be about the same as last year which will be helped a bit by lower costs for television ads. They may get a little more bang for their buck he said. He estimates Block has about 150 mln dlrs cash on its balance sheet sheet and says if interest rates rise it could be of great benefit to them. Reuter | H AND R BLOCK <HRB> SEES GAINS FROM TAX REFORM |
Qtly div eight cts vs five cts prior Pay April 24 Record April Three Reuter | AUSIMONT COMPO NV <AUS> RAISES QUARTERLY |
Financial Corp of Santa Barbara said its Santa Barbara Savings and Loan Association subsidiary is offering 25 mln dlrs of convertible subordinated debentures due 2012. The debentures to be offered in minimum denominations of 10000 dlrs are the joint obligation of Santa Barbara Savings and the parent company. The offering will be underwritten by Bear Stearns and Co and First Boston Corp. Reuter | FINANCIAL/SANTA BARBARA <FSB> UNIT OFFERS NOTES |
Ausimont Compo NV said it will ask shareholders at the annual meeting to approve an increase in authorized common shares to 90 mln shares from 50 mln. The company now has about 28.4 mln shares outstanding. Reuter | AUSIMONT COMPO <AUS> SEEKS SHARE INCREASE |
Aldershot Resources Ltd said it signed an interim agreement to acquire 100 pct of the outstanding shares of Intracoastal Refining Inc of Conroe Texas. Aldershot will pay a certain number of shares of common stock based on book value and up to a maximum of one mln shares under a formula linked to the next five years pre-tax net revenues. The transaction is subject to completion of a definitive agreement and to regulatory approval. Reuter | ALDERSHOT AGREES TO ACQUIRE INTRACOASTAL REFINING |
<Derlan Industries Ltd> said it acquired 80 pct of Aurora Industries Inc of Montgomery Illinois for an undisclosed price. Closing is subject to completion of legal formalities Derlan said. Reuter | DERLAN ACQUIRES 80 PCT OF AURORA INDUSTRIES |
Marion Laboratories Inc said its board declared a two-for-one common stock split in the form of a dividend with distribution April 21 record March 25. The board also said it intends to increase the regular quarterly dividend by 43 pct to five cts a share reflecting the split. It said the increase will be declared at the May 1987 board meeting and reflected in regular payments beginning in July 1987. Reuter | MARION LABS <MKC> VOTES SPLIT, DIVIDEND HIKE |
<Dart Group Inc> said it is preparted to negotiate all terms of its proposed acquisition of Supermarkets General Corp. Early this month Dart made an unsolicited offer of 41.75 dlrs a share in cash for Supermarkets Generals stock. Releasing a letter sent friday to Supermarkets General Dart said we believe that an agreement can be reached which will be in the best interests of Supermarkets General its stockholders management employees and customers. To that end we are prepared to negotiate all terms of an acquisition agreement Dart said. Dart said it urges a meeting with Supermarkets General officials be held promptly. The letter pointed out the company has not heard from Supermarkets General since making the offer other than on this past Monday when we were informed that our offer would be seriously considered and that you would get back to us on a timely basis to arrange a meeting. Dart said it has acted openly and amicably in an effort to facilitate its proposed acquisition adding it has not purchased additional Supermarkets General stock since prior to submission of its offer. Dart said it continues to be interested in acquiring Supermarkets General in a friendly manner noting it has given the company the tune that you suggested in order to allow you to evaluate the available options. Dart now owns 1.9 mln Supermarkets General shares slightly less than five pct of those outstanding. Reuter | DART SEEKS SUPERMARKETS <SGL> NEGOTIATIONS |
<Seabright Resources Inc> said it received regulatory approvals for an issue in Canada of up to 1.3 mln 1987 flow through units priced at 6.25 dlrs each and 1.4 mln equity units priced at 4.30 dlrs each. Each 1987 flow through unit allows the holder to receive one Seabright flow through common share and the company expects about 8.33 dlrs per flow through unit will be available to subscribers as 1987 income tax deduction. Minimum subscription is 500 units the company said. Each equity unit comprises one common share and one-half warrant for either a common share or one flow-through unit. Reuter | SEABRIGHT RESOURCES EQUITY ISSUE APPROVED |
Ended Jan three Shr profit five cts vs NA Net profit 58088 vs loss 279718 Revs 6310841 vs 5468893 Year Shr profit 12 cts vs loss 74 cts Net profit 126321 vs loss 773090 Revs 23.1 mln vs 19.1 mln NOTE: Loss per share not given for quarter. Reuter | DECORATOR INDUSTRIES INC <DII> 4TH QTR NET |
Qtr ends Feb 28 Shr 37 cts vs 35 cts Net 4346000 vs 4202000 Revs 232006000 vs 223151000 Reuter | MCCORMICK AND CO INC <MCCRK> 1ST QTR NET |
Shr 52 cts vs 25 cts Net 5154000 vs 2496000 Revs 17.7 mln vs 14.4 mln Nine months Shr 1.16 dlrs vs 70 cts Net 11.5 mln seven mln Revs 50.3 mln vs 41.2 mln NOTE: 1987 periods include pretax investment income of 2.9 mln dlrs in capital gains distributions from mutual fund investment. Reuter | VALUE LINE INC <VALU> 3RD QTR JAN 31 |
Thermo Electron Corp said it has entered into talks with underwriters on the possible public sale of a minority interest in its packaged cogeneration systems subsidiary Tecogen Inc. The company also said it plans to offer convertible subordinated debentures publicly. It gave no further details. Reuter | THERMO ELECTRON <TMO> CONSIDERS UNIT STAKE SALE |
