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1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

Japan ' s Daiwa Securities Co . named Masahiro Dozen president .

named Masahiro Dozen president

Why has Dozen chosen to be president?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

Japan ' s Daiwa Securities Co . named Masahiro Dozen president .

Japan ' s Daiwa Securities Co

What does Daiwa Securities Co do?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

Japan ' s Daiwa Securities Co . named Masahiro Dozen president .

named Masahiro Dozen president

Why did they name Masahiro president?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

Japan ' s Daiwa Securities Co . named Masahiro Dozen president .

Daiwa Securities Co

What kind of company is this?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

Mr . Dozen succeeds Sadakane Doi , who will become vice chairman .

Mr . Dozen succeeds Sadakane Doi ,

Why did Doi stop being president?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

Mr . Dozen succeeds Sadakane Doi , who will become vice chairman .

Sadakane

Why did they make Sadakane vice chairman?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

Mr . Dozen succeeds Sadakane Doi , who will become vice chairman .

become vice chairman

Is Doi stepping down or being forced to step down?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

Yoshitoki Chino retains his title of chairman of Daiwa , Japan ' s second - largest securities firm .

second - largest

What is Japans first largest security firm?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

In Japanese firms , the president usually is in charge of day - to - day operations , while the chairman ' s role is more a ceremonial one .

the chairman ' s role is more a ceremonial one

What ceremonial duties does the chairman perform?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

In Japanese firms , the president usually is in charge of day - to - day operations , while the chairman ' s role is more a ceremonial one .

more a ceremonial one

How is the chairmans role ceremonial?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

In Japanese firms , the president usually is in charge of day - to - day operations , while the chairman ' s role is more a ceremonial one .

ceremonial

What is ceremonial about the chairman's role?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

The title of chief executive officer isn ' t used .

isn ' t used

Why isn't the title of CEO used?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

The title of chief executive officer isn ' t used .

isn ' t used

Why is the term CEO not used?

1 Japan's Daiwa Securities Co. named Masahiro Dozen president. 2 Mr. Dozen succeeds Sadakane Doi, who will become vice chairman. 3 Yoshitoki Chino retains his title of chairman of Daiwa, Japan's second-largest securities firm. 4 In Japanese firms, the president usually is in charge of day-to-day operations, while the chairman's role is more a ceremonial one. 5 The title of chief executive officer isn't used. 6 While people within Daiwa, particularly internationalists, expected that Mr. Dozen, 52, would eventually become Daiwa's president, the speed of his promotion surprised many. 7 It was only earlier this year that the jovial, easygoing executive -- he likes to joke with Americans about how his name is synonymous with twelve -- was appointed deputy president. 8 Mr. Dozen is taking over the reins of a securities company that does very well in its domestic market but that is still seeking to realize its potential in global investment banking and securities dealing. 9 Daiwa is one of the world's largest securities firms. 10 As of March 31, the Daiwa group had shareholder equity of 801.21 billion yen ($5.64 billion). 11 For the six months ended Sept. 30, Daiwa reported unconsolidated (parent company) net income of 79.03 billion yen ($556.5 million) on revenue of 332.38 billion yen ($2.34 billion). 12 Both figures were record highs. 13 Several observers interpreted Mr. Dozen's appointment as an attempt by Daiwa to make its international operations more profitable while preparing the firm for the effects of the continuing deregulation of Japan's domestic markets, which should mean increased competition. 14 All of Japan's so-called Big Four securities firms -- Nomura Securities Co. Ltd., the world's largest, Nikko Securities Co. Ltd., Yamaichi Securities Co. Ltd. and Daiwa -- have suffered setbacks in their attempts to break into foreign markets. 15 While they have moved to the fore in underwriting fixed-income securities in the Eurobond market -- mostly for Japanese firms -- they have been only marginally profitable, if at all, in the U.S. 16 American institutional investors have never had a large appetite for Japanese equities. 17 And while the Japanese have stepped up their purchases of U.S. shares in the past several months, they have shown themselves in the past to be fickle investors. 18 At the same time, Daiwa and its brethren have faced stiff competition from well-entrenched American competitors that have prevented them from building strong links to U.S. corporations and institutional investors. 19 Mr. Dozen knows these problems firsthand. 20 When he arrived in the U.S. in 1969 -- the start of an eight-year tour -- he tried selling Japanese yen-denominated bonds to U.S. investors. 'He made desperate efforts, using the yellow pages from beginning to end,' said Koji Yoneyama, president of Daiwa's U.S. unit. 'But not a single piece of paper was sold.' 21 By his own account, Mr. Dozen didn't do much better with U.S. bonds. 22 In an interview a few months ago, he recalled how after some training at Salomon Brothers Inc., he successfully bid for the opportunity to sell portions of 20 U.S. corporate bond issues. 23 But he couldn't sell any. 'Japanese stock salesmen selling American bonds? 24 Maybe it's crazy,' he said. 25 Mr. Dozen even related the indignity suffered when he and two colleagues went on an overnight fishing expedition off the New Jersey shore and caught nothing. 26 Upon returning to New York, 'Exhausted, I got into a taxicab, and the woman driver said: `Americans make better fishermen, '' he recalled. 27 Undaunted, Mr. Dozen said that Daiwa's goal is to build 'a high-technology oriented international organization with maybe some Japanese flavor to it.' 28 He said that he was particularly interested in his firm gaining expertise in futures, options, mortgaged-backed securities, computerized trading and investment systems as well as mergers and acquisitions. 29 Mr. Dozen said Daiwa's strengths were its large capital base, its influential position in the Tokyo market and its links to Japanese corporations and institutional investors. 30 Mr. Dozen joined Daiwa upon his graduation from Kyoto University in 1959. 31 Like many young recruits in Japanese securities firms, he began his career peddling stock to individual investors. 32 In his climb to the top, Mr. Dozen also headed the company's stock-exchange division, its fixed-income units and its international operations. 'He was constantly picking up new things to fill out his experience; he is very well-balanced,' said Takuro Isoda, chairman of Daiwa's U.S. unit in New York. 33 But it Mr. Dozen's experience as a salesman that enabled him to gain the political support -- particularly from the retail sales force -- to accede to the presidency. 34 Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies' earnings. 35 And anybody who lacked the backing of the retail sales force 'would be fragile,' said a Daiwa executive. 36 If Mr. Dozen has a weakness, it may be his golf game. 'He digs in the sand instead of hitting the ball, like a farmer,' said Mr. Yoneyama.

The title of chief executive officer isn ' t used .

isn ' t used

Why isn't it used?

1 Bond Corp. Holdings Ltd. 's consolidated debt totals 6.9 billion Australian dollars (US$5.32 billion), including A$1.6 billion of bonds convertible into shares. 2 Alan Bond, chairman and controlling shareholder of the cash-strapped Australian media, brewing, resources and property concern, disclosed the debt figures yesterday. 3 The disclosure follows last Friday's news that Bond Corp. incurred an overall loss of A$980.2 million for the fiscal year ended June 30, the largest loss in Australian corporate history. 4 The debt load would have been higher but for a reduction of A$5 billion over the past year from asset sales, Mr. Bond said at a business gathering. 5 Mr. Bond indicated the consolidated debt figures, which include debt of units such as Bell Group Ltd., will be published soon in Bond Corp. 's 1989 annual accounts. 6 He predicted the debt will be reduced by another A$3.8 billion this fiscal year ending June 30, 1990, but didn't explain how this will be achieved. 7 Mr. Bond blamed rising Australian interest rates and the acquisition of Bell Group 'with its very high levels of shortterm debt' for producing a condition 'that was no longer sustainable. 8 'In order to restore confidence and ensure the support of our principal lenders,' Mr. Bond said, 'we embarked on fundamantal changes in the structure and direction of the group.' 9 That reassessment resulted in continuing asset sales, as well as write-offs exceeding A$1.1 billion last fiscal year. 'In essence we have made a decision to clear the decks,' Mr. Bond told the meeting. 10 While some assets have been written down, others are undervalued in the accounts, Mr. Bond maintained. 11 Among these are the company's Australian brewing assets, in the books at A$950 million but actually worth A$2.5 billion, he said. 12 An investment in Chile's telephone company is carried at US$300 million but really worth US$500 million, and the company's property portfolio is undervalued by at least A$250 million, Mr. Bond said. 13 Mr. Bond forecast that by next June, 'what will emerge will be a company with a honed sense of purpose . . . a stable balance sheet, with good-quality assets in brewing, telecommunications, media and property.' 14 He didn't name energy resources in that list, signaling that all the company's coal and oil interests might be for sale in total or in part. 15 Some of the oil interests already have been sold.

Bond Corp . Holdings Ltd . ' s consolidated debt totals 6 . 9 billion Australian dollars ( US $ 5 . 32 billion ) , including A $ 1 . 6 billion of bonds convertible into shares .

consolidated debt

How did they incur such debt?

1 Bond Corp. Holdings Ltd. 's consolidated debt totals 6.9 billion Australian dollars (US$5.32 billion), including A$1.6 billion of bonds convertible into shares. 2 Alan Bond, chairman and controlling shareholder of the cash-strapped Australian media, brewing, resources and property concern, disclosed the debt figures yesterday. 3 The disclosure follows last Friday's news that Bond Corp. incurred an overall loss of A$980.2 million for the fiscal year ended June 30, the largest loss in Australian corporate history. 4 The debt load would have been higher but for a reduction of A$5 billion over the past year from asset sales, Mr. Bond said at a business gathering. 5 Mr. Bond indicated the consolidated debt figures, which include debt of units such as Bell Group Ltd., will be published soon in Bond Corp. 's 1989 annual accounts. 6 He predicted the debt will be reduced by another A$3.8 billion this fiscal year ending June 30, 1990, but didn't explain how this will be achieved. 7 Mr. Bond blamed rising Australian interest rates and the acquisition of Bell Group 'with its very high levels of shortterm debt' for producing a condition 'that was no longer sustainable. 8 'In order to restore confidence and ensure the support of our principal lenders,' Mr. Bond said, 'we embarked on fundamantal changes in the structure and direction of the group.' 9 That reassessment resulted in continuing asset sales, as well as write-offs exceeding A$1.1 billion last fiscal year. 'In essence we have made a decision to clear the decks,' Mr. Bond told the meeting. 10 While some assets have been written down, others are undervalued in the accounts, Mr. Bond maintained. 11 Among these are the company's Australian brewing assets, in the books at A$950 million but actually worth A$2.5 billion, he said. 12 An investment in Chile's telephone company is carried at US$300 million but really worth US$500 million, and the company's property portfolio is undervalued by at least A$250 million, Mr. Bond said. 13 Mr. Bond forecast that by next June, 'what will emerge will be a company with a honed sense of purpose . . . a stable balance sheet, with good-quality assets in brewing, telecommunications, media and property.' 14 He didn't name energy resources in that list, signaling that all the company's coal and oil interests might be for sale in total or in part. 15 Some of the oil interests already have been sold.

Bond Corp . Holdings Ltd . ' s consolidated debt totals 6 . 9 billion Australian dollars ( US $ 5 . 32 billion ) , including A $ 1 . 6 billion of bonds convertible into shares .

A $ 1 . 6 billion of bonds convertible into shares

Are bonds able to be converted into shares, and if so, what kinds of shares?

