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Qtly div 14 cts vs 12.5 cts in prior qtr Payable April 18 Record April two Reuter | ECHLIN INC <ECH> DIVIDEND INCREASED 12 PCT |
Private Brands Inc said it will separate itself into component parts all of which will trade individually effective March 16. The designer and manufacturer of mens and womens leisure wear said the L.C. Wegard and Co Inc. its underwriter representative requested the units trade separately. Reuter | PRIVATE BRANDS INC <PRIBU> TO SEPARATE UNIT |
Jan 31 end Shr six cts vs eight cts Net 177000 vs 252000 Revs 3209000 vs 1070000 Nine mths Shr 12 cts vs eight cts Net 365000 vs 247000 Revs 7156000 vs 2960000 NOTE: Prior year net both periods includes 91000 dlr tax credit. Reuter | NATIONAL ENTERTAINMENT CORP <NENT> 3RD QTR NET |
National Entertainment Corp said shareholdersapproved a one-for-25 reverse stock split and a name change to Major Video Corp both effective March 16. It said its new ticker symbol will be <MAJV>. The company also said it expects to add nine company-owned and franchised Major Video stores in the next 60 days. It now operates 64. Reuter | NATIONAL ENTERTAINMENT <NENT> REVERSE SPLIT SET |
Shr 48 cts vs 81 cts Net 3986000 vs 6760000 Revs 77.3 mln vs 40.5 mln Reuter | <PEMBINA RESOURCES LTD> YEAR NET |
Computer Memories Inc which ended its disk drive operations in June 1986 agreed to acquire <Hemdale Film Corp> in a transaction which will give Hemdales owner control of the resulting company. Computer Memories principal asset is about 29.4 mln dlrs in cash and cash equivalents. It has agreed to exchange newly issued shares equaling 80 pct of the aggregate issued to acquire Hemdale. That companys owner John Daly would then become chief executive officer of the combined company which would be renamed Hemdale Film Corp. Computer Memories said the proposed transaction is subject to the results of certain corporate reviews and approval of its shareholders who will hold a special meeting as soon as practicable. The company said it has 11109190 shares outstanding of which about 1734000 are held by Intel Corp <INTC>. It is anticipated the FIntel shares will be purchased for 2.75 dlrs a share in connection with the merger with Hemdale Computer Memories said. Reuter | COMPUTER MEMORIES <CMIN> SETS FILM FIRM MERGER |
KLM Royal Dutch Airlines <KLM.AS> said it is negotiating for a minority stake in a British and Commonwealth Shipping Plc <BCOM.L> courier service in a transaction which might include a convertible loan issue. KLM already active in the fast growing door-to-door delivery market through a 50-pct stake in a Dutch courier service is seeking to buy one-third of <IML Air Services Group Ltd> from British and Commonwealth. The two companies agreed earlier this month for KLM to take a 15-pct stake in British and Commonwealth commuter airline Air U.K. Ltd in a deal worth around two mln stg. Reuter | KLM SEEKS STAKE IN BRITISH COURIER SERVICE |
U.S. JAN BUSINESS INVENTORIES ROSE 0.9 PCT AFTER A REVISED 0.6 PCT DEC FALL | |
The European Monetary System marks its eighth anniversary still vulnerable to turmoil in world money markets despite creating an island of currency rate stability in Europe economists say. But many economists say the system which holds eight European Community currencies within narrow fluctuation bands remains in its infancy. Its new currency the European Currency Unit (Ecu) has been a runaway success with investors and borrowers alike seeking an alternative to the volatile dollar. And on Wednesday the long term vision of the Ecu as Europes common currency took a step nearer to becoming reality when Belgium minted the worlds first Ecu coin. But economists say members such as West Germany have so far blocked a second stage of development envisaged by the systems founding fathers ex-West German Chancellor Helmut Schmidt and former French President Valery Giscard dEstaing. Under this phase originally due to have started two years after the EMS was set up decision-making was to have been transferred from national governments and central banks to an autonomous European Monetary Fund. But members have jealously guarded their sovereignty in economic and monetary matters. The basic problem of the EMS is that governments are not prepared to make the quantum leap to a situation where certain decisions are taken in common said one economist who has closely watched the systems development. The result is that the EC is often divided over policy on third currencies accentuating what the economists say is the systems greatest weakness its vulnerability to a weak dollar. Over the past 18 months as the U.S. Dollar plunged and investors moved into strong currencies the resulting sharp rise of the West German mark severely strained the system. MORE As the mark soared against the dollar it also rose against EMS currencies less favoured by international investors. And as West Germany last year refused to give in pressure from several EC partners and the United States to cut interest rates to slow the marks rise the EMS had to be realigned twice to ease financial and trade strains within the community. Two months ago the mark and the Dutch guilder were revalued by three pct and the Belgian and Luxembourg francs by two pct against other currencies in the system -- the French franc Italian lira the Irish punt and Danish crown. Another frustration has been Britains failure to lend the EMS political support by keeping the pound still a major world currency outside the system. No change in the British governments attitude is expected before the countrys next general elections due by mid-1988. Meanwhile the systems last realignment the 11th since it was set up prompted European finance ministers to ask the ECs highly-secretive Monetary Committee and Committee of Central Bank Governors to come up with suggestions for reinforcing it. Their ideas are due to be unveiled when finance ministers hold an informal meeting in Belgium early next month. But economists said the proposals are unlikely to involve more than tinkering with technical details. They are sceptical about the chances for any fundamental change. Technical measures wont be enough to protect the EMS against external factors such as dollar weakness. For that we must take the step forward to the institutional level said Leo de Corel of Kredietbanks economic research department. Economists say the systems fortunes now will depend largely on the success of an agreement last month among major industrial nations to stabilise exchange rates. If the dollar resumes its slide the EMS could be in for more turbulence they predict. REUTER | ECONOMIC SPOTLIGHT - EMS MARKS EIGHTH BIRTHDAY |
General Mills Inc reporting stronger results for the third quarter ended February 22 said it expects the momentum to continue in the fourth quarter. The company said it expects to report strong earnings per share growth and a record return on equity in fiscal 1987. It said this should be achieved despite expected non-operating charges in the final quarter. General Mills said these charges will likely offset non-operating gains which included six cts a share in the first half. General Mills said at the end of the third quarter its return on average equity was 31.6 pct. It said major factors contributing to the third quarter improvement were an 11 pct gain in unit volume by Consumer Foods continuing good profit growth at Red Lobster USA and strong performance in Specialty Retailing. The company reported quarterly earnings of 56.9 mln dlrs or 64 cts a share up from 46.4 mln dlrs or 52 cts a share a year ago. Sales rose to 1.31 billion dlrs from 1.13 billion dlrs. Year-ago data reflect a two-for-one common stock split. Reuter | GENERAL MILLS<GIS> SEES STRONG 4TH QTR RESULTS |
U.S. business inventories rose 5.6 billion dlrs or 0.9 pct to a seasonally adjusted 592.19 billion dlrs in January the Commerce Department said. It was the largest inventory rise since July 1979 when inventories were up 1.7 pct. In December inventories fell a revised 3.4 billion dlrs or 0.6 pct to 586.65 billion dlrs. Previously the department said inventories fell 0.5 pct in December. Business sales fell 20.1 billion dlrs or 4.5 pct in January to 428.75 billion dlrs after rising by three pct in December to 448.82 billion dlrs. The department said it was the largest monthly sales drop on record. January inventories were up 8.2 billion dlrs or 1.4 pct from the year-ago level of 583.99 billion dlrs. Durable goods inventories rose 1.4 pct to 366.13 billion in January dlrs while nondurables inventories were up 0.2 pct from December levels to 226.07 billion dlrs. Manufacturers inventories were up 0.5 pct to 277.02 billion dlrs in January after falling by 0.3 pct in December to 275.53 billion dlrs. Wholesalers inventories rose 1.3 pct in January to 140.25 billion dlrs. The inventory-to-sales ratio rose to 1.38 up .07 from December the department said. Januarys sales were 2.82 billion dlrs or 0.7 pct below the January 1986 level of 431.56 billion dlrs. Reuter | U.S. JANUARY BUSINESS INVENTORIES ROSE 0.9 PCT |
Packaging Systems Corp said it agreed to acquire <Walter-Richter Labels Inc> a privately held maker of woven labels based in Paterson N.J. Terms of the acquisition which is expected to be completed within 60 days were not disclosed. Reuter | PACKAGING SYSTEMS <PAKS> TO BUY LABEL FIRM |
Orbis Inc said an initial public offering of one mln common shares is underway at 2.50 dlrs each through underwriter Providence Securities Inc. Reuter | ORBIS <ORBS> INITIAL OFFERING UNDERWAY |
Shr 53 cts vs 85 cts Net 2033425 vs 3718325 Revs 120.6 mln vs 79.5 mln NOTE: 1986 net includes 3300000 dlr provision for credit loss. 1985 net includes charge 504571 dlrs from cumulative effect of accounting change. Reuter | MANUFACTURED HOMES INC <MNH> YEAR NET |