Net 3.1 mln vs not given Note: results not comparable with last year due to November 1986 acquisition of Bank of British Columbia. Subsidiary of <Hongkong and Shanghai Banking Corp> Reuter | HONGKONG BANK OF CANADA 1ST QTR JAN 31 NET |
Oper shr profit 45 cts vs profit 56 cts Oper net profit 1492000 vs profit 1842000 Sales 36.5 mln vs 38.5 mln Year Oper shr profit 48 cts vs loss 2.44 dlrs Oper net profit 1596000 vs loss 8084000 Sales 131.1 mln vs 144.5 mln NOTE: 1986 year net includes pretax provision for loss on sale of subsidiary of 1600000 dlrs. 1985 year net includes pretax loss 6600000 dlrs from plant closing provision. 1986 net excludes tax credits of 1295000 dlrs in quarter and 2712000 dlrs in year. 1986 net both periods excludes charge 9400000 dlrs for estimated settlement and expenses connected with Chapter 11 bankruptcy. Reuter | SALANT CORP <QSLT> 4TH QTR NOV 29 NET |
The Bank of England said it provided the money market with late assistance of around 550 mln stg. This takes the Banks total help today to some 1.12 billion stg and compares with its estimated deficit of around 1.10 billion. REUTER | U.K. MONEY MARKET GIVEN 550 MLN STG LATE HELP |
Hanns Christian Schroeder-Hohenwarth President of the West German Federation of Banks said that as far as he knew no member bank of the Federation was involved in activities which led to currency losses of some 480 mln marks for Volkswagen AG <VOWG.F> VW. VW has said fraudulent currency manipulation possibly led to the losses. The Federation of Banks includes all the major West German commercial banks. Schroeder-Hohenwarth was speaking at a news conference after a Federation meeting. REUTER | NO FEDERATION BANK SEEN INVOLVED IN VW AFFAIR |
 RENOUF EXTENDS BENEQUITY HOLDINGS <BH> OFFER repeat NEW YORK March 16 - Renouf Corp International said it has extended the expiration of its offer to pay 31 dlrs a unit to buy all outstanding units of Benequity Holdings a California Limited Partnership to March 24 from March 13. As of March 13 Renouf said about 3847375 units had been tendered. Renouf pointed out this exceeds the minimum number sought in the offer but its statement gave no reason for the extention. Benequity has 5.7 mln units outstanding. Reuter  | |
U.S. Agriculture Secretary Richard Lyng said it is too late to implement a full 0/92 acreage provision or decoupling for 1987 grain crops. I think theres a chance well see that legislation (0/92) passed (but) not for 1987 crops. Its too late Lyng told the National Grain and Feed Association convention here. Lyng added that there seems some support in Congress for 0/92 and there was a good chance a pilot 0/92 program will be passed as part of a pending disaster bill. But he indicated that it is already too late in the year to alter the 1987 crop program. Sign-up for spring crops closes the end of this month. Overall Lyng predicted very little change will be legislated in the 1985 farm bill this year. Reuter | LYNG SAYS TOO LATE FOR CROP DECOUPLING THIS YEAR |
U.S. FEDERAL HOME LOAN BANKS SET DEBT OFFERING TOTALLING 2.55 BILLION DLRS |
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Smoky River Coal Ltd operator of the Smoky River coal mine near Grande Cache Alberta said it agreed to supply 1.5 metric tons of metallurgical coal in the next five years to Pohang Iron and Steel Co of Korea. Smoky River said the agreement is an extension of the current long-term coal supply contract. Reuter | SMOKY RIVER SIGNS COAL SUPPLY AGREEMENT |
Salant Corp said it and its Thomson Co Inc and Obion Co Inc subsidiaries have filed a joint reorganization plan with the U.S. Bankruptcy Court and expect to emerge from Chapter 11 bankruptcy in the near future. The company said a hearing on the adequacy of the associated disclosure plan is scheduled for April Nine and completion of the plan is subject to approval by creditors equity security holders and the bankruptcy court. Salant said it has reached agreement for Ray W. williams to continue as president and chief executive officer for five years from the effective date of the reorganization plan and has substantially concluded talks for a new 15 mln dlr unsecured credit effective the same date. The company said the committee of its unsecured creditgors and the committee of its equity security holders have approved the terms of the plan. As previously announced creditors will receive 450 mln dlrs in cash 500 dlrs of 13-1/4 pct senior subordinated debentures and four common shares for each 1000 dlrsd of allowed unsecured claims. Salant today reported earnings for the year ended November 29 of 1596000 dlrs after a 1600000 dlr pretax provision for loss on the sale of a subsidiary but before a 9400000 dlr post-tax charge attributable to costs and expenses of Chapter 11 and the settlement of pre-Chapter 11 claims as well as a 2712000 dlr tax credit. A year before it lost 8084000 dlrs after a 6600000 dlr pretax provision for plant closings. Reuter | SALANT <QSLT> FILES REORGANIZATION PLAN |
Shr 11 cts vs 13 cts Net 1965577 vs 2474357 Revs 38.3 mln vs 34.7 mln 1st half Shr 61 cts vs 22 cts Net 11.3 mln vs 4132129 Revs 84.4 mln vs 66.2 mln Reuter | ANALOGIC CORP <ALOG> 2ND QTR JAN 31 NET |
Hanns Christian Schroeder-Hohenwarth President of the West German Federation of Banks said that as far as he knew no member bank of the Federation was involved in activities which led to currency losses of some 480 mln marks for Volkswagen AG <VOWG.F> VW. VW has said fraudulent currency manipulation possibly led to the losses. The Federation of Banks includes all the major West German commercial banks. Schroeder-Hohenwarth was speaking at a news conference after a Federation meeting. Reuter | NO FEDERATION BANK SEEN INVOLVED IN VW AFFAIR |
