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Texaco Inc and Honeywell Inc said they formed a joint venture to provide advanced industrial plant control systems and services. The companies did not say how much money they will invest in the Phoenix-based venture which has been named Icotron Co. Louis Garbrecht Jr general manager of Texacos engineering and safety department was named chairman of the venture the companies said. John Hoag a Honeywell executive will oversee the day-to-day operations of the venture as president the partners said. Reuter | TEXACO <TX>, HONEYWELL <HON> IN JOINT VENTURE |
General Motors Corp said it is adding a third plant to its temporary layoff ranks. It said the Arlington Assembly plant in Arlington Texas will be closed March 16 to 30 for inventory adjustment a move affecting some 2000 workers. Two plants previously put on temporary layoff are the Lakewood (Georgia) assembly plant which will be closed in early May for model changeover and the Norwood (Ohio) plant down March 9-23 due to material shortage. The total number on temporary layoff will be 7600. Reuter | GM <GM> ADDS PLANT TO TEMPORARY LAYOFF LIST |
Iowa Beef Processors Inc is lifting a lockout at its Dakota City Nebraska processing plant and plans to resume operations March 16 United Food and Commercial Workers Union spokesman Allen Zack said by phone from his Washington D.C. headquarters. Iowa Beef a susbsidiary of Occidental Petroleum Corp mailed a letter to members of UFCWU Local 222 informing them a lockout imposed by the company on December 14 would be lifted and meatpackers could return to work under Iowa Beefs revised last and best final offer according to Zack. The letter was signed by four managers at the Dakota City plant. Iowa Beef closed the proessing plant indefinitely in mid-December because it said it had no alternative to threats by meatpackers to disrupt operations. About 2800 members of Local 222 are affected by the shutdown. A 3-1/2 year labor contract at the plant expired December 13. Reuter | OCCIDENTAL UNIT <OXY> LIFTS LOCKOUT |
Shr loss two cts vs profit 10 cts Net loss 79000 vs profit 507000 Revs 10.6 mln vs 2238000 12 mths Shr profit two cts vs profit 23 cts Net 89000 vs 1130000 Revs 21.4 mln vs 7766000 Reuter | CIRCON CORP <CCON> 4TH QTR |
Brown Transport Co Inc said its board declared an initial quarterly dividend of four cts a share payable April 10 to stockholders of record March 31. Reuter | BROWN TRANSPORT <BTCU> DECLARES FIRST PAYOUT |
Walt Disney Co <DIS> said it named Robert J. Fitzpatrick president of Euro Disneyland. Disney said the appointment becomes effective when it and the French government sign the definitive agreement for the new outdoor entertainment complex near Paris. It said the park will be built on nearly 5000 acres in Marne-la-Vallee 20 miles east of Paris. It said it will include the Magic Kingdom theme park outdoor recreation shops and hotels. It said it will seek qualified investors in France and elsewhere to form the Europ Disneyland owner company in which it will also be an equity partner. Disney also said it will receive management fees for operating the park in addition to license and royalty income. It said Fitzpatrick is president of California Institute of the Arts and director of the Los Angeles Festival. Reuter | PRESIDENT NAMED FOR DISNEY <DIS> EUROPEAN PARK |
House Speaker Jim Wright said a gasoline tax is one option to finding a way to reduce the deficit but told reporters in response to a question he will not try to dictate a solution to the debt problem. Wright has made suggestions for raising taxes about 20 billion dlrs as part of a budget plan to reduce the deficit. Tax proposals are being given consideration by members of the House Budget Committee but the details of any tax increase would be made by the tax writing House ways and Means Committee. Reuter | WRIGHT SAYS A GAS TAX AN OPTION TO CUT DEFICIT |
The Reagan Administration sent to Congress proposed legislation that would require Congress to reflect the cost of federal loan subsidies in the governments budget. The legislation would require Congress to approve all subsidies on loans to sell off many loans to the private sector shortly after they are made and to buy private reinsurance for many guaranteed loans. White House officials estimated reinsurance premiums could amount to six billion dlrs a year to private companies. The bill would make little impact on the federal deficit or payroll officials said. The legislation would not in itself alter the terms of federal credit programs. But officials said they would be pleased if Congress tightened some programs after seeing their true cost set out in the budget. The program would call for the immediate sale of many newly made direct federal loans but would no effect existing federal loan portfolios. Some of these are already proposed to be sold off under previous administration programs. Exempt from the sale requirement would be loans made under the Commodity Credit Corp commodity loan program which the government considers to be a commodity purchase program rather than a credit program and defaulted guaranteed loans which the government considers to be the same as direct loans. Also excluded from the sale requirement would be most foreign loans though officials said they may at some point consider selling off some Export-Import Bank loans. Officials said government loan programs currently amount to about 252 billion dlrs in direct loans and 450 billion dlrs in guaranteed loans a year. Officials said U.S. agencies were asked to calculate the approximate cost of their loan subsidies by looking at comparable loans in the marketplace. The administration is asking Congress to begin reflecting the cost of these subsidies in the fiscal 1988 budget which the House Budget Committee plans to begin marking up late next week. Officials said the reforms if adopted across-the-board by all affected congressional committees would lower the federal deficit by only 100 mln dlrs in fiscal 1988. Officials said the administration hopes to sell a total of 13.0 billion dlrs in loan assets during fiscal 1988 including 1.8 billion dlrs in loan assets under the credit reform program and 11.2 billion dlrs in loan assets already in the governemnts portfolion. In fiscal 1989 the administration hopes to sell 8.9 billion dlrs in loans including 1.3 billion dlrs of loans under the credit reform program and 7.6 billion dlrs from the existing portfolio. Reuter | WHITE HOUSE DETAILS CREDIT REFORM LEGISLATION |
KEY U.S. HOUSE TRADE SUBCOMMITTEE APPROVES BILL TO TOUGHEN U.S. TRADE LAWS | |
Summit Petroleum Corp said it sold 11.3 mln shares or 29.4 pct of its common stock to <Halbert and Associates Inc>. The company said the shares were previously held by <Consolidated Energy Corp> and Harken Oil and Gas Inc <HOGI>. In addition David D. Halbert president and chief executive officer of Halbert an Abilene investment firm was named chairman and chief executive of Summit the company said. Halbert Charles M. Bruce and James O. Burke were also named directors expanding the board to five Summit added. The company said Burke is president and chief executive of <Allied Comprehensive Health Inc> Abilene while Bruce is a partner in the Washington law firm of Butler and Binion. Summit said it intends to actively seek acquisitions to increase its asset base. Reuter | <SUMMIT PETROLEUM CORP> SELLS SHARES |
Genral Dynamics Corp has received a 44.7 mln dlr contract for steam and electric plant development for SSN-21 submarines the Navy said . REUTER | GEN DYNAMICS <GD> GETS 44.7 MLN DLR CONTRACT |
Japanese crushers bought 8000 tonnes of Canadian rapeseed in export business overnight for April shipment trade sources said. Reuter | JAPANESE CRUSHERS BUY CANADIAN RAPESEED |
Federal Reserve Board Chairman Paul Volcker said current data does not give a clear sign that the deterioration in the U.S. trade balance has yet been reversed. The data we have in hand do not provide clearcut evidence that the deterioration in the trade balance has yet been reversed Volcker said in remarks prepared for delivery to a luncheon for community leaders here. However Volcker said there are encouraging signs particularly the rising volume of exports over the past year achieved despite relatively slow growth abroad. Volcker warned it is not sustainable from an economic perspective to pile up foreign debt while failing to make the investment needed to generate growth and earn the money to service the debt. He said the process of restoring external balance to the U.S. economy requires dealing with the budget deficit. He said needed economic adjustment will require a relative shift of financial and real resources into internationally competitive industry. More of our growth will need to be reflected in net exports and business investment and less in consumption Volcker said. Reuter | NO CLEAR EVIDENCE TRADE GAP REVERSED - VOLCKER |
Iowa Beef Processors Inc is lifting a lockout at its Dakota City Nebraska processing plant and plans to resume operations March 16 United Food and Commercial Workers (UFCW) Union spokesman Allen Zack said. Iowa Beef mailed a letter to members of UFCW Local 222 informing them a lockout imposed by the company December 14 would be lifted and meatpackers could return to work under Iowa Beefs revised last and best final offer Zack said. Iowa Beef had closed the plant indefinitely in mid-December because it said it had no alternative to threats by meatpackers to disrupt operations. About 2800 members of Local 222 are affected by the shutdown. A 3-1/2 year labor contract at the plant expired December 13. Reuter | IOWA BEEF LIFTS LOCKOUT AT DAKOTA CITY |
