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BAKER EXPRESSES DOUBTS ABOUT U.S. STOCK TAX | Treasury Secretary James Baker
expressed doubts about a proposal to tax securities
transactions as a solution to the budget deficit and said it
could hurt financial markets.
"If you start taxing markets, it could impair their
efficiency," Baker said after a speech to the National Newspaper
Association.
"The problem is not that Americans are undertaxed. We as a
government are overspending," he told reporters.
House Speaker Jim Wright (D-Tex) has proposed a transfer
tax to be paid by buyers and sellers of stocks.
Reuter
|
REUTERS <RTRSY> IN PROPERTY FINANCE SYSTEM | Reuters Holdings PLC's Reuters
Information Services Inc subsidiary and Real Estate Financing
Partnership of Philadelphia said they have developed RSVP, an
electronic market access system for commercial property
financing.
The companies said the system, on completion of testing,
will use the Reuter communications network to provide a
confidential method for the purchasing, selling and financing
of commercial property. They said principal participants in
RSVP are expected to be private and institutional commercial
real estate owners, brokers, purchasers and investors.
The companies said the system, which will operate in
domestic and international markets, is expected to be
particularly useful to mortgage brokers and loan
correspondents.
They said Reuters will provide systems software, hardware
and telecommunications capabilities and support under a
long-term working agreement with Real Estate Financing
Partnership and will also provide sales assistance and
marketing support to Real Estate Financing.
Real Estate Financing designed RSVP.
The companies said RSVP will use Reuter Monitor technology
and the Reuter private communications network to provide a
global financing capability for commercial real estate
ventures. It will enable parties seeking real estate financing
to identify funding sources on a private basis.
They said the system is scheduled for testing in August in
selected U.S. cities and is expected to be operational about 90
days after initial testing.
Reuter
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SALLIE MAE SAYS IT WILL PRICE 300 MLN DLR FLOATING RATE NOTE OFFER MONDAY
| |
REFINANCING SAID CLOSE FOR VENEZUELAN BANK | The Venezuelan government is close to
agreement with foreign banks to refinance 300 mln dlrs in
foreign debt owed by the Banco de los Trabajadores de Venezuela
(BTV), finance minister Manuel Azpurua said.
He told reporters, Bankers Trust, which heads the BTV's
bank committee, is consulting other creditors on an eight year
refinancing plan with a margin of 3/8 pct over libor.
He added there is a relending option for which the state
owned Banco Industrial de Venezuela will act as agent. BTV, 49
pct owned by the government and 51 pct by unions, was taken
over by trustees in November 1982 with severe liquidity
problems.
REUTER
|
U.S. SETS 9.5 BILLION DLR YEAR-BILL AUCTION | The U.S. Treasury said it will sell
9.5 billion dlrs of one-year bills at auction.
The March 12 sale will raise 275 mln dlrs of new cash by
refunding about 9.23 billion dlrs of maturing bills.
The bills will be issued March 19 in minimum amounts of
10,000 dlrs and mature March 17, 1988.
Reuter
|
NEW JERSEY RESOURCES <NJR> TO OFFER SHARES | New Jersey Resources corp said it has
filed for an offering of 1,300,000 common shares through
underwriters led by Merrill Lynch and Co Inc <MER> and E.F.
Hutton Group Inc <EFH>.
It said the offering is expected to be completed in late
March or early April and proceeds will be used to reduce
short-term debt.
Reuter
|
DEN DANSKE LAUNCHES 200 MLN DLR EURO-CD PROGRAMME | Den Danske Bank of Denmark is raising
200 mln dlrs through a programme of short and medium term
euro-certificates of deposit, arranger London-based Salomon
Brothers International Ltd said in a statement received here.
Signing takes place today and the first issuance, of
maturities from seven days to five years, should take place
later this month. Denominations would be 500,000 and one mln
dlrs, and similar amounts in sterling and other currencies.
Aside from the London branch of Den Danske and the
arranger, other dealers in the programme would be the Swiss
Bank Corp International and S.G. Warburg and Co Ltd.
Salomon said the principal paying agent for the CDs would
be Bankers Trust Co.
Den Danske's U.S. Domestic commercial paper program is
rated A1 by Standard and Poor's, and P-1 by Moody's rating
agency, Salomon said.
REUTER
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TRENWICK GROUP INC <TREN> 4TH QTR NET | Oper shr profit 18 cts vs loss four cts
Oper net profit 1,847,000 vs loss 282,000
Revs 25.9 mln dlrs vs 8,626,000 drs
12 mths
Oper shr profit 39 cts vs loss 24 cts
Oper net profit 3,262,000 vs loss 1,555,000
revs 67.5 mln vs 27.9 mln dlrs.
NOTE: 1986 qtr and year excludes investment gains of
1,541,000 and 1,865,000, respectively, and 1985 qtr and year
includes investment gains of 301,000 dlrs and 1,424,000.
Reuter
|
IMF URGES BELGIUM TO MAKE FURTHER SPENDING CUTS | The Belgian government, which
introduced large-scale public spending reductions last year,
has been told by an International Monetary Fund team there is
scope for further cuts in 1988.
The suggestion is contained in the preliminary conclusions
of the annual IMF consultations with Belgium on its economic
policy, a copy of which was distributed to journalists at the
weekly press conference following meetings of the cabinet.
The IMF team also urges Belgium to adopt a firm interest
rate policy, with a particular emphasis on long-term rates.
The team's report to the government praises last year's
spending cuts, which are due to reduce 1987 government spending
by 195 billion francs, and says 1986 saw the Belgian economy
perform "better, on a broader basis, than at any time so far in
the 1980s."
However, it adds that with lower inflation, stabilisation
of the debt to gross national product ratio requires a much
lower budget deficit than the seven pct of GNP target the
government has set itself for 1989.
The government's net financing requirement was 11.0 pct of
GNP in 1986.
The report says "The most that can be afforded over the next
few years is a zero growth of real non-interest expenditure of
general Government."
It says there is a need for a revision of the Belgian tax
system to iron out distortions and meet hopes of a reduced tax
burden but substantial progress is needed in stabilising the
debt to GNP ratio before this is possible.
"Because of the difficulty of sustaining zero expenditure
growth and of likely growing impatience (for) tax reductions,
we feel that your position would be stronger if you could
decide on rather sharp expenditure reductions in 1988," the
report adds.
The IMF urges a strong interest rate policy to signal the
government's determination to keep its currency strong and to
curb inflation.
It says firmer long-term rates would slow private net
long-term capital outflows, which increased strongly in 1986.
It also urges net repayments of foreign currency debt and
an overhaul of domestic capital markets to facilitate the
subscriptions by non-residents of government bond issues in
Belgian francs.
REUTER
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NEW JERSEY APPROVES GPU <GPU> UNIT'S RATE CUT | General Public Utilities Corp
said the New Jersey Board of Public Utilities has approved a 72
mln dlrs annual reduction in energy-adjustment charges for the
company's Jersey Central Power and Light Co subsidiary.
The change in the utility's Levelized Energy Adjustment
Charge represents a five pct decrease in overall electricity
rates.
On January 28, Jersey Central filed for a 32 mln dlr a year
decrease in the charge, asking to retain the difference to
prevent an increase in these charges next year, a company
spokesman said.
Reuter
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BUSH <BSH> REVISES 4TH QTR, YEAR RESULTS UP | Bush Industries Inc said that
after an audit it has revised upwards its 1986 fourth quarter
and year end results. On February 12 it reported unaudited
results.
Under the audited amounts, 1986 fourth quarter income was
1,098,978 mln dlrs, or 55 cts a share. The unaudited income for
the period was 1,014,000, or 51 cts per share.
For the year, the audited amounts showed earnings of
2,505,978, or 1.25 dlrs per share. The prior results reported
income of 2,421,000, or 1.21 dlrs per share. Sales figures for
both periods did not differ significantly from prior amounts.
Reuter
|
MCORP <M> AND UNITS' DEBT DOWNGRADED BY MOODY'S | Moody's Investors Service Inc said it
lowered the ratings on about 489 mln dlrs of debt of MCorp and
its subsidiaries.
Moody's said the change reflects the effect that the
company's difficult operating environment will have on its
asset quality, core earnings and equity base. It said the
firm's asset quality problems are considerable and centered in
its loans to energy and real estate sectors.
Ratings lowered include MCorp's senior debt to BA-3 from
BAA-2, subordinated debt to B-1 from BAA-3 and preferred stock
to B-2 from BA-1.
Reuter
|
MEDI-RX UNIT IN PROPOSED INITIAL OFFERING | Medi-Rx America Inc said its Rx
Plus Inc subsidiary received a letter of intent for a proposed
initial public offering of four mln dlrs to six mln dlrs.
It also said the subisidary, formed to franchise retail
drug stores, recently placed a 1.2 mln dlrs equity offering
with private investors and secured a one mln dlrs line of
credit for assisting applications for a Rx Plus franchise.
Reuter
|
FURNITURE (UFURF) UPS BENCH CRAFT (SOFA) STAKE | Universal Furniture Ltd said in a
filing with the Securities and Exchange Commission that it had
increased its stake in Bench Craft Inc common stock to
2,548,975 shares or 45.3 pct of the total outstanding.
Universal said its Universal Furniture Industries N.V. unit
bought 235,750 Bench Craft shares March 4 in the
over-the-counter market.
Reuter
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AMERICAN AIRLINES <AMR> LOAD FACTOR DECLINES | American Airlines Inc, owned
by AMR Corp, said its load factor for February dropped to 60.2
pct from 64.0 pct a year ago.