The Chicago Mercantile Exchange CME and the Chicago Board Options Exchange CME will hold a joint news conference at 1200 CST (1800 GMT) today. Neither exchange would elaborate on the topic of the press conference although a CBOE spokesperson said it will deal a new financial product. Reuter | CME, CBOE SET JOINT PRESS CONFERENCE FOR TODAY |
The Office of Finance of the Federal Home Loan Banks announced a debt offering totalling 2.55 billion dlrs consisting of three issues. The issues are 1.11 billion dlrs maturing March 26 1990; 1.065 billion dlrs maturing March 25 1992; and 375 mln dlrs maturing March 25 1997. Sale date and announcement of rates is set for Tuesday March 17 1987. The office of finance said allocation of the 1997 issue will be limited to members of the long term selling group. Proceeds of the offering will be used to refund the issues maturing March 25 1987 and to raise additional funds it said. The finance office added that 171 mln dlrs of the 1990 issue 146.5 mln dlrs of the 1992 issue and 49.5 mln dlrs of the 1997 issue will be reserved for the Federal Reserve System and their own or customer accounts. The bonds will be availalbe in book entry form only it said. Reuter | U.S. FHL BANKS SET 2.55 BILLION DLR DEBT OFFER |
West German exports to the United States fell below four billion marks worth in January for the first time since mid-1984 provisional Bundesbank data showed. The figures showed exports were 3.85 billion marks in January sharply down from Decembers 4.40 billion and the lowest since the 3.56 billion exported to the U.S. In July 1984. This compared with 4.86 billion marks in January 1986. Total West German exports to Western industrialised countries also fell in January to 34.76 billion marks from Decembers 36.45 billion also posting the lowest monthly total since July 1984. West German exports to the European Community were 21.60 billion marks in January down from 22.14 billion in December and 22.94 billion in January last year the figures showed. Exports to developing nations and centrally-planned economies also slackened. Separately Commerzbank AG said in a report that the focus of West German exports this year was likely to shift to Europe because of an expected downturn in growth in the dollar area. This was one of the strengths of West German exports compared with Japan which depended in large part on the U.S. OPEC and developing country markets it added. REUTER | WEST GERMAN EXPORTS TO U.S. DROP SHARPLY |
Stone Container Corp said it signed a definitive agreement with a group of banks establishing a total of 1.1 billion dlrs term loan and revolving credit facility. It said the action represents the last step toward completing the previously announced acquisition of Southwest Forest Industries Inc <SWF>. Stone said the completed portion of the new credit facility consists of an 800 mln dlr term loan and a 200 mln dlr revolving credit. Stone said the final portion of the 1.1 billion dlr credit facility will be a 100 mln dlr letter of credit which will replace an existing letter of credit relating to the operating lease of its co-generation energy facility nearing completion at its linerboard and kraft paper mill in Florence S.C. Reuter | STONE CONTAINER <STO> FORMS CREDIT FACILITY |
TEXAS AIR TO GIVE FORMER CONTINENTAL AIR HOLDERS ANOTHER 3.75 DLRS A SHARE |
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WTD Industries Inc said it filed with the Securities and Exchange Commission a registration statement covering a 30 mln dlr issue of senior subordinated debentures due 1997. Proceeds will be used mainly for the acquisition of additional woods products manufacturing facilities and related properties WTD said. The company named Kidder Peabody and Co Inc as lead underwriter of the offering. Reuter | WTD INDUSTRIES <WTDI> TO SELL DEBENTURES |
French February inflation between 0.1 and 0.2 pct vs 0.9 pct in january - official |
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U.S. lawmakers are gearing up for a showdown between protectionists and free traders as a major trade bill winds its way through committees to a vote by the full House of Representatives in late April. In a move to toughen U.S. enforcement of trade laws a key House subcommittee last week approved a toned down version of legislation to require President Reagan to retaliate against foreign countries that follow unfair trade practices. This bill will be the cornerstone of congressional efforts to restore competitiveness of American industries and turn around last years record 169 billion dlrs trade deficit. Several lawmakers have argued the new trade bill made too many concessions to Reagan and said they intend to back amendments to get tough with countries that violate trade agreements or keep out U.S. products. On the other hand congressmen known for their allegiance to free trade said the bill ties Reagans hands too much in trade disputes and they will seek to restore his negotiating powers. Republican Bill Frenzel of Michigan said the subcommittees bill was not one that a free trader like me could endorse in all respects but he emphasized there was a consensus among trade lawmakers to work toward a bill Reagan and Republicans would ultimately endorse. Frenzel said the goal of trade legislation was to make our trade policy stronger without violating our international trade agreements. Youll find a lot of people who think we have not done the former enough. Youll find poeple who think we havent avoided violating agreements. In a key concession made at the urging of the powerful chairman of the House Ways and Means Committee the trade