1 Bond Corp. Holdings Ltd. 's consolidated debt totals 6.9 billion Australian dollars (US$5.32 billion), including A$1.6 billion of bonds convertible into shares. 2 Alan Bond, chairman and controlling shareholder of the cash-strapped Australian media, brewing, resources and property concern, disclosed the debt figures yesterday. 3 The disclosure follows last Friday's news that Bond Corp. incurred an overall loss of A$980.2 million for the fiscal year ended June 30, the largest loss in Australian corporate history. 4 The debt load would have been higher but for a reduction of A$5 billion over the past year from asset sales, Mr. Bond said at a business gathering. 5 Mr. Bond indicated the consolidated debt figures, which include debt of units such as Bell Group Ltd., will be published soon in Bond Corp. 's 1989 annual accounts. 6 He predicted the debt will be reduced by another A$3.8 billion this fiscal year ending June 30, 1990, but didn't explain how this will be achieved. 7 Mr. Bond blamed rising Australian interest rates and the acquisition of Bell Group 'with its very high levels of shortterm debt' for producing a condition 'that was no longer sustainable. 8 'In order to restore confidence and ensure the support of our principal lenders,' Mr. Bond said, 'we embarked on fundamantal changes in the structure and direction of the group.' 9 That reassessment resulted in continuing asset sales, as well as write-offs exceeding A$1.1 billion last fiscal year. 'In essence we have made a decision to clear the decks,' Mr. Bond told the meeting. 10 While some assets have been written down, others are undervalued in the accounts, Mr. Bond maintained. 11 Among these are the company's Australian brewing assets, in the books at A$950 million but actually worth A$2.5 billion, he said. 12 An investment in Chile's telephone company is carried at US$300 million but really worth US$500 million, and the company's property portfolio is undervalued by at least A$250 million, Mr. Bond said. 13 Mr. Bond forecast that by next June, 'what will emerge will be a company with a honed sense of purpose . . . a stable balance sheet, with good-quality assets in brewing, telecommunications, media and property.' 14 He didn't name energy resources in that list, signaling that all the company's coal and oil interests might be for sale in total or in part. 15 Some of the oil interests already have been sold.

Alan Bond , chairman and controlling shareholder of the cash - strapped Australian media , brewing , resources and property concern , disclosed the debt figures yesterday .

cash - strapped

Why are they hurting for money?

1 Bond Corp. Holdings Ltd. 's consolidated debt totals 6.9 billion Australian dollars (US$5.32 billion), including A$1.6 billion of bonds convertible into shares. 2 Alan Bond, chairman and controlling shareholder of the cash-strapped Australian media, brewing, resources and property concern, disclosed the debt figures yesterday. 3 The disclosure follows last Friday's news that Bond Corp. incurred an overall loss of A$980.2 million for the fiscal year ended June 30, the largest loss in Australian corporate history. 4 The debt load would have been higher but for a reduction of A$5 billion over the past year from asset sales, Mr. Bond said at a business gathering. 5 Mr. Bond indicated the consolidated debt figures, which include debt of units such as Bell Group Ltd., will be published soon in Bond Corp. 's 1989 annual accounts. 6 He predicted the debt will be reduced by another A$3.8 billion this fiscal year ending June 30, 1990, but didn't explain how this will be achieved. 7 Mr. Bond blamed rising Australian interest rates and the acquisition of Bell Group 'with its very high levels of shortterm debt' for producing a condition 'that was no longer sustainable. 8 'In order to restore confidence and ensure the support of our principal lenders,' Mr. Bond said, 'we embarked on fundamantal changes in the structure and direction of the group.' 9 That reassessment resulted in continuing asset sales, as well as write-offs exceeding A$1.1 billion last fiscal year. 'In essence we have made a decision to clear the decks,' Mr. Bond told the meeting. 10 While some assets have been written down, others are undervalued in the accounts, Mr. Bond maintained. 11 Among these are the company's Australian brewing assets, in the books at A$950 million but actually worth A$2.5 billion, he said. 12 An investment in Chile's telephone company is carried at US$300 million but really worth US$500 million, and the company's property portfolio is undervalued by at least A$250 million, Mr. Bond said. 13 Mr. Bond forecast that by next June, 'what will emerge will be a company with a honed sense of purpose . . . a stable balance sheet, with good-quality assets in brewing, telecommunications, media and property.' 14 He didn't name energy resources in that list, signaling that all the company's coal and oil interests might be for sale in total or in part. 15 Some of the oil interests already have been sold.

Alan Bond , chairman and controlling shareholder of the cash - strapped Australian media , brewing , resources and property concern , disclosed the debt figures yesterday .

disclosed

Why did he disclose the numbers?

1 Bond Corp. Holdings Ltd. 's consolidated debt totals 6.9 billion Australian dollars (US$5.32 billion), including A$1.6 billion of bonds convertible into shares. 2 Alan Bond, chairman and controlling shareholder of the cash-strapped Australian media, brewing, resources and property concern, disclosed the debt figures yesterday. 3 The disclosure follows last Friday's news that Bond Corp. incurred an overall loss of A$980.2 million for the fiscal year ended June 30, the largest loss in Australian corporate history. 4 The debt load would have been higher but for a reduction of A$5 billion over the past year from asset sales, Mr. Bond said at a business gathering. 5 Mr. Bond indicated the consolidated debt figures, which include debt of units such as Bell Group Ltd., will be published soon in Bond Corp. 's 1989 annual accounts. 6 He predicted the debt will be reduced by another A$3.8 billion this fiscal year ending June 30, 1990, but didn't explain how this will be achieved. 7 Mr. Bond blamed rising Australian interest rates and the acquisition of Bell Group 'with its very high levels of shortterm debt' for producing a condition 'that was no longer sustainable. 8 'In order to restore confidence and ensure the support of our principal lenders,' Mr. Bond said, 'we embarked on fundamantal changes in the structure and direction of the group.' 9 That reassessment resulted in continuing asset sales, as well as write-offs exceeding A$1.1 billion last fiscal year. 'In essence we have made a decision to clear the decks,' Mr. Bond told the meeting. 10 While some assets have been written down, others are undervalued in the accounts, Mr. Bond maintained. 11 Among these are the company's Australian brewing assets, in the books at A$950 million but actually worth A$2.5 billion, he said. 12 An investment in Chile's telephone company is carried at US$300 million but really worth US$500 million, and the company's property portfolio is undervalued by at least A$250 million, Mr. Bond said. 13 Mr. Bond forecast that by next June, 'what will emerge will be a company with a honed sense of purpose . . . a stable balance sheet, with good-quality assets in brewing, telecommunications, media and property.' 14 He didn't name energy resources in that list, signaling that all the company's coal and oil interests might be for sale in total or in part. 15 Some of the oil interests already have been sold.

Alan Bond , chairman and controlling shareholder of the cash - strapped Australian media , brewing , resources and property concern , disclosed the debt figures yesterday .

Alan Bond ,

is he important?

1 Bond Corp. Holdings Ltd. 's consolidated debt totals 6.9 billion Australian dollars (US$5.32 billion), including A$1.6 billion of bonds convertible into shares. 2 Alan Bond, chairman and controlling shareholder of the cash-strapped Australian media, brewing, resources and property concern, disclosed the debt figures yesterday. 3 The disclosure follows last Friday's news that Bond Corp. incurred an overall loss of A$980.2 million for the fiscal year ended June 30, the largest loss in Australian corporate history. 4 The debt load would have been higher but for a reduction of A$5 billion over the past year from asset sales, Mr. Bond said at a business gathering. 5 Mr. Bond indicated the consolidated debt figures, which include debt of units such as Bell Group Ltd., will be published soon in Bond Corp. 's 1989 annual accounts. 6 He predicted the debt will be reduced by another A$3.8 billion this fiscal year ending June 30, 1990, but didn't explain how this will be achieved. 7 Mr. Bond blamed rising Australian interest rates and the acquisition of Bell Group 'with its very high levels of shortterm debt' for producing a condition 'that was no longer sustainable. 8 'In order to restore confidence and ensure the support of our principal lenders,' Mr. Bond said, 'we embarked on fundamantal changes in the structure and direction of the group.' 9 That reassessment resulted in continuing asset sales, as well as write-offs exceeding A$1.1 billion last fiscal year. 'In essence we have made a decision to clear the decks,' Mr. Bond told the meeting. 10 While some assets have been written down, others are undervalued in the accounts, Mr. Bond maintained. 11 Among these are the company's Australian brewing assets, in the books at A$950 million but actually worth A$2.5 billion, he said. 12 An investment in Chile's telephone company is carried at US$300 million but really worth US$500 million, and the company's property portfolio is undervalued by at least A$250 million, Mr. Bond said. 13 Mr. Bond forecast that by next June, 'what will emerge will be a company with a honed sense of purpose . . . a stable balance sheet, with good-quality assets in brewing, telecommunications, media and property.' 14 He didn't name energy resources in that list, signaling that all the company's coal and oil interests might be for sale in total or in part. 15 Some of the oil interests already have been sold.

The disclosure follows last Friday ' s news that Bond Corp . incurred an overall loss of A $ 980 . 2 million for the fiscal year ended June 30 , the largest loss in Australian corporate history .

overall loss of A $ 980 . 2 million

How did they not just go bankrupt?

1 Bond Corp. Holdings Ltd. 's consolidated debt totals 6.9 billion Australian dollars (US$5.32 billion), including A$1.6 billion of bonds convertible into shares. 2 Alan Bond, chairman and controlling shareholder of the cash-strapped Australian media, brewing, resources and property concern, disclosed the debt figures yesterday. 3 The disclosure follows last Friday's news that Bond Corp. incurred an overall loss of A$980.2 million for the fiscal year ended June 30, the largest loss in Australian corporate history. 4 The debt load would have been higher but for a reduction of A$5 billion over the past year from asset sales, Mr. Bond said at a business gathering. 5 Mr. Bond indicated the consolidated debt figures, which include debt of units such as Bell Group Ltd., will be published soon in Bond Corp. 's 1989 annual accounts. 6 He predicted the debt will be reduced by another A$3.8 billion this fiscal year ending June 30, 1990, but didn't explain how this will be achieved. 7 Mr. Bond blamed rising Australian interest rates and the acquisition of Bell Group 'with its very high levels of shortterm debt' for producing a condition 'that was no longer sustainable. 8 'In order to restore confidence and ensure the support of our principal lenders,' Mr. Bond said, 'we embarked on fundamantal changes in the structure and direction of the group.' 9 That reassessment resulted in continuing asset sales, as well as write-offs exceeding A$1.1 billion last fiscal year. 'In essence we have made a decision to clear the decks,' Mr. Bond told the meeting. 10 While some assets have been written down, others are undervalued in the accounts, Mr. Bond maintained. 11 Among these are the company's Australian brewing assets, in the books at A$950 million but actually worth A$2.5 billion, he said. 12 An investment in Chile's telephone company is carried at US$300 million but really worth US$500 million, and the company's property portfolio is undervalued by at least A$250 million, Mr. Bond said. 13 Mr. Bond forecast that by next June, 'what will emerge will be a company with a honed sense of purpose . . . a stable balance sheet, with good-quality assets in brewing, telecommunications, media and property.' 14 He didn't name energy resources in that list, signaling that all the company's coal and oil interests might be for sale in total or in part. 15 Some of the oil interests already have been sold.

The disclosure follows last Friday ' s news that Bond Corp . incurred an overall loss of A $ 980 . 2 million for the fiscal year ended June 30 , the largest loss in Australian corporate history .

largest loss in Australian corporate history

Why was this loss so prevalent?