It said revenue passenger miles for the month increased 5.9
pct to 3.66 billion from 3.45 billion a year ago. Available
seat miles rose 12.7 pct ot 6.08 billion from 5.40 billion and
passenger boardings rose 8.6 pct to 3.5 mln from 3.2 mln a year
earlier.
More
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VALERO ENERGY KNOWS OF NO REASON FOR STOCK GAIN | Valero Energy Corp <VLO> said
it knows of no reason for its stock activity today.
The stock rose 1-5/8 to 10-7/8, a gain of about 17.5 pct.
A spokesman for Valero, Steve Fry, said the company knows
of no reason for the increased volume and sharp gain in the
stock.
Reuter
|
MOODY'S MAY DOWNGRADE SERVICE MERCHANDISE <SMCH> | Moody's Investors Service Inc said it
may downgrade Service Merchandise Co's 300 mln dlrs of Ba-2
senior subordinated notes.
The rating agency said it had anticipated that Service
Merchandise would be able to achieve better operating results
than it actually did in fiscal 1986.
Moody's said it would assess future prospects for the
company, as well as for the whole catalogue showroom industry.
The agency will also examine the effects of recent acquisitions
on Service Merchandise's operating results, financial structure
and cash flow.
Reuter
|
CLEVITE INDUSTRIES INC <CLEV> 4TH QTR OPER LOSS | Oper net loss 411,000 vs profit 875,000
Sales 69.7 mln vs 70.5 mln
Year
Oper net profit 6,258,000 vs profit 4,785,000
Sales 299.5 mln vs 297.2 mln
Note: Company made initial public offering in June, 1986.
Assuming the offering had occurred on Jan. 1, 1986, operating
net income per share would have been 85 cts a share for 1986.
1986 oper net excludes one-time charge of 16.8 mln dlrs, or
2.46 dlrs a share, in qtr and year due to the February 1987
sale of the company's engine parts division. Oper net for 1986
year also includes profit from discontinued operations of
360,000 dlrs, or five cts a share.
Oper net for 1986 excludes extraordinary loss of 1.1 mln
dlrs, or 17 cts a share, due to the June 1986 write-off of
unamortized debt issue costs from the public offering. 1985
oper net excludes extraordinary profit of 1.1 mln dlrs.
Reuter
|
BID TO DISMISS JUDGE IN COPYRIGHT CASE DENIED | NEC Electronics Inc, a
unit of NEC Corp <NIPNY> said a U.S. District Court judge
denied NEC's motion to disqualify Judge William Ingram from
presiding over its lawsuit against Intel Corp <INTC>.
NEC said it sought to disqualify the judge when it learned
in October 1986 that Ingram had an ownership interest in an
investment club that owned Intel stock.
Ingram reported that his interest in Intel through the club
amounted to about 80 dlrs worth of Intel's stock and the judge
ended his participation in the investment club after NEC moved
to have him disqualified, an NEC spokeswoman said.
NEC said it intends to appeal the ruling.
NEC sued Intel in December 1984 seeking a judgement
declaring that microcode, or the control function, in certain
NEC microprocessor products does not infringe on any valid
Intel copyrights.
Intel subsequently filed a suit charging NEC with
infringing on Intel semiconductor copyrights.
Reuter
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CMS ADVERTISING SETS 3-FOR-2 STOCK SPLIT | <CMS Advertising Inc> said its
board has approved a three-for-two stock split in the form of a
dividend payable March 30 to holders of record March 16.
The company said a similar split was paid December eight,
leaving it with 2,344,200 shares outstanding.
CMS Advertising said the next split will result in a
proportionate reduction in the exercise price of its stock
purchase warrants to 1.67 dlrs a share from 2.50 dlrs.
Reuter
|
AMAX <AMX> ACCEPTS OFFER FOR AUSTRALIAN INTEREST | AMAX Inc said it has accepted
offers to buy its share and option interests in <Australian
Consolidated Minerals Ltd>.
AMAX said the sale is part of its ongoing program to
increase shareholder value.
The company did not identify who made the offer, but said
the interests involved include 35.2 mln Australian Consolidated
shares to be sold for 6.32 Australian dlrs per share and 5.4
mln options to be sold for 4.82 Australian dlrs per option.
Reuter
|
CIE FINANCIERE DE PARIBAS <PARI.PA> 1986 YEAR | Parent company net profit 385 mln francs vs 226.9 mln
Dividend five francs vs no comparison
Note - The financial and banking group was privatised by
the government in January this year.
Reuter
|
FOOD LION <FDLNB> FEBRUARY SALES UP 26 PCT | Food Lion Inc said its sales totaled
207.5 mln dlrs last month, up 26.0 pct from the 164.7 mln dlrs
reported for February 1986.
The company said sales for the first eight weeks of the
year were up 26.1 pct to 411.1 mln dlrs from 326.0 mln dlrs.
The company operates 396 supermarkets in six southeastern
states.
Reuter
|
BANK OF ENGLAND PRESSURE HOLDS BASE RATES | This week's Bank of England resistance to
strong market pressure for lower interest rates succeeded in
holding bank base rates at 11 pct.
But at a cost of threatening the Chancellor of the
Exchequer Nigel Lawson's policy, stated at the end of the Paris
Group of Six meeting last month, that he wanted to see sterling
broadly stable about then prevailing levels, market sources
said.
Since then, the pound has risen to 71.8 pct on its closing
trade-weighted index, up from 69.7 pct imediately after the
Paris meeting and up 0.4 on the day.
Today's peak at 72.0 pct was its highest since August 19.
A Treasury spokesman said Lawson had said he neither wanted
a substantial rise or fall in sterling. The question is
therefore how large a rise he is ready to see before acting.
Paul Temperton, chief economist at Merrill Lynch Europe
Ltd, estimated that the government wanted to see the
trade-weighted index about 72-73 pct. "Even after this action
over the last few weeks, sterling's only just within striking
distance of that range," he said.
Other analysts agree that the government probably has some
broad target range around this area.
However, they said Lawson would be prepared to see the
pound go higher at least in the short term, despite the risk of
a loss of export competitiveness and cheaper prices on imports.
"If the Bank of England keeps the interest rates as they
are, what's to stop it (going higher)," said John Cox, executive
director of EBC Amro Bank Ltd, a major operator on the London
foreign exchange market.
Cox estimates that the Bank of England has been active
selling sterling over the past few days, despite the lack of
general market talk of such intervention, and this has helped
keep it below 1.60 dlrs.
The pound rose to 1.5870 dlrs from 1.5764 yesterday and
1.5400 February 23, the day after the Paris meeting.
But Cox says the government must be worried with sterling
heading toward 2.95 marks and would be very concerned if it
holds around these levels.
He warned the Bank may run the risk of missing the interest
rate boat. "If rates don't come down, the market will say they
ought to have come down and will sell sterling," he said.
Most dealers agree there is a good deal of "hot money" being
invested in sterling, money simply attracted by high overnight
or one-week rates, which could flow out at equally short
notice.
However, the authorities will hope that at least a
proportion of the buying reflects long-term investment.
"The last thing they want to do is reduce them (rates) and
have to jack them back up again," said Richard Jeffrey,
economist at brokerage house Hoare Govett Ltd.
He said a half point cut would ensure continued support for
sterling, at least in the near term.
However, most analysts are still looking for a full point
about March 17, Budget Day.
The Bank must hold out until it sees the reaction to the
Budget, said Temperton.
The Budget is widely forecast to be a vote winner in the
run-up to a general election, the major factor behind current
bullishness in the government bond and currency markets.
"Lawson wants to delay a cut in base rates until the budget.
He wants it to be crowned with the glory of an interest rate
cut," said Ian Harwood, economist at Warburg Securities, the
equities arm of Mercury International Group.
Speculation a clearing bank might break ranks and lead the
way lower were confounded today. There was excitement a fall in
the weekly Treasury Bill rate to 9.7 pct from 10.2 pct last
Friday might mean the Bank had changed its mind.
This followed the imposition of penal lending rates of 11
3/4 pct on the discount houses yesterday, and was the lowest
since base rates were at 10 pct, early last October.
However, with this Bill rate pertaining to three-months
money, banking sources said the market could not take the cut
as a guide to the Bank's intentions on short term rates.
REUTER
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SHULTZ AND SHEVARNADZE TO MEET IN MOSCOW IN MID-APRIL, U.S. SOURCES SAY
| |
LYNG DISAPPOINTED BY CANADA CORN INJURY DECISION | U.S. Agriculture Secretary Richard
Lyng said he is "very disappointed" by a Canadian government
finding that U.S. corn has injured Ontario Corn growers.
"This action is not helpful in the context of the ongoing
U.S.-Canada free trade talks or in the new round of
multilateral trade negotiations," Lyng said in a statement.
The Canadian government today said Ottawa would continue to
apply a duty of 84.9 cents per bushel on U.S. corn imports.
Lyng said the U.S. made a case that U.S. corn imports are
not the cause of any problem of Canadian corn producers, adding
that U.S. corn exports to Canada are declining.
"Apparently they (Canada) have ignored the fact that
Canadian corn and other coarse grain production is rising
faster than consumption," Lyng said.
Reuter
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BANCROFT <BCV> SHAREHOLDERS REBUKE ZICO OFFER | Bancroft Convertible Fund Inc, the
target of an unfriendly cash offer by <Zico Investment Holdings
Inc>, said its shareholders approved proposals requiring a
66-2/3 pct affirmative vote of all outstanding shares before
fundamental changes in its status could be made.
Previously, only a simple majority of outstanding shares
was needed to change Bancroft's investment status from a
diversified to a non-diversified fund, among other things.
