titles
stringlengths 12
138
| article
stringlengths 15
8.85k
| category
stringclasses 6
values |
|---|---|---|
GAC LIQUIDATING TRUST <GACTZ> YEAR NET
| Shr 1.05 dlrs vs 27 cts
Net 4,193,000 vs 1,070,000
Revs 9,377,000 vs 9,444,000
NOTE: 1986 net includes gain two mln dlrs from reduction of
loss allowance on undeveloped land.
| Other |
INVESTOR HAS 8.0 PCT OF ALLEGHENY INT'L <AG>
| A group of firms and funds
controlled by New York investor Mario Gabelli said it has
acquired the equivalent of 882,507 shares of Allegheny
International, or 8.0 pct of the total outstanding.
In a filing with the Securities and Exchange Commission,
the Gabelli group said it bought the stake as part of its
business and not in an effort to seek control of the company.
It said it may by more shares or sell some or all of its
current stake. The stake includes 782,000 common shares and
cumulative convertible preferred stock which could be converted
into 100,507 common shares.
| Financial Reports |
U.S. CORPORATE FINANCE - NEW ZEALAND DLR FRNS
| Floating-rate notes denominated in a
foreign currency, a relatively new wrinkle on Wall Street, will
probably be issued infrequently because the so-called "window
of opportunity" opens and closes quickly, traders say.
"In just two days we had as many issues. As a result, the
market became glutted," said one trader.
He said the window depends more on supply than on foreign
exchange or interest rate risk, at least for the moment.
"Obviously, currency risk is important. But there is a limited
number of investors right now for the paper," he said.
On Thursday, Bear, Stearns and Co sole-managed a 100 mln
New Zealand dlr offering of three-year floating-rate notes
issued by Ford Motor Credit Co, a unit of Ford Motor Co <F>.
The initial rate for the notes will be set on April 15, and
quarterly after that, at 200 basis points below the 90-day New
Zealand bank bill rate. They are non-callable for life.
This followed by a week another Bear Stearns-led offering
of the same amount of New Zealand dollar notes for Dow Chemical
Co <DOW>. The initial rate was also to be initially set on
April 15, and quarterly after that, at 340 basis points below
the same 90-day New Zealand rate.
Because the Dow Chemical notes carried an interest rate
floor of 17 pct, the issue saw strong investor demand,
underwriters said.
But the Ford Credit notes and Friday's offering of 130 mln
New Zealand dlrs of floating-rate notes due 1990 issued by
General Electric Co's <GE> General Electric Credit Corp via
Prudential-Bache Securities Inc, did not have such a floor.
"Obviously, the two firms did not want to issue floaters
and face the risk of New Zealand rates falling sharply," an
underwriter away from the syndicates said. He and others noted
that the New Zealand 90-day rate was 27 pct late last week.
An underwriter familiar with the Dow Chemical deal pointed
out that because of the interest rate and currency swaps Dow
did, the issuer felt comfortable setting a rate floor.
Domestic offerings of foreign currency denominated date
first surfaced in Fall 1985. By using currency and rate swaps,
companies can sell debt that pays a high interest rate in a
foreign currency like Australian or New Zealand dollars. But
the issuers actually realize savings on borrowing costs.
"I would say that every company which issued foreign
currency debt saved some basis points when compared to
same-maturity plain vanilla U.S. issues," an analyst said.
Investors, mainly institutions, were attracted to the early
issues because of the high interest rates. They were willing to
absorb foreign currency risk until mid-1986, when sharp slides
posted by the Australian and New Zealand dollars brought such
issuance to a quick halt.
It was not until late last year, after the currencies
stabilized, that companies again started issuing debt
denominated in Australian and New Zealand dollars.
But many investors have still shied away from the debt,
remembering the mid-1986 downturn of the Australian and New
Zealand dollars, analysts noted.
To attract some of those investors back to the fold,
underwriters like Bear Stearns decided to structure the foreign
currency issues as floating rate debt, sources said.
This occurred against a backdrop of uncertainty over the
course of U.S. interest rates for the intermediate term, and
predictions by a number of economists that Treasury yields
would rise in the second half of the year, the sources noted.
A Bear Stearns officer said more than half of the Ford
Credit notes were sold by late Friday afternoon, the second day
of offering. "That is quicker than some recent fixed-rate New
Zealand dollar note issues," he said.
However, underwriters away from the Bear Stearns syndicate
said the issue may have sold even faster if Prudential-Bache
did not offer the General Electric Credit notes on Friday.
They pointed out that the Ford notes were rated A-1 by
Moody's Investors and AA-minus by Standard and Poor's, while
the General Electric notes, which had the same interest rate
terms and were also non-callable to maturity, carried
top-flight AAA ratings by both agencies.
"We have sold 20 to 25 pct of the GE notes. For first-day
sales on a Friday afternoon, I'm happy with the results," an
officer on Prudential-Bache's syndicate desk said.
Investors pay the U.S. dollar equivalent of the foreign
currency-denominated notes, underwriters said.
Investment bankers said the next floating-rate issue of New
Zealand or Australian dollar-denominated debt is probably a few
weeks away.
"I would like to underwrite a deal a day. But with the Dow,
Ford and GE offerings, the marketplace has had enough for the
time being," the Prudential-Bache officer admitted.
Meanwhile, IDD Information Services said the 30-day
corporate visible supply fell to 3.29 billion dlrs last week
from 3.98 billion dlrs in the previous week.
| Other |
YUGOSLAVIA WHEAT FREE OF WINTERKILL - USDA
| There was no evidence of winterkill
in Yugoslavian winter wheat during field travel along a line
running northwest from Belgrade to near Maribor, the U.S.
Agriculture Department's counselor in Belgrade said in a field
report.
The report, dated February 26, said there is evidence of
delayed germination in most areas due to late seeding last fall
because of dry conditions.
However warm temperatures over the past three weeks have
promoted some early growth and will help the crop catch up on
last fall's late seeding, it said.
Some Yugoslav agriculture officials are concerned about the
situation because warm temperatures have brought the grain out
of dormancy and taken away snow protection a little early, the
report said.
Cold temperatures over the next month could cause damage
under these conditions, they said.
The report said all wheat farmers contacted during the
field trip were optimistic about the crop and the way it
emerged from winter.
| Corporate News |
<CLAYTON AND DUBILIER INC> SELLS BURPEE
| Privately-held Clayton and Dubilier
Inc said it has sold W. Atlee Burpee Co to a new company formed
by Wicks Capital Corp, Bankers Trust New York Corp <BT> aND
Burpee management for undisclosed terms.
The garden supply company was acquired from ITT Corp <ITT>
in December along with O.M. Scott and Sons Co.
| Financial Reports |
GCA CORP <GCA> YEAR
| Shr loss 1.77 dlrs vs loss 10.47 dlrs
Net loss 24.9 mln vs loss 123.1 mln
Revs 123.1 mln vs 156.5 mln
NOTE:1985 loss includes loss of 51.2 mln dlrs from
discontinued operations. 1986 loss includes gain of 6.8 mln
dlrs from discontinued operations.
| Corporate News |
DOW <DOW> SEES RECORD ANNUAL PROFITS IN 1987
| Dow Chemical Co believes strong margins
for chemical products could result in record earnings this
year, Chairman Paul Oreffice said.
"I'm hoping we will have the best year in our history
profit-wise," he told reporters following a speech at The
American Institute of Chemical Engineers meeting.
"I believe the entire chemical industry is headed for a
record year, or close to it," Oreffice said.
In 1986, Dow earned 741 mln dlrs an increase from 1985's 58
mln dlrs brought about by falling oil prices and resulting
cheaper feedstock costs.
Oreffice also said Dow's profit margins on chemical
products would improve this year over last year.
He said reduced capacity in the chemical industry and the
weakened U.S. dollar would also contribute to the company's
improved performance.
Dow will spending about 650 mln dlrs on research and
development in 1987 with an emphasis on new specialty
chemicals, Oreffice said.
| Financial Reports |
CHEROKEE GROUP <CHKE> 1ST QTR FEB 28 NET
| Shr 22 cts vs 16 cts
Net 2,460,000 vs 1,730,000
Sales 37.0 mln vs 27.3 mln
Per share figures adjusted for two-for-one stock split of
February 1987.
| Financial Reports |
CRUDE OIL NETBACKS UP IN U.S., MEDITERRANEAN
| Crude oil netback values in complex
refineries rose slightly in the U.S. and the Mediterranean
last Friday from the previous week but were lower elsewhere,
according to calculations by Reuters Pipeline.
The soft tone to refining margins reflects large worldwide
stocks of petroleum products and thin trading activity, traders
said.
In the U.S. Gulf, sweet crudes rose in value by as much as
26 cts a barrel for West Texas Intermediate, an increase of 1.4
pct from the previous Friday, while sour crudes, such as
Alaska North Slope, were up one pct.
In the Mediterranean, netback values were up 17 cts to 22
cts a barrel, with Arab Light up 17 cts a barrel to 18.62 dlrs,
a 0.9 pct increase from the previous Friday and Urals were up
22 cts a barrel to 19.16 dlrs, a 1.2 pct increase.
But netbacks for crude oil refined in Northern Europe was
generally lower with Brent valued at 18.89 dlrs, off 30 cts
from the previous friday, and Bonny Light was off 17 cts to
19.58 dlrs a barrel.
Refinery netbacks in Singapore were also lower, with
heavier and sour crudes weakest. Arab Heavy dropped 10 cts to
16.63 dlrs a barrel and Dubai was off 12 cts to 18.09 dlrs.
On the U.S. West Coast, however, netback values for ANS CIF
L.A. were weaker with weak gasoline prices sending the yield at
cracking plants down 68 cts to 18.42 dlrs from the previous
Friday, as shown below in dlrs a barrel.