Moodys Investors Service Inc said it lowered Minnesota Power and Light Cos 490 mln dlrs of debt. Cut were the companys first mortgage bonds and pollution control revenue bonds to A-2 from Aa-3 unsecured pollution control and industrial revenue bonds to A-3 from A-1 and preferred stock to A-2 from Aa-3. Moodys expects Minnesota Powers earnings returns coverage ratios and cash flow measures to decline substantially during the next few years. It cited tax reform weaker performance by the utilitys securities investment program and initial losses for non-utility business. Reuter | MINNESOTA POWER <MPL> DEBT DOWNGRADED BY MOODY'S |
The Ministry of Mines has announced the discovery of a major gold field in Grand Bois in Haitis mineral-rich North. At a press conference yesterday a Ministry spokesman reported the deposit contained an estimated 44 mln tons of ore with each ton capable of containing 7666 grams of gold. The spokesman gave no estimate of what he thought the find discovered on Wednesday was worth. However mining could only begin after foreign partners invest eight mln dlrs needed for technical equipment the spokesman said. The Haitian government has never before operated a gold mine but the United Nations has recently completed a three year feasibility study which lists Grand Bois and Morne Bossa as sites of important gold deposits. In 1971 the Sedren copper mine in Gonaives operated by a Canadian firm closed down after years of mining a concentrate containing gold as well as copper. The new Grand Bois mine represents large amounts of money said a former official of Sedren Mine. But like everything else theres a catch. The gold has to be extracted and first someone has to come up with the money to finance the operation the official who asked not to be named told Reuters. Reuter | HAITI ANNOUNCES FIND OF ORE-RICH GOLD FIELD |
Home Group Inc said its common stock will be listed on the <New York Stock Exchange> on March 31. The stock now trades on the Amex. Reuter | HOME GROUP <HME> APPROVED FOR NYSE LISTING |
Holiday Corp and Communications Satellite Corp said they closed the previously announced sale to Comsat of Holidays 50 pct interest in Hi-Net Communications their joint venture that provides in-room video entertainment to hotels by satellite. Under terms of the deal Comsat paid Holiday 25 mln dlrs in cash and assumed half of the ventures 50 mln dlrs of outstanding debt the companys said. Hi-Net they added will continue to provide programming to Holidays hotels. Reuter | HOLIDAY CORP <HIA>, COMSAT <CQ> CLOSE SALE |
Shr 61 cts vs 42 cts Net 6247000 vs 5587000 Rev 65.4 mln vs 53.6 mln NOTE: 1986 net includes investment gains of 25 cts a share versus six cts a share for 1985 and extraordinary gain of seven cts a share. Reuter | CONSUMERS FINANCIAL CORP <CFIN> 1986 NET |
Shr 21 cts vs 60 cts Net 156576 vs 443404 Sales 5309519 vs 5381264 Year Shr 1.06 dlrs vs 1.55 dlrs Net 788220 vs 1151330 Sales 22.3 mln vs 23.6 mln Reuter | CHICAGO RIVET AND MACHINE CO <CVR> 4TH QTR NET |
Qtly div 11 cts vs 11 cts prior Pay May 15 Record May One Reuter | FILTERTEK INC <FTK> SETS QUARTERLY |
The Bank of England said it gave the money market late unspecified assistance of around 185 mln stg. This takes the total liquidity injected into the system by the bank today to 1.026 billion stg compared with a shortage it estimated at around one billion stg. Overnight interbank sterling dipped to 10 nine pct after the banks announcement compared with levels around 10-1/2 pct shortly before and 11-1/4 11 pct initially today dealers said. REUTER | UK MONEY MARKET GIVEN LATE HELP OF 185 MLN STG |
A delegation from McDonnell-Douglas Corp <MD.N> will visit the Dutch parliament on Monday in an attempt to win a 2.5-billion guilder helicopter order a Defence Ministry spokesman said. U.S. Helicopter manufacturer <Sikorsky> approached Dutch parliamentarians and army officials last month he added. The Dutch seek 50 new army helicopters over a 10-year period and plan to replace Lynx navy helicopters before the year 2000. The first batch of 20 helicopters has to be operative in 1990 while the next 30 will be introduced gradually in the following years spokesman Cent van Vliet said. The U.S. Visit come as the Dutch have already narrowed down their options to the Mongoose of Italian producer <Agusta Spa> and the Panther of French firm <Aerospatiale> Van Vliet said. The Dutch had not considered U.S. Helicopters he said adding the Ministry planned to present its choice to parliament in May. European models rejected include the Lynx III of British manufacturer <Westland>. A parliamentary accounting watchdog this week blasted the performance of 22 older versions of the Lynx currently used by the navy saying they were hardly up to their job. REUTER | U.S. FIRMS LOBBY FOR DUTCH HELICOPTER ORDER |
Negotiations on a new International Natural Rubber Agreement INRA are approaching the make-or-break point and prospects for a future pact appear to be in the balance delegates said. Manaspas Xuto of Thailand chairman of the INRA renegotiation conference is holding consultations with a small group of producers and consumers to try to resolve major outstanding issues. When the talks began on Monday Xuto said those issues should be settled by the end of the first week to allow time to draft an agreement during the second week. The talks are due to last until March 20. Xuto said There is nothing concrete yet but the atmosphere is good. The discussions are expected to continue late into the night and Xuto said he may hold weekend meetings. Delegates said negotiations now focus on the degree to which price adjustments should be automatic. At present if the market price has been above or below the reference price (set at 201.66 Malaysian/Singapore cents a kilo in the current agreement) for six months the reference price is revised by five pct or by an amount decided by the International Natural Rubber Organisation council. Consumers are asking that in these circumstances the adjustment be automatic at five pct or more. Producers want the council to have the last word and have resisted reducing its role in the price adjustment procedure. Delegates said there seems to be optimism about settling another issue -- that of the floor price. It now appears that consumers may consider dropping their insistence of a downward adjustment of the floor price called the lower indicative price under certain circumstances. This means that any possible compromise would centre on the reference price and the may buy (or may sell) and must buy or must sell levels without changing the lower indicative price -- which is set at 150 Malaysian/Singapore cents in the current pact. Delegates said that in exchange for consumer flexibility on the floor price question producers may consider agreeing to another consumer proposal for more frequent price reviews -- at 12 month intervals instead of 18 at present. Reuter | NEW RUBBER PACT APPEARS IN THE BALANCE |
The Soviet Union is rumored this morning to have bought up to 1.5 mln tonnes of U.S. corn export trade sources said. The amount was not confirmed but the talk was widespread through the trade. Gulf cash barge basis levels jumped two to three cents this morning on the rumors which were expected to boost futures prices on todays open. The Soviet Union recently bought over 1.0 mln tonnes of U.S. corn ostensibly as a conciliatory gesture ahead of trade talks with U.S. agriculture officials. Purchases rumored today were seen as a positive factor in light of a Soviet trade officials statement that the previous purchase had satisfied near-term needs. Reuter | SOVIETS RUMORED TO HAVE BOUGHT MORE U.S. CORN |
Bioassay Systems Corp said its toxicology facility in Woburn was closed February 28. The company said it is exploring opportuniites to dispose of the operations assets and assign its lease or sublease the space. Bioassay said its Decatur Ill. facility remains fully operational. Reuter | BIOASSY <BSCC> HAS CLOSED WOBURN FACILITY |
Shr one ct vs three cts Net 66922 vs 194531 Rev 4.2 mln vs 5.7 mln Nine months Shr two cts vs four cts Net 93802 vs 260702 Rev 10.1 mln vs 13.2 mln NOTE: Nine months 1987 period includes gain of 196043 dlrs from sale of Meston Lake Resources shares and a credit of 127000 dlrs from a favroable settlement of s state income tax assessment. 1986 nine months period includes gain of 160431 dlrs or two cts a share from sale of Ferrotherm Co. Reuter | TRANSACT INT'L INC <TACT> 3RD QTR JAN 31 NET |
German federal railways stock 900 mln marks, 10 years at 6-1/4 pct and par - Bundesbank | |
France today repaid 21.95 billion francs of short-term currency intervention debt to the European Monetary Cooperation Fund EMCF the Finance Ministry said. It said the debt was part of a 33.90 billion franc liability incurred through the activation of EMCF swap facilities to defend the franc before the January 11 European Monetary System realignment. The realignment following several weeks of speculative pressure produced a three pct revaluation of the West German mark and the Dutch guilder against the French franc and a two pct revaluation of the Belgian franc. REUTER | FRANCE REPAYS SOME OF CURRENCY INTERVENTION DEBT |
The West German federal railway is raising 900 mln marks through a 10-year loan stock on the domestic market with a coupon of 6-1/4 pct and price of par a Bundesbank spokesman said in response to enquiries. Some 750 mln marks will be offered for immediate sale with 75 mln held back for market regulation and the remaining 75 mln placed with the railways own bank. The stock will be offered for sale between March 17 and 19 and will be listed on all German stock exchanges from March 20 to 24. The stock pays annual interest on April 1. Terms of the bond conformed with those expected earlier today dealers said. The bond rose in the first hour of grey market trading to less 7/8 less 5/8 after being quoted at less 1-1/8 less 7/8 in first business. Dealers said demand rose owing to the bonds relatively small size. In contrast the last railway issue in January totalled 1.1 billion marks of which 900 mln was distributed for immediate sale. REUTER | WEST GERMAN RAILWAY ISSUES DOMESTIC STOCK |
SHELL CANADA RAISES CRUDE PRICES BY 64 CANADIAN CTS/BBL TODAY AT EDMONTON | |