Bancroft said its board continues to recommend that
stockholders not tender their shares to Zico, a British Virgin
Islands company which it said had ties to South Africa.
Reuter
|
INT'L TOTALIZATOR <ITSI> SEES BETTER 1ST QTR | International Totalizator Systems Inc
Vice President of Finance Joel Graff said he expects to report
an improved first quarter compared to the 377,000 dlr loss
reported in the year ago quarter.
"A profit looks quite favorable," Graff said.
Last week, the automated ticket systems supplier reported a
loss of 1.2 mln dlrs for the 1986.
Graff said "we invested heavily in 1986, which we believe
will result in higher future growth and earnings for the
company."
Reuter
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SOVIET NEGOTIATOR REPORTS ARMS TALKS BREAKTHROUGH | Chief Soviet arms negotiator Yuli
Vorontsov said Soviet-American talks on cutting medium-range
nuclear missiles had made a breakthrough.
Vorontsov said he expected a treaty would be ready for
signing within three to four months following the latest talks
in Geneva.
He told a news conference here "all the elements point to
optimism" and only technical work on treaty language remained
outstanding.
REUTER
|
GATT STUDYING AGRICULTURAL SUBSIDIES CEILING | The world trade body GATT said its
negotiators in Geneva are discussing a possible agreement for a
ceiling on agricultural subsidies.
GATT director-general for agriculture Jean-Marc Lucq told
reporters here that the talks had not got anywhere yet as the
participants were still reluctant to lay all their cards on the
table.
He said the ceilings under discussion would only be applied
to those members of the General Agreement on Tariffs and Trade
with high subsidy spending.
Lucq said a survey by the Organisation for Economic
Co-operation and Development showed that its 24 member western
industrialised countries subsidised their agriculture by a
total average of more than 100 billion dlrs a year from
1979-81.
Within that total, the U.S. Spent 26 billion dlrs, Japan 24
billion, and the European Community 57 billion dlrs.
Yves Berthelot, an official for the United Nations
Conference on Trade and Development, said the suppression of
agricultural subsidies in temperate countries, which would
allow a resurgence of world prices and a lowering of domestic
prices, would be difficult but inevitable.
Reuter
|
TIPPERARY NEGOTIATING WALKER <WEP> INVESTMENT | Walker Energy Partners said
restructuring of the partnership is being negotiated with
<Tipperary Corp> which is considering a capital infusion into
the partnership.
Walker Energy said Tipperary's investment will be
conditioned upon restructuring of the partnership's debt.
Walker Energy said it and Tipperary are negotiating toward
definitive agreements that will result in a major restructuring
of the master limited partnership.
It said the transactions, if made, will result in Tipperary
acquiring control of the partnership's general partner and
making a substantial capital infusion into the partnership.
Walker said it had requested indications of interest from
several investment sources and selected the Tipperary offer
after a careful review of all offers received.
Reuter
|
SHULTZ, SHEVARDNADZE SAID TO MEET IN APRIL | Secretary of State George Shultz and
Soviet Foreign Minister Eduard Shevardnaze will meet in Moscow
in mid-April, administration sources said.
The sources said they will meet April 13 to 16 and are
expected to discuss the full range of U.S.-Soviet issues.
But arms control is expected to be the major focus of the
talks, with a breakthrough widely expected on removing
medium-range nuclear missiles from Europe.
Reuter
|
SOVIET NEGOTIATOR REPORTS ARMS TALKS BREAKTHROUGH | Chief Soviet arms negotiator Yuli
Vorontsov said Soviet-American talks on cutting medium-range
nuclear missiles had made a breakthrough.
Vorontsov said he expected a treaty would be ready for
signing within three to four months following the latest talks
in Geneva.
He told a news conference here "all the elements point to
optimism" and only technical work on treaty language remained
outstanding.
Reuter
|
OUTBOARD MARINE <OM> OFFICIALS HAWKING STOCK | Outboard Marine Corp's top executives
are making sales presentations to portfolio managers and
analysts ahead of a planned two mln share offering expected
soon, company officials said.
Chairman Charles Strang and Wayne Jones, vice president for
strategic planning, are meeting with portfolio managers in New
York and Boston to line up interest for the offering
underwritten solely by Morgan Stanley, the officials said.
Outboard Marine has been the subject of recurring takeover
rumors, with one rumor this week naming Sun Chemical as the
potential suitor for 40 dlrs a share.
Sun Chemical is said to have 4.9 pct of Outboard and is
conducting a study on whether to bid for control of the marine
engine and boatbuilding company. A Sun Chemical spokesman
declined to comment.
Stanley Fishman, analyst at Fahnestock and Co, said it is
better for a suitor to bid for Outboard before the two mln
shares are sold. Outboard now has 17 mln shares outstanding.
"Even though Outboard would use proceeds from the share
offering to pay down debt, and there would be less debt the
acquiring company would assume, it still means more shares the
suitor must buy to acquire the company," he said.
Fishman, who has heard the Sun Chemical rumor, said a 40
dlrs a share would just open the bidding.
Outboard Marine today was trading at 33-5/8, down 5/8.
"There are only two companies that count in the marine
leisure business, Brunswick Corp <BC> being the first. But you
can't play down number two," He said. "It's a growing field.
There's a lot of leisure money out there. I think 40 would be a
minimum price. It will be higher."
A Morgan Stanley spokesman said the offering has been
approved by the Securities and Exchange Commission but a
kick-off date and price have not been set.
Reuter
|
HADSON <HADS> PLANS 3,750,000 SHARE OFFERING | Hadson Corp said it intends to
file a registration with the Securities and Exchange Commission
within one week covering an offering of 3,750,000 common
shares.
The company had 14,260,000 shares outstanding on December
31 and 75.0 mln shares authorized.
It said proceeds of the offering are intended to be used to
finance expansion of existing operations, for acquisitions and
for working capital.
Reuter
|
BOC GROUP COMPLETES SALE OF UNIT TO CONTROLS | <BOC Group Inc>'s Airco
Distributor Gases finalized the sale of its Virginia-based gas
appaturs business to <Controls Corp of America>, a newly formed
investment group organized by former Airco employees.
Under the terms of the sale, Airco said Controls will
continue to make the gas apparaturs product line under the
Airco brand name, marketing the products exclusively through
the Airco's distributor network.
Reuter
|
NEW JERSEY RESOURCES <NJR> FILES TO OFFER STOCK | New Jersey Resources Corp said it
filed with the Securities and Exchange Commission to offer 1.3
mln common shares through managing underwriters Merrill Lynch
Capital Markets and E.F. Hutton and Co.
The utility holding company said the offering should be
completed in late March or early April.
Net proceeds will be used to reduce debt at the company's
main subsidiary, New Jersey Natural Gas Co.
Reuter
|
BANKERS PREDICT SHAKEOUT IN SWEDISH BANKING SYSTEM | The central bank recommended a major
change in the traditional ownership structure of Swedish
commercial banks that bankers said would inevitably lead to the
takeover of remaining small regional banks.
The recommendation was prompted by a recent proposal by the
<Proventus> financial group to create a new holding company
that will control the third-largest commercial bank <Gotabanken
and Wermlandsbanken>, a small regional bank.
The central bank gave its approval and said financial
groups should be allowed to have banking subsidiaries as long
as the groups did not include industrial or trading companies.
The central bank was commenting on a proposed new bill
governing Swedish financial groups.
It recommended that insurance companies should not be
allowed to own banks until a separate inquiry into the problem
was completed. Sweden's two biggest insurance companies have
both said they would like to enter the banking business.
Sweden's commercial banks on the other hand have long
wanted to buy up insurance companies.
Bankers said the recommendations would mainly bring the
rules up to date with new circumstances created by the
extensive de-regulation of the Swedish financial markets since
1982.
Bankers said it was clear that others would follow the
Proventus example and that this would lead to a shake-up in the
banking system with the remaining small regional banks being
absorbed by larger banking groups.
The central bank also recommended banks be allowed to
operate their stockbroking departments as subsidiaries, which
bankers said would lead to banks taking over small stockbroking
firms. Banks have long complained the ban on splitting off the
broking departments forced them to operate at a disadvantage
because they could not match the partnerships and large
salaries stockbrokers could offer their staff.
REUTER
|
MCDONNELL <DM> OPENS REGIONAL N.Y. OFFICE | McDonnell Douglas said it will open a
regional office in New York, occupying 38,366 square feet in
midtown Manhattan.
It said the office will bring together about 100 employees
in its Information Systems Group who currently work at three
separate New York offices. The group had 1986 sales of 1.2
billion dlrs.
McDonnell said the move follows a series of similar
consolidations in San Jose and San Francisco, Calif., Atlanta,
and Denver to reduce costs and consolidate the group's
operations in major metropolitan areas.
Reuter
|
U.S. WHEAT GROWERS WANT EEP TO SOVIET UNION | The U.S. National Association of
Wheat Growers (NAWG) urged the Reagan administration offer the
Soviet Union wheat under the export enhancement program (eep).
In a letter to Agriculture Secretary Richard Lyng, NAWG
stated its "strong support" for an eep offer to Moscow.
"We believe that a solid case continues to exist for Soviet
EEP eligibility, and the recently announced and reported Soviet
purchases of U.S. corn indicate a Soviet willingness to
purchase U.S. grain if it is competitively priced," NAWG said.
"Consequently, we believe it is important to renew the U.S.
eep offer and do all that is reasonably possible to ensure
mutual adherence to the terms of the U.S.-Soviet grain
agreement," the letter said.