1 Bond Corp. Holdings Ltd. 's consolidated debt totals 6.9 billion Australian dollars (US$5.32 billion), including A$1.6 billion of bonds convertible into shares. 2 Alan Bond, chairman and controlling shareholder of the cash-strapped Australian media, brewing, resources and property concern, disclosed the debt figures yesterday. 3 The disclosure follows last Friday's news that Bond Corp. incurred an overall loss of A$980.2 million for the fiscal year ended June 30, the largest loss in Australian corporate history. 4 The debt load would have been higher but for a reduction of A$5 billion over the past year from asset sales, Mr. Bond said at a business gathering. 5 Mr. Bond indicated the consolidated debt figures, which include debt of units such as Bell Group Ltd., will be published soon in Bond Corp. 's 1989 annual accounts. 6 He predicted the debt will be reduced by another A$3.8 billion this fiscal year ending June 30, 1990, but didn't explain how this will be achieved. 7 Mr. Bond blamed rising Australian interest rates and the acquisition of Bell Group 'with its very high levels of shortterm debt' for producing a condition 'that was no longer sustainable. 8 'In order to restore confidence and ensure the support of our principal lenders,' Mr. Bond said, 'we embarked on fundamantal changes in the structure and direction of the group.' 9 That reassessment resulted in continuing asset sales, as well as write-offs exceeding A$1.1 billion last fiscal year. 'In essence we have made a decision to clear the decks,' Mr. Bond told the meeting. 10 While some assets have been written down, others are undervalued in the accounts, Mr. Bond maintained. 11 Among these are the company's Australian brewing assets, in the books at A$950 million but actually worth A$2.5 billion, he said. 12 An investment in Chile's telephone company is carried at US$300 million but really worth US$500 million, and the company's property portfolio is undervalued by at least A$250 million, Mr. Bond said. 13 Mr. Bond forecast that by next June, 'what will emerge will be a company with a honed sense of purpose . . . a stable balance sheet, with good-quality assets in brewing, telecommunications, media and property.' 14 He didn't name energy resources in that list, signaling that all the company's coal and oil interests might be for sale in total or in part. 15 Some of the oil interests already have been sold.

The disclosure follows last Friday ' s news that Bond Corp . incurred an overall loss of A $ 980 . 2 million for the fiscal year ended June 30 , the largest loss in Australian corporate history .

largest loss in Australian corporate history

whats the second largest?

1 Bond Corp. Holdings Ltd. 's consolidated debt totals 6.9 billion Australian dollars (US$5.32 billion), including A$1.6 billion of bonds convertible into shares. 2 Alan Bond, chairman and controlling shareholder of the cash-strapped Australian media, brewing, resources and property concern, disclosed the debt figures yesterday. 3 The disclosure follows last Friday's news that Bond Corp. incurred an overall loss of A$980.2 million for the fiscal year ended June 30, the largest loss in Australian corporate history. 4 The debt load would have been higher but for a reduction of A$5 billion over the past year from asset sales, Mr. Bond said at a business gathering. 5 Mr. Bond indicated the consolidated debt figures, which include debt of units such as Bell Group Ltd., will be published soon in Bond Corp. 's 1989 annual accounts. 6 He predicted the debt will be reduced by another A$3.8 billion this fiscal year ending June 30, 1990, but didn't explain how this will be achieved. 7 Mr. Bond blamed rising Australian interest rates and the acquisition of Bell Group 'with its very high levels of shortterm debt' for producing a condition 'that was no longer sustainable. 8 'In order to restore confidence and ensure the support of our principal lenders,' Mr. Bond said, 'we embarked on fundamantal changes in the structure and direction of the group.' 9 That reassessment resulted in continuing asset sales, as well as write-offs exceeding A$1.1 billion last fiscal year. 'In essence we have made a decision to clear the decks,' Mr. Bond told the meeting. 10 While some assets have been written down, others are undervalued in the accounts, Mr. Bond maintained. 11 Among these are the company's Australian brewing assets, in the books at A$950 million but actually worth A$2.5 billion, he said. 12 An investment in Chile's telephone company is carried at US$300 million but really worth US$500 million, and the company's property portfolio is undervalued by at least A$250 million, Mr. Bond said. 13 Mr. Bond forecast that by next June, 'what will emerge will be a company with a honed sense of purpose . . . a stable balance sheet, with good-quality assets in brewing, telecommunications, media and property.' 14 He didn't name energy resources in that list, signaling that all the company's coal and oil interests might be for sale in total or in part. 15 Some of the oil interests already have been sold.

The debt load would have been higher but for a reduction of A $ 5 billion over the past year from asset sales , Mr . Bond said at a business gathering .

reduction

Why was the debt load lessened due to a reduction from asset sales?

1 Bond Corp. Holdings Ltd. 's consolidated debt totals 6.9 billion Australian dollars (US$5.32 billion), including A$1.6 billion of bonds convertible into shares. 2 Alan Bond, chairman and controlling shareholder of the cash-strapped Australian media, brewing, resources and property concern, disclosed the debt figures yesterday. 3 The disclosure follows last Friday's news that Bond Corp. incurred an overall loss of A$980.2 million for the fiscal year ended June 30, the largest loss in Australian corporate history. 4 The debt load would have been higher but for a reduction of A$5 billion over the past year from asset sales, Mr. Bond said at a business gathering. 5 Mr. Bond indicated the consolidated debt figures, which include debt of units such as Bell Group Ltd., will be published soon in Bond Corp. 's 1989 annual accounts. 6 He predicted the debt will be reduced by another A$3.8 billion this fiscal year ending June 30, 1990, but didn't explain how this will be achieved. 7 Mr. Bond blamed rising Australian interest rates and the acquisition of Bell Group 'with its very high levels of shortterm debt' for producing a condition 'that was no longer sustainable. 8 'In order to restore confidence and ensure the support of our principal lenders,' Mr. Bond said, 'we embarked on fundamantal changes in the structure and direction of the group.' 9 That reassessment resulted in continuing asset sales, as well as write-offs exceeding A$1.1 billion last fiscal year. 'In essence we have made a decision to clear the decks,' Mr. Bond told the meeting. 10 While some assets have been written down, others are undervalued in the accounts, Mr. Bond maintained. 11 Among these are the company's Australian brewing assets, in the books at A$950 million but actually worth A$2.5 billion, he said. 12 An investment in Chile's telephone company is carried at US$300 million but really worth US$500 million, and the company's property portfolio is undervalued by at least A$250 million, Mr. Bond said. 13 Mr. Bond forecast that by next June, 'what will emerge will be a company with a honed sense of purpose . . . a stable balance sheet, with good-quality assets in brewing, telecommunications, media and property.' 14 He didn't name energy resources in that list, signaling that all the company's coal and oil interests might be for sale in total or in part. 15 Some of the oil interests already have been sold.

Mr . Bond indicated the consolidated debt figures , which include debt of units such as Bell Group Ltd . , will be published soon in Bond Corp . ' s 1989 annual accounts .

debt of units

How did they acquire this specific form of debt?

1 Bond Corp. Holdings Ltd. 's consolidated debt totals 6.9 billion Australian dollars (US$5.32 billion), including A$1.6 billion of bonds convertible into shares. 2 Alan Bond, chairman and controlling shareholder of the cash-strapped Australian media, brewing, resources and property concern, disclosed the debt figures yesterday. 3 The disclosure follows last Friday's news that Bond Corp. incurred an overall loss of A$980.2 million for the fiscal year ended June 30, the largest loss in Australian corporate history. 4 The debt load would have been higher but for a reduction of A$5 billion over the past year from asset sales, Mr. Bond said at a business gathering. 5 Mr. Bond indicated the consolidated debt figures, which include debt of units such as Bell Group Ltd., will be published soon in Bond Corp. 's 1989 annual accounts. 6 He predicted the debt will be reduced by another A$3.8 billion this fiscal year ending June 30, 1990, but didn't explain how this will be achieved. 7 Mr. Bond blamed rising Australian interest rates and the acquisition of Bell Group 'with its very high levels of shortterm debt' for producing a condition 'that was no longer sustainable. 8 'In order to restore confidence and ensure the support of our principal lenders,' Mr. Bond said, 'we embarked on fundamantal changes in the structure and direction of the group.' 9 That reassessment resulted in continuing asset sales, as well as write-offs exceeding A$1.1 billion last fiscal year. 'In essence we have made a decision to clear the decks,' Mr. Bond told the meeting. 10 While some assets have been written down, others are undervalued in the accounts, Mr. Bond maintained. 11 Among these are the company's Australian brewing assets, in the books at A$950 million but actually worth A$2.5 billion, he said. 12 An investment in Chile's telephone company is carried at US$300 million but really worth US$500 million, and the company's property portfolio is undervalued by at least A$250 million, Mr. Bond said. 13 Mr. Bond forecast that by next June, 'what will emerge will be a company with a honed sense of purpose . . . a stable balance sheet, with good-quality assets in brewing, telecommunications, media and property.' 14 He didn't name energy resources in that list, signaling that all the company's coal and oil interests might be for sale in total or in part. 15 Some of the oil interests already have been sold.

Mr . Bond indicated the consolidated debt figures , which include debt of units such as Bell Group Ltd . , will be published soon in Bond Corp . ' s 1989 annual accounts .

Bond Corp . ' s 1989 annual accounts

are they still keeping these?

1 Good grief! Charlie Brown is selling out. 2 Those Metropolitan Life ads were bad enough. 3 But now, Charlie Brown is about to start pitching everything from Chex Party Mix to light bulbs. 4 Why is he cashing in now? 5 Turns out that next year, Charlie Brown, Snoopy and the gang turn 40 -- and Scripps Howard's United Media unit, the syndicator and licensing agent for Charles Schulz's comic strip, sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads, tie-ins and promotions. 6 'Peanuts has become a major part of American culture,' says Peter Shore, United Media's vice president of marketing and licensing. 7 The comic strip 'has a magical, everlasting quality about it. 8 Our plan is to honor Charles Schulz and the strip all year long.' 9 The effort will make the Peanuts gang very familiar pitchmen in 1990. 10 General Electric plans to use the characters to plug its Miser light bulb. 11 Teleflora will run TV ads at Valentine's Day promoting its 'Snoopy's Love Bouquet.' Ralston Purina will promote its Chex Party Mix's three new flavor packets named for Charlie Brown, Lucy and Linus. 12 The characters will also be featured in a new public service effort for the United Way. 13 Beyond the advertisements, the syndicator is planning a traveling arena show, new TV specials for CBS and even an exhibit at the Smithsonian Institute. 14 The yearlong schedule of festivities will be kicked off officially with a combination live and animation half-time special at the Super Bowl in January. 15 All the tie-ins, though, have some marketing experts questioning whether the party may go too far. 'There are too many people participating,' says Al Ries, of Trout & Ries, a Greenwich, Conn., marketing consulting firm. 'If you want to cut through the clutter, you have to make your message as distinct, sharp and individual as possible. 16 Sharing a character with other advertisers isn't a way to do that.' 17 But United Media says it's very scrupulous with the contracts it hands out. 'We're not interested in promoting every single product that comes along,' Mr. Shore says. 18 Metropolitan Life ad executives couldn't be reached about the use of the Peanuts characters by others. 19 But Mr. Shore says that company's exclusive advertising rights extend only to the insurance and financial services category. 20 Berry Rejoins WPP Group 21 Norman Berry, the creative executive who was apparently squeezed out of Ogilvy & Mather in June, is returning to Ogilvy's parent company, WPP Group PLC. 22 Mr. Berry, 58, had resigned after being asked by Ogilvy 's chairman and chief executive officer, Kenneth Roman, to give up his title as creative head of the New York office and to take a fuzzier international role. 23 Yesterday, just a day after Mr. Roman announced he would leave to take a top post at American Express, WPP said Mr. Berry would return to take an international role at the parent company. 24 Mr. Berry said the timing was a coincidence and that his decision was unrelated to Mr. Roman's departure. 25 RJR Taps FCB/Leber 26 RJR Nabisco Inc. awarded its national broadcast media-buying assignment to FCB/Leber Katz Partners, the New York outpost of Chicago-based Foote, Cone & Belding. 27 The naming of FCB/Leber Katz Partners as agency of record for Nabisco Brands Inc. and Planters LifeSavers Co. follows RJR Nabisco's announcement last week that it will disband its RJR Nabisco Broadcast division and dismiss its 14 employees Dec. 1. to cut costs. 28 New York-based RJR Nabisco wouldn't say what it spends annually, but industry executives say it will spend more than $140 million this year, down from about $200 million last year. 29 Ad Notes. . . . 30 EARNINGS: Interpublic Group of Cos. said third-quarter net rose 15% to $6.9 million, or 21 cents a share, from $6 million, or 18 cents a share, in the year-earlier period. 31 Revenue increased more than 5% to $283.2 million from $268.6 million. 32 HOLIDAY PROMOTION: PepsiCo Inc. will give away 4,000 sets of 'Game Boy,' Nintendo's new hand-held video game in a two-month promotion scheduled to begin Nov. 1. 33 Pepsi said it will spend $10 million advertising the promotion.