subcommittee backed off a requirement that would have forced Reagan to automatically impose quotas or tariffs on imports from countries that engage in unfair trade practices. It also agreed he may waive any retaliation if it would hurt the U.S. economy. Ways and Means chairman Dan Rostenkowski an Illinois Democrat insisted the more moderate approach was necessary if the House wanted to pass a bill Reagan would sign into law. Reagan last year had blocked Senate consideration of a tough House trade bill he branded as protectionist and this year only reluctantly agreed to support a trade bill when he saw Democratic leaders were determined to pass a bill. As an indication of his success White House spokesman Marlin Fitzwater told reporters Friday the administration still did not like some provisions. But he added Generally we feel very good about the bipartisan consideration of the trade legislation. I think we are progressing very well. The first battle will take place next week when the full House Ways and Means Committee considers an amendment by Rep. Richard Gephardt a Missouri Democrat to force countries such as Japan South Korea and Taiwan to cut their trade surpluses with the United States. The subcommittee limited the Gephardt plan to provide only that the existence of a large trade surplus with the United States will trigger an investigation of unfair trade practices but would not automatically set off retaliation. Rep. Phil Crane an Illinois Republican and staunch free trader said he will try to further weaken the Gephardt plan. Organized labor has pressed lawmakers for more relief from imports where jobs have been lost to foreign competition. AFL-CIO president Lane Kirkland this year angered the administration in a statement that any trade bill Reagan would sign would not be worth passage in Congress. But Rostenkowski set the tone of the trade debate in a statement Im not trying to write legislation to please Lane Kirkland. Im trying to write legislation that will be signed by the president. In writing the bill the subcommittee rejected calls for trade relief for specific industries such as textiles. Rep. Ed Jenkins a Democrat from Georgia agreed to hold off his fight. He intends to push separately a bill to protect the domestic textile and shoe industry an aide said. Reagan vetoed a similar measure last year. House Speaker Jim Wright a Texas Democrat is one of the most influential proponents of aid for specific industries beset by low priced foreign competition. Wright Thursday renewed his call for import relief for the domestic oil industry and announced his support for a Senate plan to trigger a temporary oil import tariff when imports reach half of domestic consumption. For the most part the trade bills provisions toughen U.S. enforcement of trade laws. The bill forces the administration to act rapidly on complaints of unfair trade practices such as dumping products in the United States at prices below the cost of production. It also forces the administration to act rapidly when an industry complains that a surge in imports threatens its existence. Congressmen said the change would have required the U.S. International Trade Commission to impose limits on car imports in 1981. Reuter | TRADE INTERESTS READY FOR FIGHT IN U.S. CONGRESS |
Endotronics Inc said it expects to incur substantial losses for the second quarter ending March 31 and fiscal year ending Sept 30 1987. As one factor behind the anticipated loss Endotronics cited a dispute by one of its Japanese distributors <Yamaha Inc> over payment of a 3686000 dlr promissory note. In a Form 8-K filing with the Securities and Exchange Commission Endotronics said the note was for overdue accounts receivable from sales of instruments to Yamaha and another Japanese distributor during the companys 1986 fiscal year. Endotronics said at its present reduced level of operations it will exhaust all currently available cash and credit facilities in early May 1987. It said this assumes full use of the remaining 1250000 dlrs available under a line of credit from Celanese Corp which requires approval of Celanese Corp <CZ>. The company said its ability to obtain funding was adversely affected by a suit filed March 4 by two of its shareholders seeking to represent a class of holders against three officers of Endotronics. Endotronics said the complaint against it alleges violations of the federal securities laws in connection with statements made in the companys annual and quarterly reports. The company also said the Securities Division of the Minnesota Department of Commerce is conducting an inquiry into the companys Japanese sales for fiscal 1986 and trading by insiders and brokers in the companys common shares. It said similar inquiries are being conducted by the Securities and Exchange Commission. The investigations will hurt the companys ability to obtain funding it said. As a result of the dispute over payment of the promissory note the law suit challenging its financial data and the various investigations concerning insider trading the company said it no longer expects that anticipated declines in instrument sales in Japan in fiscal 1987 will be offset by increased instrument sales in other foreign countries and the United States. Reuter | ENDOTRONICS <ENDO> EXPECTS LOSS FOR YEAR |
French February year on year inflation 3.4 pct vs three pct January - official |