Reuter
|
ABN SAYS PROFIT RISE ENCOURAGING IN VIEW DOLLAR | Algemene Bank Nederland N.V. <ABNN.AS>
chairman Robertus Hazelhoff said the bank's 10.3 pct increase
in net 1986 profit to 527 mln guilders from 478 mln in 1985 was
encouraging in view of the sharply lower dollar.
Hazelhoff, speaking at a press conference after the release
of ABN's 1986 results, said a sharp decrease in foreign
earnings had been compensated by a strong domestic performance,
notably in the securities business.
He said the bank was also proposing a one for 10
share-split which should facilitate trade in the bank's stock.
News of the split sparked a 14 guilder rise in ABN's share
price on the Amsterdam bourse to a close of 517 guilders.
Prospects for 1987 hung on three uncertainties, namely the
future trend of the dollar, the level of interest rates and
ABN's share of equities trade, Hazelhoff said.
Provisions for general contingencies were reduced in 1986
by 4.1 pct to 575 mln guilders, while taxes increased by 2.1
pct to 242 mln guilders, he added.
Lower global interest rates in 1986 had nipped earnings
margins via traditional lending activities, he said.
Hazelhoff said ABN was unlikely to continue reducing risk
provisions in the future but he noted the bank was not overly
concerned about default by Latin American debtors, a factor
which brokers say has distanced Dutch insititutions from bank
stocks recently.
He said that of the bank's estimated 25 financially
troubled sovereign debtors, about one quarter were Latin
American countries. These would ultimately pay up, he said.
He added that losses incurred through loans to tin
producers in the wake of the tin council crisis at end-1985 had
been written off.
REUTER
|
CANADIAN MONEY SUPPLY M-1 RISES 217 MLN DLRS IN WEEK, BANK OF CANADA SAID
| |
CANADIAN MONEY SUPPLY RISES IN WEEK | Canadian narrowly-defined money supply
M-1 rose 217 mln dlrs to 32.80 billion dlrs in week ended
February 25, Bank of Canada said.
M-1-A, which is M-1 plus daily interest chequable and
non-personal deposits, rose 556 mln dlrs to 75.19 billion dlrs
and M-2, which is M-1-A plus other notice and personal
fixed-term deposit rose 651 mln dlrs to 176.87 billion dlrs.s
M-3, which is non-personal fixed term deposits and foreign
currency deposits of residents booked at chartered banks in
Canada, rose 992 mln dlrs to 216.03 billion dlrs.
Chartered bank general loans outstanding rose 481 mln dlrs
to 124.99 billion dlrs.
Canadian liquid plus short term assets fell 854 mln dlrs to
35.40 billion dlrs and total Canadian dollar major assets of
the chartered banks fell 118 mln dlrs to 221.20 billion dlrs.
Chartered bank net foreign currency assets fell 23 mln dlrs
to minus 1.92 billion dlrs.
Notes in circulation totalled 16.24 billion dlrs, up 76 mln
dlrs from the week before.
Government cash balances fell 565 mln dlrs to 4.31 billion
dlrs in week ended March 4.
Government securities outstanding rose 1.25 billion dlrs to
224.09 billion dlrs in week ended March 4, treasury bills rose
950 mln dlrs to 74.55 billion dlrs and Canada Savings Bonds
fell 57 mln dlrs to 44.34 billion dlrs.
Reuter
|
ROCHESTER GAS <RGS> SEES FURTHER NUCLEAR DELAYS | Rochester Gas and Electric Co
said it now estimates Unit Two of the Nine Mile nuclear power
plant will not start commercial operation until 1988's first
quarter.
The utility said this estimate is based on the Nuclear
Regulatory Commission's advisory to the plant's operator,
Niagara Mohawk Power Corp <NMK>, a more through demonstration
of the main steam isolation valve's acceptablility will be
needed before the plant's power ascension program can proceed.
Rochester Gas disclosed the further delay in the operation
of Nine Mile Unit Two in the preliminary prospectus describing
its proposed offering of 300,000 preferred shares, par value
100 dlrs.
A spokesman said Niagara Mohawk had been projecting
commercial operation of the plant in September, adding this
projection was scheduled for review upon completion of the main
steam isolation valve testing program which company officials
still expect next week.
In the past, Niagara Mohawk has put the cost of delays in
Nine Mile Unit Two at two mln dlrs per day.
Niagara Mohawk has a 41 pct interest in the nuclear power
plant, while Rochester Gas owns 14 pct.
In a statement released today, Rochester Gas said the NRC,
based on progress of the valve testing program, had advised
Niagra Mohawk a more through demonstration of the acceptability
of the valve's and their ability to meet regulations and
technical specifications will be required before the power
ascension program can proceed.
The Niagara Mohawk spokesman said the utility would have
not immediate response to the Rochester Gas statement.
Reuter
|
FRENCH GOVERNMENT TO STEP UP AID TO JOBLESS | The government plans to go ahead with a
three billion franc package to help the long-term unemployed,
with the aim of guaranteeing social security payments to
everyone becoming redundant, government officials said.
At present only about one-third of the country's 2.6 mln
jobless, corresponding to 10.9 pct of the workforce, receive
unemployment benefit.
Prime Minister Jacques Chirac told a television
interviewer, "As soon as the law is approved, and it will be in
a matter of weeks, all workers made redundant will have the
right to social benefits."
The money, which will be used to alleviate unemployment
through retraining or project finance, will come from a 7.5
billion franc government fund set up last month to finance
spending on special areas of concern.
Apart from unemployment, these include relief to farmers
hit by European Community cost-cutting measures.
French unemployment has risen by more than 40 pct from 1.8
mln when socialist President Francois Mitterrand took office in
1981.
REUTER
|
USSR WHEAT BONUS OFFER SAID STILL UNDER DEBATE | The Reagan administration continues
to debate whether to offer subsidized wheat to the Soviet
Union, but would need assurances from the Soviets that they
would buy the wheat before the subsidy offer would be made, a
senior U.S. Agriculture Department official said.
"I think it still is under active debate whether or not it
would be advisable" to make an the export enhancement offer to
the Soviets, Thomas Kay, administrator of the department's
Foreign Agriculture Service, told Reuters.
"We'd need some assurances from them (the Soviets) that they
would buy if offered" the wheat under the subsidy plan, he said.
Kay called reports that such an offer was imminent "premature."
The Reagan administration's cabinet-level Economic Policy
Council is set to meet today to discuss, among other matters,
agricultural policy but is not expected to address a wheat
subsidy offer to the Soviet Union, administration officials
said earlier.
Reuter
|
SUN ELECTRIC CORP <SE> 1ST QTR JAN 31 OPER NET | Oper shr profit nine cts vs loss seven cts
Oper net profit 628,000 vs loss 491,000
Sales 50.7 mln vs 41.8 mln
Avg shrs 7,033,000 vs 6,557,000
Note: Oper net excludes extraordinary profit of 423,000
dlrs, or six cts a shr, and 110,000 dlrs, or one ct a share,
respectively, in 1987 and 1986 quarters, from utilization of
tax loss carryforwards.
Reuter
|
CANADA CORN DECISION UNJUSTIFIED - YEUTTER | U.S. trade representative Clayton
Yeutter said Canada's finding announced today that U.S. corn
imports injure Canadian farmers is "totally unjustified."
"U.S. corn exports to Canada are so small that it is
inconceivable that they injure Canadian corn farmers by any
reasonable measure," Yeutter said in a statement.
He said if other countries follow Canada's lead it could
result in "a rash of protectionist actions throughout the
world." French corn growers have recently indicated they will
challenge U.S. corn gluten feed shipments to Europe.
Yeutter said the U.S. will examine the Canadian decision
closely and if the U.S. believes the decision was not based on
facts, "will carefully evaluate appropriate responses." Yeutter
did not say what steps the U.S. may take in response.
Reuter
|
CETEC CORP <CEC> 4TH QTR NET | Oper shr two cts vs eight cts
Oper net 41,000 vs 153,000
Sales 7,456,000 vs 7,965,000
Year
Oper shr 22 cts vs 50 cts
Oper net 434,000 vs 1,103,000
Sales 31 mln vs 33.6 mln
Note: Current qtr and year figures exclude loss from
discontinued operations of 384,000 dlrs, or 20 cts per share.
Prior qtr and year figures exclude losses from discontinued
operations of 1.9 mln dlrs, or 88 cts per share and 2.3 mln
dlrs, or 1.07 dlrs per share, respectively.
Reuter
|
RICHTON INTERNATIONAL CORP <RIHL> 3RD QTR JAN 31 | Shr 18 cts vs 39 cts
Net 507,000 vs 762,000
Sales 11.3 mln vs 11.7 mln
Avg shrs 2,789,000 vs 1,961,000
Nine mths
Shr 39 cts vs 90 cts
Net 1,076,000 vs 1,752,000
Sales 32.9 mln vs 33.3 mln
Avg shrs 2,771,000 vs 1,955,000
Reuter
|
VALTEK INC <VALT> 3RD QTR JAN 31 NET | Shr 18 cts vs 19 cts
Net 400,413 vs 421,451
Revs 9,343,228 vs 8,213,449
Nine mths
Shr 39 cts vs 46 cts
Net 853,891 vs 1,011,999
Revs 24.6 mln vs 22.3 mln
Reuter
|
MOET-HENNESSY ISSUING CONVERTIBLE EUROBOND | Moet-Hennessy <MHSP.PA> is issuing an 800
mln French franc 10-year eurobond with share warrants,
lead-manager Lazard Freres et Cie said.
The issue will be priced at par with a one pct coupon, and
each 10,000 franc bond will carry 18 warrants, each giving the
right to subscribe to Moet-Hennessy shares over a three-year
period at 2,720 francs each. The high equity content of the
issue accounts for the low coupon.