N.Y. BUSINESS LOANS FALL 718 MLN DLRS IN MARCH 4 WEEK, FED SAYS | |
NEW YORK BANK DISCOUNT WINDOW BORROWINGS NIL IN MARCH 11 WEEK | |
Shr profit nil vs loss 61 cts Net profit 3000 vs loss 1148000 Revs 18.4 mln vs 17.8 mln Year Shr loss 94 cts vs loss 28 cts Net loss 1762000 vs loss 524000 Revs 58.5 mln vs 67.3 mln NOTE: 1986 net includes extraordinary gain of 569000 dlrs or 30 cts per share. Reuter | TONY LOMA CO INC <TLAM> 4TH QTR |
Allied-Lyons PLC <ALLD.L> and Canadas Reichmann brothers are working well together as partners and currently do not plan any change in their joint ownership of distiller Hiram Walker-Gooderham and Worts Allied-Lyons chairman Derrick Holden-Brown said. Allied-Lyons got 51 pct control of Hiram Walker-Gooderham last year for about 600 mln U.S. dlrs while the Reichmanns <Gulf Canada Corp> acquired 49 pct in an out-of-court pact after a hostile battle for the wine and spirits division of <Hiram Walker Resources Ltd>. We are getting along very well as partners ... I hope there wont be any change but there could be Holden-Brown told reporters after a speech in Toronto. He said Allied-Lyons has a two-year call option that could force Gulf Canada to sell its 49 pct stake to Allied-Lyons and Gulf Canada has a two-year put option that could obligate Allied-Lyons to buy its 49 pct. Both we and Gulf hope very much there will be no occasion for either the put or call to be exercised Holden-Brown said. In answer to a reporters question Holden-Brown said it would be possible for Gulf Canada to sell off part of its 49 pct in a public offering with Allied-Lyons consent. I dont think we would have any objection to it he added. Allied-Lyons maintains control of Hiram Walker-Gooderhams board of directors and has total responsibility for its management. We cannot contemplate giving up our control he said. Holden-Brown would not disclose how big a profit contribution the distiller will make in Allied-Lyons financial results but he said it will be substantial. I am not able to give profit forecasts he said. Holden-Brown said Allied-Lyons was able to finance the Hiram Walker-Gooderham acquisition with cash and borrowings and has no current plans for a stock issue. He said the company is not currently negotiating any more acquisitions in Canada but has a team of officials evaluating possible purchases of wines spirits soft drinks or food concerns. I dont think we shall be looking at the brewery scene (which is) highly concentrated already he added. Holden-Brown said Allied-Lyons plans to list its shares on Canadian stock exchanges possibly later this year. Reuter | ALLIED-LYONS SEES NO CHANGE IN HIRAM WALKER STAKE |
Commercial and industrial loans on the books of the 10 major New York banks excluding acceptances fell 718 mln dlrs to 64.87 billion in the week ended March 4 the Federal Reserve Bank of New York said. Including acceptances loans fell 581 mln dlrs to 65.63 billion. Commercial paper outstanding nationally dropped 13 mln dlrs to 336.02 billion. National business loan data are scheduled to be released on Friday. Reuter | NEW YORK BUSINESS LOANS FALL 718 MLN DLRS |
Moodys Investors Service said it is reviewing 648 mln dlrs of securities issued by Atlantic City Electric Co for a possible downgrade because of an unresponsive rate order from the New Jersey Board of Public Utilities. The net effect of the Boards recent ruling was to reduce the companys rates by 15.9 mln dlrs Moodys said. Ratings under review include the companys first mortgage bonds and secured pollution control revenue bonds currently AA-3. Reuter | MOODY'S MAY LOWER ATLANTIC CITY ELECTRIC <ATE> |
Shr 53 cts vs 34 cts Net 2253742 vs 1332652 Avg shrs 4251553 vs 3932064 Reuter | EATON VANCE CORP <EAVN> 1ST QTR JAN 31 NET |
Farm credit conditions showed further signs of stabilizing in the plains and mountain states during the fourth quarter of 1986 according to bankers surveyed by the Kansas City Federal Reserve Bank. The rate of loan repayment improved as one of every four bankers reported higher loan repayment rates than a year ago. Respondents said interest rates continued to edge lower. However the decline in farm real estate values quickened after moderating through the year dropping an average four pct. Farmland values averaged 14 pct lower than a year earlier and 55 pct below 1981s peak values. The survey authors blamed the drop on depressed crop prices and uncertainty about the future of government crop programs. Farm loan demand was the lowest since 1986 with only 13 pct of the survey respondents reporting an increase in loan demand. The also reported that 25 pct of the non-farm businesses in their areas were having severe financial problems and said the rate of rural non-farm business closings was nearly three times higher than normal. Over 150 bankers responded to the survey in the Tenth Federal Reserve District which includes all or parts of Colorado Kansas Missouri Nebraska New Mexico Oklahoma and Wyoming. Reuter | FARM CREDIT STABILIZES FURTHER IN PLAINS STATES |
Div 12 cts vs 12 cts Pay April 20 Record April 8 NOTE: company pays dividend of 12 cts three times annually with a bulk payment at the end of the fiscal year to equal annual dividend of 50 cts. Reuter | ADAMS EXPRESS CO <ADX> SETS REGULAR PAYOUT |
The use of generic in-kind commodity certificates has helped ease storage problems and is a necessary part of export promotion programs a senior executive for the worlds largest grain company said. Testifying before the House Agriculture subcommittee on wheat soybeans and feedgrains Robbin Johnson vice president of Cargill Inc. disputed claims that U.S. grain companies have made huge profits from certificate trading. The certs program is not in any way a windfall to the trade he said. Johnson said that Cargill has been dealing with a two pct spread in certificate transactions and that this is within the normal grain marketing levels. Johnson recognized current concern over the cost of certificates as compared to cash but said that critics need to look more closely at the savings caused by certs noting for example that widespread use of certs in the PIK and Roll marketing technique last summer helped ease storage costs. Certificates are also an important part of any export promotion program he said. The more you look at ways to expand export markets the more you have to look at ways to expand certs to put more grain into the market to meet demand he said. Subcommittee chairman Dan Glickman (D-Kans.) said his committee would be looking at the certificate program later this year and studying the General Accounting Office report on certificate costs. Reuter | CARGILL OFFICIAL DEFENDS CERTIFICATE PROGRAMS |
House Speaker Jim Wright endorsed a proposal to require the president to take action to reduce oil imports if they threaten to top 50 pct of U.S. consumption. Wright told reporters the plan by Sen. Lloyd Bentsen a fellow Texas Democrat was positive and useful. Oil imports peaked in 1977 at 47 pct were short of 36 pct last year and this year are up over 40 pct Bentsen said. The Bentsen proposal supported by 24 other Senators would would require the president to issue annual three-year oil import forecasts. In any year they threatened to top 50 pct he would be ordered to propose quotas or other solution. Reuter | HOUSE SPEAKER BACKS OIL IMPORT FORECAST PLAN |
Orbis COmmunications said it entered an agreement in principle to join Coca-Cola Cos <KO> Telecommunications Inc unit and Gulf and Western Incs Entertainment Group proposed venture to sell national barter advertising. Under national barter advertising a syndicator sells programs to a station for proceeds from national advertising instead of for cash. The joint venture will be called International Advertising Sales and will handle the sale of advertising time for programs by all three companies. Reuter | ORBIS, COCA-COLA, GULF/WESTERN <GW> IN DEAL |
<Casey-Werner Co> producer of The Cosby Show said it filed suit against Viacom International Inc seeking assurances that it will receive its share of revenues from the shows syndication. It said the debt burden placed on Viacom by the 3.4 billion dlr buyout proposal from <National Amusements Inc> and Viacoms 9.9 mln dlr 1986 loss may prevent it from paying Casey-Werner its money due from the show. Casey-Werner sought assurances from Viacom that its share of the syndication will not go to Viacoms creditors. But it said Viacom declined to provide the assurance. Alvin Schulman an attorney representing Casey-Werner said Viacom should receive about 450 mln dlrs total from the syndication rights to the show. Casey-Werner is entitled to about 66 pct of the funds he said. Schulman added that Viacom is due to receive in March and April an initial 40 mln dlrs from the syndication rights. To ensure Casey-Werner receives its share the company filed suit he said. The suit asked the court to place all funds due Casey-Werner in a trust and for Viacom to account for all funds received. Reuter | VIACOM <VIA> FACES "COSBY SHOW" SUIT |