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Texas Air Corp said under a settlement of class action litigation with <Mutual Shares Corp> former minority shareholders of Continental Airlines Inc will receive an additional 3.75 dlrs per share. In February Texas Air acquired the minority interest in Continental that it did not already own for 16.50 dlrs per share. Mutual had challenged the adequacy of the price. Texas Air said any former Continental holder who has sought appraisal rights under Delaware law may continue to seek the appraisal remedy in Delaware Chancery Court or accept the settlement and drop the appraisal process. Texas Air said the settlement has other terms relating to employee shareholdrs of Continental who will receive options from Texas Air. It did not give details. The company said the settlement is subject to approval by the Delaware Chancery Court which is expected to take about 60 days. Reuter | CONTINENTAL AIR HOLDERS TO GET FURTHER PAYMENT |
Kawasaki Steel International Finance Plc is issuing a stepped coupon 30 mln dlr eurobond due March 26 1994 priced at 101-7/8 pct lead manager Wako International Europe Ltd said. The deal guaranteed by Mitsui Trust and Banking Co Ltd will carry a seven pct coupon in year one rising to 8.44 pct in the final year. Payment date is March 26. The bond is available in denominations of 100000 dlrs and will be listed in Luxembourg. Fees were not disclosed but a Wako official confirmed the deal was a targetted issue. REUTER | KAWASAKI STEEL ISSUES NOVEL 30 MLN DLR EUROBOND |
Viragen Inc said it will start an expanded study of its alpha interferon topical ointment for the treatment of genital herpes. It said it will conduct a phase III study of two different dosage forms of the treatment and compare it to a placebo or nonmedicated substitute in at least 154 men and women. Viragen said study results are expected by October 1987. Viragen said it is prepared to submit license applications for the ointment in England Canada and West Germany in addition to the U.S. when the phase III study is completed. Reuter | VIRAGEN <VRGN> TO BEGIN EXPANDED HERPES STUDIES |
Representatives of cocoa consuming countries at an International Cocoa Organization ICCO council meeting here have edged closer to a unified stance on buffer stock rules delegates said. While consumers do not yet have a common position an observer said after a consumer meeting They are much more fluid ... and the tone is positive. European Community consumers were split on the question of how the cocoa buffer stock should be operated when the ICCO met in January to put the new International Cocoa Agreement into effect delegates said. At the January meeting France sided with producers on how the buffer stock should operate delegates said. That meeting ended without agreement on new buffer stock rules. The EC Commission met in Brussels on Friday to see whether the 12 EC cocoa consuming nations could narrow their differences at this months meeting. The Commissioners came away from the Friday meeting with an informal agreement to respond to signs of flexibility among producers on the key buffer stock issues delegates said. The key issues to be addressed at this council session which divide ICCO members are whether non-member cocoa should be eligible for buffer stock purchases and what price differentials the buffer stock should pay for different types of cocoa delegates said. A consumer delegate said producers and consumers should be able to compromise on the non-member cocoa question. A working group comprising delegates from all producing and consuming member countries met briefly this morning then broke up into a producer meeting and an EC meeting followed by a consumer meeting. Producers who are in favour of the buffer stock buying a variety of grades of cocoa and oppose non-member cocoa being accepted reviewed their position ahead of the working group meeting this afternoon. We are waiting to see what consumers say a producer delegate said. We hope they will be flexible or it will be difficult to negotiate. The ICCO comprises 33 member countries. Non- members include the U.S. a consumer and Malaysia an increasingly important producer. Reuter | COCOA CONSUMERS NARROW GAP ON BUFFER STOCK ISSUE |
The Commodity Credit Corportion CCC has accepted a bid for an export bonus to cover the sale of 15000 tonnes of U.S. wheat to West African countries the U.S. Agriculture Department said. The dark northern spring wheat is for shipment May 15-June 15 1987. The bonus of 40.05 dlrs per tonne was made to Peavey Company and will be paid in the form of commodities from the CCC inventory it said. An additional 315500 tonnes of wheat are still available to West African countries under the Export Enhancement Program initiative announced October 30 1986 it said. Reuter | CCC ACCEPTS WHEAT BID FOR W AFRICA COUNTRIES |
Corken International Corp said it has completed an initial public offering of 500000 common shares at five dlrs each through underwriters led by Lowell H. Listrom and Co Inc. The company said proceeds were used to pay a dividend to Hinderliter Industries Inc <HND> which had been its sole shareholder and for working capital. Reuter | CORKEN INTERNATIONAL <CORK> COMPLETES OFFERING |
Lowrance Electronics Inc said results from operations in the third and fourth quarter may not be comparable to the first and second quarters which were strong because of orders for new sonar equipment. For the six months ended Jan 31 the company reported net income almost tripled to 951000 dlrs or 34 cts a share as sales rose 38 pct to 20.6 mln dlrs. The company which went public Dec 23 also said it expects to be able to fill back orders from the first two quarters because of improved supply of computer chip components. Reuter | LOWRANCE ELECTRONICS <LEIX> SEES ORDERS OFF |