Moet-Hennessy shares closed on the Paris Bourse today at
2,678 francs, up 38 from yesterday's close.
The issue is being co-lead managed by Credit Lyonnais,
Banque Nationale de Paris (BNP) and Credit Suisse First Boston.
Payment date will be April 8.
REUTER
|
THE WRITER CORP <WRTC> 4TH QTR LOSS | Shr loss 30 cts vs profit 11 cts
Net loss 1,247,000 vs profit 454,000
Revs 12.3 mln vs 17.5 mln
Year
Shr loss 24 cts vs profit 32 cts
Net loss 979,000 vs profit 1,303,000
Revs 60.6 mln vs 61.7 mln
Reuter
|
WHITE HOUSE SAYS SHULTZ TO VISIT MOSCOW APRIL 13-16
| |
ROCKY MOUNTAIN MEDICAL CORP <RMEDU> 1ST QTR LOSS | Dec 31
Shr loss one ct
Net loss 176,639
Revs 150,300
NOTE: Company went public in April 1986.
Reuter
|
FIRST AMERICAN BANK AND TRUST <FIAMA> YEAR NET | Shr 91 cts vs 1.25 dlrs
Net 8,710,000 vs 11.7 mln
Avg shrs 9,526,287 vs 9,362,379
NOTE: Share adjusted for 10 pct stock dividend in May 1986.
Net includes loan loss provisions of 12.7 mln dlrs vs
2,400,000 dlrs.
Reuter
|
S/P SAYS CORPORATE DOWNGRADES MAY EASE THIS YEAR | Standard and Poor's Corp said it
expects downgrades of corporate debt ratings to ease this year
from the lofty levels of 1986 and 1985.
However, the rating agency said upgrades will probably stay
at about the same level as in the past few years.
The narrowing of the gap between downgrades and upgrades
would reflect a calming in takeover frenzy, less volatile
energy markets and slow but steady economic growth, S and P
said.
In particular, S and P expects that the industrial and
banking sectors would have a less turbulent year than in 1986.
S and P noted that 60 pct of 1986's downgrades were
concentrated in the industrial sector, where the most negative
factor was takeover fever that led to debt-financed mergers and
acquisitions and costly defenses to fend off takeovers.
It said takeovers appear to be on the decline this year.
While S and P noted that the energy markets have stabilized
after last year's collapse, it stressed that 1987 would not
mark a turnaround for this industry.
In addition, S and P does not expect any big shocks to hit
the junk bond market this year, especially of the magnitude of
1986's unexpected LTV Corp <LTV> bankruptcy filing.
Utilities, which were a positive influence in the overall
1986 trend, should be a pocket of strength again this year. But
like last year, gas utilities could buck this trend, S and P
said.
The rating agency said that downgrades would continue to
outpace upgrades among financial institutions. But 1987's
rating changes will not be as skewed as 1986's 2.1 to one ratio
of downgrades to upgrades, S and P predicted.
S and P said debt ratings for the transportation industry
would remain stable, aside from changes because of mergers. A
detailed report will appear in the March 9 S/P Creditweek.
Reuter
|
CONTRA LEADER LINKS MYSTERY DLRS TO ARMS SALE | Nicaraguan rebel leader Adolfo Calero
has for the first time linked payments received for his forces
to a dummy company controlled by former White House aide Oliver
North, legal sources said.
The company, Lake Resources Inc, was established by North
and his ally, retired Air Force major General Richard Secord,
and had a Swiss bank account into which proceeds from secret
arms sales to Iran were deposited.
Calero yesterday made public bank statements showing his
group has received 32 mln dlrs since mid-1984, but said he has
no idea who donated the money.
Calero, head of the Nicaraguan Democratic Force, known by
its Spanish initials as FDN, provided the same records to a
grand jury investigating the Iran arms scandal that has shaken
the Reagan administration.
The bank statements he showed reporters ended with March,
1985, so they shed no light on whether Iran arms profits were
diverted to contra rebels since shipments of U.S. arms to Iran
did not begin until September 1985.
But last night, Calero told Cable News Network that he had
just discovered deposits made in late October, 1985 by Lake
Resources into a contra account in the Cayman Islands.
This came at a time when proceeds from the Iran arms sales
were being funneled to the Swiss bank account.
"I just found out," he said.
Legal sources confirmed that Calero had turned over the
newly disclosed information, which was brought to his attention
after one of his lawyers noticed the two desposits made by Lake
Resources buried in the mass of bank records.
They said that Calero has promised to review in more detail
the bank statements and pass along any further information on
possible deposits by the North-Secord groups.
The Tower commission said in its report that up to 19.8 mln
dlrs from the sale of U.S. weapons to Iran was unaccounted for
and may have been diverted to the contras.
Calero's FDN is the largest of the contra rebel groups
that are fighting to overthrow the left-wing Sandinista
government of Nicaragua.
On the advice of his lawyer, Calero declined to go into
details about what he told the grand jury.
Reuter
|
INDIA AGAIN IN MARKET FOR SUGAR - TRADE | India has called a fresh buying tender
for up to four 13,000 tonne cargoes of white sugar on March 11,
traders here said.
The tender calls for one cargo of prompt sugar and two to
three with March/April shipment sugar, or the same as the eight
cargoes bought at a tender two days ago. That tender originally
only sought two to three cargoes but resulted in the sale of
eight. India also granted the sellers options to sell twice
that amount at the same price but for April/May shipment.
Depending on prices, traders said it would be likely for
India again to buy more than the tonnage formally sought.
Reuter
|
<WARRANTECH CORP> 3RD QTR DEC 31 NET | Shr profit nil vs loss nil
Net profit 28,565 vs loss 204,553
Revs 507,529 vs 6,563
Nine mths
Shr loss nil vs loss nil
Net loss 404,011 vs loss 649,495
Revs 938,345 vs 32,535
Reuter
|
PIONEER GROUP <PIOG> UNIT GETS MORE LAND | The Pioneer Group Inc said its 70
pct-owned Teberebie Goldfields Ltd venture has been granted an
additional concession of land in Ghana to look for and mine
gold.
The State Gold Mining Corp of Ghana granted the venture an
additional 14.5 square kilometers in Teberebie, Ghana,
contiguous to 11.5 square kilometers granted earlier, the
company said.
The original concession appears to have a substantial
amount of gold bearing material containing about 2 grams, or
6/100 ounces, of gold per metric ton.
But the venture has no firm estimates on the costs of
extracting the gold and no assurances can be given that the
reserves can be mined profitably, the company said.
It said Teberebie Goldfields has not conducted tests on the
newly granted land but added the land seems to be similar in
geological characteristics to the original land.
Reuter
|
INSITUFORM <IGLSF> RAISES STAKE IN UNIT | Insituform Group Ltd of Guernsey,
Channel Islands, said it has exercised an option to convert a
250,000 stg loan to affiliate Insituform Permaline Ltd to
common shares, raising its stake in the unit to 75 pct from 50
pct.
The remainder is held by Permaline's management and an
investment group.
Insituform also said James Colclough has resigned from its
board for health reasons and secretary Scott Saltpeter has
resigned, effective June Five.
Reuter
|
COPPER MEETING AGREES GOALS OF STUDY GROUP | The world's major copper producing and
consuming countries have reached "a degree of consensus" on
objectives and functions of a future study group aimed at
reviewing the world copper market, officials said.
Governments represented at a meeting to consider a proposed
forum for copper have recommended that another session be held
in September to consider further the nature of such a group, a
spokesman for the United Nations Conference on Trade and
Development (UNCTAD) said.
The one-week meeting, which ended today, was held to
examine a U.S. Initiative to set up a copper study group.
The new body would not aim at negotiating measures to
stabilise depressed world prices.
Its objectives would include increasing market
transparency, through improved statistics, and undertaking
activities aimed at developing the copper market and
contributing to improvement of demand.
UNCTAD's spokesman said, "Once they have agreed on detailed
functions and objectives, then the way will be cleared to
setting up the body."
Reuter
|
LIFFE FEBRUARY VOLUMES DOWN, BUT EURODOLLARS UP | Total futures and options turnover on the
London International Financial Futures Exchange (LIFFE) fell
slightly during February, although daily average Eurodollar
volume set a new record, LIFFE said today.
Total futures and options turnover last month was 822,378
contracts, down from January's 881,778, but sharply above the
comparative February 1986 figure of 463,146 lots, it said.
Eurodollar turnover during February was 140,417 lots,
against January's 100,941 and the year ago figure of 81,648.
The daily average was a record 7,020 lots, up four pct from the
previous record, set in March 1985.
February trading encompassed a new daily record of 66,087
contracts on the 19th of the month, exceeding the previous
record of 61,398, which had been set on February 6, LIFFE said.
FT-SE 100 index futures volume was sharply higher during
February, with 22,109 contracts trading, against January's
15,279 and the year-ago level of 8,181.
Open interest also set new records last month in
Eurodollars at 29,372 contracts, in FT-SE 100 at 4,898 and in
short sterling interest rate futures at 19,846 lots.
Key futures volumes as detailed by LIFFE were:
Feb'87 Jan'87 Feb'86
Long gilt 424,865 525,354 134,420
Eurodollar 140,417 100,941 81,648
Short sterling 94,720 87,619 67,640
T-bond 84,694 87,980 133,766
FT-SE 22,109 15,279 8,181
Currencies 2,799 2,112 7,737
Short gilt 74 85 6,516
Key options volumes as detailed by LIFFE were:
Feb'87 Jan'87 Feb'86
Long gilt 44,640 54,329 ----
Eurodollar 3,580 1,720 2,844
T-bond 1,737 3,479 ----
Sterling 1,466 2,223 18,191
FT-SE 1,277 657 ----
Total options 52,700 62,408 23,238
(Long gilt, T-bond and FT-SE index options were not trading
in February 1986).