Good grief ! Charlie Brown is selling out .

selling

Why is Charlie Brown selling out?

1 Good grief! Charlie Brown is selling out. 2 Those Metropolitan Life ads were bad enough. 3 But now, Charlie Brown is about to start pitching everything from Chex Party Mix to light bulbs. 4 Why is he cashing in now? 5 Turns out that next year, Charlie Brown, Snoopy and the gang turn 40 -- and Scripps Howard's United Media unit, the syndicator and licensing agent for Charles Schulz's comic strip, sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads, tie-ins and promotions. 6 'Peanuts has become a major part of American culture,' says Peter Shore, United Media's vice president of marketing and licensing. 7 The comic strip 'has a magical, everlasting quality about it. 8 Our plan is to honor Charles Schulz and the strip all year long.' 9 The effort will make the Peanuts gang very familiar pitchmen in 1990. 10 General Electric plans to use the characters to plug its Miser light bulb. 11 Teleflora will run TV ads at Valentine's Day promoting its 'Snoopy's Love Bouquet.' Ralston Purina will promote its Chex Party Mix's three new flavor packets named for Charlie Brown, Lucy and Linus. 12 The characters will also be featured in a new public service effort for the United Way. 13 Beyond the advertisements, the syndicator is planning a traveling arena show, new TV specials for CBS and even an exhibit at the Smithsonian Institute. 14 The yearlong schedule of festivities will be kicked off officially with a combination live and animation half-time special at the Super Bowl in January. 15 All the tie-ins, though, have some marketing experts questioning whether the party may go too far. 'There are too many people participating,' says Al Ries, of Trout & Ries, a Greenwich, Conn., marketing consulting firm. 'If you want to cut through the clutter, you have to make your message as distinct, sharp and individual as possible. 16 Sharing a character with other advertisers isn't a way to do that.' 17 But United Media says it's very scrupulous with the contracts it hands out. 'We're not interested in promoting every single product that comes along,' Mr. Shore says. 18 Metropolitan Life ad executives couldn't be reached about the use of the Peanuts characters by others. 19 But Mr. Shore says that company's exclusive advertising rights extend only to the insurance and financial services category. 20 Berry Rejoins WPP Group 21 Norman Berry, the creative executive who was apparently squeezed out of Ogilvy & Mather in June, is returning to Ogilvy's parent company, WPP Group PLC. 22 Mr. Berry, 58, had resigned after being asked by Ogilvy 's chairman and chief executive officer, Kenneth Roman, to give up his title as creative head of the New York office and to take a fuzzier international role. 23 Yesterday, just a day after Mr. Roman announced he would leave to take a top post at American Express, WPP said Mr. Berry would return to take an international role at the parent company. 24 Mr. Berry said the timing was a coincidence and that his decision was unrelated to Mr. Roman's departure. 25 RJR Taps FCB/Leber 26 RJR Nabisco Inc. awarded its national broadcast media-buying assignment to FCB/Leber Katz Partners, the New York outpost of Chicago-based Foote, Cone & Belding. 27 The naming of FCB/Leber Katz Partners as agency of record for Nabisco Brands Inc. and Planters LifeSavers Co. follows RJR Nabisco's announcement last week that it will disband its RJR Nabisco Broadcast division and dismiss its 14 employees Dec. 1. to cut costs. 28 New York-based RJR Nabisco wouldn't say what it spends annually, but industry executives say it will spend more than $140 million this year, down from about $200 million last year. 29 Ad Notes. . . . 30 EARNINGS: Interpublic Group of Cos. said third-quarter net rose 15% to $6.9 million, or 21 cents a share, from $6 million, or 18 cents a share, in the year-earlier period. 31 Revenue increased more than 5% to $283.2 million from $268.6 million. 32 HOLIDAY PROMOTION: PepsiCo Inc. will give away 4,000 sets of 'Game Boy,' Nintendo's new hand-held video game in a two-month promotion scheduled to begin Nov. 1. 33 Pepsi said it will spend $10 million advertising the promotion.

Good grief ! Charlie Brown is selling out .

Charlie Brown is selling out

why is he selling out?

1 Good grief! Charlie Brown is selling out. 2 Those Metropolitan Life ads were bad enough. 3 But now, Charlie Brown is about to start pitching everything from Chex Party Mix to light bulbs. 4 Why is he cashing in now? 5 Turns out that next year, Charlie Brown, Snoopy and the gang turn 40 -- and Scripps Howard's United Media unit, the syndicator and licensing agent for Charles Schulz's comic strip, sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads, tie-ins and promotions. 6 'Peanuts has become a major part of American culture,' says Peter Shore, United Media's vice president of marketing and licensing. 7 The comic strip 'has a magical, everlasting quality about it. 8 Our plan is to honor Charles Schulz and the strip all year long.' 9 The effort will make the Peanuts gang very familiar pitchmen in 1990. 10 General Electric plans to use the characters to plug its Miser light bulb. 11 Teleflora will run TV ads at Valentine's Day promoting its 'Snoopy's Love Bouquet.' Ralston Purina will promote its Chex Party Mix's three new flavor packets named for Charlie Brown, Lucy and Linus. 12 The characters will also be featured in a new public service effort for the United Way. 13 Beyond the advertisements, the syndicator is planning a traveling arena show, new TV specials for CBS and even an exhibit at the Smithsonian Institute. 14 The yearlong schedule of festivities will be kicked off officially with a combination live and animation half-time special at the Super Bowl in January. 15 All the tie-ins, though, have some marketing experts questioning whether the party may go too far. 'There are too many people participating,' says Al Ries, of Trout & Ries, a Greenwich, Conn., marketing consulting firm. 'If you want to cut through the clutter, you have to make your message as distinct, sharp and individual as possible. 16 Sharing a character with other advertisers isn't a way to do that.' 17 But United Media says it's very scrupulous with the contracts it hands out. 'We're not interested in promoting every single product that comes along,' Mr. Shore says. 18 Metropolitan Life ad executives couldn't be reached about the use of the Peanuts characters by others. 19 But Mr. Shore says that company's exclusive advertising rights extend only to the insurance and financial services category. 20 Berry Rejoins WPP Group 21 Norman Berry, the creative executive who was apparently squeezed out of Ogilvy & Mather in June, is returning to Ogilvy's parent company, WPP Group PLC. 22 Mr. Berry, 58, had resigned after being asked by Ogilvy 's chairman and chief executive officer, Kenneth Roman, to give up his title as creative head of the New York office and to take a fuzzier international role. 23 Yesterday, just a day after Mr. Roman announced he would leave to take a top post at American Express, WPP said Mr. Berry would return to take an international role at the parent company. 24 Mr. Berry said the timing was a coincidence and that his decision was unrelated to Mr. Roman's departure. 25 RJR Taps FCB/Leber 26 RJR Nabisco Inc. awarded its national broadcast media-buying assignment to FCB/Leber Katz Partners, the New York outpost of Chicago-based Foote, Cone & Belding. 27 The naming of FCB/Leber Katz Partners as agency of record for Nabisco Brands Inc. and Planters LifeSavers Co. follows RJR Nabisco's announcement last week that it will disband its RJR Nabisco Broadcast division and dismiss its 14 employees Dec. 1. to cut costs. 28 New York-based RJR Nabisco wouldn't say what it spends annually, but industry executives say it will spend more than $140 million this year, down from about $200 million last year. 29 Ad Notes. . . . 30 EARNINGS: Interpublic Group of Cos. said third-quarter net rose 15% to $6.9 million, or 21 cents a share, from $6 million, or 18 cents a share, in the year-earlier period. 31 Revenue increased more than 5% to $283.2 million from $268.6 million. 32 HOLIDAY PROMOTION: PepsiCo Inc. will give away 4,000 sets of 'Game Boy,' Nintendo's new hand-held video game in a two-month promotion scheduled to begin Nov. 1. 33 Pepsi said it will spend $10 million advertising the promotion.

Good grief ! Charlie Brown is selling out .

selling out

What is selling out?

1 Good grief! Charlie Brown is selling out. 2 Those Metropolitan Life ads were bad enough. 3 But now, Charlie Brown is about to start pitching everything from Chex Party Mix to light bulbs. 4 Why is he cashing in now? 5 Turns out that next year, Charlie Brown, Snoopy and the gang turn 40 -- and Scripps Howard's United Media unit, the syndicator and licensing agent for Charles Schulz's comic strip, sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads, tie-ins and promotions. 6 'Peanuts has become a major part of American culture,' says Peter Shore, United Media's vice president of marketing and licensing. 7 The comic strip 'has a magical, everlasting quality about it. 8 Our plan is to honor Charles Schulz and the strip all year long.' 9 The effort will make the Peanuts gang very familiar pitchmen in 1990. 10 General Electric plans to use the characters to plug its Miser light bulb. 11 Teleflora will run TV ads at Valentine's Day promoting its 'Snoopy's Love Bouquet.' Ralston Purina will promote its Chex Party Mix's three new flavor packets named for Charlie Brown, Lucy and Linus. 12 The characters will also be featured in a new public service effort for the United Way. 13 Beyond the advertisements, the syndicator is planning a traveling arena show, new TV specials for CBS and even an exhibit at the Smithsonian Institute. 14 The yearlong schedule of festivities will be kicked off officially with a combination live and animation half-time special at the Super Bowl in January. 15 All the tie-ins, though, have some marketing experts questioning whether the party may go too far. 'There are too many people participating,' says Al Ries, of Trout & Ries, a Greenwich, Conn., marketing consulting firm. 'If you want to cut through the clutter, you have to make your message as distinct, sharp and individual as possible. 16 Sharing a character with other advertisers isn't a way to do that.' 17 But United Media says it's very scrupulous with the contracts it hands out. 'We're not interested in promoting every single product that comes along,' Mr. Shore says. 18 Metropolitan Life ad executives couldn't be reached about the use of the Peanuts characters by others. 19 But Mr. Shore says that company's exclusive advertising rights extend only to the insurance and financial services category. 20 Berry Rejoins WPP Group 21 Norman Berry, the creative executive who was apparently squeezed out of Ogilvy & Mather in June, is returning to Ogilvy's parent company, WPP Group PLC. 22 Mr. Berry, 58, had resigned after being asked by Ogilvy 's chairman and chief executive officer, Kenneth Roman, to give up his title as creative head of the New York office and to take a fuzzier international role. 23 Yesterday, just a day after Mr. Roman announced he would leave to take a top post at American Express, WPP said Mr. Berry would return to take an international role at the parent company. 24 Mr. Berry said the timing was a coincidence and that his decision was unrelated to Mr. Roman's departure. 25 RJR Taps FCB/Leber 26 RJR Nabisco Inc. awarded its national broadcast media-buying assignment to FCB/Leber Katz Partners, the New York outpost of Chicago-based Foote, Cone & Belding. 27 The naming of FCB/Leber Katz Partners as agency of record for Nabisco Brands Inc. and Planters LifeSavers Co. follows RJR Nabisco's announcement last week that it will disband its RJR Nabisco Broadcast division and dismiss its 14 employees Dec. 1. to cut costs. 28 New York-based RJR Nabisco wouldn't say what it spends annually, but industry executives say it will spend more than $140 million this year, down from about $200 million last year. 29 Ad Notes. . . . 30 EARNINGS: Interpublic Group of Cos. said third-quarter net rose 15% to $6.9 million, or 21 cents a share, from $6 million, or 18 cents a share, in the year-earlier period. 31 Revenue increased more than 5% to $283.2 million from $268.6 million. 32 HOLIDAY PROMOTION: PepsiCo Inc. will give away 4,000 sets of 'Game Boy,' Nintendo's new hand-held video game in a two-month promotion scheduled to begin Nov. 1. 33 Pepsi said it will spend $10 million advertising the promotion.