TOPPING.........15.63......16.10......14.30
CRACKING........18.42......19.10......16.86
The Mediterranean region also showed netback values rising
last Friday over the previous week with the largest gains shown
by Es Sider and the heavier Urals crude oil, which were each up
22 cts a barrel last Friday to 19.40 dlrs and 19.16 dlrs a
barrel, respectively.
Netback values for the mediterranean region are shown below
in dlrs a barrel.
GRADE...........MAR 27.....MAR 20.....FEB 27
ES SIDER........19.40......19.18......16.44
ARAB LIGHT......18.61......18.44......15.52
IRAN LT.........19.25......19.08......16.16
KUWAIT..........18.51......18.33......15.42
URALS cif.......19.16......18.94......16.07
Netbacks in Northern Europe's refinery region were lower
last friday from the previous week with Brent falling 1.6 pct
to 18.89 dlrs a barrel.
Netbacks for other grades of oil refined in Northern
Europe are shown below in dlrs a barrel.
................MAR 27.....MAR 20.....FEB 27
BRENT...........18.89......19.19......16.77
BONNY LIGHT.....19.58......19.75......17.15
ARAB LIGHT......18.49......18.52......16.07
URALS CIF.......19.02......18.98......16.54
Refinery netbacks in Singapore were also lower with heavier
and sour crudes weakest.
Arab Heavy dropped 10 cts to 16.63 dlrs a barrel and Dubai
was off 12 cts to 18.09 dlrs.
Netbacks for other grades of oil refined in Singapore are
shown below in dlrs a barrel.
GRADE...........MAR 27.....MAR 20.....FEB 27
ATTAKA..........19.23......19.24......16.72
ARAB LIGHT......18.00......18.10......15.55
OMAN............18.21......18.25......16.31
DUBAI...........18.09......18.21......15.86
ARAB HEAVY......16.63......16.73......14.24
| Financial Reports |
INVESTOR GROUP HAS CIRCLE EXPRESS <CEXX> STAKE
| An investor group controlled by New
York Investor David Rocker told the Securities and Exchange
Commission it has acquired 291,400 shares of Circle Express
Inc, or 6.1 pct of the total outstanding common stock.
The group, Rocker Partners Ltd and Compass Investments Ltd,
said it bought the stake for investment purposes and not as
part of an effort to seek control of the company.
| Financial Reports |
FRENCH 1986/87 SOFT WHEAT EXPORTS FALL
| Exports of French soft wheat for the
period July 1, 1986, to March 1, 1987, fell 27.6 pct to 8.21
mln tonnes from 11.34 mln tonnes in the same 1985/86 period,
the national cereals office ONIC said quoting customs figures.
Of this total, exports to non-EC countries totalled 3.76
mln tonnes, 34 pct down on 5.70 mln, and exports to EC nations
4.45 mln tonnes, 21.1 pct down on a previous 5.64 mln.
Main EC destinations were Italy with two mln tonnes versus
1.9 mln, Belgium 500,000 tonnes (one mln), Netherlands 500,000
(600,000), West Germany 500,000 (800,000), Spain 300,000
(zero), Britain 300,000 (700,000), Greece 200,000 (300,000),
and Ireland 100,000 (200,000).
In flour, exports totalled 980,000 tonnes, up 6.5 pct on a
previous 920,000 tonnes.
Exports of maize totalled 4.11 mln tonnes, 37.4 pct up on a
previous 2.99 mln. Exports to non-EC countries were 190,000
tonnes against 140,000 and to EC countries 3.92 mln tonnes
against 2.84 mln.
Main EC desinations were Netherlands 900,000 (600,000),
Belgium 800,000 (one mln), Britain 700,000 (500,000), West
Germany 400,000 (same), Italy 300,000 (200,000) and Greece
300,000 (zero).
| Other |
IBC EXPECTED TO MAINTAIN COFFEE EXPORT FORMULA
| The Brazilian Coffee Institute,
IBC, is expected to maintain its previous pricing system when
it reopens export registrations, probably later this week,
exporters said.
They said IBC President Jorio Dauster is likely to leave
the basic formula for the minimum registration price unchanged
but raise the contribution quota to partially offset the
effects of cruzado devaluation since April registrations were
closed in mid-February.
To fully compensate for devaluation the quota would have to
be around 28 dlrs per bag against 7.0 when registrations closed.
However, even a 21 dlr per bag rise in the contribution
quota would make Brazil coffees uncompetitive on world markets,
and an increase to around 15 dlrs a bag is more likely, the
exporters said.
They added that Dauster is keen to raise the contribution
quota as the Institute needs money to repay Central Governmnet
funds released to finance IBC purchases at the guaranteed
producer price.
Although a vote in the Monetary Council to provide more
funds for such purchases was deferred on technical grounds last
week, funds are still being released for subsequent approval.
The sources said it is still unclear when registrations
will be reopened, although most expect it to be by the end of
this week.
"Brazil owes it to its customers to make its intentions
know. A country like Brazil cannot afford to be permanently
closed down," one exporter said.
However, before announcing its export policy the IBC is
likely to wait to see if tomorrow's meeting of the
International Coffee Organisation, ICO, executive board in
London decides to call a full council meeting to discuss
reintroduction of export quotas, sources said.
There is also talk of the announcement this week of new
measures to adjust the Brazilian economy, and the IBC could be
awaiting clarification before making any move, the exporters
said.
Another factor which could be delaying the opening of
registrations is the current strike by bank workers which,
while not affecting current shipments, could affect
documentation and currency operations for new sales.
This would certainly be the case if the IBC was considering
obliging exporters to pay the contribution quota within two or
three days of registering a sale.
| Financial Reports |
AUSIMONT COMPO NV <AUS> 4TH QTR NET
| Shr 42 cts vs 39 cts
Net 12.3 mln vs 9,382,000
Sales 172.0 mln vs 146.00 mln
Avg shrs 29.5 mln vs 24.3 mln
Year
Shr 1.63 dlrs vs 1.35 dlrs
Net 45.7 mln vs 30.0 mln
Sales 665.5 mln vs 446.2 mln
Avg shrs 28.0 mln vs 22.3 mln
NOTE: translated at 1,339 Italian lire to dollar.
| Financial Reports |
<VISTA MANAGEMENT INC> TO MAKE ACQUISITION
| Vista Management Inc said it has
agreed to acquire General Energy Development Inc for over
2,200,000 dlrs in cash, with financing to come from mortgage
loans on the National Auto Service Centers General Energy
operates.
| Financial Reports |
GOLDEN POULTRY <CHIK> TO MAKE ACQUISITION
| golden Poultry Co Inc said it has
signed a letter of intent to purchase privately-held food
distributor Don Lowe Foods Inc of Pompano Beach, Fla., for
undisclosed terms, subject to approval by both boards.
It said Tampa operations of Lowe are not involved in the
sale.
| Financial Reports |
WILLCOX AND GIBBS <WG> TO MAKE ACQUISITION
| Willcox and Gibbs Inc said it has
agreed to acquire Atlantia electric parts distributor B and W
Electric Supply Co for an undisclosed amount of cash.
B and W had sales of about eight mln dlrs in its most
recent year.
Willcox said it plans further expansion in the Atlanta area.
| Financial Reports |
MISCHER CORP <MSHR> 4TH QTR LOSS
| Shr loss 67 cts vs profit 60 cts
Net loss 1,398,000 vs profit 1,250,000
Revs 8,834,000 vs 20.9 mln
Year
Shr loss 2.81 dlrs vs loss 15 cts
Net loss 5,864,000 vs loss 310,000
Revs 52.1 mln vs 82.7 mln
| Other |
WICHITA INDUSTRIES INC <WRO> 4TH QTR NET
| Shr profit 32 cts vs profit eight cts
Net profit 936,000 vs profit 249,000
Revs 348,000 vs 1,150,000
Year
Shr loss 2.15 dlrs vs loss 19 cts
Net loss 6,095,000 vs loss 469,000
Revs 1,554,000 vs 4,254,000
NOTE: Results include credits of 556,000 and 1,141,000 for
the latest qtr and yr vs 112,000 and 656,000 for prior periods
from tax loss carryforwards.
Results include after-tax gains of 567,000 for both 1986
periods vs loss of 45,000 for prior periods on disposal of
discontinued operations.
Prior periods restated to reflect sale of discontinued
operations.
| Commodities and Trade |
INFODATA SYSTEMS INC <INFD> 4TH QTR NET
| Shr profit 20 cts vs loss 33 cts
Net profit 376,470 vs loss 1,555,469
Revs 3,615,550 vs 2,896,000
Year
Shr profit 14 cts vs loss 66 cts
Net profit 382,014 vs loss 1,128,160
Revs 11.2 mln vs 11.0 mln
| Financial Reports |
CITY RESOURCES <CCIMF> TO SELL PROPERTY STAKE
| City Resources Ltd said it has agreed
in principle to sell a 50 pct interest in a group of mineral
properties in the southwest Pacific to a buyer it did not name
for 30 mln Canadian dlrs.
The company said a preliminary estimate of the geological
resources of one of the properties to a depth of 200 meters
indicates a potential of 1.2 mln ounces of gold, and by the
middle of 1987 it expects to establish proven ore reserves
containing at least 500,000 ounces of gold. It said mining
could start in 1988, subject to a satisfactory prefeasibility
study.
The company said completion of the transaction is subject
to regulatory and shareholder approvals.
City Resources is controlled by City Resources Ltd of
Australia.
| Financial Reports |
HUGHES SUPPLY <HUG> TO MAKE ACQUISITION
| Hughes Supply Inc said it has
signed a letter of intent to acquire most of the assets of Tri
State Supply Inc, a wholesale distributor of electrinical
fixtures and supplies with sales for the year ending tomorrow
of about 13 mln dlrs.
Terms were not disclosed.