U.S. SELLS 1-YEAR BILLS AT AVERAGE 5.68 PCT, STOP 5.68 PCT, AWARDED AT HIGH YIELD 71 PCT | |
President Reagan today had talks with Kenyan President Daniel Arap Moi who afterwards appealed for more U.S. investment in Kenya and a deeper American commitment to ending apartheid in South Africa. A senior administration official said that during the talks Reagan stressed to Moi the importance of Kenyas maintaining its high standards on human rights. The official said South Africa had not been a contentious issue in the talks and that the two leaders had found a lot of common ground on the issue. The administration has practiced a policy of constructive engagement with South Africa and accepted trade sanctions only after they had been imposed by Congress. Reuter | KENYAN LEADER APPEALS FOR U.S. INVESTMENT |
DOME PETROLEUM SAYS MAJORITY OF LENDERS SUPPORT DEBT RESTRUCTURING PLAN | |
DOME SAYS DEBT PLAN ONLY ALLOWS IT TO STRUGGLE ON AT CURRENT OIL PRICES | |
U.S. BANK DISCOUNT BORROWINGS AVERAGE 148 MLN DLRS A DAY IN MARCH 11 WEEK, FED SAYS | |
U.S. BANK NET FREE RESERVES 660 MLN DLRS IN TWO WEEKS TO MARCH 11, FED SAYS | |
U.S. M1 FALLS 600 MLN DLRS IN MARCH 2 WEEK, FEB M2 DOWN 1.6 BILLION, M3 UP 3.0 BILLION | |
Phoenix Steel Corp said it reached a revised debt reorganization agreement under which its unsecured trade creditors would receive up to 50 cts on the dlr as well as a share in future profits or sale proceeds. Phoenix said it arranged the new agreement with its major shareholder <Guardian Ventures> and a committee representing its unsecured creditors. The pact the company said replaces a plan that was proposed last December. The plan must be approved by April 1 by 80 pct of Phoenixs unsecured and other creditors the company said. Phoenix said the new plan increases the amount to be paid unsecured creditors to 50 cts from 40 cts on the dlr and adds terms for creditor participation in future profits or sale proceeds. In exchange the company said the creditors must agree not to sue the company or force it into involuntary bankruptcy. The creditors must also withdraw claims against Phoenix Guardian and others Phoenix said. Reuter | <PHOENIX STEEL CORP> IN NEW DEBT AGREEMENT |
Princeville Development Corp and <Aloha Inc> parent of Aloha Airlines Inc jointly said they agreed to terms for the sale of Princeville Airways Inc to Aloha. Terms of the agreement were not disclosed. Under the proposed sale the companies said Aloha would acquire the entire Princeville Airways commuter operation and access to the Princeville Airport on the island of Kauai. They said Princeville Airways is expected to operate as a subsidiary of Aloha Inc and will continue to use the Princeville Aiways name. Reuter | PRINCEVILLE <PVDC> TO SELL ITS AIR OPERATION |
New Hampshire Savings Bank Corp said it agreed to buy <Seashore Bankshares Inc> in an exchange of stock. According to the terms of the deal it said Seashores 61000 shares will be exchanged for 9.8 mln dlrs of New Hampshire Savings stock. It said Seashore Bankshares has assets of about 46 mln dlrs. Reuter | NEW HAMPSHIRE SAVINGS <NHSB> TO BUY BANK |
Invacare Corp said the Canadian Federal Court ruled in favor of it in a patent infringement action filed against Everest and Jennings Canadian Ltd. The court ordered that Everest respond in an undisclosed amount of damages to Invacare for its actions. A corresponding case is currently pending in the U.S. District Court for the Northern District of Illinois. Reuter | INVACARE <IVCR> WINS PATENT INFRINGEMENT CASE |
Systems Assurance Corp said its board elected Charles Scott as chairman and chief executive officer. He replaces Ronald Grant who will remain a director with the company Systems said. Scott is president of Insurance Data Processing Inc <IDP> which is the majority stockholder of Systems Assurance the company said. Two new board members John Kreisler and James McInerney were named executive vice president and senior vice president at SAC respectively according to the company. Reuter | SYSTEMS ASSURANCE <SAC> GETS MANAGEMENT CHANGES |
Chrysler Corps Chrysler Motors unit said it will put four of its U.S. assembly plants on overtime during the week of March 16. Three of the plants will also operate Saturday March 14 beyond the normal five-day work week. Chrysler facilities at Newark Del. Sterling Heights Mich. Warren Mich. and the Jefferson plant in Detroit will work overtime hours during the week. Newark Sterling Heights and Jefferson will work Saturday. Reuter | CHRYSLER <C> TO PUT FOUR PLANTS ON OVERTIME |
Florida Citrus Processors Association said frozen concentrate orange juice movement into trade channels in the week ended March 7 totalled 3915370 gallons versus 3956126 gallons in the week ended February 28 and 4284693 gallons in the corresponding year-ago period. There were 3814891 gallons of foreign imports last week versus 133505 gallons the week before. Domestic imports last week were 306031. Retail movement was 1652916 versus 2015953 a year ago. Bulk movement was 1934494 against 1954103 a year earlier. Current season cumulative movement was 60480375 gallons versus 59654702 last year. Cumulative net pack for the season was 80359978 versus 74071755 a year ago. Inventory was 83422435 versus 81963040 a year ago. Reuter | FCOJ MOVEMENT 3,915,370 GALLONS LAST WEEK |
Moodys Investors Service Inc said it may downgrade 200 mln dlrs of debt of Harcourt Brace Jovanovich Inc. The rating agency cited Harcourt Braces recent aggressive acquisition activity and increasing leverage. Harcourt Brace has offered 220 mln dlrs for Harper and Row Publishers Moodys noted. This follows Harcourts completed acquisitions of the publishing group of CBS Inc and Marineland. Reuter | HARCOURT BRACE <HBJ> MAY BE LOWERED BY MOODY'S |
Paco Pharmaceutical Services Inc said its common stock began trading today on the New York Stock Exchange. The companys stock opened at 26-3/4 and closed at 26-1/8 on 21900 shares traded. Paco said NASDAQ will continue to carry its common stock warrants due to expire Decmber 31 under the symbol <PPSIW> and its convertible debentures issued February six under the symbol <PPSIG>. Reuter | PACO PHARMACEUTICAL <PPS> OPENS ON NYSE |
U.S. M-1 money supply fell 600 mln dlrs to a seasonally adjusted 738.0 billion dlrs in the March 2 week the Federal Reserve said. The previous weeks M-1 level was revised to 738.6 billion dlrs from 738.5 billion while the four-week moving average of M-1 rose to 737.1 billion dlrs from 736.8 billion. Commenting on February growth of the broader monetary aggregates the Fed said that M-2 fell 1.6 billion dlrs while M-3 rose three billion. Economists polled by Reuters had projected a 900 mln dlr fall in M-1 a 1.8 billion dlr drop in M-2 and no change in M-3. Reuter | U.S. M-1 MONEY SUPPLY FALLS 600 MLN DLRS |
A U.S. judge today dismissed a lawsuit by fired White House aide Lt. Col. Oliver North seeking to halt a special prosecutors investigation into the Iran arms scandal. In a 21-page ruling U.S. District Court Judge Barrington Parker threw out Norths suit challenging the constitutionality of the law empowering special prosecutor Walsh to investigate secret arms sales to Iran and the diversion of profits to contra rebels in Nicaragua. The nation demands an expeditious and complete disclosure of our governments involvement in the Iran-contra affair Parker ruled. Reuter | JUDGE DISMISSES NORTH'S LAWSUIT CHALLENGING IRAN |
Dome Petroleum Ltd said a majority of a group of 56 major creditors support the companys revised proposal to restructure debt of more than 6.1 billion Canadian dlrs. Outlining terms of the plan circulated to the lenders earlier this week the company said it is seeking approval in principle for the proposal within the next several weeks in order to implement the debt rescheduling by June 30 1987. Although at todays price levels it only allows the company to struggle on benefits appear as oil prices rise Dome chairman J. Howard Macdonald said in a statement. We believe the plan is a rational one and will be valid under a range of circumstances chairman Macdonald said. The lenders previously agreed to an interim debt rescheduling until June 30 to allow Dome time to negotiate a long-term recapitalization. The debt proposal is designed to ensure continued existence of the company which would see lenders get maximum recovery of their loans Dome said. The plan would maintain debt levels within Domes ability to pay subject to minimum debt service levels for each lender. Dome said the debt proposal offers measures such as equity conversion options and reclassification to lower interest bearing categories of debt to accomplish its objectives. Under certain circumstances lenders will have the option to convert all or part of their debt to common shares at a pre-determined conversion rate upon plan implementation. The various conversion rates remain to be set through negotiations and the company said it is impossible to predict the extent to which the conversion option will be exercised and the amount of dilution that may result. Converting debt to common shares after the plan is implemented would be at a much higher conversion price Dome said. Common shareholders will be asked to approve the plan before it