 CORRECTION - TWO BRAZIL SHIPPING FIRMS SETTLE In todays Sao Paulo story headlined TWO BRAZILIAN SHIPPING FIRMS SETTLE WITH STRIKERS please read in second para ... Offer from the companies Global and Flumar ... instead of ... Offer from the companies Globo and Flumar ... corrects name of first company. Reuter  | |
Haitis agriculture minister yesterday announced his department will permit the importation of 730 black Creole pigs which had been banned from the island nation since 1983. Between 1981 and 1983 a team of Canadian veterinarians funded by the United States Canada Mexico and Costa Rica supervised the slaughter of all Haitis 1200000 pigs under a program to eradicate African swine flu. Todays announcement that Catholic Relief Services (CARITAS) can import 730 Jamaican pigs comes after months of protests by farmers who had owned 90 pct of the slaughtered pigs. Reuter | HAITI ALLOWS IMPORTATION OF BANNED BLACK PIGS |
Lear Petroleum Corp said it consolidated and reorganized its gas transmission gathering and marketing operations into three new companies. It said the new Lear Gas Gathering Co will handle all the gas gathering and processing operations previously done by Producers Gas Co Rael Gas Co PGC Processing Co Anadarko Gathering Co and LPC Energy Inc. Lear said its gas transmission businesses LPC Energy Inc Producers Gas Co and Rael Gas Co were consolidated in Lear Gas Transmisssion Co. At the same time Lear said the gas marketing business previously conduct by PGC Marketing Inc will be assumed by Lear Gas Marketing Co. Reuter | LEAR PETROLEUM <LPT> CONSOLIDATES GAS UNITS |
Soviet-West German trade is expected to develop favourably due to Moscows increasing openness to East-West economic relations Dresdner Bank AGs Moscow representative Michael Stein said. He told a bank presentation the Soviet Union was last year hit by the fall in world oil prices which cut export revenue from oil-related products and natural gas and its overseas buying power was also adversely affected by the lower dollar. Dresdner Bank economist Alfred Apholte said the Soviet Unions large currency and gold reserves had softened the impact of the dollar weakening and oil price drop. REUTER | GERMAN BANK SEES GOOD SOVIET TRADE PROSPECTS |
MOODY'S DOWNGRADES BENEFICIAL CORP'S 3.4 BILLION DLRS OF DEBT | |
Penril Corp said its board elected Henry David Epstein president chief executive officer and a director. The company said Epstein and other investors have agreed to invest 1.5 mln dlrs in the companys shares and warrants subject to satisfaction of certain conditions. Penril said its founder Alva T. Bonda remains as chairman. It noted Epstein is chairman of Computer Communications Inc <CCMM>. He is a former senior executive of Loral Corp <LOR> and of Texas Instruments Inc <TXN>. Reuter | PENRIL <PNL> ELECTS PRESIDENT, SETS FINANCING |
The 10-year eurodollar bond issue launched yesterday for Norsk Hydro at 8-1/4 pct and 101-5/8 pct has been increased to a total of 125 mln dlrs from the original 100 mln amount Swiss Bank Corp International said as lead. The issue is due on April 9 1997. REUTER | NORSK HYDRO EURODOLLAR BOND INCREASED TO 125 MLN |
General Electric Credit Corp a unit of General Electric Co said it has called for redemption on April 13 1987 its 150 mln dlrs 7-5/8 pct notes due 1988. The company said the notes redemption price is 100 pct of their principal amount plus accrued interest. GE Credit said the Bank of New York will be the redemptions paying agent. Reuter | GENERAL ELECTRIC <GE> UNIT REDEEMS NOTES |
NYSE, NYFE MOVE EXPIRATION OF INDEX OPTIONS AND FUTURES CONTRACTS | |
National Pizza Co said it reached an agreement in principle to buy seven Straw Hat pizza restaurants and certain related real estate for approximately three mln dlrs in cash. The acquisitions will be converted to Pizza Hut restaurants said National Pizza and are expected to generate annual sales of approximately eight mln dlrs. When the sale is complete it will bring to 24 the number of restaurants operated by National Pizza the company said. Reuter | NATIONAL PIZZA CO <PIZA> TO ACQUIRE RESTAURANTS |
Moodys Investors Service Inc said it downgraded 3.4 billion dlrs of debt of Beneficial Corp. Cut to Baa-2 from Baa-1 were the senior debt of the company and the guaranteed debt of its unit Beneficial Overseas Finance NV. Also downgraded were Beneficials shelf registrations of senior debt to Provisional Baa-2 from Provisional Baa-1 and of subordinated debt to Provisional Ba-1 from Provisional Baa-3. Moodys said the magnitude of Beneficials 1986 operating losses from write-downs of discontinued businesses has weakened its financial position. The costs of meeting the potential liability for insurance losses to facilitate the sale of the companys insurance unit and of revaluing other discontinued business segments have substantially exceeded original indications Moodys said in a release. The agency said Beneficials consumer finance business remains strong and has the capacity to withstand foreseeable adverse developments. But the withdrawal from nontraditional businesses is weakening consolidated leverage narrowing funding operations and depressing the quality of earnings Moodys stressed. Reuter | BENEFICIAL <BNL> DOWNGRADED BY MOODY'S |
CITICORP SAYS PLACING BRAZIL LOANS ON CASH BASIS COULD CUT 1ST QTR NET BY 50 MLN DLRS | |
Ayer Hitam Tin Dredging Malaysia Bhd said it planned to raise its authorised share capital to 50 mln Malaysian dlrs from the present seven mln by adding 43 mln new shares. The firm also said in a statement it will launch a 6.1 mln dlr bonus issue to be paid out of unappropriated profit with stockholders getting one new share for every existing one. It said the issue date will be decided later. Ayer added that it will not pay a dividend for the half year ended December 31 1986 on the new shares. Reuter | MALAYSIA'S AYER HITAM TO BOOST SHARE CAPITAL |
The Port of Singapore Authority (PSA) will spend 1.2 billion dlrs to develop port facilities and cargo-handling equipment over the next five years Communications Minister Yeo Ning Hong told parliament. Yeo said the improvements were needed to cope with an expected growth of ship tonnage and cargo handled by the port but gave no further details. The PSA handled 529 mln gross-registered tonnes of cargo in 1985 according to the latest available statistics from the port authority. Reuter | SINGAPORE TO SPEND 1.2 BILLION DLRS ON PORTS |
Range Rover of North America said it will begin to sell in the U.S. its upscale British-built Range Rover four-wheel drive automobile. The company said it is hoping to find a niche at the top of the American sports/utility market with a price tag of just over 30000 dlrs. Range Rover of North America is a wholly-owned subsidiary of the Land Rover group of companies and is manufactured by the British company of <Land Rover UK Ltd> according to the company. Reuter | RANGE ROVER OF NORTH AMERICA TO OFFER NEW MODEL |
The <New York Stock Exchange> said it and its <New York Futures Exchange> affiliate will move the expiration of their respective index options and index futures contracts to the opening of trading in the underlying stock on expiration Friday from the close of trading. The exchange said it has submitted the changes to the Securities and Exchange Commission and the Commodity Futures Trading Commission for approval. The exchange said The NYSE has long advocated settlement in the morning rather than at the close of trading as a practical way to deal with order imbalances and price volatility which historically occur on triple witching days. The triple witching hour falls four times a year when stock options index options and futures on index options all expire on the third Friday of every month leading to major last-hour market swings. On the last triple witching Friday December 19 the NYSE traded almost 85 mln shares at the close of the market. The next triple witching hour will take place Friday March 20. The exchange said Morning settlement would expose order imbalances to the full sunlight of public disclosure ensure the broadest dissemination of market information and facilitate the participation of all interested investors. Reuter | NYSE, NYFE MOVE INDEX FUTURES/OPTIONS EXPIRATION |
<ORS Corp> said <Dominion Securities (Alberta) Inc> has been appointed to offer common shares in a new Canadaina company being organized to exploit heavy oil production opportunities in Canada and Western Europe. ORS said the offer for private sale of the stock being made on a best efforts basis is designed to raise five mln Canadian dlrs which the new company will invest in properties and projects using the Electromagnetic Well Stimulation Process developed by IIT Research Institute under sponsorship of ORS. Reuter | ORS SEEKS CANADIAN FUNDS FOR HEAVY OIL TEST |
West Germany and Sierra Leone signed an agreement to reschedule 26 mln marks of principal and interest payments on loans the West German Foreign Ministry said. A statement said the agreement related to interest and principle and obligations from previous reschedulings due between July 1 1986 and November 13 1987 as well as arrears from the period up to June 30 1986. The statement said the payments were rescheduled for 1992 to 1996 under the accord which followed a multilateral rescheduling pact agreed by Paris Club creditor nations on November 19 1986. REUTER | WEST GERMANY RESCHEDULES SIERRA LEONE DEBT |
Chrysler Corp said its Chrysler First Inc acquired a major portion of the commercial lending portfolio of Beneficial Business Credit Corp a subsidiary of Beneficial Corp. It said the acquisition involves about 84 mln dlrs of net receivables. Chrysler First a subsidiary of Chrysler Financial Corp had receivables of 4.3 billion dlrs at the end of 1986. Reuter | CHRYSLER <C> UNIT BUYS BENEFICIAL <BNL> UNIT |
3Com Corp said it is offering 1.2 mln shares of its common stock for sale at 23.50 per share in a public offering. It said the sale is being co-managed by Goldman Sachs and Co and Montgomery Securities. The company said it granted the underwriters an option to buy 180000 shares to cover over-allotments. Net proceeds from the sale will be added to the companys working capital to fund future growth 3Com said. Reuter | 3COM CORP <COMS> OFFERS SHARES OF COMMON |
