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EXXON <XON> CUTS HEATING OIL BARGE PRICE
| Oil traders in New York said Exxon
Corp's Exxon U.S.A. unit reduced the price it charges contract
barge customers for heating oil in New York harbor 0.75 cent a
gallon, effective today.
They said the reduction brings Exxon's contract barge price
to 43.25 cts. The price decrease follows sharp declines in
heating oil prices on spot and futures markets, traders said.
| Financial Reports |
HOSPOSABLE PRODUCTS INC <HOSP> 4TH QTR NET
| Shr 12 cts vs eight cts
Net 102,002 vs 59,396
Sales 3,024,423 vs 2,437,489
Avg shrs 1,032,000 vs 746,004
Year
Shr 64 cts vs 45 cts
Net 570,491 vs 340,852
Sales 11.1 mln vs 10.6 mln
Avg shrs 1,032,000 vs 753,948
| Financial Reports |
BANGEMANN DENIES NEWSPAPER INTERVIEW ON SUBSIDIES
| The West German Economics Minister today
denied giving a newspaper interview which quoted him as saying
the state could not continue to pour money into the country's
ailing steel and coal industries.
Economics Ministry spokesman Dieter Vogel said in a
statement Bangemann had contacted him from New Zealand, where
he is attending a General Agreement on Trade and Tariffs (GATT)
ministerial meeting, to deny giving the interview to the
conservative daily Die Welt. The paper quoted Bangemann as
saying that continued subsidies would endanger other parts of
the German economy by making them uncompetitive.
Vogel said Bangemann had pledged that everything possible
would be done to minimize the effects of reduced coal and steel
production on the workforces and regions concerned.
Die Welt said the interview with Bangemann had taken place
at a meeting of his Free Democratic Party (FDP) in Darmstadt
last Friday, adding that it had a tape recording of his
comments which it would publish tomorrow.
| Financial Reports |
FED SAYS IT SETS 1.5 BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS
|
FED SAYS IT SETS 1.5 BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS
| Financial Reports |
FED ADDS RESERVES VIA CUSTOMER REPURCHASES
| The Federal Reserve entered the U.S.
Government securities market to arrange 1.5 billion dlrs of
customer repurchase agreements, a Fed spokesman said.
Dealers said Federal funds were trading at 6-3/16 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.
| Industrial and Sector News |
SWEDISH GNP ROSE LESS THAN EXPECTED, FIGURES SHOW
| Sweden's Gross National Product rose
1.3 pct last year against 2.3 pct in 1985, mainly due to a
lower than forecast growth in exports and a sharp fall in total
investments, the Central Bureau of Statistics reported.
Private consumption rose 4.1 pct during 1986 against 2.7
pct in 1985 whereas the Finance Ministry had expected an
increase of only 3.6 pct. Total investments fell 0.7 pct
against a rise of 6.3 pct in 1985. The Finance Ministry had
forecast a rise of 0.3 pct in 1986.
Exports rose 2.1 pct last year against 2.3 pct in 1985, but
the Finance Ministry had predicted a growth of 2.8 pct.
| Financial Reports |
MCDONALD'S <MCD> UP ON REAFFIRMED RECOMMENDATION
| McDonald's Corp rose sharply today
after receiving a second recommendation in as many sessions,
traders said.
Today, analyst Richard Simon of Goldman Sachs and Co
reaffirmed his recommendation of the stock and put it on his
"focus list," traders familiar with the recommendation said.
Simon was unavailable for comment.
The stock jumped 2-3/4 to 79-7/8.
On Friday, analyst Daniel Lee of Drexel Burnham Lambert Inc
reiterated a recommendation of the stock focusing on increased
comparable store sales and consistent annual earnings growth.
Friday, the stock closed 1-5/8 points higher.
Wendy's, another operator of fast food restaurants, rose
one to 12-3/4 in active trading. Vague rumors that Wendy's is a
takeover candidate continued to circulate Wall Street, traders
said.
| Financial Reports |
GREECE SAYS IT HAS RIGHT ON AEGEAN OIL DRILLING
| Greece, responding to a warning by Turkey
against conducting oil activities in the Aegean Sea, said today
it had the right to decide where and how to do research or
drilling work in the area.
A government spokesman said the Greek position was made
clear to Turkey's ambassador Nazmi Akiman when he met Greek
Foreign Affairs Undersecretary Yannis Kapsis last week.
Acting Turkish Prime Minister Kaya Erdem said earlier today
Greek activities in the northern Aegean contravened the 1976
Berne Agreement which set the framework for talks on the Aegean
continental shelf disputed between Ankara and Athens.
The Greek statement today said, "Greece is not prepared to
give up even a trace of its sovereignty rights to the seabed.
It has been stressed to...Mr Akiman that the decision where or
how to drill belongs exclusively to the Greek government."
"The Greek government has repeatedly let the Turkish side
know that it considers the 1976 Berne protocol as inactive
through the fault of Turkey," it said.
The Greek statement said Athens was ready to put the
continental shelf issue before international courts.
| Commodities and Trade |
ALLIED PRODUCTS CORP <ADP> YEAR NET
| Shr 3.36 dlrs vs 3.33 dlrs
Net 16,173,000 vs 10,603,000
Sales 420.8 mln vs 276.1 mln
Avg shrs 4.4 mln vs 3.2 mln
NOTE: 1985 net includes tax credits of 6.9 mln dlrs or 2.19
dlrs a share.
| Financial Reports |
AMERICAN TELEVISION <ATCMA> BUYS TIME <TL> UNIT
| American Television and
Communications Corp said it has completed the acquisition of
Manhattan Cable Television Inc from Time Inc for about
9,400,000 Class B common shares.
American Television was spun off from Time in August 1986.
The company said following this transaction, Time now owns 82
pct of American Television.
| Financial Reports |
DWG <DWG> COMPLETES SALE OF UNIT
| DWG Corp said it has completed the
previously-announced sale of its Texsun Corp subsidiary to
Texsun Corp subsidiary to Sundor Brands Inc for 27.5 mln dlrs
and the assumption of liabilities.
It said proceeds have been placed in escrow pending the
outcome of talks with lenders.
| Financial Reports |
ALLIED <ASU> SELLING MICHIGAN UNITS
| Allied Supermarkets Inc said it entered
into a definitive agreement to sell its Michigan operations for
about 46 mln dlrs in cash and debt plus assumption of
substantially all of Allied's liabilities other than senior
subordinated debentures.
It said the operations will be sold to Meadowdale Foods
Inc, a corporation formed by members of its existing
management, including Chairman David Page and President Lon
Makanoff.
The transaction is conditioned on Allied's pending merger
with the Vons Cos Inc.
| Financial Reports |
KLM SAYS IT IS NOT SEEKING AIR ATLANTA STAKE
| KLM Royal Dutch Airlines <KLM.AS> is
discussing marketing cooperation with U.S. regional carrier Air
Atlanta Inc but it is not seeking to take a stake in the
airline, a KLM spokesman said.
"We're not considering taking either a majority or minority
stake in Air Atlanta, but we are thinking of providing them
with a loan," the spokesman told Reuters in a comment on a Wall
Street Journal report saying debt-laden Air Atlanta could sell
as much as 25 pct of its stock to the Dutch airline.
KLM last week denied a Dutch press report saying it was
discussing a takeover of Air Atlanta.
The KLM spokesman said Air Atlanta's regional route
network, centred on Atlanta, Ga, could serve as a feeder to
KLM's international network, which includes direct flights
between Atlanta and Amsterdam.
KLM and Air Atlanta had been talking "for some time," he
said, but declined to elaborate further on the talks or give
details of the loan to Air Atlanta.
| Other |
LEUCADIA <LUK> HAS 7.2 PCT OF MINSTAR <MNST>
| Leucadia National Corp said two of
its subsidiaries have acquired a 7.2 pct stake in Minstar Inc,
a corporation controlled by corporate raider Irwin Jacobs and
used by him in his forays to acquire stock in companies.
In a filing with the Securities and Exchange Commission,
Leucadia said its LNC Investments Inc, a Newark, Del.,
investment firm, and Charter National Life Insurance Co, a St.
Louis joint stock life insurance company, bought their combined
1,261,000 Minstar common shares for investment purposes only.
The Leucadia subsidiaries had held an 11.0 pct stake in
Minstar, but cut to 1.8 pct, or 313,200 shares, last July.
Since July, Leucadia said its companies have bought 947,800
Minstar common shares for a total of 24.7 mln dlrs.
Leucadia said it bought the Minstar stake to obtain an
equity position in the company and has no intention of seeking
control of it.
Nearly half of Leucadia's common stock is owned by TLC
Associates, a Salt Lake City, Utah, general partnership, whose
partners include the chairman and president of Leucadia and
other investors.
| Corporate News |
GENCORP SUES GENERAL PARTNERS
| Gencorp Inc said it filed suit
against the unsolicited 100 dlr-a-share tender offer of Wagner
and Brown and AFG INdustries.
Gencorp said it is seeking an injunction against the offer
because it is violates federal securities laws and margin
regulations.