is put in place. Debt that remains after share conversion will either receive scheduled payments based on contract interest rates and a 15 to 20 year pay-out or interest rates indexed to oil prices. The company will use both an annual security-to-debt ratio test and a monthly cash flow test to classify which interest payments are paid on the different portions of debt. To achieve a stable operating base for the company the plan provides for deducting operating costs capital expenditures and general and administrative expenses before the remaining available cash flow is distributed to lenders Dome said. The proposal also assumes efforts will continue to operate the business as efficiently as possible it said. As the company previously said debt payments from cash flow be divided into two broad categories secured and unsecured creditors. Terms of the debt plan include paying institutional unsecured creditors comprising mostly banks who hold private debt from cash flow generated by unpledged assets. This portion will get a fixed low interest rate under a 15-year repayment schedule. Remaining institutional unsecured debt will get paid through convertible oil indexed unsecured debt that matures in 20 years or any available excess cash flow or conversion to equity. Any institutional lender also has the option of taking all or part of its debt in common shares. To offer public unsecured debtholders liquidity Dome said they can also convert all or part of their debt to common shares when the plan is implemented. Any debt leftover would be exchanged for a convertible debenture with an interest rate linked to oil prices. Secured creditors would get paid from cashflow generated by the assets pledged against their debt under a complex formula the company said. Any shortfalls under the formula could also be converted to oil-linked debentures. Reuter | DOME <DMP> SAYS MOST LENDERS SUPPORT DEBT PLAN |
Federal Reserve Board Chairman Paul Volcker said severe problems remain in some sectors of the U.S. economy despite progress in others. Severe problems in some sectors of the economy are all too obvious he said in remarks prepared for delivery to a luncheon of business leaders here. He said oil exploration and development as well as agricultural prices have been heavily affected by worldwide surpluses. Commercial construction he said is suffering from earlier over-building in many areas. More broadly he said there are distortions and imbalances in the U.S. economy that cut across many sectors. Unless dealt with effectively and forcibly they will undermine all that has been achieved Volcker warned. He said one problem is that economic activity over the past two years has been supported largely by consumption. He said that rising consumption was achieved at the expense of reduced personal savings. At the same time he said the huge Federal budget deficit is absorbing a disproportionate amount of the savings generated in the U.S. Volcker said the adverse consequences of the combination of low savings rates and high Federal budget deficits have been escaped by drawing on capital from abroad. He noted that the net flow of foreign capital into the U.S. in 1986 exceeded all the savings by U.S. households. That is a graphic demonstration of the extent to which our financial markets are hostage to possible changes in external attitudes and circumstances Volcker said. Reuter | VOLCKER SEES PROBLEMS REMAINING IN SOME SECTORS |
Bolivia is to make a formal offer during the next few months to buy back its 900 mln dlrs debt from commercial banks at a discount of up to 90 pct central bank president Jier Nogales said. Nogales told Reuters in an interview the steering committee of Bolivias creditor banks had agreed to consider the offer at a meeting in New York last month. He said the offer would be based on the value of Bolivian paper on the international secondary debt market where it now trades at between 10 and 15 pct of its face value. Nogales said Bolivia will make a single offer to buy back its commercial debt and banks who accepted would be paid the discounted rate in full. Banks which declined the offer would be repaid over 20 to 30 years at interest rates below those fixed in the international markets he added. Bolivia has frozen payments on medium and long term loans to commercial banks since March 1984 and Nogales said there would be no money available to restart traditional debt servicing to them for some time. Several Latin American countries have initiated schemes to cancel foreign debt by equity swaps or third party buy-backs but Bolivia would be the first country in the region to make a formal offer to buy back all its commercial bank debt at discounted rates. Nogales said practical and strategic considerations would determine the exact timing of the offer but it would be made in the next few months. He said Bolivia would not bargain with creditor banks over the price to paid for the debt paper they hold and would make a single non-negotiable offer. He said Bolivia could not even pay interest to friendly creditor countries let alone commercial banks. The only traditional way forward was to capitalise interest which would mean greater bank exposure in Bolivia and greater loss provisions he added. We are confident that the banks are going to be reasonable Nogales said. Now they can resolve their problems for once and for all. The most conservative ones who want a little more will wait a year but I dont know if the window of opportunity will be open all the time he added. Discussing the status of other parts of Bolivias four billion dlr foreign debt 2.5 billion of which is owed to governments and the rest to international agencies Nogales said negotiators had achieved considerable success in recent discussions with the Paris Club. He said Paris Club creditors had agreed to reschedule Bolivian debt over 10 years with five to six years grace while accepting that interest would not be paid until 1989. Interest rates were being discussed on a bilateral basis under Paris Club rules he added. He said some Paris Club members had agreed to disregard penalty interest payments and negotiations were continuing with Argentina and Brazil who hold 700 mln dlrs of Bolivian debt. He said Bolivia was continuing to service loans from international agencies and it expected to receive up to 400 mln dlrs in disbursements this year. The capital flow for loans and their servicing had changed from a negative balance of 250 mln dlrs in 1985 to a net inflow of 130 mln dlrs last year he added. Nogales said that Bolivias net international reserves now stood at around 250 mln dlrs compared to one mln dlrs in disposable funds when the government of Victor Paz Estenssoro took office in August 1985. Nogales said inflation which soared to over 20000 pct a year in the governments first month in office was now down to 10 pct on an annualised basis from the last six months and the plan was that it should continue at this level. He said the government was also expecting at least three pct growth in gdp this year after several years of negative rates. Reuter | BOLIVIA TO OFFER TO BUY BACK BANK DEBT |
A marketing loan for U.S. wheat feedgrains and soybeans would do nothing to help the surplus production situation and would be extremely costly Sen. Rudy Boschwitz (R-Minn.) said. I think I would not support a marketing loan now he told the House agriculture subcommittee on wheat soybeans and feedgrains. Boschwitz was one of the original supporters of a marketing loan for cotton and rice but has since focused support on decoupling legislation the Boren/Boschwitiz bill. A market loan for grains and soybeans would encourage more production especially in high-yielding areas would be much more expensive than the current cotton and rice marketing loans and not increase exports significantly he said. Reuter | U.S. MARKET LOAN NOT THAT ATTRACTIVE-BOSCHWITZ |
Sale of farm wheel tractors in February declined 26.7 pct to 4123 units from 5627 units a year ago reported the Farm and Industrial Equipment Institute. Year to date total tractor sales fell 21.7 pct to 10354 units from 13231 units a year ago. The trade group said in the two-wheel drive sector 2477 under 40 horsepower tractors were sold compared to 2479 a year ago during the month while in the 40 to 100 horsepower sector 1323 units were sold compared to 1810 units. Reuter | FARM EQUIPMENT RETAIL SALES FALL IN FEBRUARY |
AmVestors Financial Corp said it declared a 25 pct stock dividend payable June 19 to holders of record June one subject to an increase in authorized shares. It said shareholders will vote at the April 23 annual meeting to increase authorized shares to 25 mln from 10 mln. The company also said it plans to pay an initial quarterly dividend of five cts a share on the shares. Reuter | AMVESTORS FINANCIAL <AVFC> SETS STOCK DIVIDEND |