Volkswagen of America said its U.S. car sales for the March 1-10 period rose 4.9 pct to 849 from 809 a year earlier. It said there were eight selling days in each period. Year to date Volkswagen said domestic sales declined 42.5 pct to 7476 from 13003. Reuter | VOLKSWAGEN OF AMERICA EARLY MARCH SALES RISE |
<Sheller-Globe Corp> said it has named Alfred Grava president and chief operating officer to replace James Graham who was granted a medical leave in June 1986. In addition the company said it named George Berry executive vice president of the corporation and president automotive/truck operations reporting to Grava. Reuter | SHELLER-GLOBE NAMES NEW PRESIDENT |
Italian Prime Minister designate Giulio Andreotti expressed cautious optimism about his chances of forming a government amid concern by industrialists that a lengthy political crisis could cause economic damage. Andreotti today wound up his first round of political consultations aimed at finding a way out of the crisis. His Christian Democrats and the Socialists of outgoing premier Bettino Craxi whose row caused last weeks collapse of the five-party coalition remained deeply divided. Andreotti said he would spend the weekend considering the situation before a second round of consultations next week. Meanwhile Italys top industrialists expressed concern that a long drawn-out crisis or continuing squabbling between the five coalition partners could jeopardise the major economic progress made in three-and-a-half stable years under Craxi. Luigi Lucchini president of the employers organisation Confindustria said in a speech yesterday What is certain is that a precarious political situation is damaging to the economy to the objectives of companies to competitivity. His remarks were supported by Fiat chairman Giovanni Agnelli who said in a radio interview that he hoped for a reconstruction of the coalition. REUTER | ITALIAN BUSINESS CONCERNED OVER POLITICAL CRISIS |
Lanesborough Corp is raising 50 mln dlrs via an offering of senior subordinated notes due 1997 with a 12-3/8 pct coupon and par pricing said sole manager First Boston Corp. Non-callable for five years the debt is rated Caa by Moodys Investors Service Inc and B-minus by Standard and Poors Corp. The issue was increased from an initial offering of 40 mln dlrs because of investor demand for high-yield securities. Reuter | LANESBOROUGH SELLS SENIOR SUBORDINATED NOTES |
New South Wales Treasury Corp is issuing 15 billion yen of eurobonds due April 15 1992 priced at 101-5/8 with a 4-7/8 pct coupon Nikko Securities Co (Europe) Ltd said as book-runner and joint lead manager with Mitsui Trust and Banking Co Ltd. The issue will be guaranteed by New South Wales and will be sold in denominations of one mln yen with listing in Luxembourg. Fees are 1-1/4 pct for selling and 5/8 pct for management and underwriting combined. Payment date is April 15. Co-lead manager is Mitsubishi Finance International Ltd. REUTER | NEW SOUTH WALES TREASURY CORP LAUNCHES YEN BOND |
Moodys Investors Service Inc said it downgraded to Ba-2 from Baa-3 Southdown Incs 140 mln dlrs of senior debt. The agency also assigned an initial rating of B-1 to the companys 90 mln dlrs of senior subordinated notes due 1997. Moodys said the action reflected increased leverage and reduced interest resulting from lower earnings. It also cited Southdowns repurchase of 28 pct of its common stock and the financing of that transaction by debt. Moodys said the lower ratings anticipate certain debt reduction in the coming year from the sale of assets. Reuter | SOUTHDOWN <SDW> DEBT DOWNGRADED BY MOODY'S |
HealthWays Inc a unit of Eldon Industries Inc said it reached a final settlement of the year-old litigation with Central Jersey Individual Pratice Association the Union County Medical Society and individual physicians. On February 2 the company a health maintenance organization said a tentative agreement had been signed under which all approved outstanding claims to Central Jersey participating physicians in Middlesex and Union Counties for services provided before June 30 would be paid. Reuter | ELDON'S <ELD> HEALTHWAYS IN FINAL SETTLEMENT |
CHRYSLER EARLY MARCH CAR SALES UP 0.4 PCT | |
Proposals for a secondary market for the resale of farm real estate loans similar to home mortgage markets is gaining support in Congress and among rural lenders and could be established this year Congressional and financial sources said. Several bills which would establish a farm secondary market have been introduced in both the House and Senate. Furthermore Representatives of the Farm Credit System commercial bankers and life insurance companies are meeting in an attempt to agree on a method of establishing the market. Frank Naylor chairman of the Farm Credit Administration (FCA) which regulates the farm credit system yesterday said a farm loan secondary market would be positive for agriculture as long as the farm credit system is a key player. Naylor told a House Agriculture subcommittee hearing the secondary market could be established either with Congressional legislation or administratively. Any farm loan secondary market would be modeled after the successful resale markets in home mortgages the Government National Mortgage Association (GNMA) and the Federal Home Loan Mortgage Corporation (Freddie Mac) industry sources said. Commercial banks and life insurance companies are the main supporters of a farm loan secondary market because they believe it would allow private lenders to compete more effectively in rural lending with the quasi-government farm credit system traditionally the largest lender to farmers. A farm secondary market would allow lenders to sell high-quality loans on farmland to poolers who in turn would package the loans and issue farm mortgage-backed securities for resale to investors-- called Aggie-mae by some supporters. However the FCA and financially-troubled farm credit system have in the past been ambivalent about the idea. The ambivalence is because any farm secondary market established in the private sector that excluded the farm credit system would put the system at a competitive disadvantage. That could be a financial blow to the system which has lost 4.6 billion dlrs in two years Naylor and farm credit system officials have said. A study commissioned by one of the main supporters of the secondary market idea the American Council of Life Insurers concludes the farm credit systems market share in rural lending would fall if a secondary market were established. The study was released earlier today. Reuter | U.S. FARM LOAN SECONDARY MARKET GAINS SUPPORT |
Westinghouse Electric Corp said it will perform work valued in excess of 200 mln dlrs on the 1150-megawatt Sizewell B commercial nuclear power station which the United Kingdom will build near Suffolk on its southeast coast. Westinghouse said it will design and erect the primary reactor coolant system manufacture components and transfer technology for the power plant which the U.K. government announced plans for yesterday. Westinghouse said its technology for the design of the pressurized water reactor will be transferred through its licensee in the United Kingdom <National Nuclear Corp>. The company said Britians national utility the Central Electricity Generating Board has announced plans to apply for planning consent for a second pressurized water reactor Hinkley C in Somerset before the end of 1987. The board has said it would like to build up to five pressurized water reactors before the end of the century Westinghouse added. Reuter | WESTINGHOUSE <WX> TO DESIGN BRITISH NUCLEAR UNIT |
UAL INC FILES FOR FIVE MLN COMMON SHARE OFFERING | |
Salomon Inc has lowered its investment ratings on all U.S. money center banks institutional sources said. The sources said Salomon believes that other money center banks may feel compelled to follow Citicorps <CCI> lead in its filing with the Securities and Exchange Commission relating to its loan exposure to Brazil. They also said Salomon believes that other banks may strongly consider the possibility of placing Brazilian loans on a non-accruing status with the consequent negative impact on earnings. The sources said the ratings were lowered to M from O-plus. The stock are now expected to match the Standard and Poors 500 Index rather than outperform the index as previously expected. The sources said it is also understood that the change in the coding of these stocks should definitely not be taken as a sell-recommendation because Salomon is said to believe that its downgrading will only prove temporary. The banks affected by the change in investment coding are Bank of New York Co Inc <BK> Bankers Trust Co <BT> Chase Manhattan Corp <CMB> Chemical New York Corp <CHL> Citicorp <CCI> Irving Bank Corp <V> Manufacturers Hanover Corp <MHC> J.P. Morgan and Co Inc <JPM> Marine Midland Banks Inc <MM> Republic New York Corp <RNB> Bank of Boston Corp <BKB> and First Chicago Corp <FNB>. The institutional sources said that Thomas Hanley a director of Salomon Inc subsidiary Salomon Brothers who is in charge of bank stock research believes Citicorps move is well-timed. Should Citicorp actually place the Brazilian loans in a non-performing category at the end of this quarter this action would serve to alleviate the urgency associated with the debt negotiations he argues. Thus Citicorps bargaining position would appear to have been much enhanced. Reuter | SALOMON INC <SB> SAID TO CUT U.S. BANKS RATINGS |