Those Metropolitan Life ads were bad enough .

bad enough .

What was bad about the Metropolitan Life ads?

1 Good grief! Charlie Brown is selling out. 2 Those Metropolitan Life ads were bad enough. 3 But now, Charlie Brown is about to start pitching everything from Chex Party Mix to light bulbs. 4 Why is he cashing in now? 5 Turns out that next year, Charlie Brown, Snoopy and the gang turn 40 -- and Scripps Howard's United Media unit, the syndicator and licensing agent for Charles Schulz's comic strip, sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads, tie-ins and promotions. 6 'Peanuts has become a major part of American culture,' says Peter Shore, United Media's vice president of marketing and licensing. 7 The comic strip 'has a magical, everlasting quality about it. 8 Our plan is to honor Charles Schulz and the strip all year long.' 9 The effort will make the Peanuts gang very familiar pitchmen in 1990. 10 General Electric plans to use the characters to plug its Miser light bulb. 11 Teleflora will run TV ads at Valentine's Day promoting its 'Snoopy's Love Bouquet.' Ralston Purina will promote its Chex Party Mix's three new flavor packets named for Charlie Brown, Lucy and Linus. 12 The characters will also be featured in a new public service effort for the United Way. 13 Beyond the advertisements, the syndicator is planning a traveling arena show, new TV specials for CBS and even an exhibit at the Smithsonian Institute. 14 The yearlong schedule of festivities will be kicked off officially with a combination live and animation half-time special at the Super Bowl in January. 15 All the tie-ins, though, have some marketing experts questioning whether the party may go too far. 'There are too many people participating,' says Al Ries, of Trout & Ries, a Greenwich, Conn., marketing consulting firm. 'If you want to cut through the clutter, you have to make your message as distinct, sharp and individual as possible. 16 Sharing a character with other advertisers isn't a way to do that.' 17 But United Media says it's very scrupulous with the contracts it hands out. 'We're not interested in promoting every single product that comes along,' Mr. Shore says. 18 Metropolitan Life ad executives couldn't be reached about the use of the Peanuts characters by others. 19 But Mr. Shore says that company's exclusive advertising rights extend only to the insurance and financial services category. 20 Berry Rejoins WPP Group 21 Norman Berry, the creative executive who was apparently squeezed out of Ogilvy & Mather in June, is returning to Ogilvy's parent company, WPP Group PLC. 22 Mr. Berry, 58, had resigned after being asked by Ogilvy 's chairman and chief executive officer, Kenneth Roman, to give up his title as creative head of the New York office and to take a fuzzier international role. 23 Yesterday, just a day after Mr. Roman announced he would leave to take a top post at American Express, WPP said Mr. Berry would return to take an international role at the parent company. 24 Mr. Berry said the timing was a coincidence and that his decision was unrelated to Mr. Roman's departure. 25 RJR Taps FCB/Leber 26 RJR Nabisco Inc. awarded its national broadcast media-buying assignment to FCB/Leber Katz Partners, the New York outpost of Chicago-based Foote, Cone & Belding. 27 The naming of FCB/Leber Katz Partners as agency of record for Nabisco Brands Inc. and Planters LifeSavers Co. follows RJR Nabisco's announcement last week that it will disband its RJR Nabisco Broadcast division and dismiss its 14 employees Dec. 1. to cut costs. 28 New York-based RJR Nabisco wouldn't say what it spends annually, but industry executives say it will spend more than $140 million this year, down from about $200 million last year. 29 Ad Notes. . . . 30 EARNINGS: Interpublic Group of Cos. said third-quarter net rose 15% to $6.9 million, or 21 cents a share, from $6 million, or 18 cents a share, in the year-earlier period. 31 Revenue increased more than 5% to $283.2 million from $268.6 million. 32 HOLIDAY PROMOTION: PepsiCo Inc. will give away 4,000 sets of 'Game Boy,' Nintendo's new hand-held video game in a two-month promotion scheduled to begin Nov. 1. 33 Pepsi said it will spend $10 million advertising the promotion.

Those Metropolitan Life ads were bad enough .

ads

Why were the Metropolitan Life ads bad?

1 Good grief! Charlie Brown is selling out. 2 Those Metropolitan Life ads were bad enough. 3 But now, Charlie Brown is about to start pitching everything from Chex Party Mix to light bulbs. 4 Why is he cashing in now? 5 Turns out that next year, Charlie Brown, Snoopy and the gang turn 40 -- and Scripps Howard's United Media unit, the syndicator and licensing agent for Charles Schulz's comic strip, sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads, tie-ins and promotions. 6 'Peanuts has become a major part of American culture,' says Peter Shore, United Media's vice president of marketing and licensing. 7 The comic strip 'has a magical, everlasting quality about it. 8 Our plan is to honor Charles Schulz and the strip all year long.' 9 The effort will make the Peanuts gang very familiar pitchmen in 1990. 10 General Electric plans to use the characters to plug its Miser light bulb. 11 Teleflora will run TV ads at Valentine's Day promoting its 'Snoopy's Love Bouquet.' Ralston Purina will promote its Chex Party Mix's three new flavor packets named for Charlie Brown, Lucy and Linus. 12 The characters will also be featured in a new public service effort for the United Way. 13 Beyond the advertisements, the syndicator is planning a traveling arena show, new TV specials for CBS and even an exhibit at the Smithsonian Institute. 14 The yearlong schedule of festivities will be kicked off officially with a combination live and animation half-time special at the Super Bowl in January. 15 All the tie-ins, though, have some marketing experts questioning whether the party may go too far. 'There are too many people participating,' says Al Ries, of Trout & Ries, a Greenwich, Conn., marketing consulting firm. 'If you want to cut through the clutter, you have to make your message as distinct, sharp and individual as possible. 16 Sharing a character with other advertisers isn't a way to do that.' 17 But United Media says it's very scrupulous with the contracts it hands out. 'We're not interested in promoting every single product that comes along,' Mr. Shore says. 18 Metropolitan Life ad executives couldn't be reached about the use of the Peanuts characters by others. 19 But Mr. Shore says that company's exclusive advertising rights extend only to the insurance and financial services category. 20 Berry Rejoins WPP Group 21 Norman Berry, the creative executive who was apparently squeezed out of Ogilvy & Mather in June, is returning to Ogilvy's parent company, WPP Group PLC. 22 Mr. Berry, 58, had resigned after being asked by Ogilvy 's chairman and chief executive officer, Kenneth Roman, to give up his title as creative head of the New York office and to take a fuzzier international role. 23 Yesterday, just a day after Mr. Roman announced he would leave to take a top post at American Express, WPP said Mr. Berry would return to take an international role at the parent company. 24 Mr. Berry said the timing was a coincidence and that his decision was unrelated to Mr. Roman's departure. 25 RJR Taps FCB/Leber 26 RJR Nabisco Inc. awarded its national broadcast media-buying assignment to FCB/Leber Katz Partners, the New York outpost of Chicago-based Foote, Cone & Belding. 27 The naming of FCB/Leber Katz Partners as agency of record for Nabisco Brands Inc. and Planters LifeSavers Co. follows RJR Nabisco's announcement last week that it will disband its RJR Nabisco Broadcast division and dismiss its 14 employees Dec. 1. to cut costs. 28 New York-based RJR Nabisco wouldn't say what it spends annually, but industry executives say it will spend more than $140 million this year, down from about $200 million last year. 29 Ad Notes. . . . 30 EARNINGS: Interpublic Group of Cos. said third-quarter net rose 15% to $6.9 million, or 21 cents a share, from $6 million, or 18 cents a share, in the year-earlier period. 31 Revenue increased more than 5% to $283.2 million from $268.6 million. 32 HOLIDAY PROMOTION: PepsiCo Inc. will give away 4,000 sets of 'Game Boy,' Nintendo's new hand-held video game in a two-month promotion scheduled to begin Nov. 1. 33 Pepsi said it will spend $10 million advertising the promotion.

Those Metropolitan Life ads were bad enough .

Metropolitan Life ads

is that a company?

1 Good grief! Charlie Brown is selling out. 2 Those Metropolitan Life ads were bad enough. 3 But now, Charlie Brown is about to start pitching everything from Chex Party Mix to light bulbs. 4 Why is he cashing in now? 5 Turns out that next year, Charlie Brown, Snoopy and the gang turn 40 -- and Scripps Howard's United Media unit, the syndicator and licensing agent for Charles Schulz's comic strip, sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads, tie-ins and promotions. 6 'Peanuts has become a major part of American culture,' says Peter Shore, United Media's vice president of marketing and licensing. 7 The comic strip 'has a magical, everlasting quality about it. 8 Our plan is to honor Charles Schulz and the strip all year long.' 9 The effort will make the Peanuts gang very familiar pitchmen in 1990. 10 General Electric plans to use the characters to plug its Miser light bulb. 11 Teleflora will run TV ads at Valentine's Day promoting its 'Snoopy's Love Bouquet.' Ralston Purina will promote its Chex Party Mix's three new flavor packets named for Charlie Brown, Lucy and Linus. 12 The characters will also be featured in a new public service effort for the United Way. 13 Beyond the advertisements, the syndicator is planning a traveling arena show, new TV specials for CBS and even an exhibit at the Smithsonian Institute. 14 The yearlong schedule of festivities will be kicked off officially with a combination live and animation half-time special at the Super Bowl in January. 15 All the tie-ins, though, have some marketing experts questioning whether the party may go too far. 'There are too many people participating,' says Al Ries, of Trout & Ries, a Greenwich, Conn., marketing consulting firm. 'If you want to cut through the clutter, you have to make your message as distinct, sharp and individual as possible. 16 Sharing a character with other advertisers isn't a way to do that.' 17 But United Media says it's very scrupulous with the contracts it hands out. 'We're not interested in promoting every single product that comes along,' Mr. Shore says. 18 Metropolitan Life ad executives couldn't be reached about the use of the Peanuts characters by others. 19 But Mr. Shore says that company's exclusive advertising rights extend only to the insurance and financial services category. 20 Berry Rejoins WPP Group 21 Norman Berry, the creative executive who was apparently squeezed out of Ogilvy & Mather in June, is returning to Ogilvy's parent company, WPP Group PLC. 22 Mr. Berry, 58, had resigned after being asked by Ogilvy 's chairman and chief executive officer, Kenneth Roman, to give up his title as creative head of the New York office and to take a fuzzier international role. 23 Yesterday, just a day after Mr. Roman announced he would leave to take a top post at American Express, WPP said Mr. Berry would return to take an international role at the parent company. 24 Mr. Berry said the timing was a coincidence and that his decision was unrelated to Mr. Roman's departure. 25 RJR Taps FCB/Leber 26 RJR Nabisco Inc. awarded its national broadcast media-buying assignment to FCB/Leber Katz Partners, the New York outpost of Chicago-based Foote, Cone & Belding. 27 The naming of FCB/Leber Katz Partners as agency of record for Nabisco Brands Inc. and Planters LifeSavers Co. follows RJR Nabisco's announcement last week that it will disband its RJR Nabisco Broadcast division and dismiss its 14 employees Dec. 1. to cut costs. 28 New York-based RJR Nabisco wouldn't say what it spends annually, but industry executives say it will spend more than $140 million this year, down from about $200 million last year. 29 Ad Notes. . . . 30 EARNINGS: Interpublic Group of Cos. said third-quarter net rose 15% to $6.9 million, or 21 cents a share, from $6 million, or 18 cents a share, in the year-earlier period. 31 Revenue increased more than 5% to $283.2 million from $268.6 million. 32 HOLIDAY PROMOTION: PepsiCo Inc. will give away 4,000 sets of 'Game Boy,' Nintendo's new hand-held video game in a two-month promotion scheduled to begin Nov. 1. 33 Pepsi said it will spend $10 million advertising the promotion.