The House Ways and Means Trade Subcommittee unanimously approved a toned-down version of legislation designed to toughen U.S. trade laws and wedge open foreign markets to more U.S. goods. The measure now goes to the full House Ways and Means Committee next week but major changes are not expected congressional sources said. This product could very well be toughening our trade policy and doing it in a manner that opens markets without this frightening word protectionism Ways and Means chairman Dan Rostenkowski an Illinois Democrat said. The trade subcommittee backed away from mandating specific retaliation against foreign countries for unfair foreign trade practices as the House had approved in a trade bill last year. But it held over for the full Ways and Means Committee debate on a controversial plan by Rep. Richard Gephardt to mandate a reduction in trade surpluses with the U.S. by countries such as Japan South Korea and Taiwan. Gephardt a Missouri Democrat has not decided the exact form of his amendment an aide said. Last year the House approved his idea to force an annual ten pct trade surplus cut by those countries. The trade bill will be wrapped in with legislation from other committees dealing with relaxation of export controls incentives for research expanded worker training and education and other efforts to increase U.S. competitiveness. The comprehensive trade bill is to be considered by the full House in late April and then will be considered by Senate committees. It requires President Reagan to retaliate against foreign unfair trade practices but do not mandate quotas or tariffs and allow an exemption if U.S. economic security would be harmed by U.S. actions against other countries. The bill would make it easier for U.S. industries to win relief from surges of imports of competitive products. It extends until January 1993 the administrations authority to negotiate trade agreements as part of the new round of multilateral talks under the General Agreements on Tariffs and Trade. And it includes provisions to tighten trade rules on copyrights patents and telecommunications goods. Reuter | U.S. HOUSE PANEL APPROVES TRADE BILL |
Rochester Gas and Electric Corp said 300000 shares of 8.25 pct preferred stock series R will be offered at 100 dlrs per share plus accrued dividends if any from the date of the original issue. It said The First Boston Corp <FBC> and <E.F. Hutton and Co Inc> are co-underwriters of the issue. It said net proceeds of the offering will be used to redeem its 10.84 pct preferred stock series G which is currently callable at 107 dlrs per share and for other corporate purposes. Reuter | ROCHESTER GAS <RGS> OFFERED PRD SHARES |
Qtr ends Jan 30 Oper shr loss 45 cts vs profit 44 cts Oper Net loss 225815 vs profit 219593 Revs 175247 vs 827748 NOTE: oper net 1987 excludes loss from discontinued operations of 125047 vs loss 34055 for prior qtr. excludes tax carryforward 150000 for prior qtr. Reuter | STANDARD LOGIC INC <STDL> 1ST QTR LOSS |
Federal Reserve Board Chairman Paul Volcker said both the Fed and the financial markets remain concerned about the possibility of renewed inflation. A possibility of renewed inflation remains of concern both in the markets and within the Federal Reserve he said in remarks prepared for delivery to a group of business leaders here. He said one potential channel for renewed inflationary pressures would be an excessive fall of the dollar in the exchange markets which would push import prices up sharply. He said participants in financial markets and business remain skeptical of prospects for lasting price stability. Should the skepticism about our ability to resist inflation be reinforced by bad policy the consequences for interest rates for exchange rates and for the economy generally would clearly be undesirable...recognition of that danger neccesarily must weigh heavily in the formation of monetary policy the Fed chairman said. Volcker said attempts to drive the dollar much lower would undermine the hard won gains against inflation and would risk dissipating the flow of foreign capital. Reuter | INFLATION STILL A CONCERN, VOLCKER SAYS |
Georgia-Pacific Corp said it will redeem all 3267019 shares of its outstanding series A B B second issue and C adjustible rate convertible preferred stock on April 15. The company said it will redeem all four series at 39 dlrs a share plus nine cts in dividends accrued from April one to April 15. First quarter preferred dividends will be paid separately on April one to holders of record March six the company said. It said holders may convert each share of their preferred stock into one share of common through April 15. Reuter | GEORGIA-PACIFIC <GP> TO REDEEM PREFERRED ISSUES |
NZI Capital Corp a unit of <NZI Corp> is offering 150 mln dlrs of guaranteed notes due 1997 yielding 8.36 pct said sole manager Kidder Peabody and Co Inc. The notes have an 8-1/4 pct coupon and were priced at 99.261 to yield 115 basis points more than comparable Treasury securities. Non-callable for seven years the issue is rated A-2 by Moodys Investors Service Inc and A-plus by Standard and Poors Corp. The notes will be listed on the New York Stock Exchange. NZI is an insurance company in New Zealand. Reuter | NZI CORP UNIT SELLS GUARANTEED NOTES AT 8.36 PCT |
UNOCAL RAISES MOST CRUDE PRICES 50 CTS, TODAY, WTI AT 17.50 DLRS | |
COURT UPHOLDS SECURITIES PANEL DECISION TO BLOCK CTC DEALERS' CANADIAN TIRE OFFER | |
Qtly div 51 cts vs 51 cts prior Pay April one Record March 23 Reuter | SHAWMUT CORP <SHAS> SETS REGULARY DIVIDEND |
KENNETH DUBERSTEIN TO BE DEPUTY WHITE HOUSE CHIEF OF STAFF, OFFICIALS SAY | |
Shr 516 cts vs 347 Final div 135 vs 125 making 190 vs 180 Pre-tax 133 mln rand vs 137 mln Net 260 mln vs 172 mln Tax 76 mln vs 42 mln Att to outside shareholders 96 mln vs 53 mln Pref div 1 mln vs same Turnover 3.14 billion vs 2.56 billion Div pay May 8 register March 27. Note - Full name is Anglo American Industrial Corp Ltd. REUTER | ANGLO AMERICAN <AIVJ.J> YEAR TO DEC 31 |
Wisconsin Energy Corps Wisconsin Electric Power Co said it will redeem its 100 dlr par value serial preferred stock on April 14. Wisconsin Electric said it will redeem 333325 shares of its 8.9 pct preferred at 101 dlrs a share 225810 shares of its 7.75 pct preferred at 101 dlrs a share and 140967 shares of its 8.8 pct preferred at 105.87 dlrs a share. The redemption will be financed from a new issue of the companys preferred stock. First Wisconsin Trust Co will be the redemption agent. Reuter | WISCONSIN ELECTRIC <WTC> TO CALL PREFERRED |
Live cattle futures posted a robust rally today after a major beef packing company said it would end a lockout at its slaughtering plant in Dakota City Neb. April delivery cattle on the Chicago Mercantile Exchange closed at 64.45 cents a pound up 0.83 cent as the market expected demand for live animals to increase as the plant restarts operations. Iowa Beef Processors a division of Occidental Petroleum said it planned to reopen the plant one of the largest in the nation on March 16. The plant has been closed since Dec. 14 the day after a contract between IBP and Local 222 of the United Food and Commercial Workers Union expired. The plant employs 2800 workers and can slaughter several thousand animals a day a company spokesman said. The company said it locked out union workers because they threatened to disrupt operations. It was unclear whether union meatpackers would return to work. They rejected the companys latest contract offer March 5. Traders said cattle prices advanced at midsession as rumors circulated that the lockout was ending and gains were further fueled by a noticeable increase in demand for live animals on cash markets in Nebraska and the Texas Panhandle. The rally in cattle also boosted values of live hogs and frozen pork bellies which also were supported by indications that producers were expanding their hog herds at a slower rate than previously expected. Petroleum futures posted a modest rally on the New York Mercantile Exchange. But a report that the Soviet Union planned to reduce the price of its crude oil exports may pressure the market Friday said Nauman Barakat petroleum analyst in New York with Smith Barney Harris Upham and Co. Buying by companies that deal in petroleum helped prices recover from early weakness traders said. Gold futures rallied partly in response to strength in the silver market on the Commodity Exchange in New York. Silver prices rallied after a U.S. brokerage house recommended its customers buy the metal traders said. Coffee futures drifted lower in response to a report that Colombia lowered the price of its exports traders said. Sugar prices closed slightly higher on the Coffee Sugar and Cocoa Exchange despite a large export sale by the European Commission on Wednesday. Soybeans were higher wheat lower and corn mixed on the Chicago Board of Trade. Soybeans were boosted by expectations that the Agriculture Department would report a healthy signup for the Conservation Reserve Program which pays farmers to leave highly erodible land idle instead of planting a crop traders said. Concern that a strike by Brazilian seamen might interrupt exports of soybeans from Brazil where the harvest is just beginning also underpinned prices they said. Wheat prices were pressured by selling in response to trends on price charts they said. Reuter | LIVE CATTLE RALLY AS LOCKOUT AT MEAT PLANT ENDS |
NORTHERN TELECOM TO REDEEM CLASS A SERIES ONE PREFERREDS ON APRIL 27 | |