Todays panic in the floating rate note market has been simmering for months and is in many ways of the market makers own doing traders and bank officials said. For the last six months there have been a series of crises in the FRN market. Each has cut deeper and deeper into the very fibre of the market said a senior official at a U.S. Bank. As prices have fallen he explained the underwriters who originally brought the issues have retreated. They have divested themselves of the paper as quickly as possible unwilling to bear losses of the magnitude seen in recent panic trading. In the virtual effective closure of the market for perpetual floaters last month bankers witnessed the consequences of this kind of contraction of liquidity and investor confidence. Fears were engendered about the possibility of this crisis infecting the market in conventional dated FRN issues which is almost 10 times as large as that for perpetuals with an estimated 130 billion dlrs of debt outstanding. The professionals are so nervous about holding inventory that they will sell at any price said an official at a leading U.S. Bank explaining the panic selling which has pushed prices down sharply over the last two days. Bankers and FRN traders emphasised that todays trading was unique in that it was driven exclusively by professionals and that there was nothing fundamentally wrong with the securities they sold. In highlighting this point dealers noted that the benchmark issues in the FRN market -- the two FRNs for the U.K. Launched in 1985 and 1986 -- fell an unprecedented 50 and 40 basis points respectively at the opening this morning. Certainly dealers said Britain is no less credit-worthy today than it was yesterday and the countrys economic health currently appears better than it has for some time. Pointing out that this kind of sovereign and supra-national debt had not sagged on any fundamental weakness one senior FRN source said: The idiocy of the situation is aptly shown by the fact that these kind of borrowers can now tap the syndicated loan markets at rates lower than their floaters currently pay. Dealers agreed that banking sector paper which constitutes a significant part of the market was currently under pressure. Floating rate debt of major U.S. And Canadian banks eased markedly in nervous trading last month on renewed investor fears about the banks exposure to Latin American debt. The U.S. And Canadian money centre bank FRNs along with Republic of Ireland paper were hard hit again this week with dealers citing one heavily-traded Citicorp note falling to levels so low it is now effectively yielding 55 basis points over Libor (the London Interbank Offered Rate). By comparison the 500 mln dlr note which matures in 1998 yielded only a fine 20 basis point over Libid (the London Interbank Bid Rate) when it was issued in January last year. Price declines of this size can really only be explained by an understanding of the operating practices of leading players in the market dealers and banking analysts said. This has to be understood as a matter between banks who have a brief to buy low and sell high one U.S. Bank source noted. Another senior source at a U.K. Bank drew attention to the enormous overhead costs and high salaries generated over the last few years in the FRN market which have to be justified. But even beyond the cost of running an FRN trading desk dealers said is the way the securities are bought and sold. Although sophisticated on-screen dealing exists in most markets in the euro-markets trading is conducted by telephone. If somebody calls you up and asks you to make him a price in any issue and you do he can say Right. You own five mln a trader said explaining market practice. The unfortunate buyer is then forced to unload the securities just minutes later to yet another firm at an even lower price the trader explained. It is precisely this phenomenon that forced the rapid downward price spiral earlier today traders said adding that it is likely to continue until the markets either regain their confidence or market practices change. One possible solution dealers said would be to initiate trading exclusively through brokers screens so that only those who wanted to buy bonds would have to lift a bid or buy at that price. Meanwhile bank regulators are apparently concerned about the implications of the collapse in FRN prices. Traders in London said that the Bank of England has called around to market makers asking whether they intended to continue trading and what they calculated the losses to be. The Bank often makes periodic checks in the market but dealers said the latest enquiries were more specific. A spokesman for the Bank of England was not able to comment immediately on the Banks action. One trader at a major U.S. Bank here said that in addition the Federal Reserve Bank of New Yorks international capital markets unit has phoned banks in London today seeking information about trading in FRNs. He also said that this was not an unusual procedure. Reuter | FRN PANIC INITIATED, EXACERBATED BY MARKET MAKERS |
GENERAL MOTORS EARLY MARCH CAR SALES OFF 8.2 PCT | |
The New York Stock Exchange said it and its New York Futures Exchange affiliate will move the expiration of their respective index options and index futures contracts to the opening of trading in the underlying stock on each expiration Friday from the close of trading. The exchange said it has submitted the changes to the Securities and Exchange Commission and the Commodity Futures Trading Commission for approval. The exchange said The NYSE has long advocated settlement in the morning rather than at the close of trading as a practical way to deal with order imbalances and price volatility which historically occur on so-called triple witching days. The triple witching hour falls four times a year when individual stock options stock index futures and options on stock indexes all expire on the third Friday of the month which has led to volatile last-hour market swings. On the last triple witching Friday December 19 the NYSE traded almost 85 mln shares at the close of the market. The next triple witching hour will take place Friday March 20. The exchange said Morning settlement would expose order imbalances to the full sunlight of public disclosure ensure the broadest dissemination of market information and facilitate the participation of all interested investors. Reuter | NYSE, NYFE MOVE INDEX FUTURES/OPTIONS EXPIRATION |
Brazils state-oil company Petrobras has asked the Army to withdraw the troops which were occupying its oil installations since Tuesday Petrobras said in a statement. The statement said the request for the withdrawal of the troops was made because of the calmness reigning in all of its refineries. The request was also due to the end of the seamens strike and the willingness of the oil industry workers to sit again by the negotiating table the statement said. Even though the Petrobras statement said the seamens strike was over a union spokesman said only two small shipping companies had reached a pay agreement. The overwhelming majority of Brazils seamen remained on strike. The statement said a meeting between Petrobras and oil industry leaders was set for next Wednesday in Rio with the presence of Labour Minister Almir Pazzionotto as a mediator. Petrobras said the request for the withdrawal of the troops was made at 1100 local hours (1400 GMT) but a company spokesman said he did not know if the troops had already been removed. Reuter | PETROBRAS ASKS ARMY TO WITHDRAW TROOPS |
A U.S. appeals court threw out a two mln dlr libel award against The Washington Post for an article that said former Mobil Corp president William Tavoulareas set up his son in a shipping firm that did business with Mobil. The article said Tavoulareas had used his influence to set up his son Peter in 1974 as a partner in the London-based Atlas Maritime Co a shipping company whose business included a multi-million dollar contract with Mobil. We are convinced that ... the set up allegation was substantially true the appeals court said in the 7-1 ruling. The Tavoulareases said the 1979 article by the Posts investigative reporter Patrick Tyler was false and that it embarrassed them and held them up to ridicule. Reuter | COURT VACATES LIBEL AWARD IN MOBIL CASE |
Chrysler Corp said its early March retail sales of domestic-built cars rose 0.4 pct to 25286 from 25191 a year ago. Chrysler said truck sales in the March 1-10 period rose 15 pct to 15565 from 13585 a year ago to the highest level ever for the period. There were eight selling days in each period. Reuter | CHRYSLER <C> EARLY MARCH CAR SALES UP 0.4 PCT |
GCA Corp said its shareholders approved a restructuring plan to raise 72 mln dlrs in equity for the troubled maker of semiconductor production systems. GCA said 90 pct of the shareholders voting at a special meeting yesterday approved the restructuring. The plan calls for GCA to raise 48 mln dlrs through a rights offering and 24 mln dlrs through the sale of stock to joint venture partners. GCA said the rights will be mailed March 17 to shareholders of record March 16 and will expire at 1600 EST April 6. The plan should be closed by April 30 it said. Reuter | GCA <GCA> SHAREHOLDERS APPROVE RESTRUCTURING |