Reuter
|
PRESIDENT SAYS SHULTZ TO HEAD FOR MOSCOW TALKS | President Reagan announced he is
sending Secretary of State George Shultz to Moscow for talks
with Foreign Minister Eduard Shevardnadze next month.
Arms control is expected to be the major topic.
The announcement said the talks will take place April 13-16
and would review "the entirety of our relationship."
Reuter
|
COLOMBIAN OIL EXPORTS NOT AFFECTED BY QUAKE | Colombian oil installations were not
damaged by an earthquake which shook Ecuador and southern
Colombia last night and there are no plans to suspend exports,
a spokesman for the state-run oil company Ecopetrol said.
He said no damage was reported, unlike in Ecuador where
indefinite force majeure was declared on crude exports.
Colombia currently produces about 360,000 barrels per day
(bpd) of crude. Exports in january totalled 123,000 bpd.
The quake, which in Colombia measured between 6.5 and seven
on the 12-point international Mercalli scale, caused panic
among residents but no injuries were reported.
Reuter
|
CHICAGO MILWAUKEE <CHG> GREETS SHEARSON STAKE | Chicago Milwaukee Corp said it welcomed
an investment by Shearson Lehman Brothers Inc in its company.
Yesterday, Shearson Lehman, a subsidiary of American
Express Co (AXP), disclosed in a Securities and Exchange
Commission filing that it holds a 5.35 pct interest in Chicago
Milwaukee.
Chicago Milwaukee's stock edged up 2-1/8 to 138 on turnover
of 8,100 shares, as one of the biggest gainers on the NYSE. The
stock has been trading in a 154 to 128 range for the last 52
weeks.
Edwin Jacobson, Chicago Milwaukee president, declined to
comment on movement of the company's stock but said,"From an
investment point of view, we are pleased to have Shearson,
Lehman as a substantial investor."
Shearson, Lehman purchased the shares for investment
purposes and may continue buying shares depending on market
conditions, according to the filing.
Chicago Milwaukee, which sold its railroad interests to Soo
Line Railroad Co (SOO) in February 1985, currently manages and
sells its real estate which consists of 28,000 parcels in 11
states.
Reuter
|
DAUPHIN DEPOSIT <DAPN> TO MAKE ACQUISITION | Dauphin Deposit Corp said it has
signed a letter of intent to acquire Colonial Bancorp Inc of
New Holland, Pa., in an exchange of 3.6 to 4.4 Dauphin shares
for each colonial share, depending on the market value of
Dauphin shares just before the merger takes place.
The company said the acquisition is subject to approval by
Colonial shareholders and regulatory authorities. Colonial had
assets at year-end of about 150 mln dlrs.
Reuter
|
UNC <UNC> TO CHANGE STATE OF INCORPORATION | UNC Inc said its board has approved a
change in state of incorporation to Delaware from Virginia,
subject to approval by shareholders at the April 24 annual
meeting.
It said it expects to make the change around April 30.
Reuter
|
VAN DORN CO <VDC> SETS QUARTERLY | Qtly div 27-1/2 cts vs 27-1/2 cts prior
Pay May One
Record April 17
Reuter
|
M.D.C. HOLDINGS INC <MDC> SETS QUARTERLY | Qtly div 10 cts vs 10 cts prior
Pay March 31
Record March 16
Reuter
|
CHUBB CORP <CB> SETS QUARTERLY | Qtly div 42 cts vs 42 cts prior
Pay April Seven
Record March 20
Reuter
|
MELLON BANK <MEL> SELLS FIVE-YEAR DEPOSIT NOTES | Mellon Bank Corp is raising 150 mln
dlrs via an offering of deposit notes due 1992 with a 7.45 pct
coupon and par pricing, said sole manager First Boston Corp.
That is 73 basis points more than the yield of comparable
Treasury securities.
The issue has a one-time call after three years, First
Boston detailed. If Mellon does not redeem the notes at that
time, they will be non-callable to maturity.
Moody's Investors Service Inc rates the debt Aa-2 and
Standard and Poor's Corp rates it AA.
Reuter
|
CRUDE OIL PRICES UP AS STOCKS, OUTPUT FALL | U.S. crude oil prices rose above 18
dlrs a barrel this week and industry analysts said the price
could rise another dollar as inventories fall.
"OPEC is keeping its production down, and in the cash market
there is tight supply of crude with short transportation time
to major refining centers," said Daniel McKinley, oil analyst
with Smith Barney, Harris Upham and Co. "That could send prices
50 cts to a dollar higher," he added.
The U.S. benchmark crude West Texas Intermediate rose to
18.15 dlrs a barrel today, a rise of 1.50 dlrs this week.
The rally in oil prices this week came after prices fell in
February more than two dlrs from its high of 18.25 dlrs a
barrel.
"Oil traders were pulling prices down on the assumption that
oil stocks were building and OPEC was producing well above its
15.8 mln bpd quota, but now both of those assumptions have come
under question," McKinley said.
Yesterday the International Energy Agency in its monthly
report said that oil stocks in the OECD area, or in
industrialized nations, were drawn down by 1.3 mln bpd during
the first quarter of this year.
IEA estimates that the draw in oil stocks during the first
quarter of this year will come largely from oil companies whose
inventory levels by April one will be an estimated 326 mln
tonnes, or about 74 days consumption.
Industry analysts also said the estimate of a 3.5 mln bpd
draw in stocks made by Shell Chairman Peter Holmes yesterday
fed speculation that other major companies were destocking.
Traders said the destocking has come about as a result of a
so-called buyers strike, which kept refiners from buying
officially priced OPEC oil in an effort to get the organization
to offer discounts to the official price.
"This struggle between the companies and OPEC is the
ultimate game of chicken but it will be resolved relatively
soon. I would imagine by about the middle of the month (March),"
the general trading manager of an international oil company
told Reuters in a telephone interview.
For its part OPEC has moved to win this game by cutting
excess supplies from the market by a reduction of its own
output, traders said. A Reuter survey estimates OPEC output to
be 14.7 mln bpd this week.
Also, an earthquake in Ecuador yesterday led it to suspend
oil exports indefintiely and force majeure its shipments.
"This will reduce short-haul availabilities by about 250,000
bpd almost immediately and the longer the suspension continues,
the larger the draw in stocks will be for companies expecting
it to be there," McKinley said.
International oil traders said that other short-haul
crudes, such as North Sea Brent, were also scarce because Asian
refiners bought the oil after absorbing a lot of the readily
available Mideast crudes earlier this week.
If this pattern continues then oil companies will bid up
the price of oil as they purchase for their refineries, trading
managers at several companies told Reuters.
But there were skeptics who said they wondered how long
OPEC can retain its unity if buyer resistance continues.
Stephen Hanke, chief economist at Friedburg Commodity
Management, said OPEC production was lower "because of the
Saudi cut (to 3.1 mln bpd) and this could spell trouble if it
gives other members an incentive to exceed their quotas."
He added, "The Saudis will be picking up the tab for other
members who produce over their quota, and the drain on the
Saudis will continue, forcing them to cut output maybe as low
as 2.5 mln bpd to support the 18 dlrs average price," he added.
There are also signs of some OPEC crudes being sold in the
spot market at below OPEC official prices, traders said.
Oil traders said Nigerian Brass River sold for delivery
into the U.S. Gulf at a price related to North Sea brent, which
traded this week at 17.60 dlrs, far below the official price of
18.92 dlrs for the similar quality Bonny Light.
Iranian oil is also surfacing in the U.S. Gulf and the Far
East at reported discounts to its 17.50 dlrs official price.
"There is a lot of oil priced on government-to-government
deals, which are below official prices and this is probably
being resold," one international trader said.
Reuter
|
TALKING POINT/ PAPER STOCKS | The attempt by International Paper Co
<IP> and Stone Container Co <STO> to raise linerboard prices
could stick, industry analysts said, citing strong demand and
tight capacity. But they said rising inventories hurt the odds.
"It remains to be seen whether the increases will be
accepted, but I think the odds are better than 50-50 they
will," Mark Rogers, paper analyst for Prudential Bache said.
Mead Corp <ME> and Union Camp Corp <UCC> said they are also
considering price increases.
Rogers, who has been aggressively recommending Stone and
International Paper for several months, said the increases
could stick because plants are running full tilt and little new
capacity is coming on stream.
"The operating rates in linerboard are running at about 97
to 98 pct of capacity, but demand continues to climb," Gene
Cartledge, chairman and chief executive officer of Union Camp
said "The industry is essentially sold out."
Cartledge said domestic linerboard shipments in January hit
about 1.6 mln tons, six pct higher than January 1986, while
exports hit 170,000 tons, three to four pct higher.
Nevertheless, rising inventories could nip the increase in
the bud, Lawrence Ross, forest products analyst for Paine
Webber, said.
"Containerboard inventories have been growing for the past
three months," Ross said. "Over that time inventories rose from
4.8 weeks worth of supplies to 5.9 weeks most recently."
Also, Ross said that the Jacksonville, Fla., paper mill, 49
pct owned by Stone, is planning to come on stream again soon,
which may help alleviate some of the supply constraints. "The
plant's capacity, by itself, is about two pct of the industry
total," Ross said.
But, Rogers said the Jacksonville mill "won't be enough" to
significantly ease tight capacity this year. The price increase
is necessary, he said, to attract more investment.
Rates of return in the industry have been too low in recent
years to merit inventment in new capocity, Rogers said, adding
that he sees prices climbing to the 400 dlrs-a-ton range this
year.