Moodys Investors Service said it has confirmed its ratings on about 4.4 billion dlrs of outstanding securities of Public Service Electric and Gas Co a unit of Public Service Enterprise Group Inc. The ratings include Aa3-rated first and refunding mortgage bonds secured pollution control revenue bonds and Eurobonds. Although Public Service recently received a disappointing rate order from the New Jersey Board of Public Utilities the agency believes the companys strong financial management should help maintain debt-protection measurements within current levels over the next few years. Reuter | MOODY'S CONFIRMS PUBLIC SERVICE ELECTRIC <PEG> |
Japan Fund Inc said its board would recommend at its April 23 stockholders meeting that the Fund be converted to a no-load open-end fund. If approved the Fund said a redemption fee of one pct of net asset value will be imposed on redemptions for a period of time not to exceed six months after open-ending. It said such a redemption fee is designed to cover trasaction costs related to early redemptions and will remain in the assets of the Fund. It said Shearson Lehman Brothers is serving as its financial advisor. In a prepared statement Jonathan Mason Japan Funds chairman said open-ending which is timely given the expansion of the Japanese stock markets particularly in the last few years will eliminate the discount from net asset value and will afford investors the continuing opportunity for investment in Japan through the Japan Fund. Japan Fund said it proposed the conversion to an open-end fund after rejecting a takeover offer of about 525 mln dlrs from an investment group led by T. Boone Pickens III son of the Texas oilman. The investor group whose other members include <Sterling Grace Capital Fund LP> and <Anglo American Security Fund LP> could not be reached tonight for comment. When it made its takeover offer on March 3 the group said it owned 1.4 mln shares or about 4.9 pct of the funds outstanding stock. Asked to comment on the rejection of the investor groups offer a Japan Fund spokeswoman said The board decided that an open-end fund was preferable. The spokeswoman Davia B. Temin said no other comments would be made on the offer. She also declined to provide details on other options Japan Fund said previously that it would consider along with the takeover bid. Reuter | JAPAN FUND <JPN> TO PROPOSE CONVERSION |
General Electric said its unducted fan jet engine lived up to expectations in recently completed tests on a Boeing Co <BA> 727 airplane. The engine which contains two sets of counter-rotating fan blades marks an advance over conventional engines built with ultra high bypass ducted fans. The testing was a joint effort of GE and Boeing using technical and financial support from the National Aeronautics and Space Administration NASA the company said. The company said the engine has fuel savings of 40 to 70 pct over those used in aircraft used today. Reuter | GENERAL ELECTRIC <GE> NEW JET ENGINE TESTED |
Permian Basin Royalty Trust said that as of December 31 1986 its estimated proved reserves totaled 18.5 mln barrels of oil and 52.9 mln MCF or thousand cubic feet of gas. This compares with yearend 1985 proved reserves estimates of 26.4 mln barrels of oil and 78.6 mln MCF of gas Permian said. Permian said December 1986 future net revenues from proved reserves were 335.6 mln dlrs down from 814.2 mln dlrs in 1985. Permian said the present value of estimated future net revenues discounted at 10 pct is 165.3 mln dlrs compared with 374.3 mln dlrs. It said the downward revisions in both proved reserves and estimated future net revenues resulted from decreased prices for oil and gas. Reuter | PERMIAN BASIN <PBT> PROVEN RESERVES FALL |
The Securities and Exchange Commission asked the New York Stock Exchange to tighten an experimental procedure used in the past six months to dampen volatility linked to the so-called triple-witching hour. The Big Board has been collecting and publicizing information on large imbalances of market-on-close (MOC) orders placed on 50 major stocks one-half-hour before closing on so-called expiration Fridays in September and December. Expiration Fridays or triple witching hours occur every three months when stock options stock index options and futures on index options expire simultaneously. As aribrageurs liquidated their futures and options on previous expiration Fridays they sold huge amounts of stock which they had used to offset their positions. The huge sell orders which usually entered the market in the final frantic minutes on expiration Fridays triggered wild price swings in the 50 stocks which serve as the basis for the options and futures. The gyrations prompted the SEC last September to request that the Big Board ask its members submit all MOCs by 1530 hrs on expiration Fridays which would then be made public giving the market a half-hour to settle order imbalances. But in a March 12 letter to NYSE President Robert Birnbaum SEC Director of Market Regulation cited problems in the experimental procedure during the Dec 19 expiration Friday. A large number of MOC buy orders were not placed until after 1530 EST on Dec 19 which helped send the Dow Jones Industrial Average up 21 points in the final minutes of the day to a 14.20-point gain on the day Ketchum said. Citing the SECs concern about such trading Ketchum asked the exchange to tighten its procedure by not accepting any pre-existing MOC orders after 1530 if they could have been placed earlier. The new restriction which SEC officials said merely clarifies the terms of the existing experimental procedure would bar the liquidation of stocks through MOC orders for arbitrage purposes after 1530 hrs even if they offset other reported order imbalances in those stocks. The only MOC orders the SEC will allow to be placed after 1530 EST on March 20 the next expiration Friday are those that are received by Big Board member firms after 1530 EST and which help reduce existing order imbalances Ketchum said. If there are no published imbalances in a particular stock no MOC orders will be accepted in that stock he said. If dissemination of MOC orders is to provide an accurate indication of true order imbalances then all existing MOC orders must be submitted by 3:30 p.m. and only those new MOC orders responding to reported imbalances can be permitted Ketchum said. The letter did not say how the SEC or the NYSE would determine the difference between pre-existing MOC orders that would be barred and new MOC orders that would be allowed to reduce imbalances. But an SEC official said the agency hopes the NYSE and its members would adhere to the rules in a spirit of cooperation. REUTER... | SEC ASKS NYSE TO TIGHTEN TRIPLE WITCHING PROCESS |
Former White House aide Kenneth Duberstein has been chosen to be President Reagans deputy chief of staff administration officials said. Duberstein who is now a Washington lobbyist previously served in the Reagan White House as head of the presidents congressional liaison team. As top assistant to White House chief of staff Howard Baker he will handle administrative chores and serve as a contact point between the White House and Congress officials told Reuters. Reuter | DUBERSTEIN TO BE DEPUTY WHITE HOUSE CHIEF/STAFF |
Northern Telecom Ltd said it would redeem its outstanding 2.1875 Canadian dlr cumulative redeemable retractable class A series one preferred shares on April 27 at 26.50 Canadian dlrs a share plus accrued dividends of 0.012 dlrs a share. Northern Telecom issued the 4.4 mln shares in 1984 at 25 dlrs a share for total consideration of 110 mln dlrs. Reuter | NORTHERN TELECOM <NT> TO REDEEM SOME PREFERREDS |
president jaime lusinchi defended the 20.3 billion dlr debt rescheduling accord his government recently signed saying it will open new credit flows and bring needed foreign investment to venezuela. In his annual state of the nation speech lusinchi also said venezuela supports other latin american debtors despite having reached a rescheduling accord on its own. In the 90-minute speech to the congress lusinchi summed up the achievements of his administration which took office in february 1984. He pointed to the 3.3 pct growth in non-oil gdp in 1986 and to a moderate 12 pct inflation rate. Lusinchi said the 20.3 billion dlr debt rescheduling signed feb. 27 put an end to a process which had been the calvary of our nation over the post four years. In the refinancing accord he said venezuela managed to achieve the most inmportant thing which is the reopening of financial flows from abroad essential for the financing of development and the (financing) of trade and investment. Once all the details of the agreement are finalized he said venezuela will seek new financing for the imported components of new development projects. our intention is not to continue being net exporters of capital but to protect our balance of payments with a flow of capital towards venezuela he said. Under the agreement signed february 27 venezuela extended payments on the debt from 12 to 14 years while the interest rate was lowered from 1 y 1/8 to 7/8 of a pct over libor. At the same time payments over the next three years were lowered from 3.450 to 1.350 billion dlrs. Lusinchi defended the rescheduling accord against critics who said it merely deferred the weight of payments to future governments. Reuter | VENEZUELAN PRESIDENT DEFENDS REFINANCING ACCORD |
Shr 516 cts vs 347 Final div 135 vs 125 making 190 vs 180 Pre-tax 133 mln rand vs 137 mln Net 260 mln vs 172 mln Tax 76 mln vs 42 mln Att to outside shareholders 96 mln vs 53 mln Pref div 1 mln vs same Turnover 3.14 billion vs 2.56 billion Div pay May 8 register March 27. Note - Full name is Anglo American Industrial Corp Ltd. Reuter | ANGLO AMERICAN <AIVJ.J> YEAR TO DEC 31 |