The Reagan Administrations soon-to-be published proposals to make experimental therapies more rapidly and widely available to terminally ill patients pose product liability problems for drug companies experts in the pharmaceutical field said. Details of the proposals will be published in the Federal Register shortly and will become effective after a 90-day comment period. Under the proposed policy announced Tuesday by Commissioner of Food and Drugs Frank E. Young at a press conference patients with life threatening diseases who are not enrolled in clinical trials would be allowed access to an experimental therapy. The policy also allows drug companies to sell the promising drugs to patients. Previously drugs like AZT could be rushed into wider use free-of-charge if the agent was shown to be effective. Under the new policy the FDA could only refuse to permit a physician to administer an experimental drug if it was shown to be unsafe. Financial analysts said the plan would likely benefit biotechnology companies with few or no products approved for marketing in the U.S. but would have little economic impact on large drug companies with many other sources of revenue. Charging a fee for still experimental drugs could help biotech companies near-term financial situation and help make them less dependent on outside sources said Teena Lerner a biotech analyst at L.F. Rothchild. Other observers were concerned that drug companies would be put into a legal bind if promising drugs later proved to have devastating side effects. Before a lot of drug companies release these drugs they are going to have to think long and hard about liability--the product liability problems are enormous said a Washington-based lawyer who specializes in the drug field. Patients in clinical trials normally sign lengthy informed consent papers before taking an investigational drug. The lawyer said no more than two cases had gone to trial for suits against a drug companys investigational drug. The new proposals are a whole new kettle of fish said the lawyer. Drug companies are right now probably meeting with their insurance companies. Burroughs-Wellcome Co the U.S. arm of the British firm Wellcome PLC that makes AZT Merck and Co Inc <MRK> Hoffman-LaRoche Inc and SmithKline Beckman Corp <SKB> said it was too soon to comment on the policy. Im very uncomforable with this said Wellcome spokeswoman Kathy Bartlett. We havent had a chance to formulate a response yet. Its too early. But some financial analysts say the proposals would benefit drug companies. I find the proposal to be a very significant alteration of the FDAs past policies that should positively affect (drug companies) stocks said drug analyst Davis Saks with Morgan Olmstead Kennedy and Gardner. Saks also warned that many health care providers would balk at the proposal and would call it amoral to charge patients with life-threatening diseases for drugs that otherwise would be given out for free in clinical trials. Jeffrey Warren spokesman for the Pharmaceutical Manufacturers Association which represents the major drug firms in the U.S. said A mechanism already exists at the FDA permitting certain seriously ill patients access to experimental drugs and perhaps that system can be approved. Warren acknowledged that the PMA may not be able to come up with a consensus among its membership when the rules are formally published. He also admitted that product liability problems could be a concern to major drug companies. Jeffrey Levi executive director of the National Gay and Lesbian Task Force which is actively in AIDS policy and funding issues cited the drug Suramin from Bayer AG <BAYRY> which had shown early promise as an AIDS treatment but on wider clinical testing was shown to have deadly side effects. Reuter | PROPOSALS TO RELAX U.S. DRUG LAWS POSE PROBLEMS |
Markus Lusser vice-president of the Swiss National Bank said he was sceptical of the recent U.S.-British accord on joint bank supervision fearing smaller countries could be forced to cooperate. In a speech prepared for delivery to a meeting of West German savings banks he said such an accord would cover the three most important financial centres of the world if extended to Japan as planned. Countries not prepared to cooperate with an agreement of the group of three could easily be put under pressure Lusser said. It would be enough to forbid banks the right to make use of those financial markets or to place them under a special status he added. Banks which operate worldwide could scarcely afford to stay away from these centres and would place their national governments under pressure to conform. Lusser added that he was opposed to the form though not the content of the accord. Switzerland itself was not affected since capital adequacy requirements here were already stricter than in Britain or the United States. But he feared such accords might be substituted for internationally negotiated pacts. REUTER | SWISS WARY OF U.S.-BRITISH BANK SUPERVISION PACT |
West German banking authorities are considering requiring German banks to bring securities holdings into lending ratio calculations used to regulate credit risk banking sources said. The present interpretation of the credit law limits banks maximum lending to 18 times eligible capital -- reserves plus equity capital -- but sets no restraints on securities holdings. Under new provisions weightings would be attached to securities similar to those used for lending. Weightings would range from a zero rating for no-risk assets to 100 pct of total asset value for what authorities consider the highest risk. Low-risk securities carrying a zero rating would include public authority bonds for the federal government states and municipalities the sources said. A 20 pct rating would be assigned to issues of domestic banks. Secured bonds of mortgage shipping and public authority banks would be an exception to this via such securities as mortgage and municipal bonds. Securities issued by foreign banks would attract a weighting of 50 pct while authorities are considering requiring banks to include 100 pct of the value of debt assets of foreign issuers including sovereign borrowers. The sources said the revision is still being discussed and required approval by the federal Banking Supervisory Office in West Berlin the Bundesbank and West Germanys four banking associations. The move is a response to the increasing securitisation of debt markets they added. Reuter | GERMAN SECURITIES MAY BE COUNTED IN LENDING RATIOS |
CNW Corp said its Chicago and North Western Transportation Co sold 25 mln dlrs of consolidated mortgage 9.93 pct bonds series C due 1992 in a private placement. Morgan Stanley and Co Inc was the placement agent. The bonds were sold yesterday. Proceeds of the bond sale will be used for general corporate purposes. Reuter | CNW <CNW> SELLS BONDS |
Talks between France and Iran on the repayment of a one billion dlr loan by the late Shah have made progress Roland Dumas head of a parliamentary Foreign Affairs Committee said. They are progressing as far as I have heard Dumas told reporters. The two delegations appear to be near an agreement on the figures. Dumas a close aide to President Francois Mitterrand earlier this week met Iranian Charge dAffaires in Paris Haddadi Gholam-reza. The report of progress contrasts with official French statements last month after talks between Deputy Iranian Finance Minister Mehdi Navvab and the French Finance Ministry. The talks the latest round in long-running negotiations between the two countries were said to have led to little progress on the loan repayment issue. France made a first repayment of 330 mln dlrs last November. Since then negotiatiors have shuttled between Tehran and Paris for talks which France hopes will help secure freedom for hostages held by pro-Iranian groups in Lebanon. Iran is claiming full repayment of principal and interest on the Shahs loan made in 1975 to the EURODIF uranium enrichment consortium. It has also asked France to curb the activities of Iranian dissidents in France and stop selling weapons to Iraq its enemy in the Gulf War. France for its part has made a counter claim for more than 500 mln dlrs in compensation for contracts with French firms broken after the 1979 revolution. REUTER | PROGRESS IN IRAN LOAN TALKS, FRENCH OFFICIAL SAYS |
Duff and Phelps said it changed the ratings on outstanding senior debt of Baker International Corp and Hughes Tool Company. The change affects 515 mln dlrs in debt and assumes a merger of the two companies will be completed. Bakers senior debt was downgraded to DP-8 (high BBB) from DP-7 (low A). Hughes senior debt was raised to DP-8 from DP-12 (middle BB) while subordinated debt was raised to DP-9 (middle BBB) from DP-14 (high B). The debt ratio of the combined compaies will be about 40 pct but available cash plus proceeds from the sale of assets will permit a prompt reduction in debt Duff and Phelps said. However fixed charge coverages will remain very thin until the companys markets improve D and P said. Reuter | DUFF/PHELPS CHANGES BAKER<BKO>, HUGHES<HT> DEBT |
Zenith Laboratories Inc said it received Food and Drug Administration approval to market Cephalexin an antibiotic that is the generic version of Eli Lilly Incs <LLY> Keflex. Generic drugs are low-cost copies of brand name drugs that have lost their patents. Keflexs patent expires April 21. Analysts said four generic drug companies including Zenith will have approval to market generic Keflex this year. Analysts said Keflex is Lillys second leading drug product with 1986 worldwide sales of about 335 mln dlrs. In 1986 Lilly had sales of 3.7 billion dlrs. We think that in the first year that it loses its patent U.S. sales of Keflex will drop to about 240 mln dlrs from 280 mln dlrs said Joe Riccardo associate director of Bear Stearns. Riccardo said Lilly would offset the loss with sales from Humatrope a genetically engineered human growth hormone recently approved for marketing in the U.S. He also said it was likely that Lilly would get U.S. FDA marketing approval this year for Prozac a drug for treating clinical depression that also shows promise in weight reduction. Reuter | ZENITH <ZEN> GETS APPROVAL FOR GENERIC KEFLEX |