It said clopsing is expected around April 30, subject to
approval by Tri State's board and shareholders.
| Financial Reports |
JMB REALTY TRUST <JMBRS> 2ND QTR FEB 28 NET
| Shr 31 cts vs 41 cts
Net 436,981 vs 583,715
Six months
Shr 63 cts vs 82 cts
Net 901,648 vs 1,160,178
| Financial Reports |
REPUBLIC PICTURES CORP <RPICA> 4TH QTR LOSS
| Oper shr loss two cts vs profit eight cts
Oper net loss 77,000 vs profit 285,000
Revs 3,781,000 vs 4,721,000
Year
Oper shr profit 23 cts vs profit 26 cts
Oper net profit 904,00 vs profit 952,000
Revs 19.0 mln vs 15.1 mln
Note: Current qtr and year figures exclude losses from
discontinued operations of 303,000 dlrs, or seven cts per share
and 354,000 dlrs, or nine cts per share, respectively.
Net earnings for first three months of 1986 restated to
reflect reduction of 148,000 dlrs resulting from increase in
effvective income tax rate.
| Market and Economy |
EQUIPMENT CO OF AMERICA <ECOA> 4TH QTR NET
| Oper shr seven cts vs four cts
Oper net 159,000 vs 94,000
Sales 4,528,000 vs 3,683,000
Avg shrs 2,376,000 vs 2,189,000
Year
Oper shr 19 cts vs 15 cts
Oper net 435,000 vs 339,000
Sales 15.7 mln vs 14.4 mln
NOTE: Net excludes tax credits of 17,000 dlrs vs 39,000
dlrs in quarter and 268,000 dlrs vs 294,000 dlrs in year.
| Financial Reports |
OHIO MATTRESS <OMT> IN ACQUISITION, SETTLEMENT
| Ohio Mattress Co said itr has
executed a definitive agreement to acquire Sealy Mattress Co of
Michigan Inc, the Detroit licensee of Ohio Mattress's 82 pct
owned Sealy Inc subsidiary in a transaction that also involves
a settlement between Sealy and Michigan Sealy.
The company said on completion of the acquisition, the
Sealy stock owned by Michigan Sealy will be redeemed, raising
Ohio Mattress' interest in Sealy to 93 pct. Michigan Sealy has
been in litigation against Sealy, alleging violations of
antitrust laws, and Sealy was recently found liable for 45 mln
dlrs in damages to Michigan Sealy.
Under the acquisition agreement, the company said Sealy
will enter into a cash settlement of its litigation with
Michigan Sealy.
The company said shareholders of Michigan Sealy will
receive a total of 48.6 mln dlrs, subject to adjustment, from
the acquisition and the settlement, both of which are subject
to regulatory approvals.
Michigan Sealy had sales of about 12.5 mln dlrs in 1986.
| Financial Reports |
<TOROMONT INDUSTRIES LTD> YEAR NET
| Oper shr 49 cts vs 47 cts
Oper net 1,475,000 vs 1,474,000
Revs 85.8 mln vs 90.6 mln
Note: Current shr and net exclude extraordinary loss of
3,413,000 dlrs or 1.13 dlrs shares, versus extraordinary loss
of 63,000 dlrs or two cts share in prior year
| Market and Economy |
AMERON INC <AMN> 1ST QTR FEB 28 LOSS
| Shr loss 11 cts vs profit six cts
Net loss 515,000 vs profit 294,000
Sales 62.8 mln vs 65.4 mln
| Corporate News |
YORK INTERNATIONAL <YRK> TO MAKE ACQUISITIONS
| York International Corp said it has
agreed to acquire Frick Co and Frigid Coil/Frick Inc for
undisclosed terms.
The company said Frick makes refrigeration equipment and
compressors and Frigid Coil also makes refrigeration equipment.
Together the two had revenues of about 50 mln dlrs in 1986.
The company said it hopes to complete the acquisition in
May, subject to its review of Frick and Frigid and regulatory
approvals.
| Financial Reports |
NUCLEAR SUPPORT <NSSI> TO BUY ITT <ITT> HENZE
| Nuclear Support Services Inc
said it agreed in principle to buy the business and assets of
ITT Henze Service from ITT Corp for an undisclosed amount.
Henze, which is engaged in performing nuclear plant repair
work, had revenues of 12.7 mln dlrs for the year ended December
31, 1986.
For 1986, Nuclear Support, a supplier of support personnel
and services to the nuclear power industry, had net income of
2.4 mln dlrs on sales of 30.6 mln dlrs.
| Commodities and Trade |
COLONIAL BANCGROUP <CLBGA> BUYS FARMERS
| Colonial BancGroup said it
acquired Farmers and Merchants Bank, a Baldwin County bank with
assets of 103 mln dlrs, through an exchange of stock valued at
about 12 mln dlrs.
Colonial said it also signed letters of intent to acquire
First Federal Bank in Opelika, Athens-Limestone Bank in Athens,
Jackson County Bank in Scottsboro and Commercial National Bank
in Demopolis, with aggregate assets totaling 130 mln dlrs.
| Financial Reports |
NORTON <NRT> TO SELL SOUTH AFRICAN OPERATIONS
| Norton co said it has agreed to
sell its remaining South African business, Norton co Pty Ltd,
to <Global Mining and Industrial Corp> of South africa for
undisclosed terms.
The company said the unit accounts for less than two pct of
Norton revenues and is being sold because "Growing societal
pressures in the United States and the unsettled situation in
south Africa had required a disproportionate amount of
management tiome to oversee."
Norton said the unit is profitable.
Norton said it will provide the South Afrcian unit with
future technical support, and products makde under that
agreement will continue to be marketed under the Norton
trademark.
| Corporate News |
ROCHESTER TELEPHONE <RTC> COMPLETES ACQUISITION
| Rochester Telephone Corp said
it completed its acquisition of the Enterprise Telephone Co,
based in New Holland, Pa., in exchange for stock valued at 26.3
mln dlrs.
Enterprises serves about 16,000 access lines in Lancaster
County. Enterprise becomes the third operating telephone
subsidiary of Rochester Telephone in Pennsylvania and its sixth
largest overall, the company said.
| Market and Economy |
CITY RESOURCES TO SELL GOLD PROPERTY STAKE
| City Resources Ltd said it has agreed
in principle to sell a 50 pct interest in a group of mineral
properties in the southwest Pacific to a buyer it did not name
for 30 mln Canadian dlrs.
The company said a preliminary estimate of the geological
resources of one of the properties to a depth of 200 meters
indicates a potential of 1.2 mln ounces of gold, and by the
middle of 1987 it expects to establish proven ore reserves
containing at least 500,000 ounces of gold. Mining could start
in 1988, subject to a satisfactory feasibility study.
The company said completion of the transaction is subject
to regulatory and shareholder approvals.
City Resources is controlled by City Resources Ltd of
Australia.
| Other |
HOME SHOPPING <HSN> TO PURCHASE TV STATION
| Home Shopping NEtwork Inc said
its Silver King Broadcasting Co INc unit entered a definitive
contract to buy the broadcasting assets of TV station KWVT,
Channel 22 in the Portland/Salem, Ore. area for undisclosed
terms.
Additionally, the company said KWVT, which serves 785,000
homes, began broadcasting Home Shopping Network full time this
morning under an affiliation agreement.
Home Shopping also said it entered a definitive contract to
buy TV Station KPST, Channel 66 in San Francisco and KLTJ,
Channel 49 in Dallas.
| Commodities and Trade |
COVINGTON TECHNOLOGIES INC <COVT> YEAR NET
| Oper shr profit eight cts vs loss 20 cts
Oper net profit 1,115,000 vs loss 2,729,000
Revs 83.0 mln vs 37.9 mln
Note: Current year figures exclude operating loss
carryforward gain of 888,000 dlrs and loss from discontinued
operations of 73,000 dlrs.
Prior year figures exclude loss from discontinued
operations of 3.9 mln dlrs.
| Corporate News |
COBANCO INC <CBCO> YEAR NET
| Shr 34 cts vs 1.19 dlrs
Net 807,000 vs 2,858,000
Assets 510.2 mln vs 479.7 mln
Deposits 472.3 mln vs 440.3 mln
Loans 299.2 mln vs 327.2 mln
Note: 4th qtr not available. Year includes 1985
extraordinary gain from tax carry forward of 132,000 dlrs, or
five cts per shr.
| Other |
AMERICAN EXPRESS <AXP> SEEN IN POSSIBLE SPINNOFF
| American Express Co remained silent on
market rumors it would spinoff all or part of its Shearson
Lehman Brothers Inc, but some analysts said the company may be
considering such a move because it is unhappy with the market
value of its stock.
American Express stock got a lift from the rumor, as the
market calculated a partially public Shearson may command a
good market value, thereby boosting the total value of American
Express. The rumor also was accompanied by talk the financial
services firm would split its stock and boost its dividend.
American Express closed on the New York Stock Exchange at
72-5/8, up 4-1/8 on heavy volume.
American Express would not comment on the rumors or its
stock activity.
Analysts said comments by the company at an analysts'
meeting Tuesday helped fuel the rumors as did an announcement
yesterday of management changes.
At the meeting, company officials said American Express
stock is undervalued and does not fully reflect the performance
of Shearson, according to analysts.
Yesterday, Shearson said it was elevating its chief
operating officer, Jeffery Lane, to the added position of
president, which had been vacant. It also created four new
positions for chairmen of its operating divisions.
Analysts speculated a partial spinoff would make most
sense, contrary to one variation on market rumors of a total
spinoff.
Some analysts, however, disagreed that any spinoff of
Shearson would be good since it is a strong profit center for
American Express, contributing about 20 pct of earnings last
year.
"I think it is highly unlikely that American Express is
going to sell shearson," said Perrin Long of Lipper Analytical.
He questioned what would be a better investment than "a very
profitable securities firm."
Several analysts said American Express is not in need of
cash, which might be the only reason to sell a part of a strong
asset.