"The consensus on the Street is changing," he said, "from
whether there will be increases to when is the next increase
and how much."
Reuter
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MGE PLANNING APRIL 6 START UP OF HFCS CONTRACT | The Minneapolis Grain Exchange (MGE)
will start trading futures contracts in high fructose corn
syrup on April 6 if the Commodity Futures Trading Commission
(CFTC) approves the contract as expected next week.
Pat Henderson, spokesperson for the MGE, said the exchange
expects contract approval at CFTC's Tuesday meeting. It has
been under review since the exchange submitted the proposal in
December, 1985.
The proposed contract is based on 48,000 pound lots of
55-pct high fructose corn syrup, the equivalent of one tank
truck of the sweetening agent derived from corn in the wet
milling process. The syrup, commonly called HFCS-55, is most
commonly used as a sweetener in soft drinks and other
beverages.
Delivery would be by shipping certificate from production
facilities designated by the exchange. The contract, designated
by the symbol "HF," would trade from 0900 to 1315 CST. Months
traded would correspond with the Chicago corn futures months of
March, May, July, September and December.
Contract price will be quoted per hundred weight, with a
minimum price fluctuation of one cent and maximum fluctuation
of one dlr per CWT.
"We hope the producers and users of fructose will be
actively involved, those producers being the large processors,
the corn wet millers, and the users being the beverage
bottlers," Henderson said. "But there are potentials for all
types of people to use it. There is quite a list of industries
that utilize fructose."
Reuter
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<CONCORDE CAPITAL LTD INC> IN FRANCHISE PACT | Concorde Capital Ltd Inc said it has
signed an agreement to establish a minimum of 40 Heidi's Frozen
Yogurt Shoppes in South Florida over the next 48 months.
It said it signed the agreement with <Zenith Capital Inc>,
which received 3,890,000 Concorde shares, or a 10 pct interest,
for the exclusive franchise rights from Orlando south in
Florida.
Zenith now has seven company owned and 44 franchised
Heidi's open and another 90 franchises sold.
Concorde said it expects to change its name soon to Heidi's
Frozen Yogurt Shoppes of Florida Inc.
Reuter
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FIRST FEDERAL BROOKSVILLE <FFBV> SETS QUARTERLY | Qtly div four cts vs four cts prior
Pay March 31
Record March 20
NOTE: First Federal Savings and Loan Association of
Brooksville.
Reuter
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ENERGY VENTURES <ENGY> FORMS NEW ENERGY UNIT | Energy Ventures Inc said it formed a
new subsidiary, EVI Inc, that will seek to fund growth of and
offer financial services to oil service and equipment
companies.
The new unit is majority owned by Energy Ventures. Simmons
and Co Finance, an affiliate of Houston-based Simmons and Co
International, is minority shareholder.
Initial capital of 25 mln dlrs was provided by Energy
Ventures with an additional one mln dlrs contributed by Simmons.
Reuter
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ALUMINUM CO OF AMERICA <AA> REGULAR DIVIDEND | Qtly div 30 cts vs 30 cts in prior qtr
Payable May 25
Record May one
Reuter
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<TECHNIGEN PLATINUM CORP> IN METALS FIND | Technigen Platinum corp said it
initial results of a 13-hole drilling program on its R.M. Nicel
platinum property in Rouyn-Noranda, Quebec, indicate
"extensive" near-surface zones "highly" enriched in gold,
platinum and palladium were found in rocks on the periphery of
a sulphide deposit.
It said values of up to 0.073 ounce of platinum, 0.206
ounce palladium, three pct copper and 4.5 pct nickel were found
over a drill section of 13 feet.
More
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SIEMENS WANTS TO AMEND TELECOM PLUS <TELE> PACT | Telecom Plus International Inc
said <Siemens AG>'s Siemens Information Systems wants to amend
its agreement to purchase Telecom's 65 pct interest in Tel Plus
Communications to delay payment of 25 mln dlrs for 11 months.
Telecom's shareholders are scheduled to vote on the 165 mln
dlr transaction Monday.
Telecom said it advised Siemens it intends to close the
transaction on March 16, as scheduled, if it is approved by
shareholders. A spokesman said this means Telecom will decide
before the 16th whether or not to accept the proposed change.
Explaining its request for the amendment, Siemens informed
Telecom it had recently become aware of information causing
concern with respect to certain accounting and other matters.
Siemens said it will therefore need to continue its review
beyond March 16 to determine whether certain representations
and warranties are true.
Telecom said it advised Siemens it knows of no information
which would make its representations and warranties untrue.
Siemens already owns the remaining 35 pct of Tel Plus. The
65 pct represenmts Telecom's principal operating asset.
A Telecom spokesman said the agreement calls for payment of
all but 29 mln dlrs of the price at closing. Of this, 21 mln
dlrs was to be paid 11 months later and two mln dlrs per year
on the anniversary date of the transaction.
He said Siemens is now proposing that 25 mln dlrs be added
to the 21 mln dlrs to be paid in 11 months.
Telecom said the proposed amendment would also permit
Siemens to defer repayment of up to an additional 50 pct of
certain intercompany debt until completion of the review.
Telecom said it estimates this to ba about 15 mln dlrs.
Reuter
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LUCKY STORES SAYS IT AND INVESTOR EDELMAN REACHED STANDSTILL AGREEMENT
| |
PIONEER GROUP UNIT GETS MORE GHANA GOLD LAND | The Pioneer Group Inc said its 70
pct-owned Teberebie Goldfields Ltd venture was granted an
additional concession of land in Ghana to seek and mine gold.
The State Gold Mining Corp of Ghana granted the venture an
additional 14.5 square kilometers in Teberebie, Ghana,
contiguous to 11.5 square kilometers granted earlier.
The original concession appears to have a substantial
amount of gold bearing material containing about 2 grams, or
6/100 ounces, of gold per tonne. But the venture has no firm
estimate on the costs of extracting the gold and no assurances
can be given that the reserves can be mined profitably, the
company said. It said Teberebie Goldfields has not conducted
tests on the newly granted land but added the land seems to be
similar in geological characteristics to the original land.
Reuter
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DEBT PROPOSAL FAULTED BY ARGENTINE OBSERVER | A counter-proposal from creditor
banks to Argentina's request for rescheduling its 50 billion
dlr foreign debt was faulty, an Argentine observer at
negotiations said.
"The negotiations are not going to prosper if (the creditor
banks) do not change the counter-proposal put to Argentina, as
it is a Swiss cheese full of holes," ruling Radical Party Deputy
Raul Baglini said.
Baglini, who was recently observing negotiations with the
steering committee for Argentina's creditor banks in New York,
spoke to reporters in Mendoza, 600 miles west of Buenos Aires.
Baglini said the counter-proposal did not take into account
Argentina's request for a 2.15 billion dlr loan to meet four
pct growth targets in 1987.
He said the steering committee wanted only to discuss some
aspects of the request, while Argentina's negotiators were
laying emphasis on a global pacakge.
The United States said last week it would back a 500 mln
dlr bridge loan to Argentina.
Reuter
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INTERNATIONAL MULTIFOODS CORP <IMC> DIVIDEND | Qtly div 29-1/2 cts vs 29-1/2 cts prior
Pay April 15
Record March 27
Reuter
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IBM <IBM> NAMES NEW PRESIDENT FOR DIVISION | International Business Machines
Corp said it has named James A. Cannavino president of its Data
Systems Division, succeeding IBM vice president, Edward M.
Davis, who is retiring June 30 and until then will be IBM vice
president, technology competitiveness.
The Data Systems Division is responsible for worldwide
development and U.S. manufacturing of IBM's large systems and
associated software.
Cannavino had been vice president of the division and
general manager of the IBM Poughkeepsie, N.Y., manufacturing
and development facility.
Reuter
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HADSON CORP <HADS> 4TH QTR NET | Shr profit four cts vs loss 99 cts
Net profit 545,000 vs loss 13.1 mln
Revs 75.3 mln vs 37.9 mln
Avg shrs 14.8 mln vs 13.1 mln
Year
Shr profit 34 cts vs profit 34 cts
Net profit 4,908,000 vs profit 4,487,000
Revs 216.8 mln vs 117.7 mln
Avg shrs 14.6 mln vs 13.1 mln
NOTE: 1985 net included gain on sale of foreign properties
of 15.5 mln dlrs or 1.19 dlrs per share and a writedown of oil
and gas properties of 12.5 mln dlrs or 96 cts per share. 1985
4th qtr net included writedowns of oil and gas properties.
Reuter
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FUNARO SAYS CREDITORS WILLING TO HELP BRAZIL | Finance Minister Dilson Funaro,
currently on a global tour to seek governmental support for his
efforts to solve Brazil's 108 billion dlrs foreign debt crisis,
said creditors have expressed willingness to help.
In an interview with the Globo television network,
transmitted from Rome, Funaro said he had proposed a "four-year
plan" to the creditors, which would include a rescaling of the
commitments derived from its debt.
After visiting the U.S., England, France, West Germany,
Italy and Switzerland, Funaro is now on his way to Tokyo, where
he is to arrive on Sunday for talks with Japanese government
officials as well as private bankers.
Reuter
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LUCKY STORES <LKS>, EDELMAN IN STANDSTILL PACT | Lucky Stores Inc said it and
investor Asher Edelman agreed on a settlement that prohibits
Edelman and his group from taking specified actions to obtain
control of the company and that limits the Edelman group's
ownership of Lucky's stock to less than five pct of any voting
securities.
The arrangement also provides for the dismissal of pending
litigation between the parties, Lucky Stores said.