Dome Petroleum Ltds revised debt restructuring plan keeps the company alive and improves its appeal as a takeover target but full debt repayment depends on a sharp oil price rise oil and banking analysts said. Domes complex proposal to let creditors link some or all of their debt to oil-indexed debentures or convert it to equity is very cut and dried and to the point Peters and Co Ltd Calgary-based energy analyst Wilf Gobert said. Dome is saying This is the way it is. There isnt enough money to pay you back he added. The plan strikes me as a very pragmatic thing to do First Marathon Securities Ltd oil analyst Jim Doak commented. He said the plan seeks to formally tie payments to creditors with the price of oil which governs Domes cash flow and ability to service its debt. Dome expects its total debt to reach 6.4 billion Canadian dlrs by June 30 1987 when an interim debt rescheduling plan expires and Dome hopes to implement the long term plan. Gobert said the plan would rank secured and unsecured creditors in a complex series of repayment categories or an agreed pecking order of what your (creditors) claim to assets is. Potential suitors would find Dome easier to swallow under the debt restructuring plan because it proposes to resolve competing claims on assets pledged to secured creditors and on remaining unpledged assets Gobert and others said. Certainly the restructuring plan once its agreed to and put in place is going to make it easier for someone to come in and look at doing a deal on it (acquiring the company) Gobert remarked. Its going to be a lot easier than it is right now because youll have settled the pecking order question he added. Gobert believes the debt plan may be partly motivated by a desire to sell Dome Petroleum as a whole. If the creditors wanted to liquidate their bank loans they could do it in an orderly fashion through the sale of the company as opposed to dismemberment he said. Domes proposal includes rescheduling secured debt payments over a 15 to 20 year schedule linking payments to cash flows generated by assets pledged against loans and establishing interest rates that allow for changing oil prices. Creditors only real alternative to Domes plan is an asset grab which would liquidate the company at distress prices and the banks would spend the next 20 years in court deciding who had what asset First Marathons Doak said. For Domes creditors the plan does not offer a quick method to recover loans but extends payment time in the hope that oil prices will rise increasing the amount of the companys debt payments Merrill Lynch Canada Inc bank analyst Terry Shaunessy said. The plan is not a solution. It says give me more time and lets keep our fingers crossed that oil goes way up. Doak and Shaunessy estimated oil prices would have to rise to about 28 to 30 U.S. dlrs a barrel to fully service all of the companys debt. Analysts said the plan would ensure the company continues to operate but provides little other benefit to common shareholders. From a common shareholder standpoint all this does is sort of keep him on the life support system because there isnt any equity unless you get a big increase in oil prices Gobert remarked. Analysts said Domes common shares trading today at 1.12 dlrs off four cents on the Toronto Stock Exchange essentially represent a long term warrant pegged to oil prices. You have to be looking at an extremely high price of oil in the context of historical trends before theres any residual value for the common shareholders analyst Doak said. While Domes plan said lenders will be able to convert debt to common shares the amount of dilution depends on share conversion prices still to be negotiated and how much lenders would choose to convert the company said. Reuter | TALKING POINT/DOME PETROLEUM <DMP> |
General Motors Corp said car sales in the early March period declined 8.2 pct to 99882 units from 108850 a year ago. It said the figures include sales of Sprints and Spectrums. There were eight selling days in the period both this year and last. The company said truck sales in the period rose 14.4 pct to 40131 units from 35081 a year ago. In the year-to-date period car sales declined 26.6 pct to 629088 units from 856969 a year ago. Truck sales declined 9.7 pct to 247372 units from 274036 a year ago. Reuter | GENERAL MOTORS <GM> EARLY MARCH CAR SALES FALL |
MIDLAND SAYS GREENWELL MONTAGU SECURITIES TO PULL OUT OF EQUITY MARKET MAKING | |
Italys average interbank rate rose to a provisional 12.18 pct in February from 12.05 pct in January figures from the Bank of Italy show. Weighted average rate on bank lending was a provisional 13.78 pct in February compared with 13.83 in January while average weighted rate paid on deposits eased a provisional 7.49 pct from 7.66 pct. Italy today announced that its official discount rate would be cut to 11.5 pct from 12 pct effective tomorrow. REUTER | ITALIAN INTERBANK RATE RISES IN FEBRUARY |
U.S. Trade Representative Clayton Yeutter said that whether the exchange rate of the dollar would fall or rise in the coming decade would depend on nations financial monetary and tax policies. But he said in a speech and remarks to the Heritage Foundation that in the end the marketplace will ultimately rule the day. Asked about the future of the dollar he said that whether or not it would rise or fall depended on economic policies and coooperation among trading nations. Yeutter said if nations do the right kinds of things in financial monetary and tax policies then a lesser burden of adjustment is placed on exchange rates and one could envision a situation of the major trading nations moving back far closer to what most of us would consider equilibrium and exchange rates becoming relatively stable. But he said on the other hand that if nations did not exhibit greater self discipline and international cooperation It is simply inevitable that the exchange rates will make that adjustment. Reuter | YEUTTER SAYS DLR LEVEL BASED ON ECONOMIC POLICY |
A decision by the U.S. Securities and Exchange Commission to remove a key regulatory obstacle to trading foreign debt futures on U.S. Exchanges was a constructive development London International Financial Futures Exchange (LIFFE) Chief Executive Michael Jenkins said. The SEC yesterday agreed to remove the regulation against trading futures in designated foreign government debt securities on markets not located in the issuing country. Jenkins said the decision cleared the way for the Chicago Board of Trade possibly to trade U.K. Long gilt futures and a Japanese yen bond contract. The CBOT is now likely to proceed with an application to trade gilts to the Commodity Futures Trading Commmission (CFTC) he said. REUTER | LIFFE EXECUTIVE GREETS SEC MOVE ON FUTURES TRADE |
Metropolitan Consolidated Industries Inc a New York paint company said it has acquired 278709 shares of Metex Corp or 21.2 pct of the total and left open the possibility that it might acquire more through a merger. In a filing with the Securities and Exchange Commission Metropolitan said it bought the Metex stock as an investment. It also said it may buy additional shares or sell some or all of its current stake. If it buys more shares Metropolitan said it would consider doing so in the open market in private deals or through an exchange offer tender offer or merger. Metropolitan said it may acquire an option on or may buy some or all of the Metex shares owned by William Hack a Metex director who together with this wife holds 149750 of the companys common shares or 11.4 pct of the total. Metropolitan said it already has an option to buy another 42750 Metex common shares at 11.25 dlrs each. The option is not exercisable until April 12 1988 it said. If Metropolitan were to exercise the option and acquire all of Hacks stake it would have 471208 Metex common shares or 35.9 pct of the total. Metropolitans SEC filing was made as a shareholder group with Hack. Metropolitan which said it spent 3.1 mln dlrs to acquire its Metex stake listed its recent stock purchases as 54993 common shares on March 67 at 10 dlrs each and 83916 shares on March 11 at 11.25 dlrs. Reuter | PAINT COMPANY HAS METEX<MTX> STAKE, MAY BUY MORE |
CNW Corp said its subsidiary Chicago and North Western Transportation Co sold in a private placement 25 mln dlrs of Consolidated Mortgage 9.9 pct Bonds Series C due 1992. It said Morgan Stanley and Co Inc acted as placement agent. Proceeds will be used for general corporate purposes. Reuter | CNW <CNW> MAKES PRIVATE BOND PLACEMENT |
Walker Telecommunications Corp said the company has decided to discontinue operations of its Mobile Communications Division which will result in a one-time substantial loss for the fourth quarter and year. For the fourth quarter and year ended December 31 1985 Walker reported a net loss of 17000 dlrs and net income of 175000 respectively. Walker said retail prices for mobile cellular telephones have declined dramatically to point where the company no longer believes that it can profitably participate in the market. Reuter | WALKER <WTEL> TO DISCONTINE MOBILE OPERATIONS |
BPI Systems Inc said it is holding discussions that could lead to the sale of all its outstanding shares for about 12 mln dlrs. BPI president and chief executive officer David R. Fernald declined to identify the other party involved in the talks. For the nine months ended December 31 BPI lost 1286000 dlrs on sales of 6452000 dlrs. Reuter | BPI SYSTEMS <BPII> IN TALKS TO SELL COMPANY |
The American Stock Exchange said 2150000 limited partnership units of newly formed Galaxy Cablevision LP began trading today. It said the partnership based in Sikeston Mo. will buy and operate cable television systems in six states. Trading opened on 3000 units at 20-3/8 the AMEX said. Reuter | GALAXY CABLEVISION <GTV> BEGINS AMEX TRADING |
BALLY MANUFACTURING SAID IT IS CONSIDERING SALE OF SIX FLAGS THEME PARKS | |
(Telemedia Inc) said its (Telemedia Publishing Inc) subsidiary agreed to buy privately-owned Harrowsmith and Equinox magazines for an undisclosed amount of cash. Telemedia said the acquisition is expected to have a small positive impact on short-term earnings. Harrowsmith an alternative life-style magazine is Canadas seventh-largest paid circulation English-language magazine while Equinox is the countrys eighth largest. Each has a circulation of about 160000 copies. The magazine group had revenues of eight mln dlrs last year and employs 50 people Telemedia said. Telemedia said it will also acquire a 10 pct interest in the company which recently launched the U.S. edition of Harrowsmith. The magazines U.S. editiion begun last year now has a paid circulation of 180000 the company said. It said a final deal is expected in mid-April. Telemedia said the magazines founder has agreed to continue to provide editorial and publishing direction for the magazines. Reuter | TELEMEDIA TO BUY HARROWSMITH, EQUINOX MAGAZINES |