But others believe the company could very well of
considered the option of spinning out part of Shearson, and one
rumor suggests selling about 20 pct of it in the market.
Larry Eckenfelder of Prudential-Bache Securities said he
believes American Express could have considered a partial
spinoff in the past.
"Shearson being as profitable as it is would have fetched a
big premium in the market place. Shearson's book value is in
the 1.4 mln dlr range. Shearson in the market place would
probably be worth three to 3.5 bilion dlrs in terms of market
capitalization," said Eckenfelder.
Some analysts said American Express could use capital since
it plans to expand globally.
"They have enormous internal growth plans that takes
capital. You want your stock to reflect realistic valuations to
enhance your ability to make all kinds of endeavors down the
road," said E.F. Hutton Group analyst Michael Lewis.
"They've outlined the fact that they're investing heavily
in the future, which goes heavily into the international
arena," said Lewis. "...That does not preclude acquisitions and
divestitures along the way," he said.
Lewis said if American Express reduced its exposure to the
brokerage business by selling part of shearson, its stock might
better reflect other assets, such as the travel related
services business.
"It could find its true water mark with a lesser exposure
to brokerage. The value of the other components could command a
higher multiple because they constitute a higher percentage of
the total operating earnings of the company," he said.
Lewis said Shearson contributed 316 mln in after-tax
operating earnings, up from about 200 mln dlrs in 1985.
| Commodities and Trade |
CANADA CURRENT ACCOUNT DEFICIT UP IN QUARTER
| Canada's current account deficit widened
to a seasonally adjusted 2.27 billion dlrs in the fourth
quarter from a deficit of 1.94 billion dlrs in the third,
Statistics Canada said.
The shortfall for the full year rose to 8.81 billion dlrs
from 1985's 584 mln dlr deficit, the federal agency said.
The agency said the rise in the merchandise surplus, to
2.77 billion dlrs from 2.20 billion dlrs in the third quarter,
was more than offset by high deficits in servicies and
investment. The total non-merchandise deficit grew to 5.04
billion dlrs from 4.14 billion dlrs.
The current account deficit was 912 mln dlrs in the fourth
quarter of 1985.
In the capital account, not seasonally adjusted, there was
a total net inflow of 4.76 billion dlrs in the fourth quarter,
up from a net inflow of 3.22 billion dlrs in the third quarter
quarter.
The total net capital inflow rose to 13.74 billion dlrs in
1986 from 7.68 billion dlr in 1985.
| Corporate News |
PARIS MEET AGREED NOT TO PUBLISH BANDS - LAWSON
| U.K. Chancellor of the Exchequer Nigel
Lawson said the meeting of six major industrial nations in
Paris last month agreed not to publish any bands in connection
with their pact to stabilise currencies.
Questioned by a parliamentary select committee about why
the participating countries had not announced any bands, Lawson
replied, "we all agreed it would be much more sensible not to."
When asked whether that meant an informal joint currency float
with set ranges was arranged in Paris, Lawson said "I do not
want to reveal the precise nature of the agreement, so as not
to make it easy for" speculation against the accord.
Lawson said the Paris accord presumed that individual
countries would take corrective action if their currency began
reacting significantly to domestic macroeconomic factors.
But if such movements were due to extraneous factors,
Lawson said the other pact countries would come to its aid
through concerted intervention on the foreign exchanges.
"It is clear that both Germany and Japan are having
difficulty adjusting to their very large exchange rate
appreciations and making their economies more domestically
oriented, just as it is taking time for the United States to
make its own economy more export oriented," Lawson said.
In his oral evidence to Parliament's Select Treasury
Committee, Lawson repeated that he was happy with the pound's
current level, adding that "It is an objective ... To try to
keep it around that level."
He said the perception of sterling on foreign exchanges had
changed since the steep drop in oil prices, largely because the
pound had weathered that period so successfully. "There has been
a reassessment of sterling's fundamentals," Lawson said. He
disagreed with what he termed "the grossly exaggerated claim"
that real U.K. Interest rates were much higher than those of
other major industrialsed countries.
Using as a reference the key three-month sterling interbank
rate as quoted in London, Lawson said Britain now had a real
interest rate level of 5.75 pct - the same as Japan did and
only a 0.75 percentaage point above the Group of Five average.
Lawson confirmed that "over the medium and longer term, the
government's objective is zero inflation."
He said the government's intention of its PSBR constant at
1.0 pct of GDP "is the modern equivalent of the balanced budget
doctrine." He added that "to allow the debt/GDP ratio to remain
constant on anything other than zero inflation basis is simply
a recipe for accelerating inflation."
| Corporate News |
BASS GROUP SAYS IT HAS HAD TALKS ON SEEKING CONTROL OF TAFT BROADCASTING
|
BASS GROUP SAYS IT HAS HAD TALKS ON SEEKING CONTROL OF TAFT BROADCASTING
| Financial Reports |
LOWER REFINERY OPERATIONS SEEN PRODUCING PROFITS
| U.S. refiners will have to
reduce operations if they want to be profitable this year, said
industry officials attending the National Petroleum Refiners
Association meeting here.
"If the refining sector can discipline itself to refine
about 12 mln barrels of crude oil a day, we have a chance to
pull down inventories to acceptable levels by the second
quarter, said Archie Dunham, executive vice president of
petroluem products at Conoco Inc
"If not, the industry will have a tough 1987," he added.
Last week's American Petroleum Institute report said that
U.S. refining capacity rose three pct to 78.7 pct of capacity,
with crude oil runs at 12.2 mln barrels per day for the week
ended March 20.
The API said that with the higher crude oil runs,
distillate and gasoline inventories were sharply above year-ago
levels. Gasoline stocks were at 245.6 mln barrels, some 17.2
mln barrels above year-ago levels. Distillate stocks, at 108.7
mln barrels, are 10.9 mln barrels above last year's level, the
API said.
Henry Rosenberg, chairman of Crown Central Petroleum Corp
<CNP> told Reuters that unless refining and marketing return to
profitability, oil companies will have to rely on downstream
operations to produce an acceptable level of earnings.
"The jump in refining capacity is a concern if it
continues," said Kenneth Buckler, executive vice president of
refining and marketing at <Total Petroleum Co>, a U.S.
subsidiary of Cie Francaise Des Petroles of France.
Refineries should operate near 75 pct of capacity given
the current level of demand but the operating level should
increase as gasoline demand picks up in the next quarter,
Buckler said.
Dunham said the potential operable capacity of U.S.
refineries should also be cut about 500,000 barrels of crude
per day. "I expect to see the shutdown of more small refineries
over the next five years," he said, adding that these
facilities refine between 10,000 and 30,000 barrels of crude
oil per day. The API said U.S. operations have the capacity to
refine 15.6 mln bpd of crude.
| Market and Economy |
HOME FEDERAL OF THE ROCKIES <HROK> 4TH QTR LOSS
| Shr loss 2.07 dlrs vs profit 36 cts
Net loss 1,088,000 vs profit 187,000
Year
Shr loss 12.23 dlrs vs profit 17 cts
Net loss 645,000 vs profit 89,000
NOTE: Home Federal Savings and Loan Association of the
Rockies.
1986 net includes tax credits of 165,000 dlrs in quarter
and 189,000 dlrs in year.
Net includes pretax loan loss provisions of 1,439,000 dlrs
vs 127,000 dlrs in quarter and 1,701,000 dlrs vs 222,000 dlrs
in year.
| Corporate News |
U.S. EXPORT INSPECTIONS, IN THOUS BUSHELS SOYBEANS 17,683 WHEAT 20,717 CORN 36,581
|
U.S. EXPORT INSPECTIONS, IN THOUS BUSHELS SOYBEANS 17,683 WHEAT 20,717 CORN 36,581
| Financial Reports |
NEWMONT MINING <NEM> PLANS 2-FOR-1 STOCK SPLIT
| Newmont Mining Corp's board has
proposed a two-for-one stock split subject to shareholder
approval of an increase to 120 mln from 60 mln in authorized
common shares, the proxy for the company's annual meeting said.
If holdings voting at the May six meeting in Wilmington,
Del., approve the increase in authorized shares the split will
be paid in the form of a stock dividend on June 10 to holders
of record May 20, the proxy said.
Newmont said it will also ask shareholders to approve
amendments to its certificate of incorporation limiting certain
liabilities of its directors.
| Financial Reports |
DENPAC CORP <DNPC> YEAR LOSS
| Shr loss one ct vs loss one ct
Net loss 483,518 vs loss 220,582
Sales 381,841 vs 400,518
NOTE: 1985 net includes 196,868 dlr gain from forgiveness o
accrued interest due to affiliates.
| Corporate News |
<AIN LEASING CORP> 3RD QTR JAN 31 LOSS
| Shr loss six cts vs profit 22 cts
Net loss 133,119 vs profit 496,391
Revs 136,918 vs 737,917
Nine mths
Shr loss 21 cts vs profit 15 cts
Net loss 478,991 vs profit 340,210
Revs 324,011 vs 841,908
| Financial Reports |
CANADA DECEMBER GDP GAINS 1.2 PCT
| Canada's gross domestic product, by
industry, rose a seasonally adjusted 1.2 pct in December, the
largest monthly gain since April, 1986, Statistics Canada said.
GDP, which fell 0.2 pct in November, was 2.1 pct above the
December, 1985 level, the federal agency said.
Output of goods producing industries rose 1.6 pct in the
month, with virtually all the growth occurring in manufacturing
and mining. Services producing industries expanded 1.0 pct.
| Corporate News |
VENEZUELA WANTS TO BOOST ITS REFINING CAPACITY
| Venezuela's state oil
company Petroleos de Venezuela S.A. wants to raise its
worldwide refining capacity by 150,000 barrels of per day, a
company official attending the National Petroleum Refiners
Association meeting here said.