Federal Reserve Board Chairman Paul Volcker said that Brazil will need more external financing to work its way out of its current debt crisis than earlier anticipated. External financing will have to be found in larger amounts than anticipated a few months ago he said in remarks prepared for a business leader luncheon. Volcker said that financing however must take place along with policies that come to grips with Brazils internal difficulties. Volcker said Brazil has a lot more negotiating to do with international institutions and its bank creditors but added that a solution to its financial problems can be found. The predicate for these negotiations has to be effective policy at home (in Brazil) Volcker told reporters. Brazil it seems to me has a strong self interest in restoring a more normal situation (on interest payments) so that it can continue to participate freely in trade with the rest of the world - and it has so indicated Volcker said in his prepared remarks. Brazil suspended interest payments on its debt last month. Reuter | BRAZIL NEEDS MORE EXTERNAL FINANCING - VOLCKER |
Unocal Corp said it raised the contract price it will pay for most grades of crude oil 50 cts a barrel effective today. The increase brings Unocals posted price for the U.S. benchmark grade West Texas Intermediate to 17.50 dlrs a barrel. It also brought the price for West Texas Sour to 17.50 dlrs a bbl. Light Louisiana Sweet was also raised 50 cts to 17.85 dlrs/bbl. Unocal last changed its crude postings on March four and brings it price in line with other major companies which have been raising prices steadily in recent weeks. The increase also represents the latest in a series of increases that began with USX Corps <X> Marathon Petroleum Corps notification yesterday evening that effective today it raised its crude postings 50 cts a barrel bringing its contract price for WTI to 17.50 dlrs a barrel. Earlier today Sun Co <SUN> Phillips Petroleum <P> and Diamond Shamrock <DIA> also said they raised their crude postings 50 cts a barrel bringing their WTI contract price to 17.50 dlrs a barrel. Contract prices have risen in response to higher spot market prices oil traders said. Reuter | UNOCAL <UCL> RAISES CRUDE OIL POSTINGS |
Local 222 of the United Food and Commercial Workers Union said it is calling a membership meeting possibly Sunday to discuss its response to a decision by Iowa Beef Processors Inc to lift a lockout at its Dakota City Nebraska plant and resume operations. The UFCWU will consider all options available to it including a strike or returning to work under IBPs last labor contract proposal a spokeswoman for Local 222 said by phone. About 2800 UFCWU members have been locked out at the Dakota City plant since December 14. IBP is a subsidiary of Occidental Petroleum Corp. Reuter | MEATPACKERS RESPOND TO OCCIDENTAL<OXY> OFFER |
CITGO RAISES CRUDE POSTINGS 50 CTS, TODAY, WTI TO 17.50 DLRS/BBL | |
Baird Corp <BATM> said the Massachusetts State Court for Suffolk County has lifted a temporary restraining order prohibiting Mark IV Industries Inc from further purchases of Baird stock. According to filings with the Securities and Exchange Commission Mark IV owns at least 17.6 pct of Bairds stock and may attempt to acquire Baird Baird said. Baird said the court also issued an order enjoining Baird from enforcing the Massachusetts Anti-Takeover Statute against Mark IV industries. Reuter | COURT LIFTS RESTRAINING ORDER ON MARK IV <IV> |
Rexcom Systems Corp said its board voted to extend the exercise period for the companys publicly traded warrants until March 31 1988 from March 31 1987. Reuter | REXCOM <RXSC> EXTENDS WARRANT EXERCISE PERIOD |
Oper shr profit 60 cts vs loss 55 cts Oper net profit 928000 vs loss 88000 Revs 48.7 mln vs 39.7 mln Avg shrs 3.7 mln vs 1.5 mln Year Oper shr loss 1.17 dlrs vs loss 60 cts Oper net profit 2537000 vs profit 587000 Revs 178.8 mln vs 117.6 mln NOTE: Per share figures come after preferred dividends. Excludes fourth quarter and full year 1986 extraordinary gains of 29 cts and 71 cts per share respectively. Reuter | CJI INDUSTIRES INC <CJIIA> 4TH QTR NET |
American Motors Corp president Joseph E. Cappy in a telegram to dealers said Chrysler Corp will retain American Motors plans to begin selling four new cars within the next year. Cappy reassured dealers that American Motors if it is acquired by Chrysler would go ahead with plans to introduce the Medallion Premier Premier X59 coupe and the Alpine models. Cappy in a statement said American Motors board met yesterday on the Chrysler buyout and will meet periodically over the next several weeks on the Chrysler proposal. No other details of the Chrysler takeover were disclosed. American Motors did not release further details of Chryslers plans for maintaining or changing American Motors current strategy other than to quote Cappy as saying we will try to keep you informed as developments warrant. Reuter | CHRYSLER <C> TO KEEP AMERICAN MOTORS <AMO> PLANS |
<Counsel Corp> said it plans a three-for-two stock split pending shareholder approval at the April 28 annual meeting. The company said it recently reported 1986 profit of 5.9 mln dlrs or 1.51 dlrs a share before extraordinary items compared with 2.2 mln dlrs or 81 cts in 1985. Reuter | COUNSEL CORP SETS THREE-FOR-TWO STOCK SPLIT |
Southland Corps Citgo Petroleum Corp said it raised the contract price it will pay for crude oil 50 cts a barrel effective today. The increase brings Citgos posted price for the West Texas Intermediate and West Texas Sour grades to 17.50 dlrs a barrel. The Light Louisiana Sweet South Onshore grade was also raised 50 cts to 17.85 dlrs a barrel and Light Louisiana Sweet North was increased to 17.75 dlrs a barrel. Citgo last changed its postings on March four. Reuter | SOUTHLAND <SLC> UNIT RAISES CRUDE POSTINGS |
The Cannon Group Inc said its financial statements will show substantial losses for fiscal 1986 and significant downward adjustments in previously reported stockholders equity. The company also said its 1986 audit being conducted by <Arthur Young and Co> will cover the year ended January 3 1987 instead of the nine-month period ended September 27 1986 as previously announced. It said it anticipates the results of the audit will be available in mid to late April 1987. Reuter | CANNON <CAN> AUDIT TO SHOW SIGNIFICANT 1986 LOSS |
<Eager Technology Inc> said it signed a letter of intent to acquire Nuclad Inc a private Colorado corporation and its subsidiaries. Terms of the acquisition were not disclosed. Reuter | EAGER TECHNOLOGY ACQUIRES NUCLAD |
Federal Reserve Board chairman Paul Volcker said a combination of the Federal Deposit Insurance Corp FDIC and the Federal Savings and Loan Insurance Corp FSLIC could be contemplated in the longer term but is not an answer to the thrift industrys immediate problems. I dont think its an answer to 1977 or 1988 Volcker said at a press conference. But a merger of the two deposit-insurance agencies could be an option as part of a general structural reform of the U.S. banking system. The aim of a merger would not be for commercial banks to subsidize ailing savings and loan associations but to improve official oversight of depository institutions Volcker said. The attractive element is that you get almost by definition a consistency of supervision and regulation that you dont have now he explained. Reuter | VOLCKER SEES BENEFIT IN FDIC/FSLIC MERGER |
Motorola Inc expects continued steady improvement in semiconductor orders for the rest of the year Executive Vice President and Chief Corporate Staff Officer Gary Tooker told security analysts. He said the companys semiconductor products sector showed a nine pct increase in sales last year to 1.88 billion dlrs and expects growth this year to range between 11 and 13 pct. Semiconductor products accounted for 31 pct of Motorolas 1986 net sales of 5.89 billion dlrs. Tooker said Motorola has shipped about 300000 of its 32-bit 68020 microprocessor to 200 customers. Apple Computer Inc recently announced it is using the 68020 in its new Mac II personal computer. Reuter | MOTOROLA (MOT) SEES CONTINUED GROWTH FOR CHIPS |
The Federal Deposit Insurance Corp. (FDIC) said two Texas banks were closed by U.S. bank regulators making a total of 40 failures of federally insured financial institutions so far this year. Fourteen of the 40 have been in Texas which has been hard hit by plummeting oil prices. The FDIC said it approved paying off the insured depositors of the failed Plaza National Bank Del Rio Texas. The bank with assets of 34.8 mln dlrs was closed today by the U.S. Comptroller of the Currency. The FDIC said it decided to pay off depositors because no other institution wanted to buy the failed bank. The FDIC said 15 accounts exceeded the federal insurance limit of 100000 dlrs by a total of 38000 dlrs. Owners of the uninsured deposits will share with the FDIC as the failed banks assets are liquidated. The FDIC also approved the assumption of deposits of The First National Bank of Olney Texas by Olney Bancshares Inc. Olney Texas. The bank had total assets of 15 mln dlrs when it was closed by federal regulators. Reuter | FEDERAL REGULATORS CLOSE TWO TEXAS BANKS |