Congressional budget leaders are asking President Reagan to join in a bipartisan effort - or even a summit - to write a new budget but White House chief of staff Howard Baker said no decision has been made yet a Senate source said. The request for White House cooperation was made yesterday by Senate Budget Committee chairman Lawton Chiles at a meeting with Baker the source said. The appeal came as the Senate Budget Committee made plans to start drafting next Tuesday a fiscal 1988 budget plan that Democrats controlling Congress hope to get through both chambers by April 15. House Democrats have been meeting privately and will continue discussions on Tuesday to develop a plan for the full committee which holds its first drafting meeting Thursday. Reagans own budget was submitted in January but Congress generally has rejected it as unrealistic with the Congressional Budget Office saying the deficit is understated and should be a more realistic 134 billion dlrs. Among major controversial decisions that Congress has to make are levels of deficit deductions to meet the Gramm-Rudman budget law target of cutting the estimated 171 billion dlr deficit for 1988 to 108 billion dlrs. A key decisions is the amount of new revenues - Reagan proposed some 22 billion dlrs in asset sales and excise taxes - as part of a deficit cutting plan. Reagan who opposes new taxes refuses to say he is advocating higher taxes through his revenue scheme. The Gramm-Rudman law sets fixed deficit targets for Congress with the aim of wiping out huge deficits by 1991 but over the past two years deficits have exceeded the targets. The Senate source said that Chiles asked for cooperation to avoid clashes when the Senate and House Budget committees start writing separate budget plans for congressional approval starting next week. The source said Chiles told Baker If you start working sooner rather than later you have a chance to do something before everyone gets locked in. Baker has had conversations about the budget problem with Senator Pete Domenici of New Mexico the senior Republican on the Senate Budget Committee and with House Speaker Jim Wright. Baker reportedly said that he plans to have further talks with other Republicans and House Budget Committee Chairman William Gray before the the White House decides what it is going to do if anything the source said. House sources said that Gray --who has been pushing the idea of a budget summit with Reagan--is anxious to work with the White House to get a compromise budget plan. Besides reaching decisions on actual spending and revenue levels in a new budget congressmen are considering adjusting or redefining the targets of the Gramm-Rudman law to make them more realistic. Reagan presented about 36 billion dlrs in spending delays cuts and revenues he said will reach 108 billion dlrs. Gray has said that if Congress approves 36 billion dlrs in reductions the deficit would be 134 billion dlrs realistically because of what he says are more accurate economic assumptions. Reuter | WHITE HOUSE SAID HOLDING OFF DECISION ON BUDGET |
Shr profit 36 cts vs profit 14 cts Net profit 1162000 vs profit 464000 Revs 16.6 mln vs 11.3 mln Nine mths Shr loss 89 cts vs loss 79 cts Net loss 2988000 vs loss 2673000 Revs 35.1 mln vs 25.1 mln NOTE: Nine months fiscal 1987 includes extraordinary gain of 16 cts per share. Reuter | DIVI HOTELS NV <DVH> 3RD QTR NET |
Bally Manufacturing Corp said it is considering the sale of its Six Flag theme amusement park unit and would use the proceeds to pay off debt. In addition to the possible sale of the amusement parks Bally plans to sell a minority stake in its health club chain to the public. The company will register a proposed offering with the Securities and Exchange Commission for 20 to 30 pct of the health clubs soon spokesman William Peltier told Reuters. Selling Six Flags is definitely under consideration Peltier said in response to an inquiry. He said the company would use much of the income from the amusement park chain were it to be sold to repay debt. Six Flags might sell for as much as 300 mln dlrs analysts said. The health club chain the nations largest is valued at 350 to 375 mln dlrs they said. Bally reportedly already has been approached about Six Flags by several prospective buyers. The company needs the cash to begin paying back a 1.6 mln dlrs mountain of debt. Bally recently completed a 439 mln dlrs acquisition of the Golden Nugget casino hotel in Atlantic City from Golden Nugget Inc <GNG.N>. The purchase pushed its long-term debt to 1.6 billion dlrs or almost 2.7 times its equity of 600 mln dlrs. Ballys 325-unit health and tennis clubs had revenues in 1986 of more than 450 mln dlrs or about 28 pct of Ballys total revenues of 1.64 billion dlrs. Bally acquired Six Flags for 147.4 mln dlrs in January 1982 from Penn Central Corp. Bally bought the Great America theme park in Gurnee Ill. in May 1984 for 113.2 mln dlrs from Marriott Corp <mhs>. In 1986 the parks had pretax operating profit of 48.6 mln dlrs on revenues of 369.4 mln dlrs. The clubs and equipment unit combined to post operating profit of 60.4 mln dlrs on revenues of 475.6 mln dlrs in 1986 of which 456.2 mln came from the clubs. The company earlier this month said it will take a charge to earnings in the first quarter of 17.3 mln dlrs as a result of its deal to buy back 2.6 mln of its common shares from real estate developer Donald Trump. Under a February 21 deal Bally agreed to buy the 2.6 mln of the 3.06 mln shares held by Trump at 24 dlrs a share or 62.4 mln dlrs plus 6.2 mln dlrs related expenses in exchange for Trump not seeking control of the company for 10 years. The deal also requires Bally to buy Trumps remaining shares for 33 dlrs a share if the stock price does not reach that level by February 21 1988. Reuter | BALLY <BLY> CONSIDERING SALE OF SIX FLAGS |
Franklin Resources Inc said it believes earnings could double this year as compared to a year ago when the company reported income of 32 mln dlrs on 143 mln dlrs in revenues. Franklin Resources is a financial services company. Its fiscal year ends September 30. Reuter | FRANKLIN RESOURCES <BEN> SAYS NET MAY DOUBLE |
Evans and Southerland Computer Corp is raising 50 mln dlrs through an offering of convertible subordinated debentures due 2012 with a 6-1/2 pct coupon and par pricing said sole manager Hambrecht and Quist Inc. The debentures are convertible into the companys common stock at 48.50 dlrs per share representing a premium of 24.36 pct over the stock price when terms on the debt were set. Non-callable for two years the issue is rated B-plus by Standard and Poors Corp. Reuter | EVANS/SOUTHERLAND <ESCC> SELLS CONVERTIBLE DEBT |
The Chicago Board Options Exchange said it will begin trading call and put options March 16 on Coca-Cola Enterprises Inc. It said options will trade on the February quarterly expiration cycle with initial exercise prices set at 15 17-1/2 and 20 and position limits of 8000 contracts on the same side of the market. It said the new listing augments the exchanges trading of Coca-Cola Co <KO>. Reuter | COCA-COLA ENTERPRISES <CCE> OPTIONS ON CBOE |
Soviet livestock herds are possibly in better shape than expected after the recent harsh winter the U.S. agriculture counselor in Moscow said. Livestock procurement levels for January and February were recently reported in a Soviet agriculture newspaper to be up five pct from year ago levels an attache report said. These procurement levels ... are surprisingly normal given the harshness of the 1986/87 winter ... indicating neither abnormal distress slaughter nor subnormal livestock product output. While the overwintering period is not over yet the worst of it is and herds are possibly in better shape than expected the counselor said. A healthy livestock sector will keep Soviet feed demand strong and impact USSR grain imports analysts said. January livestock procurement levels were up only 1.6 pct indicating a turn around in February an Agriculture Department analyst of the Soviet Union said. The analyst said an easing of the cold weather in February coupled with heavy amounts of grain fed to the animals would account for the rise in procurements. Theres no question that the (Soviet) livestock is in good shape he said. Reuter | USSR LIVESTOCK MAY BE IN GOOD SHAPE-U.S. REPORT |
Cuban sugar export figures for January suggest that this years crop may be at least as large as last years 7.35 mln tonnes according to sugar analysts. Exports in January totalled 733000 tonnes raw value up from 725000 a year earlier according to figures received by the International Sugar Organization. January is the first major export month and the figures thus give a good indication of the current crop they said. Fourth quarter exports fell to 622000 tonnes from 909000 tonnes a year earlier but this was because Cuba was destocking at the end of 1985 they added. Trade house C Czarnikow recently estimated production this year at 7.50 mln tonnes. Cuban sugar production in the third quarter of 1986 was 12000 tonnes giving a final 1985/86 crop total of 7.35 mln tonnes compared with a 1984/85 crop of 8.10 mln tonnes. There is normally no third quarter production in Cuba but a hurricane meant that last years crop was extended. Exports to the USSR were substantially down in January at 362000 tonnes from 489000 in January 1986 but other Comecon countries received 210000 tonnes against 80000 tonnes in the same month last year figures received by the ISO show. Bulgaria Czechoslovakia Poland and Romania all took substantially more Cuban sugar. Cubas November 1986 exports totalled 158000 tonnes compared with 190000 tonnes in 1985 and Decembers total was 237000 tonnes down from 518000 tonnes the year before. Calendar year exports for 1986 were also lower at 6.69 mln tonnes against 7.21 mln in 1985 -- the lowest level since 1980s 6.19 mln tonnes the figures show. Reuter | CUBA SUGAR CROP SEEN AT LEAST SAME AS LAST YEAR |
<American Honda Motor Co Inc> said its domestic sales for the first 10 days of March totaled 4394 as compared to 3786 a year earlier. It said year-to-date sales rose to 52143 from 31686 last year. Reuter | AMERICAN HONDA HAS HIGHER EARLY MARCH SALES |
Qtly div 10 cts vs nine cts Payable June one Record May 15 Reuter | HELMERICH AND PAYNE INC <HP> INCREASES DIV |
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