Those Metropolitan Life ads were bad enough .

bad enough

Why were the ads bad enough?

1 Good grief! Charlie Brown is selling out. 2 Those Metropolitan Life ads were bad enough. 3 But now, Charlie Brown is about to start pitching everything from Chex Party Mix to light bulbs. 4 Why is he cashing in now? 5 Turns out that next year, Charlie Brown, Snoopy and the gang turn 40 -- and Scripps Howard's United Media unit, the syndicator and licensing agent for Charles Schulz's comic strip, sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads, tie-ins and promotions. 6 'Peanuts has become a major part of American culture,' says Peter Shore, United Media's vice president of marketing and licensing. 7 The comic strip 'has a magical, everlasting quality about it. 8 Our plan is to honor Charles Schulz and the strip all year long.' 9 The effort will make the Peanuts gang very familiar pitchmen in 1990. 10 General Electric plans to use the characters to plug its Miser light bulb. 11 Teleflora will run TV ads at Valentine's Day promoting its 'Snoopy's Love Bouquet.' Ralston Purina will promote its Chex Party Mix's three new flavor packets named for Charlie Brown, Lucy and Linus. 12 The characters will also be featured in a new public service effort for the United Way. 13 Beyond the advertisements, the syndicator is planning a traveling arena show, new TV specials for CBS and even an exhibit at the Smithsonian Institute. 14 The yearlong schedule of festivities will be kicked off officially with a combination live and animation half-time special at the Super Bowl in January. 15 All the tie-ins, though, have some marketing experts questioning whether the party may go too far. 'There are too many people participating,' says Al Ries, of Trout & Ries, a Greenwich, Conn., marketing consulting firm. 'If you want to cut through the clutter, you have to make your message as distinct, sharp and individual as possible. 16 Sharing a character with other advertisers isn't a way to do that.' 17 But United Media says it's very scrupulous with the contracts it hands out. 'We're not interested in promoting every single product that comes along,' Mr. Shore says. 18 Metropolitan Life ad executives couldn't be reached about the use of the Peanuts characters by others. 19 But Mr. Shore says that company's exclusive advertising rights extend only to the insurance and financial services category. 20 Berry Rejoins WPP Group 21 Norman Berry, the creative executive who was apparently squeezed out of Ogilvy & Mather in June, is returning to Ogilvy's parent company, WPP Group PLC. 22 Mr. Berry, 58, had resigned after being asked by Ogilvy 's chairman and chief executive officer, Kenneth Roman, to give up his title as creative head of the New York office and to take a fuzzier international role. 23 Yesterday, just a day after Mr. Roman announced he would leave to take a top post at American Express, WPP said Mr. Berry would return to take an international role at the parent company. 24 Mr. Berry said the timing was a coincidence and that his decision was unrelated to Mr. Roman's departure. 25 RJR Taps FCB/Leber 26 RJR Nabisco Inc. awarded its national broadcast media-buying assignment to FCB/Leber Katz Partners, the New York outpost of Chicago-based Foote, Cone & Belding. 27 The naming of FCB/Leber Katz Partners as agency of record for Nabisco Brands Inc. and Planters LifeSavers Co. follows RJR Nabisco's announcement last week that it will disband its RJR Nabisco Broadcast division and dismiss its 14 employees Dec. 1. to cut costs. 28 New York-based RJR Nabisco wouldn't say what it spends annually, but industry executives say it will spend more than $140 million this year, down from about $200 million last year. 29 Ad Notes. . . . 30 EARNINGS: Interpublic Group of Cos. said third-quarter net rose 15% to $6.9 million, or 21 cents a share, from $6 million, or 18 cents a share, in the year-earlier period. 31 Revenue increased more than 5% to $283.2 million from $268.6 million. 32 HOLIDAY PROMOTION: PepsiCo Inc. will give away 4,000 sets of 'Game Boy,' Nintendo's new hand-held video game in a two-month promotion scheduled to begin Nov. 1. 33 Pepsi said it will spend $10 million advertising the promotion.

Why is he cashing in now ?

cashing

What do they mean by \"cashing in?\"

1 Good grief! Charlie Brown is selling out. 2 Those Metropolitan Life ads were bad enough. 3 But now, Charlie Brown is about to start pitching everything from Chex Party Mix to light bulbs. 4 Why is he cashing in now? 5 Turns out that next year, Charlie Brown, Snoopy and the gang turn 40 -- and Scripps Howard's United Media unit, the syndicator and licensing agent for Charles Schulz's comic strip, sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads, tie-ins and promotions. 6 'Peanuts has become a major part of American culture,' says Peter Shore, United Media's vice president of marketing and licensing. 7 The comic strip 'has a magical, everlasting quality about it. 8 Our plan is to honor Charles Schulz and the strip all year long.' 9 The effort will make the Peanuts gang very familiar pitchmen in 1990. 10 General Electric plans to use the characters to plug its Miser light bulb. 11 Teleflora will run TV ads at Valentine's Day promoting its 'Snoopy's Love Bouquet.' Ralston Purina will promote its Chex Party Mix's three new flavor packets named for Charlie Brown, Lucy and Linus. 12 The characters will also be featured in a new public service effort for the United Way. 13 Beyond the advertisements, the syndicator is planning a traveling arena show, new TV specials for CBS and even an exhibit at the Smithsonian Institute. 14 The yearlong schedule of festivities will be kicked off officially with a combination live and animation half-time special at the Super Bowl in January. 15 All the tie-ins, though, have some marketing experts questioning whether the party may go too far. 'There are too many people participating,' says Al Ries, of Trout & Ries, a Greenwich, Conn., marketing consulting firm. 'If you want to cut through the clutter, you have to make your message as distinct, sharp and individual as possible. 16 Sharing a character with other advertisers isn't a way to do that.' 17 But United Media says it's very scrupulous with the contracts it hands out. 'We're not interested in promoting every single product that comes along,' Mr. Shore says. 18 Metropolitan Life ad executives couldn't be reached about the use of the Peanuts characters by others. 19 But Mr. Shore says that company's exclusive advertising rights extend only to the insurance and financial services category. 20 Berry Rejoins WPP Group 21 Norman Berry, the creative executive who was apparently squeezed out of Ogilvy & Mather in June, is returning to Ogilvy's parent company, WPP Group PLC. 22 Mr. Berry, 58, had resigned after being asked by Ogilvy 's chairman and chief executive officer, Kenneth Roman, to give up his title as creative head of the New York office and to take a fuzzier international role. 23 Yesterday, just a day after Mr. Roman announced he would leave to take a top post at American Express, WPP said Mr. Berry would return to take an international role at the parent company. 24 Mr. Berry said the timing was a coincidence and that his decision was unrelated to Mr. Roman's departure. 25 RJR Taps FCB/Leber 26 RJR Nabisco Inc. awarded its national broadcast media-buying assignment to FCB/Leber Katz Partners, the New York outpost of Chicago-based Foote, Cone & Belding. 27 The naming of FCB/Leber Katz Partners as agency of record for Nabisco Brands Inc. and Planters LifeSavers Co. follows RJR Nabisco's announcement last week that it will disband its RJR Nabisco Broadcast division and dismiss its 14 employees Dec. 1. to cut costs. 28 New York-based RJR Nabisco wouldn't say what it spends annually, but industry executives say it will spend more than $140 million this year, down from about $200 million last year. 29 Ad Notes. . . . 30 EARNINGS: Interpublic Group of Cos. said third-quarter net rose 15% to $6.9 million, or 21 cents a share, from $6 million, or 18 cents a share, in the year-earlier period. 31 Revenue increased more than 5% to $283.2 million from $268.6 million. 32 HOLIDAY PROMOTION: PepsiCo Inc. will give away 4,000 sets of 'Game Boy,' Nintendo's new hand-held video game in a two-month promotion scheduled to begin Nov. 1. 33 Pepsi said it will spend $10 million advertising the promotion.

Why is he cashing in now ?

now

as opposed to earlier?

1 Good grief! Charlie Brown is selling out. 2 Those Metropolitan Life ads were bad enough. 3 But now, Charlie Brown is about to start pitching everything from Chex Party Mix to light bulbs. 4 Why is he cashing in now? 5 Turns out that next year, Charlie Brown, Snoopy and the gang turn 40 -- and Scripps Howard's United Media unit, the syndicator and licensing agent for Charles Schulz's comic strip, sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads, tie-ins and promotions. 6 'Peanuts has become a major part of American culture,' says Peter Shore, United Media's vice president of marketing and licensing. 7 The comic strip 'has a magical, everlasting quality about it. 8 Our plan is to honor Charles Schulz and the strip all year long.' 9 The effort will make the Peanuts gang very familiar pitchmen in 1990. 10 General Electric plans to use the characters to plug its Miser light bulb. 11 Teleflora will run TV ads at Valentine's Day promoting its 'Snoopy's Love Bouquet.' Ralston Purina will promote its Chex Party Mix's three new flavor packets named for Charlie Brown, Lucy and Linus. 12 The characters will also be featured in a new public service effort for the United Way. 13 Beyond the advertisements, the syndicator is planning a traveling arena show, new TV specials for CBS and even an exhibit at the Smithsonian Institute. 14 The yearlong schedule of festivities will be kicked off officially with a combination live and animation half-time special at the Super Bowl in January. 15 All the tie-ins, though, have some marketing experts questioning whether the party may go too far. 'There are too many people participating,' says Al Ries, of Trout & Ries, a Greenwich, Conn., marketing consulting firm. 'If you want to cut through the clutter, you have to make your message as distinct, sharp and individual as possible. 16 Sharing a character with other advertisers isn't a way to do that.' 17 But United Media says it's very scrupulous with the contracts it hands out. 'We're not interested in promoting every single product that comes along,' Mr. Shore says. 18 Metropolitan Life ad executives couldn't be reached about the use of the Peanuts characters by others. 19 But Mr. Shore says that company's exclusive advertising rights extend only to the insurance and financial services category. 20 Berry Rejoins WPP Group 21 Norman Berry, the creative executive who was apparently squeezed out of Ogilvy & Mather in June, is returning to Ogilvy's parent company, WPP Group PLC. 22 Mr. Berry, 58, had resigned after being asked by Ogilvy 's chairman and chief executive officer, Kenneth Roman, to give up his title as creative head of the New York office and to take a fuzzier international role. 23 Yesterday, just a day after Mr. Roman announced he would leave to take a top post at American Express, WPP said Mr. Berry would return to take an international role at the parent company. 24 Mr. Berry said the timing was a coincidence and that his decision was unrelated to Mr. Roman's departure. 25 RJR Taps FCB/Leber 26 RJR Nabisco Inc. awarded its national broadcast media-buying assignment to FCB/Leber Katz Partners, the New York outpost of Chicago-based Foote, Cone & Belding. 27 The naming of FCB/Leber Katz Partners as agency of record for Nabisco Brands Inc. and Planters LifeSavers Co. follows RJR Nabisco's announcement last week that it will disband its RJR Nabisco Broadcast division and dismiss its 14 employees Dec. 1. to cut costs. 28 New York-based RJR Nabisco wouldn't say what it spends annually, but industry executives say it will spend more than $140 million this year, down from about $200 million last year. 29 Ad Notes. . . . 30 EARNINGS: Interpublic Group of Cos. said third-quarter net rose 15% to $6.9 million, or 21 cents a share, from $6 million, or 18 cents a share, in the year-earlier period. 31 Revenue increased more than 5% to $283.2 million from $268.6 million. 32 HOLIDAY PROMOTION: PepsiCo Inc. will give away 4,000 sets of 'Game Boy,' Nintendo's new hand-held video game in a two-month promotion scheduled to begin Nov. 1. 33 Pepsi said it will spend $10 million advertising the promotion.