Gencorp also said its board is carefully studying the offer
and will make a decision on whether or not shareholders should
accept or reject it by March 31.
| Financial Reports |
IRISH INDUSTRIAL PRODUCTION INDEX UP 6.2 PCT
| Ireland's industrial production index
stood at 132.8 in December, a year-on-year rise of 6.2 pct, the
Central Statistics Bureau reported.
In November the index, base 1980, stood at 144.8, showing a
rise of 4.3 pct on a year-on-year basis.
| Financial Reports |
NEW BRUNSWICK SCIENTIFIC CO INC <NBSC> 4TH QTR
| Shr 22 cts vs six cts
Net 819,000 vs 201,000
Revs 9.3 mln vs 7.7 mln
Year
Shr 40 cts vs 20 cts
Net 1.5 mln vs 728,000
Revs 31.5 mln vs 26.6 mln
| Financial Reports |
INTELLIGENT BUSINESS <IBCC> 1ST QTR JAN 31
| Shr three cts vs nil
Net 328,112 vs 6,374
Revs 1,401,155 vs 846,253
NOTE: Full name is Intelligent Business Communications Corp
| Financial Reports |
PRINCIPAL NEO-TECH SELLS UNIT
| <Principal Neo-Tech Inc> said it
completed the sale of its subsidiary, Neo-Tech Inc, to Seismic
Holdings Inc and Energy Holdings Inc, of Denver, Colo.
As part of the price, Principal Neo-Tech received notes and
preferred shares of Energy Holdings. However, terms were not
disclosed.
| Financial Reports |
CHARTER FEDERAL, JEFFERSON SAVINGS AGREE TO MERGE
|
CHARTER FEDERAL, JEFFERSON SAVINGS AGREE TO MERGE
| Financial Reports |
BASIX CORP <BAS> 4TH QTR LOSS
| Oper shr loss eight cts vs profit 20 cts
Oper net loss 768,000 vs profit 1,962,000
Revs 49.0 mln vs 43.6 mln
12 mths
Oper shr loss 1.41 dlrs vs profit 96 cts
Oper net loss 13.6 mln vs profit 9,305,000
Revs 175.3 mln vs 140.7 mln
Note: Oper excludes loss from discontinued operations of
4,676,000 dlrs or 48 cts a share for year-ago qtr and 7,571,000
dlrs or 78 cts a share for year-ago 12 mths.
Oper includes charge of 1.1 mln dlrs for cumulative effect
of repeal of the investment tax credit for qtr and writedown of
21.6 mln dlrs on gas and oil facilities for 12 mths.
Year-ago shr data restated to reflect two pct stock
dividend of December 1986.
| Financial Reports |
PHH <PHH> BUYS TWO DESIGN FIRMS
| PHH Group Inc said it acquired
two design firms for undisclosed terms.
In 1986, the two firms, Neville Lewis Associates of New
York and Walker Associates Inc of L.A., produced 15.6 mln dlrs
in total fees.
| Corporate News |
CHARTER FEDERAL <CHFD>, JEFFERSON TO MERGE
| Charter Federal Savings and Loan
Association of Bristol, Va., said it has agreed to acquire
Jefferson Savings and Loan Association of Warrenton, Va.
Under terms of the transaction, which would result in a 1.3
billion dlr thrift institution, stockholders of Jefferson will
get 30.50 dlrs per share, half in cash and half in shares of
Charter.
The resulting association will operate under the name of
Charter and will be based in Bristol.
The transaction is valued at about 16.3 mln dlrs, a
Jefferson spokesman said.
Charter said the merger is subject to approval of the
Federal Home Loan Bank Board.
Jefferson reported a 1.5 mln dlrs loss and assets of 360
mln dlrs for the year ended September 30, 1986.
For the year ended June 30, Charter reported net income of
7.9 mln dlrs. Assets totaled about 844.0 mln dlrs as of
December 31.
| Commodities and Trade |
TRADE PROPOSES NEW EC GRAIN INTERVENTION RULES
| The European Community (EC) cereals
trade lobby organisation Coceral said it has written to EC Farm
Commissioner Frans Andriessen to propose a new system for sales
into intervention, which it claims could save the EC budget
money.
It proposes that applications for intervention be made
through a certificate valid for execution three months later.
If during the three months the trader found a market elsewhere,
he could buy back the certificate on payment of a one pct
premium.
Coceral argues that this would restore the original
function of intervention as a safety net and would end the
present situation in which produce is often sold into
intervention as a precaution.
| Financial Reports |
LOWE'S COS INC <LOW> QTLY DIV
| Qtly div 10 cts vs 10 cts prior
Payable April 30
Record April 10
| Financial Reports |
COCA COLA SPOKESMAN SAID RUMORS COKE SEEKING TAKEOVER OF WENDY'S ARE NOT CORRECT
|
COCA COLA SPOKESMAN SAID RUMORS COKE SEEKING TAKEOVER OF WENDY'S ARE NOT CORRECT
| Financial Reports |
COMPUTER DEVICES INC 4TH QTR
| Shr loss one cnt vs profit one cnt
Net loss 35,000 vs profit 42,000
Revs 881,000 vs 1.3 mln
Year
Shr profit seven cts vs profit nine cts
Net profit 291,000 vs profit 366,000
Revs 4.4 mln vs 5.9 mln
NOTE:1985 4th qtr and year includes gain of 7,000 dlrs and
147,000 dlrs respectivley. 1986 year includes gain of 35,000
dlrs from tax loss carryforwards.
| Financial Reports |
AUSTRALIAN JANUARY ANNUAL BROAD MONEY UP 10.3 PCT
| Australia's broad money supply rose 10.3
pct in the year ended January, up from a revised 9.6 pct in
December, the Reserve Bank said.
This compares with the previous January's 13.9 pct.
In January broad money growth slowed to 0.7 pct from
December's 1.5 pct and compared with nil growth in January
1986.
Within the broad money total, non-bank financial
intermediaries rose by 0.2 pct from a revised decline of 0.2
in December and a previous January's 0.8 pct increase.
In the January year, NBFI's borrowings rose by 9.5 pct from
a revised 10.1 in December and compared with a previous
January's 12.8.
At the end of January, broad money stood at 175,866 mln
dlrs dlrs from December's 174,668 mln dlrs and a January 1986
level of 159,453 mln.
In the same period, borrowings from the private sector by
the NBFIs rose to 70,389 mln dlrs from December's 70,237 mln
and the previous January's 64,299 mln.
| Financial Reports |
DUCOMMON INC <DCO> 4TH QTR LOSS
| Oper shr loss 5.60 dlrs vs loss 1.10 dlrs
Oper net loss 18,688,000 vs loss 3,662,000
Sales 107.3 mln vs 108.7 mln
Year
Oper shr loss 5.76 dlrs vs loss 98 cts
Oper net loss 19,213,000 vs loss 3,263,000
Sales 455.2 mln vs 417.0 mln
Note: Prior qtr and year figures exclude losses from
discontinued operations of 279,000 dlrs and 555,000 dlrs,
respectively and respective losses on sale of discontinued
operations of 14.6 mln dlrs and 15.9 mln dlrs.
| Commodities and Trade |
MEM COM INC <MEM> 4TH QTR NET
| Oper shr 93 cts vs 32 cts
Oper net 2,443,810 vs 847,609
Revs 30.3 mln vs 21.0 mln
12 mths
Oper shr 1.16 dlrs vs 85 cts
Oper net 3,066,407 vs 2,250,781
Revs 70.9 mln vs 61.8 mln
NOTE: qtr 1985 excludes gain 96,327 dlrs for discontinued
operations of Lebanon Packaging.
Year 1986 and year prior excludes loss 62,216 dlrs, and
gain 281,367 dlrs, respectively, for discontinued operations on
Lebanon sale.
| Financial Reports |
COCA COLA <KO> SAYS RUMORS INCORRECT
| A Coca Cola Co spokesman said rumors
the company is interested in acquiring Wendy's International
<WEN> are not true.
"Those rumors are not correct," said Carlton Curtis, an
assistant vice president at Coke. "We have stated many times
that Coca Cola Co has no interest in an acquisition in the food
service industry and thereby becoming a competitor to our food
service customers."
Wendy's stock has been flying high on the rumors for two
days. Today, Wendy's hit a high of 13-3/8 before dropping back
to 12-3/8, up 5/8 in heavy trading.
| Commodities and Trade |
SWEET VICTORY INC <SVIC> YEAR
| Shr loss 1.16 dlrs vs loss 61 cts
Net loss 3.5 mln vs loss 1.3 mln
Revs 943,938 dlrs vs 480,333 dlrs
| Financial Reports |
MICROBIO <MRC> PLANS ACQUISITION, FINANCING
| Microbiological Research Corp
said it entered into a letter of intent for a proposed business
combination with privately owned <DataGene Scientific
Laboratories Inc>, and <Milex Corp> a newly formed company,
through a stock swap.