He declined to be identified but said PdVSA has the
capacity to refine about 650,000 bpd of crude oil from refining
centers
in Venezuela, Sweden, West Germany, Belgium, and the United
States. The company recently purchased a 50 pct stake in the
Corpus Christi, Texas refinery of Champlin Petroleum Co, a
subsidiary of Union Pacific Corp <UNP>.
Earlier it bought a similar stake in the Lake Charles, La
refinery owned by Citgo Petroleum Corp, a unit of Southland
Corp <SLC>.
According to the official, Venezuela is searching
worldwide for the additional refining capacity but he did not
mention where the company was looking.
Refineries abroad, he said, guarantee a refining outlet for
Venezuelan crude oil while ensuring stability of supply to
refiners.
He said Venezuela currently produces about 1.4 mln bpd of
crude oil, which is in line with its 1.495 bpd OPEC ceiling.
| Financial Reports |
PRIMEBANK <PMBK> SETS 10 PCT STOCK DIVIDEND
| PrimeBank Federal Savings
Bank said its board declared a 10 pct stock dividend to be
distributed about April 15 to holders or record March 31.
| Financial Reports |
AMERICAN LOCKER GROUP INC <ALGI> 4TH QTR NET
| Shr profit 23 cts vs loss six cts
Net profit 319,564 vs loss 84,203
Sales 6,419,230 vs 5,583,560
Year
Shr profit 1.11 dlrs vs profit 43 cts
Net profit 1,582,125 vs profit 654,083
Sales 26.2 mln vs 22.6 mln
NOTE: Full year 1985 includes gains of two cts per share
from discontinued operations and four cts per share from
disposal of assets.
| Commodities and Trade |
BASS GROUP SAYS IT HAS HAD TALKS ON TAFT <TFB>
| A group led by members of the
wealthy Bass family of Fort Worth, Texas, which holds a 24.9
pct stake in Taft Broadcasting Co, said it has had talks about
taking part in a move to take control of the company.
In a filing with the Securities and Exchange Commission,
the group said it has had discussions with other Taft
stockholders and some company managers and directors
"concerning participation in a group to acquire control" of the
company.
The Bass group, which did not identify any of the other
people with whom it said it has had talks, said it plans to
continue evaluating Taft and "will be involved in further
discussions relating to the future control and direction" of
the company.
The group, which holds 2,291,210 Taft common shares, said
its members may buy more shares of Taft common stock, or may
decide to sell some or all of its stake.
On Friday Taft said it would negotiate with a group led by
its vice chairman, Dudley Taft, and a Rhode Island investment
firm, which had offered 150 dlrs a share for the company.
The Dudley Taft group, Theta Corp, which also includes
Narragansett Capital Corp, a Providence, R.I., investment firm,
is seeking to take the company private in a leveraged buyout
valued at 1.38 billion dlrs.
Besides the Bass group, another major Taft shareholder,
Cincinnati, Ohio, financier Carl Lindner, has also said he has
had talks about increasing his stake in the company, taking
part in a takeover effort, or launching one himself.
Lindner controls 1,489,298 shares of Taft common stock, or
16.2 pct of the total.
| Financial Reports |
SAATCHI AND SAATCHI BUYS CLEVELAND CONSULTING
| Advertising agents Saatchi and Saatchi Co
Plc <SACHY> said it was buying <Cleveland Consulting Associates
Inc> for an initial consideration of 2.0 mln dlrs.
Additional payments may be made annually through the year
ending March 31, 1991 to bring the total consideration up to
9.5 pct of Cleveland's average post-tax profits in the last two
years of the period.
The purchase of Cleveland is a further step in Saatchi and
Saatchi's fast growing consulting industry, the company said.
It said its consulting operations now provide a platform for
major future expansion.
For the 12 months ended 31 March 1986, Cleveland had
479,000 dlrs in pretax profits and forecasts one mln for 1987.
At the Saatchi and Saatchi annual meeting today, the
company reported a particularly strong start to the current
year, with profits sharply higher than the same period last
year.
Saatchi and Saatchi shares rose one pence on the Cleveland
announcement to 885p after yesterday's 870p close.
| Financial Reports |
U.S. STEEL PRODUCTION ROSE 1.3 PCT IN WEEK
| Steel production rose
1.3 pct to 1,696,000 short tons in the
week ended March 28 from 1,675,000 short
tons, the American Iron and Steel Institute
reported
Production so far this year was 18,810,000 tons adjusted off
14.6 pct from 22,016,000 tons
produced by the nations mills a year ago.
Utilization for the week of March 28 was 78.7 pct and for
the week of March 21 was was 77.8 pct.
| Commodities and Trade |
NORTH AMERICAN GROUP <NAMG> 4TH QTR OPER LOSS
| Oper shr loss 12 cts vs loss 10 cts
Oper net loss 474,270 vs loss 369,848
Revs 202,500 vs 111,210
Avg shrs 3,904,373 vs 3,495,579
Year
Oper shr loss 28 cts vs loss 46 cts
Oper net loss 1,069,550 vs loss 893,612
Revs 408,031 vs 438,933
Avg shrs 3,785,607 vs 1,944,627
NOTE: Full name is North American Group Ltd
Earnings exclude losses on reorganization expenses of
33,453 dlrs, or one ct a share vs 59,520 dlrs, or two cts a sh
are in the quarter and losses of 237,859 dlrs, or six cts a
share vs 413,444 dlrs, or 21 cts a share for the year
Earnings exclude gains on discontinued operations of
147,671, or four cts a share in the 1985 quarter and gains of
760,603 dlrs, or 20 cts a share vs 520,200 dlrs, or 27 cts a
share for the year
| Financial Reports |
<OXOCO INC> YEAR LOSS
| Oper shr loss 6.68 dlrs vs loss 9.95 dlrs
Oper net loss 53.9 mln vs loss 69.8 mln
Revs 16.5 mln vs 33.2 mln
Avg shrs 8,329,492 vs 7,271,668
NOTE: 1986 excludes loss 12.9 mln for discontinued
compressor operations vs loss 14.9 mln year prior.
1986 excludes gain of 98.7 mln for extinguishment of debt
from company's chapter 11 filing and subsequent reorganization.
| Financial Reports |
TEECO PROPERTIES L.P. OPER INCOME DOWN
| <Teeco Properties L.P.> said the
partnership recorded income from operations for 1986 of 140,000
dlrs, or two cts a unit.
The partnerhsip said this compared to 1985 figures of
660,000 dlrs, or 10 cts a unit.
Results of operations between both years is not comparable
since the partnership's principle objective is to sell or
dispose of its assets and distribute proceeds to unit holders,
according to the partnership.
It said the number of units outstanding for both years is
6,479,516.
| Other |
BROUGHER INSURANCE GROUP INC<BIGI> 4TH QTR LOSS
| Shr loss nine cts vs profit 20 cts
Net loss 257,157 vs profit 414,890
Year
Shr profit 54 cts vs profit 1.05 dlrs
Net profit 1,295,104 vs profit 2,140,673
| Financial Reports |
CSC INDUSTRIES UNIT TO INCREASE PRICES
| Copperweld Steel Co <CPSL>, a
subsidiary of CSC Industries Inc., said it will increase from
market price levels its bar, semi-finished and leaded products
effective July One.
Hot rolled and cold finished bar wil be increase 25 dlrs
per net ton, while semi-finished products will be increased 15
dlrs per net ton, the company said.
Anticipated higher energy and raw material costs, combined
with current market trends, were cited by the company as
reasons for the increases.
| Financial Reports |
UNILEVER'S <UN> CHESEBROUGH OFFERS TO SELL BASS
| Chesebrough-Pond's Inc, recently
acquired by a unit of Unilever N.V., said it is offering to
sell its Bass shoe division, as a result of an
ongoing evaluation of the long-term direction of its
businesses.
The diversified maker of health and beauty aids, said it
acquired Falmouth, Maine-based G.H. Bass and Co in 1978, when
the company reported annual sales of 59 mln dlrs. Bass is known
for its high-quality casual shoes.
Chesebrough said Bass's 1986 sales exceeded 170 mln dlrs.
| Commodities and Trade |
USDA TO UPDATE WINTER WHEAT ACREAGE TOMORROW
| The U.S. Agriculture Department said
it will update its estimate of winter wheat seeded acreage in
the prospective planting report, scheduled for release at 1500
est (2100 gmt) tomorrow, March 31.
The original estimate of seedings of winter wheat was
published in January.
It said the new survey is possible because of the new
integrated nationwide survey program that uses probability
sampling procedures that combine information from farmers
operating in selected areas and farmers identified on special
lists.
| Financial Reports |
SANTA FE <SFX> AWARE OF HENLEY <HENG> STAKE
| Santa Fe Southern Pacific Corp said it
has discussed with Henley Group that company's almost five pct
stake and was told the holdings are for investment purposes.
"We have confirmed with the Henley Group that they own
approximately 7.9 mln shares of Santa Fe Southern Pacific
common stock. They have informed me that they like our company
and purchased the stock last year for investment purposes,"
Santa Fe chairman John Schmidt said in a statement.
Henley late Friday filed a 10-K report with the Securities
and Exchange Commission concerning the Santa Fe stake.
Earlier Santa Fe's stock was up 4-7/8 to 41 before slipping
to be up 1-7/8 at 38.
| Financial Reports |
U.S. SUGAR IMPORTS DOWN IN LATEST WEEK - USDA
| Sugar imports subject to the U.S.
sugar import quota during the week ended March 6 totaled 25,192
short tons versus 29,043 tons the previous week, the
Agriculture Department said.
Cumulative imports now total 130,804 tons, it said.
The sugar import quota for the 1987 quota year
(January-December) has been set at 1,001,430 short tons
compared with 1,850,000 tons in the 1986 quota year, which was
extended three months to December 31.