Why is he cashing in now ?

he

Who is he?

1 Good grief! Charlie Brown is selling out. 2 Those Metropolitan Life ads were bad enough. 3 But now, Charlie Brown is about to start pitching everything from Chex Party Mix to light bulbs. 4 Why is he cashing in now? 5 Turns out that next year, Charlie Brown, Snoopy and the gang turn 40 -- and Scripps Howard's United Media unit, the syndicator and licensing agent for Charles Schulz's comic strip, sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads, tie-ins and promotions. 6 'Peanuts has become a major part of American culture,' says Peter Shore, United Media's vice president of marketing and licensing. 7 The comic strip 'has a magical, everlasting quality about it. 8 Our plan is to honor Charles Schulz and the strip all year long.' 9 The effort will make the Peanuts gang very familiar pitchmen in 1990. 10 General Electric plans to use the characters to plug its Miser light bulb. 11 Teleflora will run TV ads at Valentine's Day promoting its 'Snoopy's Love Bouquet.' Ralston Purina will promote its Chex Party Mix's three new flavor packets named for Charlie Brown, Lucy and Linus. 12 The characters will also be featured in a new public service effort for the United Way. 13 Beyond the advertisements, the syndicator is planning a traveling arena show, new TV specials for CBS and even an exhibit at the Smithsonian Institute. 14 The yearlong schedule of festivities will be kicked off officially with a combination live and animation half-time special at the Super Bowl in January. 15 All the tie-ins, though, have some marketing experts questioning whether the party may go too far. 'There are too many people participating,' says Al Ries, of Trout & Ries, a Greenwich, Conn., marketing consulting firm. 'If you want to cut through the clutter, you have to make your message as distinct, sharp and individual as possible. 16 Sharing a character with other advertisers isn't a way to do that.' 17 But United Media says it's very scrupulous with the contracts it hands out. 'We're not interested in promoting every single product that comes along,' Mr. Shore says. 18 Metropolitan Life ad executives couldn't be reached about the use of the Peanuts characters by others. 19 But Mr. Shore says that company's exclusive advertising rights extend only to the insurance and financial services category. 20 Berry Rejoins WPP Group 21 Norman Berry, the creative executive who was apparently squeezed out of Ogilvy & Mather in June, is returning to Ogilvy's parent company, WPP Group PLC. 22 Mr. Berry, 58, had resigned after being asked by Ogilvy 's chairman and chief executive officer, Kenneth Roman, to give up his title as creative head of the New York office and to take a fuzzier international role. 23 Yesterday, just a day after Mr. Roman announced he would leave to take a top post at American Express, WPP said Mr. Berry would return to take an international role at the parent company. 24 Mr. Berry said the timing was a coincidence and that his decision was unrelated to Mr. Roman's departure. 25 RJR Taps FCB/Leber 26 RJR Nabisco Inc. awarded its national broadcast media-buying assignment to FCB/Leber Katz Partners, the New York outpost of Chicago-based Foote, Cone & Belding. 27 The naming of FCB/Leber Katz Partners as agency of record for Nabisco Brands Inc. and Planters LifeSavers Co. follows RJR Nabisco's announcement last week that it will disband its RJR Nabisco Broadcast division and dismiss its 14 employees Dec. 1. to cut costs. 28 New York-based RJR Nabisco wouldn't say what it spends annually, but industry executives say it will spend more than $140 million this year, down from about $200 million last year. 29 Ad Notes. . . . 30 EARNINGS: Interpublic Group of Cos. said third-quarter net rose 15% to $6.9 million, or 21 cents a share, from $6 million, or 18 cents a share, in the year-earlier period. 31 Revenue increased more than 5% to $283.2 million from $268.6 million. 32 HOLIDAY PROMOTION: PepsiCo Inc. will give away 4,000 sets of 'Game Boy,' Nintendo's new hand-held video game in a two-month promotion scheduled to begin Nov. 1. 33 Pepsi said it will spend $10 million advertising the promotion.

Turns out that next year , Charlie Brown , Snoopy and the gang turn 40 - - and Scripps Howard ' s United Media unit , the syndicator and licensing agent for Charles Schulz ' s comic strip , sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads , tie - ins and promotions .

bonanza

How much money could they be making?

1 Time Warner Inc. is considering a legal challenge to Tele-Communications Inc. 's plan to buy half of Showtime Networks Inc., a move that could lead to all-out war between the cable industry's two most powerful players. 2 Time is also fighting the transaction on other fronts, by attempting to discourage other cable operators from joining Tele-Communications as investors in Showtime, cable-TV industry executives say. 3 Time officials declined to comment. 4 Last week, Tele-Communications agreed to pay Viacom Inc. $225 million for a 50% stake in its Showtime subsidiary, which is a distant second to Time's Home Box Office in the delivery of pay-TV networks to cable subscribers. 5 Tele-Communications, the U.S.'s largest cable company, said it may seek other cable partners to join in its investment. 6 Tele-Communications is HBO's largest customer, and the two have a number of other business relationships. 7 Earlier this year, Time even discussed bringing Tele-Communications in as an investor in HBO, executives at both companies said. 8 The purchase of the Showtime stake is 'a direct slap in our face,' said one senior Time executive. 9 Time is expected to mount a legal challenge in U.S. District Court in New York, where Viacom in May filed a $2.5 billion antitrust suit charging Time and HBO with monopolizing the pay-TV business and trying to crush competition from Showtime. 10 Executives involved in plotting Time's defense say it is now preparing a countersuit naming both Viacom and Tele-Communications as defendants. 11 The executives say Time may seek to break up the transaction after it is consummated, or may seek constraints that would prevent Tele-Communications from dropping HBO in any of its cable systems in favor of Showtime. 12 Viacom officials declined to comment. 13 Jerome Kern, Tele-Communications' chief outside counsel, said he wasn't aware of Time's legal plans. 14 But he said that any effort by Time to characterize the Tele-Communications investment in Showtime as anti-competitive would be 'the pot calling the kettle black.' 15 'It's hard to see how an investment by the largest {cable operator} in the weaker of the two networks is anti-competitive, when the stronger of the two networks is owned by the second largest' cable operator, Mr. Kern said. 16 In addition to owning HBO, with 22 million subscribers, Time Warner separately operates cable-TV system serving about 5.6 million cable-TV subscribers. 17 Tele-Communications controls close to 12 million cable subscribers, and Viacom has about one million. 18 In its suit against Time, Viacom says the ownership of both cable systems and cable-programming networks gives the company too much market power. 19 Time argues that in joining up with Tele-Communications, Viacom has potentially more power, particularly since Viacom also owns cable networks MTV, VH-1 and Nick at Nite. 20 Ironically, Tele-Communications and Time have often worked closely in the cable business. 21 Together, they control nearly 40% of Turner Broadcasting Systems Inc.; Tele-Communications has a 21.8% stake, while Time Warner has a 17.8% stake. 22 But since Time's merger with Warner Communications Inc., relations between the two have become strained. 23 Each company worries that the other is becoming too powerful and too vertically integrated. 24 Meanwhile, some legal observers say the Tele-Communications investment and other developments are weakening Viacom's antitrust suit against Time. 25 Viacom accuses Time in its suit of refusing to carry Showtime or a sister service, The Movie Channel, on Time's Manhattan Cable TV system, one of the nation's largest urban systems. 26 But yesterday, Manhattan Cable announced it will launch Showtime on Nov. 1 to over 230,000 subscribers. 27 Showtime has also accused HBO of locking up the lion's share of Hollywood's movies by signing exclusive contracts with all the major studios. 28 But Showtime has continued to sign new contracts with Hollywood studios, and yesterday announced it will buy movies from Columbia Pictures Entertainment Inc., which currently has a non-exclusive arrangement with HBO.

Time Warner Inc . is considering a legal challenge to Tele - Communications Inc . ' s plan to buy half of Showtime Networks Inc . , a move that could lead to all - out war between the cable industry ' s two most powerful players .

all - out war

has it ever happened before?

1 Time Warner Inc. is considering a legal challenge to Tele-Communications Inc. 's plan to buy half of Showtime Networks Inc., a move that could lead to all-out war between the cable industry's two most powerful players. 2 Time is also fighting the transaction on other fronts, by attempting to discourage other cable operators from joining Tele-Communications as investors in Showtime, cable-TV industry executives say. 3 Time officials declined to comment. 4 Last week, Tele-Communications agreed to pay Viacom Inc. $225 million for a 50% stake in its Showtime subsidiary, which is a distant second to Time's Home Box Office in the delivery of pay-TV networks to cable subscribers. 5 Tele-Communications, the U.S.'s largest cable company, said it may seek other cable partners to join in its investment. 6 Tele-Communications is HBO's largest customer, and the two have a number of other business relationships. 7 Earlier this year, Time even discussed bringing Tele-Communications in as an investor in HBO, executives at both companies said. 8 The purchase of the Showtime stake is 'a direct slap in our face,' said one senior Time executive. 9 Time is expected to mount a legal challenge in U.S. District Court in New York, where Viacom in May filed a $2.5 billion antitrust suit charging Time and HBO with monopolizing the pay-TV business and trying to crush competition from Showtime. 10 Executives involved in plotting Time's defense say it is now preparing a countersuit naming both Viacom and Tele-Communications as defendants. 11 The executives say Time may seek to break up the transaction after it is consummated, or may seek constraints that would prevent Tele-Communications from dropping HBO in any of its cable systems in favor of Showtime. 12 Viacom officials declined to comment. 13 Jerome Kern, Tele-Communications' chief outside counsel, said he wasn't aware of Time's legal plans. 14 But he said that any effort by Time to characterize the Tele-Communications investment in Showtime as anti-competitive would be 'the pot calling the kettle black.' 15 'It's hard to see how an investment by the largest {cable operator} in the weaker of the two networks is anti-competitive, when the stronger of the two networks is owned by the second largest' cable operator, Mr. Kern said. 16 In addition to owning HBO, with 22 million subscribers, Time Warner separately operates cable-TV system serving about 5.6 million cable-TV subscribers. 17 Tele-Communications controls close to 12 million cable subscribers, and Viacom has about one million. 18 In its suit against Time, Viacom says the ownership of both cable systems and cable-programming networks gives the company too much market power. 19 Time argues that in joining up with Tele-Communications, Viacom has potentially more power, particularly since Viacom also owns cable networks MTV, VH-1 and Nick at Nite. 20 Ironically, Tele-Communications and Time have often worked closely in the cable business. 21 Together, they control nearly 40% of Turner Broadcasting Systems Inc.; Tele-Communications has a 21.8% stake, while Time Warner has a 17.8% stake. 22 But since Time's merger with Warner Communications Inc., relations between the two have become strained. 23 Each company worries that the other is becoming too powerful and too vertically integrated. 24 Meanwhile, some legal observers say the Tele-Communications investment and other developments are weakening Viacom's antitrust suit against Time. 25 Viacom accuses Time in its suit of refusing to carry Showtime or a sister service, The Movie Channel, on Time's Manhattan Cable TV system, one of the nation's largest urban systems. 26 But yesterday, Manhattan Cable announced it will launch Showtime on Nov. 1 to over 230,000 subscribers. 27 Showtime has also accused HBO of locking up the lion's share of Hollywood's movies by signing exclusive contracts with all the major studios. 28 But Showtime has continued to sign new contracts with Hollywood studios, and yesterday announced it will buy movies from Columbia Pictures Entertainment Inc., which currently has a non-exclusive arrangement with HBO.