It also said it received 100,000 dlrs from the sale of a
convertible note to Ventana Growth Fund as part of an overall
1,100,000 equity financing plan with Ventana. Under that plan,
a minimum of 400,000 dlrs and a maximum of one mln dlrs of
additional new capital is to be provided to fund the combined
operations of the three companies.
Microbiological also said that if the maximum additional
capital is raised, it will own about 49 pct of 4,550,00 shares
of common outstanding in the new combined company, DataGene
holders will own 29 pct, and Ventana and others will own 13
pct.
It said the remaining nine pct will be held by Milex
shareholder Norman Monson, who will become chief executive
officer of the combined companies.
| Corporate News |
PORTUGUESE GRAIN AGENCY BAN OPPOSED BY MINISTER
| Portugal's Agriculture Minister Alvaro
Barreto said he disagreed with a court order barring the state
grain buying agency EPAC from taking part in cereals import
tenders open to private traders.
Barreto told reporters his aim was to have EPAC readmitted
to the tenders.
Under the terms of Portugal's January 1986 accession to the
European Community (EC), a grain import monopoly held by EPAC
(Empresa Publica de Abastecimento de Cereais) is being reduced
by 20 pct annually until all imports are liberalised in 1990.
Following legal proceedings by private importers, Lisbon's
civil court decided in a preliminary ruling earlier this month
that EPAC should not be allowed to take part, as it had done,
in tenders for the liberalised share of annual grain imports.
As a result of this ruling, EPAC was excluded from a March
12 tender for the import of 80,000 tonnes of maize.
Barreto said, "My objective is put EPAC into the tenders
because it has a right to take part." He added the government
would be studying the court order to see whether or not the
ruling could stop EPAC from participating in future tenders.
Barreto said there was no reason to exclude any operator,
whether public or private, from the tenders. Private traders
had argued that EPAC, given its dominant position in the
Portuguese grain market, had an unfair advantage over them.
"There is no reason to make EPAC a martyr of the system,"
Barreto said. He said the EC's executive commission had
accepted the government's view that EPAC should be eligible.
The Lisbon court ruling stated that EPAC's participation in
the public tenders was unfair competition and violated the
clauses of Portugal's EC accession treaty dealing with the
gradual dismantling of the state agency's import monopoly.
| Financial Reports |
STANDARD FEDERAL <SFB> OFFERS ZERO-POINT LOAN
| Standard Federal Bank said it
introduced a zero-point fixed rate mortgage loan.
The loan program offers borrowers home mortgage financing
with no discount fees charged.
Standard said that fees charged will include an application
fee, commitment fee and out-of-pocket expenses such as title
work, survey, recording fees and private mortgage insurance.
| Corporate News |
IRAQ OIL MINISTER QASSEM AHMED TAQI REPLACED, IRAQI NEWS AGENCY REPORTS
|
IRAQ OIL MINISTER QASSEM AHMED TAQI REPLACED, IRAQI NEWS AGENCY REPORTS
| Commodities and Trade |
IRAQI OIL MINISTER REPLACED - OFFICIAL
| Iraq's Oil Minister Qassem Ahmed Taqi
has been moved to the Heavy Industries ministry, the official
Iraqi news agcny INA said tonight.
It quoted a Presidential decree appointing Oil Ministry
undersecretary Isam Abdul-Rahim Al-Chalaby as the new Oil
Minister.
The Ministers of Industry and Communication and Transport
had both been relieved of their posts, the news agency said.
No immediate explanation was given for the changes.
Al-Chalaby is the head of the Iraqi National Oil Company.
INA said the decree, signed by President Saddam Hussein,
relieved the Minister of Heavy Industries, Subhi Yassin Khadeir
of his post and appointed him a Presidential adviser.
His ministry was formerly known as the Industry and Mineral
Resources Ministry. The Minister of Communications and
Transport, Abdel-Jabbar Abdel-Rahim al-Asadi was also relieved
of his post and replaced by a member of the ruling Baath party
regional command, Mohammed Hamza al-Zubeidi. Al-Zubedei is also
a Presidential adviser. All three ministers involved in the
reshuffle had spent more than four years in their posts.
| Corporate News |
ALLEGHENY <AI> SUED OVER PROPOSED BUYOUT
| Allegheny International Inc said it
and First Boston Inc's <FBC> Sunter Holdings Corp subsidiary
have been named as defendants in a class action filed in the
Court of Common Pleas for Allegheny County, Pa., which seeks an
injunction against Allegheny's proposed merger into Sunter.
The company said its board and some former directors and
First Boston were also named as defendants.
It said it and Sunter intend to vigorously oppose the
action.
Allegheny said the class action suit alleges the price to
be paid in the transaction is grossly unfair. The company said
the suit's allegations are similar to those contained in an
earlier federal court suit.
| Corporate News |
ASTROCOM CORP <ACOM> 4TH QTR NET
| Shr one ct vs five cts
Net 19,174 vs 118,671
Revs 3,127,162 vs 2,936,330
Year
Shr eight cts vs 30 cts
Net 198,290 vs 712,087
Revs 12.4 mln vs 11.6 mln
Avg shrs 2,603,588 vs 2,376,604
| Financial Reports |
JUNO LIGHTING INC <JUNO> 1ST QTR FEB 28 NET
| Shr 43 cts vs 32 cts
Net 1,991,000 vs 1,485,000
Sales 11.7 mln vs 9,479,000
| Corporate News |
U.S. FARM POLICY DEBATE COULD HIT SENATE SOON
| The Senate this week might take up
proposed legislation that could serve as a lightning rod to
expose broad initiatives to change U.S. farm policy.
The Senate could consider a House-passed bill that would
allow wheat and feedgrains farmers to receive at least 92 pct
of their income support payments if flooding last year
prevented, or will prevent, them from planting their 1987
crops, Senate staff members told Reuters.
Also pending is a bill extend the life of the National
Commission on Dairy Policy.
Sen. Rudy Boschwitz, R-Minn., intends to offer an amendment
to one of the bills that would suspend the minimum planting
requirement for all 1987 wheat, feedgrain, cotton and rice
producers, an aide said.
Under current law, producers must plant at least 50 pct of
their base acreage to be eligible for 92 pct of their
deficiency payments.
Most major U.S. farm groups have lobbied hard against
making any fundamental changes in the 1985 farm bill out of
fear a full-scale debate could expose agricultural problems to
budget-cutting pressures.
Representatives of these farm groups have said they also
fear efforts by Midwestern Democrats to force a floor vote on a
bill that would require large acreage set-asides in return for
sharply higher support prices.
However, Sen. Tom Harkin, D-Iowa, sponsor of the bill, told
Reuters he did not intend to offer his measure as a floor
amendment but to bring it through the committee.
| Financial Reports |
TIN PACT SPECIAL SESSION THIS WEEK ROUTINE
| A further special session of the
International Tin Council, ITC, held here tomorrow, March 24,
will give member countries an update on the latest debate over
the hundreds of millions of sterling lost when its buffer stock
price support scheme failed in October 1985, delegates said.
But the ITC quarterly session scheduled for April 8-9 will
be important, as the council will by then be wanting to decide
on whether the current pact should be extended beyond June 30
or just allowed to expire, delegates said. A two year extension
is possible.
| Corporate News |
TIN COUNCIL WINDING-UP VERDICT APPEALED
| Amalgamated Metal Trading, AMT, today
lodged an appeal against the ruling which prevented its
petition to wind up the International Tin Council, ITC.
The verdict was given by Mr Justice Millett on January 22,
when AMT led an effort by ITC creditors to recover sums claimed
by banks and London Metal Exchange brokers as a result of the
collapse of the ITC's buffer stock operations in October 1985.
AMT had until March 26 to lodge its appeal.
The grounds for the appeal are that the judge erred on
three points when giving his verdict, Michael Arnold, head of
the broker creditors group Tinco Realisations, told Reuters.
The judge ruled that the U.K. Court had no jurisdiction to
wind up the Tin Council, that the ITC was not an association
within the meaning of the Companies Act, and that the
winding-up petition was not a proceeding in respect of an
arbitration award. AMT will contest all three points.
The U.K. Companies Act allows the possibility of the
winding-up of what it defines as an association, and AMT will
argue that the Tin Council falls within this definition, Arnold
said.
The ITC has immunity except for the enforcement of an
arbitration award, and thus it is important for AMT that the
court accepts that the winding-up petition represents a move to
enforce an arbitration ruling.
The court originally decided that the winding-up petition
went wider than the enforcement of such a debt, an AMT
spokesman said.
The appeal is unlikely to be heard for several months, but
a case brought by fellow ITC creditor Maclaine Watson is to be
heard on April 28. This is a move by the metal broker to have a
receiver appointed over the ITC's assets.
Since similar arguments will be used in this case, it is
possible that any appeal in the Maclaine Watson case could be
consolidated with AMT's appeal, Arnold said.
Other ITC creditors have brought direct actions against the
Council's member states and an application by the governments
to strike out the first of these, brought by J.H. Rayner
(Mincing Lane) Ltd, is to be heard on May 11.