Preparations for the launch of a Swiss options and futures exchange billed as the first completely electronic market of its kind are at an advanced stage according to members of the project team. The Swiss Options and Financial Futures Exchange (Soffex) is a new departure in that it will introduce an additional range of financial instruments and electronic trading methods to the traditionally conservative Swiss market. There will be no physical exchange floor and both trading and clearing systems will be completely automated. The new market due to start operating in January 1988 follows a series of innovations by the bourses in Zurich Basle and Geneva aimed at preventing loss of business in the face of keen competition from London and Frankfurt. These innovations included the introduction last October of continuous trading in major shares plans to establish a single continuously updated Swiss share index from next month to supplement the various indices produced by the major banks at the close of business and experiments in electronic trade. Banks themselves last year took the initiative of launching covered warrants on shares of other Swiss companies. If Switzerland wants to maintain and expand its international prominence in portfolio management our bankers and fund managers must have the same modern instruments at their disposal as their competitors says Soffex president Rudolf Mueller a director of Union Bank of Switzerland. The computer terminals on which business will be conducted will be confined to Switzerland. It is still unclear how many Swiss-based institutions will seek membership of the exchange. Formal applications are not due until next month but a preliminary survey completed by the Soffex project team this week showed strong interest in membership. The response from both Swiss and foreign institutions all over the country has been very encouraging says Philippe Bollag of the project team. Hans Kaufmann who follows Swiss equities for Bank Julius Baer says a regulated traded options exchange should boost foreign interest in Swiss shares and possibly increase bourse turnover generally. The possibility of protecting portfolios by hedging should attract Swiss institutional investors Kaufmann added. Soffex is a private company set up by the five major Swiss banks and the bourses of Zurich Geneva and Basle. Trading will initially be limited to stock options on 10 to 15 leading Swiss bearer shares. An options contract on the new Swiss share index should follow within six months but trading in financial futures will be delayed until an unspecified future date. Options on foreign shares may also be added later. Participants will be either brokers or dealers operating in the market through computer terminals in their own offices. Trading must be conducted exclusively through the exchange. Exchange membership is open to banks traders and brokerage firms with an office in Switzerland while clearing members must be recognised as banks under Swiss law. The trading system based on Digital Equipment Corp software and hardware provides display of best bid and offer prices matches orders electronically allows anonymous negotiation of block orders and maintains member order books. An interest facility aimed at helping participants to gauge the market mood shows the number of users watching a particular instrument at any time. Most of the electronic clearing functions will be carried out overnight. Each contract will cover only five shares instead of the 100 shares normally traded on existing options and futures markets in the United States London Amsterdam and Stockholm. This reflects the fact that Swiss shares often cost thousands of francs. Bearer shares in F. Hoffmann-La Roche und Co AG likely to be on the Soffex opening list were quoted this week at 209000 francs each. Contracts will initally be offered for the three end-months following the trading date plus the subsequent January April July or October end-months. Longer maturities may be added in future if market liquidity permits. Detailed provisions have still to be worked out in areas such as margin requirements position limits the supervisory and regulatory functions of the exchange and brokerage fees. Banks polled by Reuters in a random survey were enthusiastic about Soffex but reticent about the level of their own involvement and about the exchanges prospects for success. Were moving into completely new surroundings and it will require a change in psychology said a securities dealer at a major Swiss bank. We in Switzerland are not used to sitting all day at a screen where nobody shouts at you. Moving into traded options will also require considerable investment in equipment and staff by participants. Completely new dealing and back-office skills will have to be acquired and some banks are already sending staff abroad for training. Reuter | SWISS OPTIONS, FUTURES EXCHANGE PLANNED FOR 1988 |
AC Teleconnect Corps unit ACC Long Distance Corp said customers in Binghamton Buffalo Rochester and Syracuse N.Y. will be able to place calls to Canada. The company also said it plans to offer overseas telephone service to a number of countries in the summer 1987. Reuter | AC TELECONNECT <ACCC> ADDS CANADA PHONE SERVICE |
Utilization of Canadian manufacturing capacity rose to 77.2 pct in the fourth quarter of 1986 from 77 pct in the third quarter Statistics Canada said. Although the change was small this marked the first quarter since the third quarter of 1985 in which the utilization rates for manufacturing as a whole rose the federal agency said. Increased residential construction led to strong increases in the building materials sector led by a 3.3 pct increase in non-metallic mineral industries. Reuter | CANADA MANUFACTURING UTILIZATION RATE RISES |