The department said the Customs Service reported that
weekly and cumulative imports are reported on an actual weight
basis and when final polarizations are received, cumulative
import data are adjusted accordingly.
| Other |
TEMPLETON ENERGY INC <TMPL> 4TH QTR NET
| Shr profit four cts vs loss six cts
Net profit 967,000 vs loss 1,219,000
Revs 10.1 mln vs 4.5 mln
Year
Shr profit three cts vs loss five cts
Net profit 688,000 vs 982,000
Revs 24.6 mln vs 16.3 mln
NOTE: 1986 includes results of Louisiana Energy and
Development Corp acquired in November 1986.
| Commodities and Trade |
AEL INDUSTRIES <AELNA> 4TH QTR FEB 27 NET
| Shr 66 cts vs 33 cts
Net 2,955,000 vs 1,563,000
Revs 26.1 mln vs 23.9 mln
12 mths
Shr 74 cts vs 1.01 dlrs
Net 3,321,000 vs 4,739,000
Revs 108.4 mln vs 104.9 mln
NOTE: year 1987 includes charge of 818,000 dlrs, or 18 cts
per share, for sale of Elisra Electronic Systems Ltd.
| Corporate News |
AMOSKEAG <AMKG> TAKEOVER BLOCKED BY COURT
| Amoskeag Bank Shares Inc said
the New Hampshire Supreme Court overturned its proposed
acquisition of Portsmouth Savings Bank in a three-two vote.
The acquisition had been opposed by some depositors, who
filed an action to block the takeover.
"We will respond to this news as soon as we have had an
opportunity to analyze the decision, and any and all options
available to us," chairman William Bushnell said in a
statement.
| Financial Reports |
METROMAIL <MTMA> PREDICTS FLAT EARNINGS
| Metromail Corp said it expects
flat operating profits for its 1987 fiscal year ending May 31
with last fiscal year's earnings from operations of 9,943,000
dlrs, or 1.05 dlrs a share.
The company said the flat results will be due to higher
than normal expenditures during the fourth quarter for
expansion of its data processing capabilities.
Earlier, Metromail reported fiscal 1987 third quarter
earnings of 2.4 mln dlrs, or 25 cts a share, versus three mln
dlrs, or 32 cts a share, the prior third quarter, and nine
months net of 7.2 mln dlrs, or 76 cts a share, versus 7.8 mln
dlrs, or 82 cts a share the prior nine months.
| Corporate News |
CONTINENTAL <GIC> SEES 1987 NET UP FROM TAX LAW
| Continental Corp said the fresh start
provision of the Tax Reform Act of 1986 may add 1.30 to 1.60 to
1987 earnings per share.
The insurance holding company had net earnings of 449.6 mln
dlrs, or, or 7.42 per share, in 1986.
John Loynes, Continental chief financial officer, said the
fresh start provision allowed the company to discount opening
tax reserves to January 1, 1987, which released deferred taxes
into earnings.
Loynes said the provision's potential benefit would decline
gradually over the next four years, during which time
Continental will pay 250 mln to 350 mln dlrs more in taxes.
Loynes added, however, the higher taxes are not expecetd to
have a significant impact on earnings.
| Financial Reports |
BALL <BLL> ENDS TALKS WITH MONSANTO <MTC>
| Ball Corp said it was unable to
complete negotiations to acquire the plastic container business
of Monsanto Co.
It said the two companies had entered into exclusive
negotiations last October.
Neither company provided details on why the talks were
terminated.
| Financial Reports |
JAPAN BUYS CANADIAN RAPESEED
| Japanese crushers bought 2,000 tonnes
of Canadian rapeseed in export business overnight for May
shipment, trade sources said.
| Financial Reports |
REEF ENERGY <RFEN> ENTERS PIPELINE AGREEMENT
| Reef Energy Corp said its
board entered into agreements with Penteco Corp, a private
Tulsa-based company, to buy a 12-pct interest in the general
partnership of Penteco East Central Pipeline and a 10-pct
interest in Lincoln Gas and Marketing Corp.
Penteco East is a gas gathering and transmission system in
southern Kansas and northern Oklahoma.
It said Penteco in turn has purchased one mln shares of
Reef common and taken options for the purchase of another two
mln shares over the next 36 months.
| Financial Reports |
AMERON INC <AMN> QTLY DIVIDEND
| Shr 24 cts vs 24 cts prior qtr
Pay May 15
Record April 24
| Financial Reports |
JOHNSON ELECTRONICS INC <JHSN> 4TH QTR LOSS
| Shr loss three cts vs profit eight cts
Net loss 35,000 vs profit 128,000
Revs 1,133,000 vs 1,528,000
Year
Shr profit four cts vs profit 21 cts
Net profit 72,000 vs profit 339,000
Revs 4,837,000 vs 4,500,000
NOTE: 1985 net income included an after tax gain of 195,000
or 12 cts per share on sale of real property.
| Corporate News |
TREASURY BALANCES AT FED FELL ON MARCH 27
| Treasury balances at the Federal
Reserve fell on March 27 to 2.424 billion dlrs from 2.508
billion dlrs on the previous business day, the Treasury said in
its latest budget statement.
Balances in tax and loan note accounts fell to 9.706
billion dlrs from 10.786 billion dlrs on the same respective
days.
The Treasury's operating cash balance totaled 12.131
billion dlrs on March 27 compared with 13.283 billion dlrs on
March 26.
| Corporate News |
MORRISON INC <MORR> 3RD QTR FEB 28 NET
| Shr 35 cts vs 29 cts
Qtly div 12 cts vs 12 cts prior qtr
Net 5,036,000 vs 4,165,000
Revs 147.6 mln vs 132.4 mln
Nine mths
Shr 1.12 dlrs vs one dlr
Net 16.1 mln vs 14.4 mln
Revs 433.4 mln vs 385 mln
NOTE: Per share data reflect March 1986 five pct stock
distribution. Cash dividend is payable April 30 to holders of
record April 15.
| Financial Reports |
VANDERBILT <VAGO> TO RAISE COMMON, MERGE
| Vanderbilt Gold Corp said
shareholders at a special meeting approved its reincorporation
in Delaware, an increase in authorized common to 25 mln shares
from 12 mln shares, and a non-qualified stock option plan.
It also said shareholders approved the merger of Morning
Star Mine interests held by six corporations in exchange for
issuing 2,098,602 shares of its common. It said the acquisition
brings its ownership in Morning to over 94 pct and it intends
to acquire the remaining interests before mid year.
It said its plans call for 1987 production of 30,000 ounces
of gold with product costs per ounce at about 200 dlrs.
| Commodities and Trade |
LITTLE RISK SEEN FOR TEXAS COTTON FROM COLD
| Texas' cotton crop stands little
chance of damage from frigid temperatures expected tonight in
that state, as very little cotton has been planted, according
to Texas agricultural sources and cotton market analysts.
"It's still pretty early for cotton planting. Only six pct
of the crop was planted as of last week," said Doug Stillmann,
a statistician at the Texas Agricultural Statistic Service in
Austin, a division of the U.S. Agriculture Department.
Stillmann and other cotton market sources said planting had
begun in the Rio Grande Valley and South Texas areas only, with
planting in the crucial high and low plains areas not slated to
begin until next month. The high and low plains accounted for
60 pct of the 2.5 mln bales produced in Texas last year,
Stillmann said.
Temperatures tonight in most of Texas are expected to drop
to freezing to the low 20s, although the lower Rio Grande
Valley may see more moderate readings in the middle 30s,
according to meteorologists at Accu-Weather Inc.
The price of new-crop cotton on the New York cotton futures
market rallied today on weather-related fears.
| Financial Reports |
REPORT ON EXPORT MARKETS FOR U.S. GRAIN DELAYED
| The U.S. Agriculture Department's
report on Export Markets for U.S. Grain, scheudled for release
today, has been delayed until Wednesday, April 1, a department
spokeswoman said.
No reason was given for the delay in releasing the monthly
report.
| Commodities and Trade |
BILZERIAN TELLS SEC HE UPS PAY 'N PAK STAKE TO 9.9 PCT
|
BILZERIAN TELLS SEC HE UPS PAY 'N PAK STAKE TO 9.9 PCT
| Other |
ROYAL DUTCH <RD> UNIT RAISES HEAVY FUEL PRICES
| Scallop Petroleum Corp, a subsidiary
of Royal Dutch/Shell group, said today it raised contract
prices for heavy fuel 25 cts to 1.75 dlrs a barrel, effective
today.
The increase brings the price for 0.3 pct sulphur to 22.50
dlrs, up 1.75, 0.5 pct sulphur to 21.50 dlrs, up 1.50, 0.7 pct
sulphur to 20.25 dlrs, up 75 cts, one pct sulphur to 19.50
dlrs, up 25 cts, two pct sulphur to 18.75 dlrs, up 75 cts, 2.2
pct sulphur to 18.50 dlrs, up 75 cts, 2.8 pct sulphur to 18.00
dlrs, up 75 cts.
| Financial Reports |
FLORIDA WEEKLY CROP REPORT
| Florida's citrus groves continue
in very good condition, acccording to the latest report by the
U.S. Department of Agriculture's Florida Agricultural
Statistics Service. Late-week rains and thunderstorms came at
an opportune time. Warm daytime temperatures and good soil
moisture have produced an abundance of new growth and bloom.
Most trees are in some stage of bloom development with
petal drop already taking place in many south Florida groves.
Harvest of late-type valencia oranges is increasing rapidly
with the near completion of the early and midseason varieties.
Rain during the week caused some delay in picking.
For the week ended March 29, there were an estimated 77,000
boxes of early and midseason and 945,000 boxes of late season
oranges harvested, the USDA said.
| Corporate News |
BASS GROUP EMERGES AS POSSIBLE TAFT<TFB> BIDDERS
| The Bass Group, once thought by
analysts to be eager to sell its holdings in Taft Broadcasting
Co, emerged as another potential bidder for the Ohio
broadcasting company.