Shearson Lehman Brothers action against the LME's tin
"ring-out" in March 1986 is also scheduled to be heard in the
near future. The hearing date has now been put back slightly to
June 8.
| Financial Reports |
ICO COUNCIL ENDS IN FAILURE TO AGREE QUOTAS
| A special meeting of the International
Coffee Organization (ICO) council failed to agree on how to set
coffee export quotas, ICO delegates said.
Producers and consumers could not find common ground on the
issue of quota distribution in eight days of arduous, often
heated talks, delegates said.
Export quotas -- the major device of the International
Coffee Agreement to stabilise prices -- were suspended a year
ago after coffee prices soared in reaction to a drought in
Brazil which cut its output by two thirds.
Delegates and industry representatives predicted coffee
prices could plummet more than 100 stg a tonne to new four year
lows tomorrow in response to the results of the meeting.
| Corporate News |
U.S. PREPARED TO ESCORT KUWAITI TANKERS
| The United States has offered Navy
warships to escort Kuwaiti oil tankers into and out of the
Gulf where they could be threatened by new Iranian anti-ship
missiles, U.S. defense officials said today.
"We believe the Kuwaitis have also approached the Soviet
Union about the possibility of using Soviet tankers" to ship
their oil, one of the officials told Reuters. "But if there is
superpower protection, we would rather it come from us," the
official said.
The officials, who asked not to be identified, said Kuwait
had asked about possible protection for a dozen vessels, most
of them oil tankers, which could be supplied by three U.S. Navy
guided missile destroyers and two guided missile frigates now
in the southern part of the Gulf.
"We told them we would give them help and we are waiting to
hear the Kuwaiti response to our offer," one official said.
In addition to a half dozen ships in the U.S. Navy's small
Mideast Task Force near the Straits of Hormuz, the Pentagon has
moved 18 warships -- including the Aircraft Carrier Kitty Hawk
-- into the northern Indian Ocean in the past month.
White House and defense officials said today that massing
of the fleet was routine and had nothing to do with the
Iran-Iraq war or Iran's recent stationing of Chinese-made
anti-ship missiles near the mouth of the Gulf.
The land-based missiles have increased concern in Kuwait
and other Middle East countries that their oil shipments might
be affected. Several hundred vessels have been confirmed hit in
the Gulf by Iran and Iraq since early 1984. White House
spokesman Marlin Fitzwater told reporters today that it was in
the U.S. strategic interest to keep the free flow of oil in the
gulf and through the Straits of Hormuz.
But he said U.S. ships in the region were on routine
maneuvers.
Defense Secretary Caspar Weinberger on Sunday declined to
discuss specifics, but said the United States would do whatever
was necessary to keep the Gulf shipping open in the face of new
Iranian anti-ship missiles in the region.
"We are fully prepared to do what's necessary to keep the
shipping going and keep the freedom of navigation available in
that very vital waterway of the world," he said on NBC
television's "Meet the Press."
The State Department said Friday Iran has been informed
about U.S. concern over the threat to oil shipments in the
Gulf. The communciation was sent through Switzerland, which
represents American interests in Iran.
Iran on Sunday denied as baseless reports that it intended
to threaten shipping in the gulf and warned the United States
that any interference in the region would meet a strong
response from Tehran, Tehran Radio said.
An Iranian Foreign Ministry spokesman, quoted in a
broadcast monitored by the BBC in London, said reports that
Iran intends to threaten shipping in the Gulf were baseless.
"In conjunction with this misleading propaganda, America has
already paved the ground to achieve its expansionist and
hegemonistic intentions, aiming to build up its military
presence in the region," he was quoted as saying.
| Financial Reports |
TIMBER REALIZATION <TRX> TO SELL REMAINING ACRES
| Timber Realization Co said it has
agreed to sell its remaining 50,000 acres of timberland
property in Mississippi for about 11.3 mln dlrs in cash.
Timber Realization, a limited partnership formed to dispose
of timberlands and related properties transferred to it by the
<Masonite Corp>, said that when this sale is completed the
partnership will have received about 15.2 mln dlrs in cash and
notes from the sale of its properties since December 23, 1986.
The partnership said it will terminate before August 3,
1987.
Prior to that date, the partnership said it expects to form
a liquidating trust to provide for unresolved claims and
liablities.
Timber Realization said the amount retained in that trust
will depend on its experience in resolving open items up to the
termination date, but it added it expects to retain a
substantial amount in the trust.
The partnership said it anticipates making a cash
distribution of an as yet undetermined amount to unitholders at
or before the liquidation trust's funding date.
| Corporate News |
PIONEER SYSTEMS INC <PAE> YEAR NOV 29 LOSS
| Oper shr loss five cts vs loss 1.28 dlrs
Oper net loss 155,000 vs loss 3,982,000
Sales 37.1 mln vs 34.2 mln
NOTE: Net excludes losses from discontinued fabric
finishing operations of 3,431,000 dlrs vs 5,910,000 dlrs.
| Financial Reports |
AMERICAN SHARED HOSPITAL SERVICES <AMSH> YEAR
| Period ended December 31.
Shr profit 11 cts vs loss 24 cts
Net profit 224,271 vs loss 511,349
Revs 7,258,688 vs 7,200,349
| Financial Reports |
GEO. A. HORMEL AND CO <HRL>
| Qtly div 15 cts vs 15 cts previously
Pay May 15
Record April 18
| Corporate News |
BOLIVIA'S TOP UNION LEADER JOINS MINERS FAST
| Bolivia's top union leader today joined
a hunger strike by 1,300 state employed miners and workers to
press for higher wages he said.
Juan Lechin Oquendo, the veteran secretary general of the
Bolivian Labour Organization, COB, told reporters: "I am
joining the fast to abide with our call for a hunger strike".
Lechin, 83, became one of 12 COB leaders to join a hunger
strike to protest against the austerity programme of the
government of president Victor Paz Estenssoro.
The striking leader began his fast as leaders of 9,000
miners employed by the state corporation COMIBOL were due to
star negotiations on ways to solve their conflict over pay.
About 1,300 miners and workers entered today their fourth
day of fast in union offices and Roman Catholic churches to
press for a substantial hike in Bolivia's minimum monthly wage,
which is 40 bolivianos (about 20 dlrs), COB leader Walter
Degadillo said.
"I will take part in the miners' negotiations because that
does not force me to suspend my fast," Lechin told reporters.
The COMIBOL miners' strike entered its fifth day to press
for higher wages and more funds for the mining nationalised
industry.
About 20,000 miners, or two-thirds of the working force,
have been laid off through the government's decision to
streamline the deficit-ridden state corporation following a
collapse in the international tin price.
The government, faced with mounting social unrest against
its economic policies, has called the miners' strike and fasts
part of a campaign aimed at discrediting it during the visit of
West German president Richard von Weizsaecker, who began a
four-day visit last Friday.
"I regret not being able to attend an invitation by
president Weizsaecker to a dinner tonight because I am on a
hunger strike," Lechin told reporters. "I also have to orga-
nise the strike."
Weizsaecker is hosting a dinner tonight for Paz Estenssoro
and had invited both Lechin and Victor Lopez, the miners'
federation top leader. Although lopez has not joined the fast,
union sources said its unlikely he would attend the dinner.
| Corporate News |
TWO U.S. BANCORP <USBC> UNITS MERGE
| U.S. Bancorp's Pacific State
Bank of Lincoln City said it plans to merge with U.S. Bancorp's
U.S. National Bank of Oregon.
Under the pact, Pacific State will become part of the U.S.
Bank branch system.
The company said the merger is expected to be completed
after mid-year, following regulatory approval.
All local staff and management will remain the same, it
said.
| Corporate News |
MTS ACQUISITION HAS NEGLIGIBLE NUMBER OF CAESARS WORLD SHARES
|
MTS ACQUISITION HAS NEGLIGIBLE NUMBER OF CAESARS WORLD SHARES
| Market and Economy |
FRANCE HAS LITTLE ROOM FOR MANOEUVRE, OECD SAYS
| French industry is failing to produce the
goods its markets need and its loss of competitiveness has left
the government little room for manoeuvre to reflate the
economy, the Organisation for Economic Cooperation and
Development said.
With gross domestic product likely to grow only 2.1 pct
this year, the same rate as last year, unemployment could climb
to 11.5 pct of the workforce by mid-1988, from its present 10.9
pct, it said in an annual review of the French economy.
The report said the French economy was "increasingly
ill-adapted to demand" selling goods at "uncompetitive relative
prices on both domestic and export markets."
"France's poor export performance reflects a geographical
bias in favour of markets less dynamic than the average...
And...A substantial loss of market share...In the past 18
months," it said.
Pointing to a likely widening of the French trade deficit
to around 2.9 billion dlrs this year from 2.4 billion in 1986,
it warned that a further depreciation of the dollar against the
franc could lead to "a (renewed) loss of competitiveness
relative not only to the United States but also to the newly
industrialised countries."
This could result in further major losses of market share,
particularly in the non-OECD area, which accounts for almost a
quarter of French exports, it said.