French inflation slowed in February to between 0.1 and 0.2 pct against 0.9 pct in January the National Statistics Institute (INSEE) said. The retail price index showed a year-on-year rise of 3.4 pct against three pct in January. An INSEE official said the final figure for February would be released later this month. After Januarys rise the government was forced to revise its inflation target for 1987 to 2.5 pct year on year from an initial target of two pct after 2.1 pct in 1986. Finance Minister Edouard Balladur said half the January rise was due to higher oil prices and forecast a February slowing. REUTER | FRENCH INFLATION SLOWS IN FEBRUARY |
Capitol Bancorp said it expects to restate its results for 1986 to a loss of about one mln dlrs due to a reclassification of loans recommended by auditor Ernst and Whinney. The company said the restatement also reflects a substantial increase in reserves of its principal subsidiary Capitol Bank and Trust Co. It said it expects to earn 2250000 to 2750000 dlrs for the first quarter of 1987. Capitol said to maintain an adequate capital ratio it will seek additional equity capital in the near future. It also said it has delayed its annual meeting until May due to the restatement of annual earnings. Capitol said its board raised the quarterly dividend to 23 cts from 22 cts a share payable April 28 record MArch 31. The company originally reported 1986 earnings of 7700000 dlrs. It earned 3848000 dlrs in last years first quarter. The annual meeting had been scheduled for the second week of April. Reuter | CAPITOL BANCORP <CAPB> TO RESTATE NET TO LOSS |
American soybean producers are confident the proposed European Community (EC) tax on vegetable oils and fats will be rejected but are leaving nothing to chance American Soybean Association (ASA) president-elect Wayne Bennett said. Bennett who is leading one of three soybean producer delegations on a lobbying tour of EC capitals was speaking at a lunch. After meetings at the Economics and Foreign ministries this morning he said the Dutch Government had indicated it would vote against the proposal as had a number of other countries. Our information suggests we will have the required number of votes in Brussels to prevent the tax proposal going forward he said. The proposal has been talked of in Brussels for the past 20 years and dropped every time. What we want now is to kill it once and for all Bennett added. Backing up the soybean producers active lobbying the U.S. Government has also indicated it will be prepared to retaliate with penal import taxes if the proposal does get through he said. The U.S. Government also feels it has a good case to fight the proposed tax in the General Agreement on Tariffs and Trade (GATT) a U.S. Embassy spokesman said. U.S. Exports of soybeans and products to the EC account for one-fifth of annual production and are worth about 2.5 billion dlrs a year Bennett said. The proposed tax on oils and fats would hit U.S. Producers badly while at the same time virtually doubling the price of soyoil in the EC which would suffer far worse than other higher-priced oils because of the nature of the proposed tax he added. The revenue to the EC from the tax would simply be used to finance the ECs own oilseed subsidy machine he said. We in the ASA are dedicated free-traders. We helped defeat the Wine Equity Act two years ago but we will not stand by and watch our own farmers suffer from such protectionist EC measures Bennett said. The mood in the U.S. Is turning increasingly protectionist and the ECs actions are fueling the chances of a trade war he added. Reuter | U.S. SOY PRODUCERS THINK EC OILS TAX UNLIKELY |
A new method of calculating Swedens unemployment figures reduced the number of jobless by a sixth a spokesman for the Central Bureau of Statistics (SCB) said reporting a substantial drop in the past year. According to the revised data there were 94000 jobless in February representing 2.2 pct of the workforce against 120000 or 2.8 pct of the workforce in February 1986. SCB official Olle Wessberg said the new figures were based on a more extensive survey of the unemployed which brought Sweden into line with the practises recommended by the Geneva-based International Labour Organisation. Wessberg said the new method cut the number of unemployed by about 16 pct. The way we are now collecting data is far more accurate and we are asking many more questions to find out whether the jobless want work whether they are able to work and whether they have actually looked for work he told Reuters. The new method was first used for the January figures which showed unemployment dropping to 2.1 pct of the workforce from 2.7 pct (old style) in December but Wessberg said the change had apparently not been noticed by the press. Recalculated according to the new method unemployment in February 1986 would have stood at 2.2 pct the SCB said. REUTER | SWEDISH UNEMPLOYMENT DOWN AS DATA IS REVISED |
FRENCH 13-WEEK T-BILL AVERAGE RATE RISES TO 7.46 PCT FROM 7.37 PCT - OFFICIAL |