The Bass Group, which holds 24.9 pct of Taft, said it had
talked with other taft stockholders and some company managers
and directors "concerning participation in a group to acquire
control" of the company.
The Bass group said it had talks with other Taft
stockholders and members of Taft management about participating
in a group to acquire control. The group, which is led by the
wealthy bass brothers of Fort Worth, Texas, did not identify
any of the other people with whom it had talks.
Taft said Friday it would negotiate with its vice Chairman
Dudley Taft on his group's 150 dlr per share or 1.38 billion
dlr offer for the company.
At the time, the company said it authorized its adviser,
Goldman, Sachs and Co, to explore other takeover proposals and
to supply financial data to other interested bidders.
"If indeed, the reason Dudley Taft is no longer president
is because the bass group tossed him out, I couldn't see them
backing him on any deal," said one analyst, who asked not to be
identified.
"I think they wanted a way out. Now, this sounds like
they're going to join the group and buy themselves out," said
Edward Atorino, media analyst with Smith Barney, Harris Upham
and Co.
Analysts have speculated that Carl Lindner may be
interested in acquiring the company. they speculated he may be
one of the shareholders in talks with the bass group.
Lindner, chairman of American Financial Corp, holds 16.2
pct of Taft. He was not immediately available for comment.
Analysts have said they are baffled by the strength of
Taft's stock price compared to what they see as breakup values
for the company.
Several analysts had estimated a break up value of less
than 150. One analyst said he believes it has a breakup value
of 160 to 165 dlrs per share.
Taft stock closed at 156-1/2, up 1-3/4.
"They (investors) are saying here's another one - another
family dispute," said Dennis McAlpine of Oppenheimer.
| Commodities and Trade |
U.S. TRADE OFFICIAL SAYS JAPAN ACTION FOOLISH
| A high level U.S. trade official
said it would be foolish for Japan to strike back against the
United States for its sanctions on Japanese semiconductor
electronics products.
Asked by reporters if Japan was expected to retaliate
against U.S. exports, Deputy Under Secretary of Commerce Bruce
Smart replied, "That would be the height of foolishness."
In addition, he doubted Japan could show enough progress in
meeting the conditions of the agreement to avoid the actual
imposition of the 300 mln dlrs in tariffs on April 17.
Japan's 58.6 billion dlr trade surplus with the United
States last year has come under fire in Congress concerned
about the loss of jobs to foreign competition and with the
record 169 billion dlrs U.S. trade deficit in 1986.
President Reagan's sanctions decision won praise today from
the two Democratic leaders of Congress.
"I think it's about time," Senate Democratic Leader Robert
Byrd of West Virginia told reporters. House Speaker Jim Wright
of Texas told reporters before the opening of the House
session, "It just shows we were right all along when we said
something needs doing."
Smart testified before a Senate Labor Committee hearing
that last Friday's U.S. trade action would help U.S.
negotiations on access to Japan for U.S. auto parts.
Since last August Smart has been leading talks to open up
Japan to purchases of more U.S.-made automotive parts. Last
year, Japan racked up a 3.6 billion dlr trade surplus with the
United States in these products.
Both countries expect to conclude the talks by August 1987.
"It's amazing to me that the Japanese were surprised. I
hope it will persuade them we're serious," Smart said of the
White House trade sanctions.
The United States has tried to convince Japanese car
companies of the quality of American-made parts and to draw
them away from their traditional Japanese suppliers.
"All we ask is a chance. We have a job to do persuading them
we can do better than our reputation seems to be," he said.
Measured per car, each American-made car contained about
700 dlrs in Japanese auto parts while each Japanese-made car
contained about 26 dlrs in U.S. auto parts, Smart said.
| Market and Economy |
BILZERIAN UPS PAY 'N PAK <PNP> STAKE TO 9.9 PCT
| Investor Paul Bilzerian, who has
said he may seek control of Pay 'n Pak Stores Inc, said he
raised his stake in the company to one mln shares, or 9.9 pct
of the total, from 721,900 shares, or 7.2 pct.
In a filing with the Securities and Exchange Commission,
Bilzerian and Bicoastal Financial Corp, a Tampa, Fla.,
investment firm he controls, said they bought 278,000 shares of
Pay 'n Pak common stock on March 26 and 27 at prices ranging
from 13.29 to 17.04 dlrs a share.
Bilzerian last week said he was considering raising his
stake in the company, seeking a board seat or control.
| Financial Reports |
FORD MOTOR CO OF CANADA LTD <FC> 4TH QTR NET
| Shr 8.17 dlrs vs 55 cts
Net 67.7 mln vs 4.5 mln
Revs 3.67 billion vs 3.54 billion
Year
Shr 12.19 dlrs vs 24.00 dlrs
Net 101.1 mln vs 199.0 mln
Revs 14.33 billion vs 13.35 billion
Note: 90 pct owned by Ford Motor Co <F>
| Commodities and Trade |
FED'S POLICY EASE MAY END WITH 2ND QTR RATE CUT
| The Federal Reserve's move to easier
monetary policy, begun with four quick half-point discount rate
cuts in 1986, will likely end with a final rate drop in the
second quarter, analysts said.
A poll of 10 economists shows most expect interest rates to
edge lower, with the Fed likely to drop its basic lending rate
from 5-1/2 pct late next quarter to help the economy.
"The Fed is not likely to ease policy much further without
a full-blown recession," said Raymond Stone, chief financial
economist at Merrill Lynch Capital Markets.
Stone said economic data available by late June may be just
weak enough to prompt one more discount rate cut. But he said
it may only be a quarter-point drop instead of the usual half
point, to avoid hurting the dollar further.
All of the economists agreed that the Federal Open Market
Committee tomorrow will leave Fed policy unchanged.
The average forecast of those surveyed projects roughly
quarter-point drops by the end of June in both the Treasury
bond yield, to 7-1/2 pct, and the Federal funds rate at which
banks lend to one another, to 5-7/8 pct. Most expect the prime
lending rate at major banks to remain at 7-1/2 pct.
Other broad predictions of the survey, relating mainly to
the April-June quarter, follow:
- The dollar is likely to decline five to 10 pct further
against other major currencies because of a large U.S. budget
deficit and a wide, but narrowing, trade gap. Contacted after
the dollar's steep drop in the last two business days, the
economists reaffirmed this view but stressed the risk is that
the dollar will fall more, rather than less, than they expect.
- Oil prices in the second quarter are likely to continue
trading roughly between 16 and 19 dlrs a barrel and could well
test the lower end of that range.
- Stocks will continue to outperform bonds next quarter and
probably for all of 1987. Stocks should gain on strong
foreign demand and a modest second-half economic rise. The
outlook for bonds also is less favorable later in the year
since both inflation and interest rates may be edging up.
- Inflation as measured by the GNP implicit price deflator
will rise to around 3.3 pct this year from 2.7 pct in 1986. The
sharp fall in the dollar to date will add to inflation, as will
a mild economic pickup in the second half of this year.
- U.S. real gross national product, which grew at a two pct
annual rate in the 1986 second half, should expand at
respective rates of about 2.3 pct and 2.5 pct in the 1987 first
and second halves. First-quarter growth is put at a 2.4 pct
annual
rate, slowing to 2.1 pct next quarter.
Robert Brusca of Nikko Securities Co International sees
both the strongest economy and the highest interest rates among
those surveyed. He expects real GNP, which grew at a 1.1 pct
rate in fourth-quarter 1986, to expand at a 3.3 pct rate this
quarter and 3.5 pct next quarter.
"The economy will bounce back more strongly than many
expect," Brusca said. He said an involuntary buildup in
inventories, largely in autos, will add to first-quarter
economic growth, with consumer spending helping later.
"We're running out of special factors to keep the economy
afloat," said Philip Braverman of Irving Securities Corp. His
interest rate and economic forecasts were among the lowest.
Braverman said tax law changes and inventory accumulation
helped lift fourth and first quarter GNP growth, respectively.
He expects 2.5 pct first quarter growth but said that second
quarter growth could be zero or negative.
Braverman said economic activity next quarter will suffer
from a paring of inventories, lower capital investment, slow
government spending and less construction. Only a marginally
narrower trade deficit will add to growth.
He sees a 7.10 pct end-of-June yield on Treasury bonds,
with Federal funds and prime rates at 5.50 and seven pct,
respectively. Nikko's Brusca projects rates of 8.25 pct for
bonds, 6.15 pct for funds and 7.75 pct for the prime rate.
Two of the 10 economists revised rate forecasts up mildly
after the dollar's fall to 40-year lows versus the yen in past
days and news of pending U.S. trade sanctions against Japan.
David Resler of Nomura Securities Co International Inc
raised his end-June bond yield forecast to 7.50 pct from 7.20
pct and a Fed funds rate estimate to six pct from 5.80 pct.
Raul Nicho, president of Money Market Services Inc, lifted
his forecast of bond and Fed funds rates an eighth of a point
to eight pct for bonds and 6-1/4 pct for funds. Both Nicho and
Resler left their end-June prime rate forecast at 7-1/2 pct.
The higher rate forecasts reflected a belief that Japanese
investors will be less eager to buy U.S. bonds because of fear
about further dollar erosion and perhaps in response to U.S.
trade sanctions. Yields may have to rise to lure other buyers.
......END-JUNE U.S. INTEREST RATE FORECASTS....
....................T-bonds..Fed funds..Prime..
Nikko Securities.....8.25......6.15......7.75..
Money Mkt Services...8.00......6.25......7.50..
Discount Corp........7.75......6.25......7.50..
Merrill Lynch........7.30......5.75......7.50..
Bankers Trust........7.25......5.50......7.50..
Wells Fargo Bank.....7.30......5.60......7.00..
Irving Securities....7.10......5.50......7.00..
Dean Witter..........7.00......5.50......7.00..
.FORECAST AVERAGE....7.50......5.875.....7.50..