Until the competitive ability of industry improved, the
authorities would have "little scope for macroeconomic
manoeuvre, even if the unemployment situation or the need to
encourage a pickup in investment could require demand to grow
more briskly," it added.
But rising unemployment could help to hold down wage
demands, contributing to a slowdown in inflation to around a
two pct annual rate this year and early next, the OECD said.
Written mainly in December last year, the report took no
account of a rise in oil prices early in 1987, and a 0.9 pct
surge in January consumer prices, caused partly by the
government's deregulation of service sector tariffs.
"We took a bet that the freeing of prices would not provoke
runaway rises, and it is not absolutely certain that bet has
been lost," one OECD official commented.
OECD officials said the January data and a rise in oil
prices above the 15 dlrs a barrel average assumed in the
report, indicated an upward revision in the inflation forecast
to around 2.5 or three pct.
The government last week revised its forecast up to between
2.4 and 2.5 pct from two pct, against last year's 2.1 pct.
But the OECD backed the government's view that the
underlying trend for inflation remained downwards this year,
with a slowdown in domestic costs taking over from last year's
fall in oil and commodity prices as the chief cause of
disinflation.
With French unit productivity costs now among the lowest in
the OECD area, the inflation differential between France and
its main trading rival, West Germany, could fall to just one
pct this year, it said.
On the other hand, the report noted, consumer prices for
industrial goods and private services have been rising steeply
as companies built up their profits.
"For the disinflationary process to continue , and price
competitiveness to become lastingly compatible with exchange
rate stability, it is essential that wage restraint continue,"
it said.
| Other |
WOLVERINE <WWW> TO SELL TWO SUBSIDIARIES
| Wolverine World Wide Inc said
it signed a letter of intent to sell to an investment group two
subsidiaries, Kaepa Inc, an athletic footwear maker, and its
international marketing arm, Kara International Inc.
Terms were not disclosed.
Wolverine said the action continues the restructuring
operation begun last July to make the company more competitive
and profitable. Wolverine said it will concentrate its effort
in the athletic footwear market in its Brooks footwear
division.
Wolverine said it expects "favorable results in the second
half as a result" of its restructuring. In 1986 it said
restructuring helped improve its financial capabilities.
The company reported a 12.6 mln dlr loss, or 1.75 dlrs a
share, in 1986 due largely to a 9.0 mln dlr restructuring
charge and a 4.0 mln dlr inventory evaluation readjustment
taken in the second quarter.
Since that time, it has sold two small retail operations,
closed and consolidated five domestic footwear factories and
closed about 15 retail locations.
| Commodities and Trade |
PACIFICARE <PHSY> IN TALKS TO ACQUIRE HMO
| PacifiCare Health Systems Inc
said it is in negotiations to acquire Capital Health Care, a
40,000 member health maintenance organization servicing Salem
and Corvallis, Ore.
The company said it will not disclose terms or other
details of the acquisition until negotiations are completed.
| Commodities and Trade |
MTS ACQUISITION HAD TALKS WITH PRATT HOTEL, SOUTHMARK ON CAESARS WORLD PURCHASE
|
MTS ACQUISITION HAD TALKS WITH PRATT HOTEL, SOUTHMARK ON CAESARS WORLD PURCHASE
| Market and Economy |
INITIALS PLUS <IINC> SEES SHARP SALES INCREASE
| Initials Plus said it expects sales in
the year ending January 31, 1988 to exceed 10 mln dlrs.
The company had sales last year of 256,000 dlrs.
Initials said it expects to turn profitable some time in
1988 and sees sales of 100 mln dlrs annually by the end of
1989.
The company said it now has over 100 personal retailers
marketing its products and expects to have more than 1,000 by
the end of 1987.
| Corporate News |
SOSNOFF HAS SMALL NUMBER OF CAESARS <CAW> SHARES
| Martin T. Sosnoff said his <MTS
Acquisition Corp> to date has received only a "negligible"
number of Caesars World Inc shares in response to its 28-dlr-
per-share tender offer for all shares.
Sosnoff also said he has held preliminary talks with Pratt
Hotel Corp <PRAT> and Southmark Corp <SM> on forming a joint
venture to enter into talks to acquire Caesars in a friendly
transaction in which Sosnoff would have a 50 pct interest and
Pratt and Southmark the remainder.
Sosnoff said the talks with Pratt and Southmark are not
being actively pursued at the presentand may or may not be
continued in the future. He said there could be no assurance
that a joint venture would be formed or that Caesars would
agreed to talks. "Several preliminary contacts with
representatives of Caesars have not resulted in any indication
that it wishes to enter into such negotiations," Sosnoff said.
He said based on talks with staff members of gaming
authorities, there can be no assurance that the necessary
regulatory review of its bid for Caesars World can be completed
by the original April Three expiration date.
Sosnoff said it has extended the tender until May 15. The
bid remains subject to regulatory approvals and the arrangement
of financing.
Pratt, which owns the Sands Hotel and Casino in Atlantic
City, N.J., where Caesars operates the Boardwalk Regency Hotel
and Casino, recently waged an apparently unsuccessful campaign
to acquire control of Resorts International Inc <RTA> against
New York developer Donald Trump. Southmark owns about 37 pct
of Pratt Hotel.
Caesars World's boasrd has urged rejection of the offer on
the grounds that it is inadequate and has said it would
investigate alternative transactions. Sosnoff currently owns
about 13.3 pct of Caesars World.
| Financial Reports |
PAINEWEBBER<PWJ> UNIT UPS SHAER SHOE <SHS> STAKE
| Mitchell Hutchins Asset Management
Inc, a New York investment firm and subsidiary of PaineWebber
Group Inc, said it raised its voting stake in Shaer Shoe Corp
to 76,000 shares, or 7.5 pct, from 52,100 shares, or 5.1 pct.
In a filing with the Securities and Exchange Commission,
Mitchell Hutchins said it bought 11,900 shares between Jan 8
and Feb 24 at prices ranging from 12.125 to 12.75 dlrs a share
and obtained voting control over another 12,000 shares.
The firm has said it bought the stake as an investment on
behalf of its clients, but said it has had discussions with
Shaer management. It did not disclose the topic of the talks.
| Other |
IRAQ REPORTS ATTACKS ON SUPERTANKER, OIL TARGETS
| Iraq said today its warplnes had
attacked a supertanker and four Iranian oil sites and vowed to
keep up such raids until the Gulf war ends.
The surprise escalation of attacks on oil installations
broke more than a month-long lull in Iraqi air force action.
It also followed celebrations yesterday of what Baghdad
hailed as Iran's failure to achieve victory during the Iranian
year which ended on Saturday.
A high command communique said warplanes hit the western
jetty at Iran's Kharg island oil terminal in the afternoon and
struck a supertanker nearby at the same time.
The Kharg terminal, attacked about 135 times since August
1985, was last raided in January.
The communique did not identify the supertanker, but said
columns of smoke were seen billowing from it.
In London, Lloyds insurance said the 162,046-ton Iranian
tanker Avaj was hit on Saturday, when Iraq reported an earlier
Gulf attack.
But there has been no independent confirmation of today's
supertanker attack nor of other raids on shipping reported by
Baghdad in the past 24 hours.
The last confirmed Iraqi attack took place on March eight,
when the Iranian tanker Khark-5 was hit south of Kharg.
Iraqi warplanes also struck Iran's offshore oilfields at
Nowruz, Cyrus and Ardeshir in northern gulf, some 80 km (50
miles) west of Kharg island, today's communique said.
The three oilfields have been raided several times in the
past three years. Oil sources said they were not crucially
important to Iran's oil export trade.
A second high command communique today said Iraqi warplanes
flew 94 sorties against Iranan targets and positions at the war
front.
It also reported a clash between Iraqi naval units and
several Iranian boats carrying men to attack an Iraqi oil
terminal at the northen tip of the Gulf.
Two Iranian boats wer destroyed and sunk with their
occupants and the others fled, it said.
| Other |
TALKING POINT/WENDY'S INTERNATIONAL <WEN>
| Takeover speculation buoyed Wendy's
International Inc's stock, even after Coca Cola Co took the
fizz out of market rumors by denying it was an interested
suitor.
Wendy's retreated from an earlier high of 13-3/8, and lost
a point when Coca Cola <KO> said the rumors were untrue.
However, Wendy's remained up 5/8 at 12-3/8 on volume of more
than three mln shares.
Several analysts were skeptical of the rumors, yet they
said they could not conclude a takeover of the fast food
restaurant chain was impossible.
Wendy's declined comment on takeover rumors of all kinds.
Yet, a Wendy's spokesman said the company was aware of a
Business Week article, which named Coke as a potential suitor
and which market sources said helped ignite the rumor mill.
Market sources mentioned Anheuser-Busch Inc <BUD> and
Pepsico Inc <PEP> as alternatives to Coke as acquirers. Neither
of those companies would comment, nor would the Wendy's
official.
"It doesn't happen every day, every week, every month, but
its not unusual for us to be linked with those companies," said
Denny Lynch, Wendy's vice president of communications.
However, Lynch would not comment specifically on the
current market rumors.