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The European Monetary System marks its eighth anniversary still vulnerable to turmoil in world money markets despite creating an island of currency rate stability in Europe economists say. But many economists say the system which holds eight European Community currencies within narrow fluctuation bands remains in its infancy. Its new currency the European Currency Unit (Ecu) has been a runaway success with investors and borrowers alike seeking an alternative to the volatile dollar. And on Wednesday the long term vision of the Ecu as Europes common currency took a step nearer to becoming reality when Belgium minted the worlds first Ecu coin. But economists say members such as West Germany have so far blocked a second stage of development envisaged by the systems founding fathers ex-West German Chancellor Helmut Schmidt and former French President Valery Giscard dEstaing. Under this phase originally due to have started two years after the EMS was set up decision-making was to have been transferred from national governments and central banks to an autonomous European Monetary Fund. But members have jealously guarded their sovereignty in economic and monetary matters. The basic problem of the EMS is that governments are not prepared to make the quantum leap to a situation where certain decisions are taken in common said one economist who has closely watched the systems development. The result is that the EC is often divided over policy on third currencies accentuating what the economists say is the systems greatest weakness its vulnerability to a weak dollar. Over the past 18 months as the U.S. Dollar plunged and investors moved into strong currencies the resulting sharp rise of the West German mark severely strained the system. Another frustration has been Britains failure to lend the EMS political support by keeping the pound still a major world currency outside the system. No change in the British governments attitude is expected before the countrys next general elections due by mid-1988. Meanwhile the systems last realignment the 11th since it was set up prompted European finance ministers to ask the ECs highly-secretive Monetary Committee and Committee of Central Bank Governors to come up with suggestions for reinforcing it. Their ideas are due to be unveiled when finance ministers hold an informal meeting in Belgium early next month. But economists said the proposals are unlikely to involve more than tinkering with technical details. They are sceptical about the chances for any fundamental change. Technical measures wont be enough to protect the EMS against external factors such as dollar weakness. For that we must take the step forward to the institutional level said Leo de Corel of Kredietbanks economic research department. Economists say the systems fortunes now will depend largely on the success of an agreement last month among major industrial nations to stabilise exchange rates. If the dollar resumes its slide the EMS could be in for more turbulence they predict. REUTER | ECONOMIC SPOTLIGHT - EMS MARKS EIGHTH BIRTHDAY |
<Indal Ltd>s wholly owned Indal Technologies Inc said it received a contract to design manufacture and install a 50 kilowatt Vertical Axis Wind Turbine on Grand Trunk Island in the Caribbean. The wind turbine project is supported by Canadian International Development Agency Turks and Caicos Utilities and the Turks and Caicos government the company said. Value of the contract was not disclosed. The 65 foot high wind turbine is expected to be in use by May 1987 and will generate about 65 megawatt hours of electricity a year Indal said. Reuter | INDAL UNIT HAS CARIBBEAN WIND TURBINE CONTRACT |
Intermagnetics General Corp said it completed the purchase of the advanced products department of Air Products and Chemicals Inc <APD>. Terms were not disclosed. The department which makes cryogenic equipment will continue operating at its present location in Allentown Pa. the company said. It will market its products as APD Cryogenics Inc. Reuter | INTERMAGNETICS GENERAL <INMA> COMPLETES BUY |
Clevite Industries Inc said it agreed in principle to form a joint venture company with Bridgestone Corp of Tokyo. Based in Milan Ohio the joint venture company Clevite-Bridgestone Co will manufacture and sell rubber-to-metal products for the automotive industry in the United States Canada and Mexico. Initially it said the new company will manufacture products in Clevites existing Angola Ind. plant. Reuter | CLEVITE <CLEV> FORMS JOINT VENTURE |
Italys Ferruzzi SpA has taken a 67 pct stake in Spanish sunflower seed and cotton mill Cooperativa Agricola del Guadalete SA (GUADALCO) sources at GUADALCO said. The Italian firms Spanish subsidiary Ferruzzi Espana SA took the majority equity stake with the remaining 33 pct retained by GUADALCO. Ferruzzi plans to set up a sugar division and import some 30000 tonnes of industrial sugar from its French factories in its first year of operation. GUADALCO has a processing capacity of 250 tonnes a day of sunflower seeds and 12000 tonnes a day of raw cotton. Reuter | ITALY'S FERRUZZI TAKES OVER SPANISH MILL |
The <American Stock Exchange> said it has started put and call option trading in the common stock of Wyse Technology with initial expiration months of April July and October and position and exercise limits of 5500 contracts on the same side of the market. Reuter | AMEX ADDS WYSE TECHNOLOGY <WYSE> OPTIONS |
The Commodity Credit Corporation (CCC) has accepted a bid for an export bonus to cover the sale of 380 head of dairy cattle to Kuwait the U.S. Agriculture Department said. The dairy cattle are for shipment on or before May 31 1987 it said. The bonus of 1465.00 dlrs per head was made to American Marketing Services Inc and will be paid in the form of commodities from the CCC inventory it said. An additional 761 head of dairy cattle are still available to Gulf countries (kuwait Bahrain Oman Qatar and the United Arab Emirates under the Export Enhancement Program initiative announced October 30 1986 it said. Reuter | CCC ACCEPTS BID FOR DAIRY CATTLE TO KUWAIT |
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