.CURRENT LEVELS......7.80......6.125.....7.50..
| Financial Reports |
LOUISIANA WEEKLY CROP REPORT
| The Louisiana weekly USDA state crop
report said there were 2.4 days suitable for fieldwork.
Soil moisture supplies rated 41 pct adequate and 59 pct
surplus.
Winter Wheat - fair to good condition. eight pct headed vs
27 pct a year ago and 17 pct average.
Corn - eight pct planted vs 64 pct a year ago and 51 pct
average. two pct emerged vs 45 y/a and 23 avg.
Spring Plowing - seventeen pct completed vs 66 pct a year
ago and 48 pct avg.
| Financial Reports |
SERVICE RESOURCES <SRC> UNIT SETS PURCHASE
| Service Resources Corp's Chas. P.
Young Co subsidiary said it agreed to acquire Atwell Fleming
Printing Ltd, a Canadian financial printer, for about 3.2 mln
dlrs.
Young said the acquisition, which is expected to close in
April, is subject to due dilligence review.
| Financial Reports |
LLE ROYALTY <LRT> SETS MONTHLY PAYOUT
| LL and E Royalty Trust said its monthly
dividend, for January, to unitholders will be 8.37 cts per unit
payable April 15 to holders of record April six.
As previously reported, pending a ruling from the Internal
Revenues Service, the trust's distribution may be reduced by
1.09 dlr per unit, plus interest, spread out over the life of
the productive properties in which the trust has an interest.
LLE said the working interest owner, to which the IRS sent
a notice about a deficiency in the owner's 1983 tax return, is
evaluating the necessity of escrowing some funds, which would
significantly reduce royalties paid to the trust.
| Corporate News |
GENOVA <GNVA> TO MERGE INTO GENOVA PRODUCTS
| Genova Inc said its shareholders
approved a merger into <Genova Products Inc>, which will be
consumated within a few days. Under the agreement, Genova said
each of its shareholders will receive 5.375 dlrs per share in
cash.
| Financial Reports |
ROYAL BANK OF CANADA 1ST QTR SHR 88 CTS VS 1.22 DLRS
|
ROYAL BANK OF CANADA 1ST QTR SHR 88 CTS VS 1.22 DLRS
| Financial Reports |
IMPERIAL BANCORP <IBAN> SETS FIVE PCT DIVIDEND
| Imperial Bancorp said it declared a
five pct stock dividend, payable May 29 to shareholders of
record April 17.
| Financial Reports |
TEXAS WEEKLY CROP REPORT
| The Texas weekly USDA state crop report
said stormy winter weather limited fieldwork before conditions
improved later in the week.
A snowstorm caused some cattle deaths in the Panhandle, and
cold, wet weather covered many areas. Windy weather followed to
dry fields and limit planting delays.
Small grains made good progress despite cool temperatures
which slowed growth. Additional moisture was needed in some
areas. Many fields were booting and some were beginning to
head. Wheat was rated 16 pct fair, 56 pct good and 28 pct
excellent.
Corn and sorghum planting progressed, and land preparation
was ahead of schedule in the Plains despite snowy weather.
Cotton planting progressed in the Lower Valley.
| Commodities and Trade |
ARKLA <ALG> PROPOSAL TO SETTLE DISPUTE
| Arkla Inc said it and
International Paper Co <IP> filed a proposal with the Arkansas
Public Service Commission designed to resolve the dispute
between the two over IP's plan to build natural gas pipelines
for its paper mill facilities at Pine Bluff and Camden.
Arkla's pipeline division, Arkla Energy Resources,
currently delivers all of the natural gas consumed at the two
mills.
Under the proposal, Arkla will support IP's plan to build
the alternate pipelines, while IP will allow Arkla's pipeline
division to deliver an equal quantity of competitively priced
supplies to other IP facilities.
| Financial Reports |
SERVICE RESOURCES <SRC> UNIT IN ACQUISITION
| Chas. P. Young Co, a subsidiary of
Service Resources Corp, said it signed a definitive agreement
to acquire Atwell Fleming Printing Ltd, of Canada, for about
3.2 mln dlrs.
The transaction is expected to close in April.
ON February 23, Chas. P. Young said it had aquired 19.05
pct of the shares of Sorg INc <SRG> to facilitate a newgotiated
business combination.
| Financial Reports |
AEC INC <AECE> SETS REGULAR PAYOUT
| Qtrly div eight cts vs eight cts prior
Pay April 30
Record April 8
| Financial Reports |
U.S. M-1 MONEY SUPPLY ROSE 2.1 BILLION DLRS
| U.S. M-1 money supply rose 2.1 billion
dlrs to a seasonally adjusted 736.7 billion dlrs in the
February 16 week, the Federal Reserve said.
The previous week's M-1 level was revised to 734.6 billion
dlrs from 734.2 billion dlrs, while the four-week moving
average of M-1 rose to 735.0 billion dlrs from 733.5 billion.
Economists polled by Reuters said that M-1 should be
anywhere from down four billion dlrs to up 2.3 billion dlrs.
The average forecast called for a 300 mln dlr M-1 rise.
| Commodities and Trade |
BELGIAN MINISTER SEES NEW ACCORD ON EC OILS/FATS
| Belgian Foreign Trade Minister Herman
De Croo said he believed there would be a compromise within the
European Community, EC, on its proposed tax on vegetable fats
and oil, averting a pledged tough trade response by the United
States.
De Croo, in Washington for talks with Administration
officials and Congressional leaders, said at a news conference
there is a battle within the community on the tax on fats and
oils used in the 12 EC countries.
But he added, "I do not think it will be a big issue because
there will be a big debate inside Europe," adding "so there will
be a compromise."
U.S. Trade Representative Clayton Yeutter said yesterday
that if the community went ahead with the tax, the United
States would respond "vigorously" to protect its trade rights and
access to community markets.
De Croo also said he thought the community would postpone
its April 28 deadline for imposing new slaughterhouse rules to
cover all meats brought into EC nations if some progress was
made toward resolving differences with the United States.
U.S. officials say its rules now meet health standards and
the EC should require equivalent but not identical standards.
He also told reporters he hoped the community could deal
with another controversial health proposal that would forbid
the feeding of hormones to cattle, which is also opposed by the
United States.
De Croo gave no deals on how he though the issue might be
resolved. That rule is go into effect on January 1, 1988.
He said U.S. cattlemen say there is no reason to change
slaughterhouse practices in April if the meat is to be banned a
few months later by the hormone rule.
| Other |
SHELL CANADA SCHEDULES ANNUAL REFINERY SHUTDOWN
| Shell Canada Ltd, 72 pct owned
by Royal Dutch/Shell Group <RD> <ST>, scheduled its annual
maintenance refinery shutdowns during the next two months,
company spokeswoman Judy Wish said.
Wish said refineries will stockpile production before the
shutdowns to maintain normal supply while maintenance is
carried out.
Production at Shell's major refinery at Strathcona Alberta,
will be closed for about one month, Wish said.
There will be no layoffs associated with the refinery
maintenance, she added.
| Commodities and Trade |
DIXONS GROUP, AUDIO/VIDEO <AVA> END LITIGATION
| Dixons Group PLC said that pursuant to
an agreement with Audio/Video Affiliates Inc, part of an
investor group that made a rival bid for Cyclops Corp <CYL>,
all litigation between them has been dismissed.
As part of the agreement, Dixons said Cyacq Corp, the
Audio/Video investor group that includes Citicorp Capital
Investors Ltd, agreed to "promptly" terminate its existing
tender offer for all outstanding Cyclops common at 92.50 dlrs
per share.
Dixons said it agreed to pay an additional 4.75 dlrs per
share, or 95 dlrs per share, to each shareholder whose shares
were purchased under its offer for Cyclops at 90.25 dlrs per
share.
On Friday, Dixons announced that it had increased its
holdings in Cyclops Corp to about 83 pct of the currently
outstanding shares and that it intended to increase to 95 dlrs
from 90.25 dlrs the amount per share paid in the merger of a
Dixons subsidiary with Cyclops.
| Financial Reports |
U.S. DOT APPROVES AMERICAN <AMR>-ACI <ACF> PACT
| The U.S. Department of
Transportation (DOT) said it gave final clearance to the
proposed 225 mln dlr acquisition of AirCal Inc by American
Airlines Inc.
"The acquisition is not likely to substantially lessen
competition or to be inconsistent with the public interest," the
DOT said in a statement.
AirCal is a unit of ACI Holdings Inc while American is a
unit of AMR Corp.
The DOT had given tentative approval to the merger plan
Feb. 20.
American is the third largest U.S. airline in terms of
revenue passenger miles while AirCal--a relatively small
carrier that primarily serves West Coast cities--is the
nation's 17th largest passenger carrier. Their merger would not
alter American's third-place ranking, according to data
compiled by Aviation Daily, a leading industry trade magazine.
The combination would incrase American's share of the U.S.
market to 15.4 pct from its current 14.7 pct, the DOT said.
The DOT said the merger was unlikely to substantially
reduce competition on the four routes on which both carriers
provide either nonstop or single-plane service.
At 13 of the 14 terminals served by both carriers, the DOT
said it found no evidence that other carriers could not
increase or begin service that competed with a merged
American-AirCal.
Concerning the 14th, "While entry may not be possible at the
Orange County Airport in the near future, DOT found that the
service provided at other airports in the Los Angeles area,
especially at the Los Angeles International Airport, will
provide effective competition for Orange County travelers in
long-haul markets," the DOT said.
The merger would give American control of 37 pct of the
authorized takeoff and landing slots at the Orange County
terminal, where environmental concerns and a small terminal
building limit future opportunities for expansion.
The DOT said the Air Line Pilots Association filed comments
opposing the merger but "raised no new facts or arguments."
Under the merger terms, announced Nov. 17, American will
pay 15 dlrs a share for the outstanding stock of ACI Holdings.
| Corporate News |