Even before Coke denied the rumors, analysts had been
skeptical of a takeover since Atlanta-based Coke has stated it
views fast food chains as customers and does not want to become
a competitor to them.
"I can't put another name on it," said Kidder peabody
analyst Jay Freedman as vaguer rumors continued to hold up
Wendy's stock. "It very well could be someone's interested."
But Freedman said he doesn't believe now is the right time
for Wendy's to be sold.
"They're obviously having operational difficulties. I've
always believed at the right price Wendy's would consider (an
offer), but I can't believe this is the right price at the
right time," Freedman said.
"If a transaction takes place, the buyer's going to control
the situation," Freedman said.
"I just don't think there's anything going on. I don't
think it's worth much more than where it is," said Joseph Doyle
of Smith Barney.
Analysts said Wendy's has suffered largely from the "burger
wars" between itself, McDonald's Corp <MCD> and Pillsbury Co's
<PSY> Burger King chain. Wendy's, the third largest fast food
hamburger chain in the U.S., lost about 11 pct in same store
sales last year, analysts said.
Wendy's also fumbled when it introduced a high-priced
breakfast, which it has since withdrawn, analysts said. Some
analysts said the company should be bringing in new products,
but it is too soon to predict a significant turnaround.
There are analysts, however, who believe Wendy's may be
vulnerable to a takeover.
James Murren of C.J. Lawrence said Wendy's could be worth
14 to 15 dlrs on a break-up basis. He said the company has
improved its debt-to-equity ratio and Wendy's owns a high
percent of its own restaurants - 38 pct of 3,500.
"They also have some attractive leaseholds on their
restaurants," Murren said.
Murren said that despite the downturn in sales last year,
Wendy's real sales, store for store, turned upwards in the
fourth quarter. "That was about the first time in seven
quarters," he said.
Caroline Levy of E.F. Hutton also believes something could
be going on with Wendy's. "My gut feeling is something's going
to happen. I don't know what," she said.
She estimated a takeover price would be at least 15 dlrs
per share.
One analyst speculated that Coke became the rumored suitor
because Wendy's decided to sell Coke at its fountains instead
of Pepsi.
Wendy's is currently embroiled in litigation brought by
Pepsi, which holds a contract with the company, analysts said.
Pepsi's soda is still sold in the Wendy's restaurants.
| Financial Reports |
U.S. EXPORT INSPECTIONS, IN THOUS BUSHELS SOYBEANS 13,417 WHEAT 12,003 CORN 27,623
|
U.S. EXPORT INSPECTIONS, IN THOUS BUSHELS SOYBEANS 13,417 WHEAT 12,003 CORN 27,623
| Other |
EC COMMISSION SET TO DETAIL GRAIN IMPORT PLAN
| The EC Commission will decide shortly
precisely how to arrange the import of third country maize and
sorghum into the EC in fulfilment of its agreement with the
United States, Commission sources said.
Under the accord, reached following U.S. complaints about
the impact on its agricultural exports of Spanish EC
membership, the EC will import two mln tonnes of maize and
300,000 tonnes of sorghum a year up to end of 1990.
All this produce will be imported into Spain at special
levy levels likely to be below those applying for imports into
other EC countries.
The sources said it was possible that the Spanish
intervention board would be asked to buy the produce directly
this year, as it was rather late to make other arrangements.
They added that the choice for future years appears to lie
between a system of regular tenders and the setting of a daily
special levy applicable to Spanish imports.
There will initially be no tax on re-exports of maize and
sorghum from Spain to other EC countries, although such a tax
could be imposed later, the sources added.
| Corporate News |
PATIENT TECHNOLOGY INC <PTI> YEAR LOSS
| Shr loss 12 cts vs loss 63 cts
Net loss 596,000 vs loss 2,934,000
Revs 7,261,000 vs 6,600,000
Year
Oper shr loss 14 cts vs loss 1.28 dlrs
Oper net loss 683,000 vs loss 5,824,000
Revs 29.8 mln vs 22.7 mln
Avg shrs 4,930,000 vs 4,546,000
NOTE: Year net excludes losses from discontinued operations
of 764,000 dlrs vs 5,152,000 dlrs.
| Financial Reports |
GEMINI TECHNOLOGY INC <GMTIF> YEAR LOSS
| Shr loss 74 cts
Net loss 4,192,613
Revs 2,928,021
Note: 1986 net includes 3,095,000 dlr write-off tied to
discontinuation of emulator board production.
Co's 1st fl-yr of operation.
| Other |
SOCIETE GENERALE REPORTS HIGHER 1986 PROFITS
| France's Societe Generale <SGEN.PA> bank,
which will be sold to the private sector in the second half of
this year, reported increased profits for last year.
Societe Generale, one of the three largest state-owned
banking groups, said in a statement that its parent company
profit for 1986 totalled 800 mln francs, up 21.2 pct on 1985's
660 mln profit.
This was in line with earlier forecasts of profit of
between 770 and 800 mln francs.
The bank's parent company gross operating profits were up
5.4 pct at 21.34 billion francs against 20.24 billion in 1985.
The increase in the bank's gross operating profits was
mostly due to a rise in french franc deposits and personal
loans as well as the development of its financial activities,
Societe Generale said.
Parent company net banking earnings last year were also up
at 13.9 billion francs compared with 13.57 billion in 1985
while operating costs totalled 7.44 billion francs against 6.67
billion the previous year.
Societe Generale President Marc Vienot said in December he
expected group 1986 consolidated profits to rise to between 2.5
billion and 2.6 billion francs from 1.62 billion in 1985.
| Corporate News |
FRENCH HOUSEHOLD CONSUMPTION FALLS IN FEBRUARY
| French household consumption of
industrial goods fell 1.1 pct seasonally adjusted to 21.32
billion francs last month from 21.55 billion in January, the
National Statistics Institute (INSEE) said.
This brought consumption back down to the December 1986
level, it added.
INSEE said that the fall was due to a sharp decline in
purchases of clothing, which were high in January due to the
cold weather. The decline was partly compensated by a small
rise in purchases of durable goods.
| Corporate News |
FRENCH ECONOMIC COUNCIL PESSIMISTIC ON 1987 GROWTH
| France's Economic and Social Council
(CES), an advisory body comprising industrialists, trade
unionists and representatives of other sectors of the French
economy, said the country's annual growth may not reach two pct
in 1987.
French gross domestic product risks not reaching the two
pct growth registered last year, the Council said in a report
on first quarter 1987 economic activity without giving any
specific forecasts. Finance Minister Edouard Balladur was
quoted today as saying that French 1987 growth will probably be
about two pct.
Balladur said in an interview with the financial daily Les
Echos that the country's economic growth will probably be about
the same as last year due to a less favourable international
environment.
CES President Philippe Neeser said one of the major fears
for the French economy this year was a resurge in inflation.
Disinflation was an absolute priority, Neeser told
journalists, adding that a failure to do this would be
extremely serious as if would be very difficult to reverse for
many years.
| Corporate News |
UNIFORCE TEMPORARY <UNFR> SETS SPLIT
| Uniforce Temporary
Personnel Inc said it declared a three-for-two stock split,
payable May 15 to stockholders of record April 14.
| Corporate News |
MANHATTAN NATIONAL CORP <MLC> 4TH QTR LOSS
| Oper shr loss 20 cts vs loss 81 cts
Oper net loss 1,042,000 vs loss 4,077,000
Revs 38.5 mln vs 50.3 mln
12 mths
Oper shr loss six cts vs loss 43 cts
Oper net loss 336,000 vs loss 2,176,000
Revs 137.8 mln vs 209.1 mln
NOTE: qtrs 1986 and prior exclude net realized investment
gains of 74,000 dlrs and 644,000 dlrs, respectively, and years
1986 and prior exclude realized investment gains of 642,000
dlrs and 1,979,000 dlrs, respectively.
| Other |
KIDDIE PRODUCTS INC <KIDD> YEAR NET
| Shr 1.25 dlrs vs 1.14 dlrs
Net 472,254 vs 446,805
Revs 21.4 mln vs 19.4 mln
| Corporate News |
TELECREDIT INC <TCRD> 3RD QTR JAN 31 NET
| Shr 32 cts vs 22 cts
Net 3,454,000 vs 2,224,000
Revs 33.2 mln vs 28.1 mln
Nine mths
Shr 64 cts vs 38 cts
Net 6,935,000 vs 3,877,000
Revs 86.8 mln vs 70.9 mln
| Other |
BELLSOUTH <BLS> COMPLETES PURCHASE FOR SHARES
| BellSouth Corp said it completed its
previously-announced agreement to acquire <Dataserv Inc> for an
exchange of shares.
BellSouth said under the Nov 25, 1986, agreement, it
exchanged one of its common shares for every 13.3 Dataserv
common shares. The exchange reflects the Feb 23 three-for-two
BellSouth stock split, the company said.
| Financial Reports |
REXHAM <RXH> GETS TAKEOVER OFFER
| Rexham Corp, a maker of
packaging materials and machinery, said it received an
unsolicited offer of 43 dlrs a share from Nortek Inc <NTK>.