The San Juan Basin Royalty Trust said proved reserves as of December 31 were estimated at 283.1 thousand cubic feet of gas and 1087000 barrels of oil. In the year-ago period it said proved reserves were estimated at 346.4 thousand cubic feet of gas and 1974000 barrels of oil. It said the present value of future net revenues discounted 10 pct was 156.2 mln dlrs compared with 446.8 mln dlrs in the year-ago period. It also said that about 60 net infill wells are not economical to drill at December 31 prices. Reuter | SAN JUAN BASIN <SJT> PROVEN RESERVES FALL |
<Interconnect Capital Corp> said it sent a letter to the board of Gates Learjet Corp offering to buy the company for 7.07 dlrs a share. Gates Corp which owns 64.8 pct of Gates Learjet agreed earlier this week to sell its shares to a partnership formed by privately-held <Cobey Corp> and a unit of Bear Stearns Cos Inc <BSC> for 6.50 dlrs a share or 51 mln dlrs. The proposal is subject to approval by Gates Learjets board. A spokesman for privately-held Interconnect said it made the new proposal to Gates Learjets board but would not say if it had held talks with the parent companys board. Reuter | INTERCONNECT OFFERS TO BUY GATES LEARJET <GLJ> |
Seal Inc said it acquired Ademco Ltd a United Kingdom company which distributes mounting and laminating equipment and supplies for a combination of cash and stock valued at 2.6 mln dlrs based on current exchange rates. Seal said it will pay up to an additional 1.3 mln dlrs contingent on the market price of Seals common on December 31 1988 and on certain earnings targets by the acquired business. Reuter | SEAL <SINC> ACQUIRES ADEMCO LTD |
Brazils state-oil company Petrobras cancelled a 40 mln dlr crude oil purchase from Saudi Arabia after the Saudis refused to accept credit guarantees from the Bank of Brazil a Petrobras official said. Export director Carlos Santana told a press conference the Saudis were the first suppliers of oil to impose such conditions after Brazils decision to halt interest payment of its commercial debts last month. The shipment of 2.2 mln barrels represents two days of oil consumption in Brazil. But Santana said if the Saudis change their minds and decide to respect the terms of the contract then Petrobras will lift the order to cancel the shipment. Santana said if the Saudis do not accept Brazils terms by Monday then Petrobras will negotiate elsewhere. Petrobras has been Saudi Arabias traditional client since 1955. If they do not accept our conditions now it will be much better for us because with the market prices more or less the same buying from Iraq and China is an advantage he said. Iraq and China have barter deals with Brazil importing Brazilian goods in exchange for oil but the Saudis buy nothing from Brazil he said. Santana said despite a strike threat by oil industry workers and a two-week stoppage by Brazilian seamen Petrobras oil stocks are reasonably balanced. Saudi Arabia is Brazils second biggest oil supplier with an average 115000 bpd. Iraq is the main supplier with 235000 bpd. China comes third with 58000 bpd. If the Saudis wish to stop our trade relationship fine I am sure that if they do we will be getting dozens of offers from elsewhere Santana added. Reuter | BRAZIL CANCELS OIL PURCHASE FROM SAUDI ARABIA |
In order to accomodate the shift in the settlement procedure for options on the Standard and Poors 500 stock index that the exchange announced last month the Chicago Board Options Exchange (CBOE) said it has created a new class of options for the S and P contract <SPX>. The CBOEs new contract was needed to coincide with changes in the settlement procedure that the Chicago Mercantile Exchange (CME) made on its S and P 500 futures and options contract which will be implemented with the expiration of the June contract. Settlement of the CBOEs new option contract will be based on the opening price of the S and P 500 index on expiraton day while settlement of the current contract is based on the closing price of the index. CBOE doesnt think that opening settlement is the solution to the expiration effect but we cannot exposure investors in our market to unanticipated risks arising from different settlement times in options and futures CBOE chairman Alger Chapman said in a release. Were taking this step to give investors a choice of settlement times that meet their hedging needs Chapman said. The new contract was necessary because the Options Clearing Corp (OCC) did not allow its member exchanges to modify terms of any of its outstanding contracts the CBOE said. The new contract will satisfy the needs of customers who require an options contract based on opening prices of the index the CBOE said. The opening settlement contract will trade parallel to the closing settlement contract as long as the CME maintains its opening settlement procedure for the S and P 500 futures contract a CBOE spokesperson said. However she noted that customer preference for one type of settlement procedure will eventually determine which contract will prevail. The opening settlement contract will trade on a March June September December quarterly expiration cycle and will be listed as soon as the OCC revises its contract prospectus possible in April the exchange said. Reuter | CBOE CREATES NEW CLASS OF S AND P 500 OPTIONS |
The U.S. House Ways and Means Trade Subcommittee unanimously approved a toned-down version of legislation designed to toughen U.S. trade laws and wedge open foreign markets to more U.S. goods. The measure now goes to the full House Ways and Means Committee next week but major changes are not expected congressional sources said. This product could very well be toughening our trade policy and doing it in a manner that opens markets without this frightening word protectionism Ways and Means chairman Dan Rostenkowski an Illinois Democrat said. The trade subcommittee backed away from mandating specific retaliation against foreign countries for unfair foreign trade practices as the House had approved in a trade bill last year. But it held over for the full Ways and Means Committee debate on a controversial plan by Rep. Richard Gephardt to mandate a reduction in trade surpluses with the U.S. by countries such as Japan South Korea and Taiwan. Gephardt a Missouri Democrat has not decided the exact form of his amendment an aide said. Last year the House approved his idea to force an annual 10 pct trade surplus cut by those countries. Reuter | U.S. HOUSE PANEL APPROVES TRADE BILL |
Titan Corp said it extended its odd-lot tender offer program to purchase shares of its preferred stock to June 10 1987. The offer is made to holders of 99 or fewer preferred shares. The offer was originally scheduled to expire March 10. Reuter | TITAN <TTN> EXTENDS ODD LOT TENDER OFFER |
Federal Reserve Board Chairman Paul Volcker said a bill passed this week by the Senate banking committee is too restrictive regarding the Federal Reserve. I dont think our hands should be tied so much as in that bill he said. The bill would set a one-year moratorium on approval of certain powers that banks have already applied to the Federal Reserve for -- selling insurance securities and real estate. Volcker added however that comprehensive new legislation dealing with such issues is needed. Reuter | VOLCKER SAYS SENATE BILL WOULD LIMIT FED |
Enrollment figures in the Agriculture Departments fouth annual conservation signup will be released tommorrow afternoon a senior USDA official said. Bill Bailey deputy administrator for USDAs Agricultural Stabilization and Conservation Service told Reuters that USDA will announce enrollment into the Conservation Reserve Program (CRP) after the close of the futures markets. The report was originally scheduled to be released today. No explanation was given for the postponement. Conservation specialists expect a heavy signup and said enrollment could amount to more than the total of the first three signups which was 8.9 mln acres. Reuter | CONSERVATION REPORT DELAYED UNTIL FRIDAY |
There were no shipments of U.S. grain or soybeans to the Soviet Union in the week ended March 12 according to the U.S. Agriculture Departments latest Export Sales report. The USSR has purchased 1.0 mln tonnes of U.S. corn for delivery in the fourth year of the U.S.-USSR grain agreement. Total shipments in the third year of the U.S.-USSR grains agreement which ended September 30 amounted to 152600 tonnes of wheat 6808100 tonnes of corn and 1518700 tonnes of soybeans. Shipments to the USSR in the second year of the agreeement amounted to 2887200 tonnes of wheat and 15750100 tonnes of corn. Reuter | NO GRAIN TO THE USSR IN LATEST WEEK -- USDA |
The World Bank said it has approved a 140 mln dlr loan for India to help lessen that countrys dependence on imported oil and spur development of its own petroleum resources. The bank said the loan will be used to boost production by injecting gas in the partially depleted Assam oil fields and to assist exploration in other areas including drilling 10 exploratory wells. The bank said the recipient of the 20-year loan will be Oil India Ltd (OIL) which is the smaller of two public Indian petroleum exploration and production companies. Reuter | INDIA GETS 140 MLN DLR WORLD BANK LOAN |
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