The settlement also calls for the withdrawal of Edelman's
motion to intervene in pending shareholder actions against
Lucky Stores and its directors, the company said.
In addition, the standstill provisions also apply to
Hancock Fabrics after it is spun off to Lucky stockholders, the
company said.
Lucky Stores said the arrangement also calls for the
company to submit to stockholders at a special meeting set for
December 31 a proposal from Edelman seeking their views
concerning repeal of a charter provision that limits the voting
power of substantial Lucky stockholders.
Edelman, who owns about five pct of Lucky Stores' stock,
last year was rebuffed in his effort to acquire the company.
Last October Lucky Stores implimented a restructuring
program that included the repurchase of 28 pct of its own
common shares and reincorporation in Delaware.
The spinoff of Hancock Textile Co, a chain of 324 retail
stores, was one of the key parts of the restructuring program.
Edelman and his Plaza Securities Co partnership
subsequently sued in an attempt to block the proposed
reincorporation, which was a condition of the repurchase and
restructuring plan.
Under this latest arrangement, Lucky Stores said it agreed
to reimburse the Edelman group for 2.8 mln dlrs of
out-of-pocket expenses, which include litigation and other
costs.
"This agreement serves the interests of Lucky stockholders
by avoiding the significant cost of continued litigation and
the accompanying demands on management time," Lucky Stores
chairman John Lillie said in a statement.
Reuter
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ATT <T> PHONE PROPOSAL TO HELP PROFITS | American Telephone and Telegraph Co's
proposal to deregulate its long distance phone service is
unlikely to produce a radical change in phone rates, but it
should help the company's profits, analysts said.
"Deregulation will mean more pricing discounts for large
volume users, but status quo for residential users," said
PaineWebber Group analyst Jack Grubman.
But the proposals will scrap the pricing formula that has
constrained the company's profits in the long distance
business, leading to higher profit margins, analysts said.
ATT has long pushed for deregulation of its long-distance
business, the profits of which have been limited by a regulated
rate-of-return on the company's investments. The rate was cut
last year to 12.20 from 12.75 pct.
Earlier today the company proposed to the Federal
Communications Commission to scrap the formula, cut the amount
of time needed to approve rate proposals, and leave it up to
its competitors to oppose it filings.
MCI Communications Corp <MCIC> made a similar filing
yesterday, saying greater the moves would increase competition
in the telephone business.
Analysts said the proposals will allow ATT to cut costs in
the long-distance unit, and increase its profit margins
previously constrained by the rate of return. But many said
they did not expect the proposals to lead to higher prices in
the industry, simply because of the competition the phone
industry giant faces.
"You probably wouldn't see as much of a price decline,"
said Gartner Group analyst Fritz Ringling. "But you wouldn't
see a rise." Grubman said the proposals will allow ATT to
selectively raise or lower prices, depending on the market. "It
will give ATT a lot more flexibility," he said.
ATT now faces a period of comment in which a number of
companies will be able to respond to the proposals in FCC
hearings.
It may face at least one strong opponent, U.S. Sprint, the
long distance joint venture between GTE Corp <GTE> and United
Telecommunications Inc <UT>.
"We think the Congress of the FCC should establish a
reasonable rate of return. Someone should establish it," a U.S.
Sprint spokesman said. But he added the company was not opposed
to greater competition.
It may also take some time for the proposals to go through,
and in the process they may be altered by the various
constituencies affected by the move.
"There's so much complexity, so much inertia, so much
bureacracy, that stricly speaking about the mechanisms, it
won't happen that fast," said analyst Victor Krueger of the
Gartner Group.
Reuter
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CME SETS MAY 29 START FOR LUMBER FUTURES OPTIONS | The Chicago Mercantile Exchange (CME)
board of governors announced today the options on Random Length
lumber futures will begin trading on May 29.
The contract received Commodity Futures Trading Commission
(CFTC) approval on January 21 after being submitted for review
last October 13.
Initially, only January, March and May delivery months will
be listed for trading. The size of the underlying futures
contract is 130,000 board feet. Regular trading hours for the
contract will be from 0900 to 1305 Central Time. However, on
the first day of trading the market will open at 1000.
On March 4 the CME board amended the contract to eliminate
Christmas Eve expirations for the January option. This
amendment has been submited to the CFTC, the CME said.
reuter
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TWA CONFIRMS OWNERSHIP OF 15 PCT OF USAIR GROUP
| |
U.S. NAVY GROUNDS SOME A-6 ATTACK JETS | The Navy last month grounded half of
its A-6E attack jets for wing inspections after a California
accident but has since returned half of the grounded planes to
service, a Navy spokesman said.
Kevin Mukri said 186 of the Navy's 340 A-6E aircraft, built
by Grumman Corp, were grounded on Feb. 20 after a Jan. 14 A-6E
crash during a training flight near El Centro, Calif., which
killed one of two crewmen aboard.
"A subsequent inspection of the wreckage at the Naval
Research Laboratory in Washington showed an apparent inner wing
stress problem," Mukri told Reuters.
"Ninety-seven of the grounded planes have since undergone
visual inspections and 91 of those have been cleared to return
to service," he said.
Reuter
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IRAN INVESTIGATORS SEEK REAGAN TAPES | The House and Senate committees
investigating the Iran arms scandal said they would like to
review tapes of phone conversations between President Reagan
and White House officials, if such tapes exist.
The committees were responding to a magazine article
that quoted unidentified "sources with first-hand knowledge of
U.S. communications intelligence" as saying there is an archive
of recorded conversations among Reagan administration
officials, including the president.
The article in Progressive magazine also said the
government had secretly monitored the home telephone of former
National Security adviser Robert McFarlane after he had left
government service in late 1985.
"According to sources with first hand knowledge of U.S.
communications intelligence operations," the story said, "the
McFarlane intercept grew out of a program that has produced a
still-undisclosed archive of recorded conversations involving
... Reagan, Vice President George Bush, (fired National
Security Council aide) Lt Col Oliver North, (former National
Security Adviser) Adm John Poindexter, (former White House
Chief of Staff) Donald Regan and other key figures in the
Iran-contra arms scandal."
It said the monitoring was done for security and record
purposes by the top-secret National Security Agency (NSA), and
was apparently done with the consent of those monitored.
But White House spokesman Marlin Fitzwater denied one
premise of the article, saying, "The National Security Agency
said it did not monitor any of McFarlane's conversations."
He did not comment on the other recorded conversations the
Progressive article said were included in the program.
"Clearly we would be interested in taking a look if indeed
such tapes exist," a Senate Iran committee aide told Reuters in
response to the magazine article.
A spokesman for the House Iran committee said the panel
would consider a request to the NSA for copies of the
telephone-tap archive described in the article.
Several legislators said the tapes, if it is confirmed that
they exist, could prove invaluable to the special House and
Senate committees that were created in January to investigate
Reagan's most damaging political crisis.
"This sort of evidence could be absolutely crucial in
getting to the bottom of the affair," said Rep. Robert
Kastenmeier, a Wisconsin Democrat and member of the House
Intelligence Committee, told Reuters.
Reuter
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STRUTHERS WELLS <SUW> SEES 1986 NOV 30 LOSS | Struthers Wells Corp said it expects
to report a loss, without tax benefit, of about 16 mln dlrs for
the fiscal year ended November 30, 1986, versus a profit of
295,000 dlrs in fiscal 1985.
The company added, however, that about 13.6 mln dlrs of the
loss relates to discontinued operations and disposal of
subsidiaries.
The company said the loss is part of its previously
announced restructuring that includes the sale of its foreign
and domestic units.
Struthers added that it has filed with the Securities and
Exchange Commission for an extension to file its annual report
on form 10-K as a result of delays caused by the restructuring.
Reuter
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SOROS GROUP TELLS SEC IT MAY BUY UP TO 49.9 PCT OF FAIRCHILD INDUSTRIES
| |
TWA <TWA> CONFIRMS OWNERSHIP OF USAIR <U> STOCK | Trans World Airlines Inc said it owns
more than four mln USAir Group shares or about 15 pct of the
total outstanding.
TWA said it may acquire additional shares in the open
market, in private transactions, through a tender offer or
otherwise, subject to Department of Transportation approval.
TWA has offered 52 dlrs per share for USAir Group. USAir
rejected the offer yesterday, calling it a last-minute attempt
to interfere with its takeover of Piedmont Aviation Inc.
A TWA spokesman said the company has filed an application
for approval on its offer to buy USAir with the Department of
Transportation, and later today it will file a response to
USAir's motion with the DOT to dismiss the TWA application.
TWA said it made the statement today on its stock position
in USAir in response to inquiries.
Traders said they believed TWA Chairman Carl Icahn was the
buyer of an 855,000 share block crossed today by Salomon
Brothers.
USAir stock was trading at 50-3/4, up 2-1/4 on heavy volume
of 3.1 mln shares. TWA stock fell 3/8 to 30-5/8.
While analysts and arbitragers have speculated that Icahn
may have made the offer for USAir in order to trigger the
acquisition of his own airline, Wall Street today began to take
Icahn's effort more seriously.
"I think he's going to be the next Frank Lorenzo of Wall
Street," said one market source. Lorenzo, chairman of Texas
Air, has added to his airline with the acquisitions of Eastern
Airlines and People Express Airlines.
There was also speculation that Icahn would like to buy
USAir and then sell TWA as a merged company.
Reuter
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SILVER STATE MINING <SSMC> CORRECTS NET | Silver State Mining Corp said it has
corrected its 1986 fourth quarter net income to 485,380 dlrs
from 528,790 dlrs reported earlier today.
The company earned 286,969 dlrs in last year's fourth
quarter.
Reuter
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