Nortek, a Providence, R.I., textile manufacturer, has
disclosed it holds 381,050 Rexham shares, or about 9.1 pct of
the outstanding, the company said.
Rexham said it does not welcome the proposal but added its
board will study the offer and respond in due course.
Nortek has proposed paying half cash and half Nortek
convertible preferred stock for Rexham, which has about 4.2 mln
shares outstanding.
The cash portion would include the amount previously paid
for the Rexham stake and the terms of the convertible preferred
stock would be negotiated, the company said.
Rexham said it received the takeover offer in a letter from
Nortek.
| Corporate News |
BANCA D'AMERICA E D'ITALIA 1986 YEAR
| Net profits for year ended December 31
1986 1.3 billion lire vs 47.3 billion
Deposits from clients 3,691.0 billion lire vs 3,419.0
billion
Loans to clients 2,448.0 billion lire vs 2,181.5 billion
Note: The bank, sold by Bankamerica Corp <BK.N> last
December to West Germany's Deutsche Bank AG <DBKG.F>, said the
sharp fall in net profit reflected various factors including
higher set-asides for risk coverage and a high tax burden.
| Commodities and Trade |
ENERGY ANALYST PROPOSES U.S. OIL TARIFF
| Energy analyst Edward Krapels said
the United States should consider an oil tariff to keep U.S.
dependence on imports below 50 pct.
"On the supply side, the argument in favor of a contingent,
variable import tariff is most persuasive," Krapels, president
of Energy Security Analysis, Inc said in a statement at a House
Energy and Power subcommittee hearing.
"An optimal tariff would be one implemented only if the
international price of crude oil falls below, say, 15 dlrs a
barrel. On the demand side, the obvious policy is an excise tax
on transportation fuels," Krapels said.
But William Johnson of the Jofree Corp disagreed with the
oil tariff proposal, saying Congress should remove price
controls on natural gas, repeal the windfall profits tax on oil
companies, allow exports of Alaskan oil and provide tax
incentives for U.S. oil production, or, at the least, preserve
exisiting tax incentives for drilling. He also urging filling
the Strategic Petroleum Reserve at a faster rate.
Richard Adkerson of Arthur Andersen and Co told the
subcommittee oil imports were expected to increase because
funds for exploration and development of domestic oil sources
cannot now be economically justified due to low oil prices.
| Corporate News |
SECURITY CAPITAL <SCC> SUSPENDS DIVIDENDS
| Security Capital Corp said it has
suspended quarterly cash dividend payments indefinitely.
The company also said its board has withdrawn authroization
for the company to buy its stock on the open market. Its
previous dividend payment was five cts on February 24.
Security Capital said this action was taken in response to
its continuing operating losses, primarily at Benjamin Franklin
Savings Association, a Houston-based subsidiary.
| Industrial and Sector News |
LASER PRECISION CORP <LASR> 4TH QTR NET
| Shr profit 14 cts vs profit two cts
Net profit 452,723 vs profit 50,581
Revs 5,065,543 vs 2,898,363
Year
Shr profit 45 cts vs loss 15 cts
Net profit 1,276,472 vs loss 340,081
Revs 16.0 mln vs 9,304,466
| Other |
AUDITORS LIFT QUALIFICATION ON BRUNSWICK <BC>
| Auditors of Brunswick Corp lifted a
four year qualification on the company's financial statements,
vice president-finance Frederick Florjancic told securities
analysts here.
The financial results for the diversified leisure and
defense/aerospace company had been qualifed by Arthur Andersen
and Co since 1982.
The qualification related to certain tax liabilities,
amounting to 65 mln dlrs, associated with a medical division
sold by Brunswick in 1982, he said.
| Commodities and Trade |
ALC COMMUNICATIONS CORP <ALCC> 1986 LOSS
| Shr loss 4.63 vs loss 2.43
Net loss 60,780,000 vs loss 28,898,000
Rev 499.7 mln vs 432.1 mln
NOTE: 1986 net includes loss of 49.9 mln dlrs for
restructuring charges.
| Financial Reports |
LESCO INC <LSCO> 1ST QTR FEB 28 LOSS
| Shr loss 24 cts vs profit three cts
Net loss 982,779 vs profit 104,418
Revs 11.2 mln vs 12.3 mln
| Corporate News |
SEISMIC ENTERPRISES INC <SEIS> 4TH QTR LOSS
| Shr loss eight cts vs profit 10 cts
Net loss 714,905 vs profit 889,679
Revs 1,091,461 vs 3,156,569
Year
Shr loss five cts vs profit 22 cts
Net loss 422,037 vs profit 1,850,637
Revs 6,642,490 vs 7,948,312
Avg shrs 8,808,323 vs 8,412,822
| Corporate News |
ALC <ALCC> ANTICIPATES 1ST QTR PROFIT
| ALC Communications Corp said
that because of strong traffic growth and cost reductions it
anticipates reporting a profit for the first quarter of 1987,
versus a loss of 1.4 mln dlrs, or 15 cts a share, for the first
quarter of 1986.
Earlier, the company reported a net after-tax loss for 1986
of 60.8 mln dlrs, or 4.63 dlrs a share, compared with a loss of
28.9 mln dlrs, or 2.43 dlrs a share, in 1985.
| Corporate News |
REXNORD <REX> TO REDEEM RIGHTS
| Rexnord Inc said it will redeem
all of its preferred stock purchase rights for 10 cts a right
effective today.
Rexnord said the rights will be redeemed because it is
expected its shares will be tendered under a January 30
takeover offer from Banner Acquisition Corp. The rights trade
in tandem with Rexnord's common stock.
| Corporate News |
VARLEN CORP <VRLN> DECLARES QTLY DIVIDEND
| Qtly div 15 cts vs 15 cts prior
Pay April 30
Record April 15
| Commodities and Trade |
ANALYSIS AND TECHNOLOGY INC <AATI> HIKES PAYOUT
| Annual div 11 cts vs 10 cts prior
Pay April 24
Record March 31
| Corporate News |
IRAQ REPLACES OIL MINISTER IN BIG GOVT SHUFFLE
| Iraqi President Saddam Hussein carried
out his first major government shakeup in five years tonight,
naming a new oil minister in shuffling three posts.
One minister was dropped in the shuffle, announced in a
presidential decree. It gave no reason for the changes in the
government of the Arab Baath Socialist Party which has ruled
Iraq since a revolution in 1968.
The decree named the head of the Iraqi National Oil Company
(INOC), Isam Abdul-Rahim al-Chalaby, to take over as oil
minister replacing Qassem Ahmed Taqi.
Taqi, appointed oil minister in the last significant
government reorganization in 1982, was moved to be minister of
heavy industries.
| Commodities and Trade |
CAESARS <CAW> HAS NO COMMENT ON MTS TALKS
| Caesars World Inc declined
immediate comment on news that Martin Sosnoff's <MTS
Acquisition Corp> has held preliminary talks with two companies
on the possibility of forming a joint venture to pursue the
acquisition of Caesars.
Earlier today MTS said it held talks with Pratt Hotel Corp
<PRAT> and Southmark Corp <SM> on forming a venture to acquire
Caesars.
MTS also reported that it received a "negligible" number of
Caesars World shares in response to its 28 dlr per share tender
offer.
Earlier this month Caesars World rejected the Sosnoff
takeover bid and said it is considering alternatives that
include a restructuring or sale of the company to another
party.
| Financial Reports |
DIXONS SAYS CITICORP TO WITHDRAW CYCLOPS OFFER
| <Dixons Group PLC> said it received a
letter on March 19 from Citicorp Capital Investors Ltd, part of
the Cyacq investor group making a rival bid for Cyclops Corp
<CYL>, proposing to drop the group's offer if Dixons would sell
Cyclops industrial businesses to Citicorp.
"Cyacq's main equity investor appears ready to pull out and
deal directly with us for merely part of the company" said
Dixons. "It raises questions as to the strength of their
consortium and the purpose of their offer."
Dixons also said a U.S. Federal Court had refused a request
by counsel for Cyacq, Audio/Video Affiliates Inc <AVA> and a
shareholder plaintiff to prevent Dixons from
completing its tender offer for Cyclops. It also said the court
refused to require Cyclops to provide Cyacq with confidential
information previously provided to Dixons.
On Friday Cyacq Corp, an investor group led by Audio/Video
Affiliates and Citicorp, raised their offer for Cyclops to
92.50 dlrs per share from 80 dlrs per share, if certain
conditions were satisfied.
Last week Dixons said it won out over rival bidders for
Cyclops after getting 54 pct of Cyclop's oustanding with a
90.25 dlr or 384 mln dlr tender offer that expired March 18.
On Friday, Dixons agreed to reopen its tender offer until
March 25, Wednesday.
Dixons today called Cyacq's higher 92.50 dlr a share offer
for Cyclops "highly conditional."
| Corporate News |
COMBUSTION ENGINEERING INC <CSP> REGULAR DIV
| Qtly div 25 cts vs 25 cts prior
Pay April 30
Record April 16
| Corporate News |
CANTREX UNIT TO MERGE WITH ONTARIO GROUP
| (Groupe Cantrex Inc) said it plans to
merge a new wholly-owned subsidiary a merger agreement with
(CAP Appliance Purchasers Inc), of Woodstock, Ontario, a group
of about 400 appliance and electronics retailers.
It said CAP shareholders will receive 140,700 first
preferred Groupe Cantrex shares entitling the holders to
receive 6.05 dlrs per share or the equivilant in class A
subordinate voting Cantrex shares.
The merger is effective April one and is subject to
shareholder approval.
| Other |
PRIMARK CORP <PMK> REGULAR DIVIDEND
| Qtly div 32.5 cts vs 32.5 cts in prior qtr
Payable Mary 15
Record April 15
| Other |
SAXON OIL DEVELOPMENT PARTNERS <SAX> IN PAYOUT
| Qtly div two cts vs two cts prior
Pay May 15
Record March 31
NOTE: Full name Saxon Oil Development Partners LP.
| Corporate News |
IBM <IBM> REBOUND SEEN BY BERNSTEIN ANALYST
| International Business Machines Corp,
hit by a two-year earnings slump, should begin a come-back by
the end of 1987 and post strong growth in 1988, analyst Rick
Martin of Sanford C. Bernstein Co Inc said.
"There will be increasing momentum in earnings, albeit not
until later this year," Martin said at a technology conference
sponsored by the investment firm.
Martin said the coming rebound reflects new product
introductions in the mid-range area, rather than any drastic
improvement in economic growth or U.S. capital spending.
IBM, whose stock hit a 52-week low of 115-3/4 dlrs in
mid-January, has come back lately. IBM was trading up 7/8 at
149-1/2 dlrs.
Analysts, computer industry executives, and the company
itself, have highlighted the external economic factors
hampering IBM's growth.
But Martin said the product cycle was key to understanding
the rise and fall of IBM and other computer companies, and
pointed to Digital Equipment Corp <DEC> to support his view.
"By replacing the product line, earnings have soared," he said
of DEC's line of VAX computers.
In contrast to DEC, IBM faultered with an incompatible
mid-range product line. A new computer code-named "Fort Knox"
was supposed to tie together a number of IBM's mid-range
systems, but the product never got off the ground, he said.
Instead, aspects of the computer were integrated into the
IBM 9370 machine introduced last year, and other aspects should
be unwrapped by 1988, Martin said. "The major story will be a
rebound in its mid-range business."
He said sales of IBM's mid-range computers fell about 13
pct in 1986. But the new products will lead to 5.8 pct growth
in mid-range computers this year and 30.7 pct growth in 1988.
High-end computers, primarily the Sierra line, are coming
to the end of their product life cycle. Although growing 22.5
pct in the midst of IBM's sharply lower 1986 year, growth will
drop to 1.5 pct in 1987 and 1.9 pct in 1988, he said.
By 1988, overall revenue growth should rise to about 16
pct, against 5.8 pct growth in 1987 and 2.4 pct in 1986, Martin
said. Last year, IBM earned 4.8 billion dlrs on revenues of
51.3 billion dlrs.
Investors asked what this all meant to DEC, whose earnings
and stock have been propelled by a strong slew of product
introductions in the mid-range area.
In response, Martin said he did not view IBM as a threat to
DEC, nor DEC as a threat to IBM, because both companies were
catering largely to existing customer bases, rather than
stealing market share from one another.
| Commodities and Trade |
CITICORP (CCI) SEEKS CYCLOPS <CYL> STEEL UNIT
| Citicorp Capital Investors Ltd, a
unit of Citicorp, said it wants to buy Cyclops Corp's steel
assets from Dixons Group PLC and is willing to pay 124.4 mln
dlrs, nearly 13 mln dlrs more than had been offered for the
assets by Alleghany Corp.
The disclosure of the Citicorp unit's interest in Cyclops'
Industrial Group came in disclosure documents filed by Dixons
Group with the Securities and Exchange Commission.
Alleghany's MSL Industries Inc unit had agreed to buy the
steel assets from Dixons Group for 111.6 mln dlrs.
Dixons Group has tendered for all outstanding Cyclops
shares at 90.25 dlrs a share in cash.
The Citicorp unit said its higher offer came to about three
dlrs more for each Cyclops share outstanding.
As a condition of its offer, it said Dixons would have to
increase the cash price it was to pay for each Cyclops share to
93.25 dlrs in cash.
Dixons on Friday extended the expiration time of its tender
offer until midnight (EST) March 24.
| Industrial and Sector News |
INVESTMENT FIRM BOOSTS LDBRINKMAN <DBC> STAKE
| Two affiliated investment firms and
the investment funds they control said they raised their
combined stake in LDBrinkman Corp to 653,600 shares, or 10.9
pct of the total outstanding from 585,600 shares, or 9.7 pct.
In a filing with the Securities and Exchange Commission,
Fidelity International Ltd, a Bermuda-based firm, said its
funds bought 68,000 LDBrinkman common shares between Jan 5 and
Feb 19 at prices ranging from 5.30 to 5.445 dlrs a share.
Funds controlled by FMR Corp, a Boston-based investment
firm affiliated with Fidelity, hold 251,100 shares, bringing
the combined total to 653,600 shares, Fidelity said.
| Corporate News |
BRUNSWICK <BC> SEES HIGHER 1987 FIRST QUARTER
| Brunswick Corp expects 1987 first
quarter sales to be up "dramatically" and profits to "do well,"
chairman and president Jack Reichert said after a securities
analysts meeting.
He declined to be more specific.
In the 1986 first quarter, Brunswick reported earnings of
23.8 mln dlrs or 57 cts a share on sales of 396.7 mln dlrs.
Reichart noted that results of its two newly-acquired boat
manufacturing companies will be included in the company's first
quarter report.
Brunswick expects its recreation centers to benefit from
increased attention to the sport of bowling resulting from
acceptance in the 1988 Summer Olympics of bowling as an
exhibition sport and as a medal sport in the 1991 Pan American
Games, he said.
He said field testing of a new bowling concept involving
electronic features is being readied for test marketing this
summer, and if successful, could "materially benefit"
operations.
Brunswick is currently test marketing in California a
health club facility adjoining a bowling center, he said.
Turning to its defense operations, Reichert said he expects
the division to receive significant contracts in the near
future. At 1986 year end, Brunswick's defense contract backlog
stood at 425 mln dlrs.
Frederick Florjancic, vice president-finance, told analysts
Brunswick was disappointed two credit rating services recently
downgraded the company's debt which stood at about 665.4 mln
dlrs at 1986 year end.
"We are confident we can service our debt and bring it down
in the very near term," based on strong cash flow from
Brunswick's expanded boat operations, Florjancic said.
Shareholders at the company's April 27 annual shareholders
meeting will be asked to approve an increase in the authorized
common shares outstanding to 200 mln from 100 mln shares, a
company spokesman said.
| Commodities and Trade |
MARK IV <IV> UNIT TO BEGIN CONRAC <CAX> TENDER
| Mark IV Industries Inc said it plans
to begin a tender offer at 25 dlrs a share for all outstanding
shares of Conrac Corp <CAX>, a Stamford, Conn., maker of
control instruments and telecommunications products.
Mark IV said it owns about 670,400 shares or about 9.9 pct
of Conrac's outstanding shares.
The offer, to be made through Mark IV Acquisition Corp, a
wholly owned subsidiary, will not be conditioned on any minimum
number of shares being tendered, the company said.
The tender offer will be conditioned upon, among other
things, the completion of financing arrangements.
The terms and conditions of the offer will be described in
documents to be filed with the Securities and Exchange
Commission and mailed to Conrac shareholders as soon as
possible.
Bear Stearns and Co is expected to act as dealer manager
for the offer, it said.
A Conrac spokesman declined comment.
Conrac has about 6.75 mln shares outstanding. Its shares
closed off 1-3/8 at 21-1/8 as about 84,400 shares changed
hands.
Mark IV is a Williamsville, N.Y., maker of pastic products
and industrial control equipment.
| Other |
WEATHERFORD <WII> SUSPENDS PREFERRED PAYOUTS
| Weatherford International said it
suspended indefinitely payment of its regular quarterly
dividend of 65.6 cts per share on its 2.625 convertible
exchangeable cumulative preferred stock.
Weatherford said this will be the sixth non-payment of the
dividend on the stock. It said payment would have been on April
15, 1987.
Weatherford also said the holders of the preferred stock
will have the right to elect two additional directors to the
board of directors.
| Corporate News |
MHI GROUP <MH> AFFILIATED WITH CEMETARY OFFER
| MHI Group Inc said it is
affiliated with several investors who have entered into a
letter of intent providing for the purchase of Star of David
Memorial Gardens and Cemetery.
The company said those investors will, under certain
circumstances, cede their rights under the letter of intent and
any definitive agreement to purchase the Fort Lauderdale, Fla.,
funeral home and cemetery business to MHI.
| Financial Reports |