Time Warner Inc . is considering a legal challenge to Tele - Communications Inc . ' s plan to buy half of Showtime Networks Inc . , a move that could lead to all - out war between the cable industry ' s two most powerful players .

the cable industry ' s two most powerful players

Who are the cable industry's two most powerful players?

1 Time Warner Inc. is considering a legal challenge to Tele-Communications Inc. 's plan to buy half of Showtime Networks Inc., a move that could lead to all-out war between the cable industry's two most powerful players. 2 Time is also fighting the transaction on other fronts, by attempting to discourage other cable operators from joining Tele-Communications as investors in Showtime, cable-TV industry executives say. 3 Time officials declined to comment. 4 Last week, Tele-Communications agreed to pay Viacom Inc. $225 million for a 50% stake in its Showtime subsidiary, which is a distant second to Time's Home Box Office in the delivery of pay-TV networks to cable subscribers. 5 Tele-Communications, the U.S.'s largest cable company, said it may seek other cable partners to join in its investment. 6 Tele-Communications is HBO's largest customer, and the two have a number of other business relationships. 7 Earlier this year, Time even discussed bringing Tele-Communications in as an investor in HBO, executives at both companies said. 8 The purchase of the Showtime stake is 'a direct slap in our face,' said one senior Time executive. 9 Time is expected to mount a legal challenge in U.S. District Court in New York, where Viacom in May filed a $2.5 billion antitrust suit charging Time and HBO with monopolizing the pay-TV business and trying to crush competition from Showtime. 10 Executives involved in plotting Time's defense say it is now preparing a countersuit naming both Viacom and Tele-Communications as defendants. 11 The executives say Time may seek to break up the transaction after it is consummated, or may seek constraints that would prevent Tele-Communications from dropping HBO in any of its cable systems in favor of Showtime. 12 Viacom officials declined to comment. 13 Jerome Kern, Tele-Communications' chief outside counsel, said he wasn't aware of Time's legal plans. 14 But he said that any effort by Time to characterize the Tele-Communications investment in Showtime as anti-competitive would be 'the pot calling the kettle black.' 15 'It's hard to see how an investment by the largest {cable operator} in the weaker of the two networks is anti-competitive, when the stronger of the two networks is owned by the second largest' cable operator, Mr. Kern said. 16 In addition to owning HBO, with 22 million subscribers, Time Warner separately operates cable-TV system serving about 5.6 million cable-TV subscribers. 17 Tele-Communications controls close to 12 million cable subscribers, and Viacom has about one million. 18 In its suit against Time, Viacom says the ownership of both cable systems and cable-programming networks gives the company too much market power. 19 Time argues that in joining up with Tele-Communications, Viacom has potentially more power, particularly since Viacom also owns cable networks MTV, VH-1 and Nick at Nite. 20 Ironically, Tele-Communications and Time have often worked closely in the cable business. 21 Together, they control nearly 40% of Turner Broadcasting Systems Inc.; Tele-Communications has a 21.8% stake, while Time Warner has a 17.8% stake. 22 But since Time's merger with Warner Communications Inc., relations between the two have become strained. 23 Each company worries that the other is becoming too powerful and too vertically integrated. 24 Meanwhile, some legal observers say the Tele-Communications investment and other developments are weakening Viacom's antitrust suit against Time. 25 Viacom accuses Time in its suit of refusing to carry Showtime or a sister service, The Movie Channel, on Time's Manhattan Cable TV system, one of the nation's largest urban systems. 26 But yesterday, Manhattan Cable announced it will launch Showtime on Nov. 1 to over 230,000 subscribers. 27 Showtime has also accused HBO of locking up the lion's share of Hollywood's movies by signing exclusive contracts with all the major studios. 28 But Showtime has continued to sign new contracts with Hollywood studios, and yesterday announced it will buy movies from Columbia Pictures Entertainment Inc., which currently has a non-exclusive arrangement with HBO.

Time Warner Inc . is considering a legal challenge to Tele - Communications Inc . ' s plan to buy half of Showtime Networks Inc . , a move that could lead to all - out war between the cable industry ' s two most powerful players .

challenge

What is the basis for this legal challenge?

1 Time Warner Inc. is considering a legal challenge to Tele-Communications Inc. 's plan to buy half of Showtime Networks Inc., a move that could lead to all-out war between the cable industry's two most powerful players. 2 Time is also fighting the transaction on other fronts, by attempting to discourage other cable operators from joining Tele-Communications as investors in Showtime, cable-TV industry executives say. 3 Time officials declined to comment. 4 Last week, Tele-Communications agreed to pay Viacom Inc. $225 million for a 50% stake in its Showtime subsidiary, which is a distant second to Time's Home Box Office in the delivery of pay-TV networks to cable subscribers. 5 Tele-Communications, the U.S.'s largest cable company, said it may seek other cable partners to join in its investment. 6 Tele-Communications is HBO's largest customer, and the two have a number of other business relationships. 7 Earlier this year, Time even discussed bringing Tele-Communications in as an investor in HBO, executives at both companies said. 8 The purchase of the Showtime stake is 'a direct slap in our face,' said one senior Time executive. 9 Time is expected to mount a legal challenge in U.S. District Court in New York, where Viacom in May filed a $2.5 billion antitrust suit charging Time and HBO with monopolizing the pay-TV business and trying to crush competition from Showtime. 10 Executives involved in plotting Time's defense say it is now preparing a countersuit naming both Viacom and Tele-Communications as defendants. 11 The executives say Time may seek to break up the transaction after it is consummated, or may seek constraints that would prevent Tele-Communications from dropping HBO in any of its cable systems in favor of Showtime. 12 Viacom officials declined to comment. 13 Jerome Kern, Tele-Communications' chief outside counsel, said he wasn't aware of Time's legal plans. 14 But he said that any effort by Time to characterize the Tele-Communications investment in Showtime as anti-competitive would be 'the pot calling the kettle black.' 15 'It's hard to see how an investment by the largest {cable operator} in the weaker of the two networks is anti-competitive, when the stronger of the two networks is owned by the second largest' cable operator, Mr. Kern said. 16 In addition to owning HBO, with 22 million subscribers, Time Warner separately operates cable-TV system serving about 5.6 million cable-TV subscribers. 17 Tele-Communications controls close to 12 million cable subscribers, and Viacom has about one million. 18 In its suit against Time, Viacom says the ownership of both cable systems and cable-programming networks gives the company too much market power. 19 Time argues that in joining up with Tele-Communications, Viacom has potentially more power, particularly since Viacom also owns cable networks MTV, VH-1 and Nick at Nite. 20 Ironically, Tele-Communications and Time have often worked closely in the cable business. 21 Together, they control nearly 40% of Turner Broadcasting Systems Inc.; Tele-Communications has a 21.8% stake, while Time Warner has a 17.8% stake. 22 But since Time's merger with Warner Communications Inc., relations between the two have become strained. 23 Each company worries that the other is becoming too powerful and too vertically integrated. 24 Meanwhile, some legal observers say the Tele-Communications investment and other developments are weakening Viacom's antitrust suit against Time. 25 Viacom accuses Time in its suit of refusing to carry Showtime or a sister service, The Movie Channel, on Time's Manhattan Cable TV system, one of the nation's largest urban systems. 26 But yesterday, Manhattan Cable announced it will launch Showtime on Nov. 1 to over 230,000 subscribers. 27 Showtime has also accused HBO of locking up the lion's share of Hollywood's movies by signing exclusive contracts with all the major studios. 28 But Showtime has continued to sign new contracts with Hollywood studios, and yesterday announced it will buy movies from Columbia Pictures Entertainment Inc., which currently has a non-exclusive arrangement with HBO.

Time is also fighting the transaction on other fronts , by attempting to discourage other cable operators from joining Tele - Communications as investors in Showtime , cable - TV industry executives say .

fighting

Are these methods legal?

1 Time Warner Inc. is considering a legal challenge to Tele-Communications Inc. 's plan to buy half of Showtime Networks Inc., a move that could lead to all-out war between the cable industry's two most powerful players. 2 Time is also fighting the transaction on other fronts, by attempting to discourage other cable operators from joining Tele-Communications as investors in Showtime, cable-TV industry executives say. 3 Time officials declined to comment. 4 Last week, Tele-Communications agreed to pay Viacom Inc. $225 million for a 50% stake in its Showtime subsidiary, which is a distant second to Time's Home Box Office in the delivery of pay-TV networks to cable subscribers. 5 Tele-Communications, the U.S.'s largest cable company, said it may seek other cable partners to join in its investment. 6 Tele-Communications is HBO's largest customer, and the two have a number of other business relationships. 7 Earlier this year, Time even discussed bringing Tele-Communications in as an investor in HBO, executives at both companies said. 8 The purchase of the Showtime stake is 'a direct slap in our face,' said one senior Time executive. 9 Time is expected to mount a legal challenge in U.S. District Court in New York, where Viacom in May filed a $2.5 billion antitrust suit charging Time and HBO with monopolizing the pay-TV business and trying to crush competition from Showtime. 10 Executives involved in plotting Time's defense say it is now preparing a countersuit naming both Viacom and Tele-Communications as defendants. 11 The executives say Time may seek to break up the transaction after it is consummated, or may seek constraints that would prevent Tele-Communications from dropping HBO in any of its cable systems in favor of Showtime. 12 Viacom officials declined to comment. 13 Jerome Kern, Tele-Communications' chief outside counsel, said he wasn't aware of Time's legal plans. 14 But he said that any effort by Time to characterize the Tele-Communications investment in Showtime as anti-competitive would be 'the pot calling the kettle black.' 15 'It's hard to see how an investment by the largest {cable operator} in the weaker of the two networks is anti-competitive, when the stronger of the two networks is owned by the second largest' cable operator, Mr. Kern said. 16 In addition to owning HBO, with 22 million subscribers, Time Warner separately operates cable-TV system serving about 5.6 million cable-TV subscribers. 17 Tele-Communications controls close to 12 million cable subscribers, and Viacom has about one million. 18 In its suit against Time, Viacom says the ownership of both cable systems and cable-programming networks gives the company too much market power. 19 Time argues that in joining up with Tele-Communications, Viacom has potentially more power, particularly since Viacom also owns cable networks MTV, VH-1 and Nick at Nite. 20 Ironically, Tele-Communications and Time have often worked closely in the cable business. 21 Together, they control nearly 40% of Turner Broadcasting Systems Inc.; Tele-Communications has a 21.8% stake, while Time Warner has a 17.8% stake. 22 But since Time's merger with Warner Communications Inc., relations between the two have become strained. 23 Each company worries that the other is becoming too powerful and too vertically integrated. 24 Meanwhile, some legal observers say the Tele-Communications investment and other developments are weakening Viacom's antitrust suit against Time. 25 Viacom accuses Time in its suit of refusing to carry Showtime or a sister service, The Movie Channel, on Time's Manhattan Cable TV system, one of the nation's largest urban systems. 26 But yesterday, Manhattan Cable announced it will launch Showtime on Nov. 1 to over 230,000 subscribers. 27 Showtime has also accused HBO of locking up the lion's share of Hollywood's movies by signing exclusive contracts with all the major studios. 28 But Showtime has continued to sign new contracts with Hollywood studios, and yesterday announced it will buy movies from Columbia Pictures Entertainment Inc., which currently has a non-exclusive arrangement with HBO.

Time officials declined to comment .

Time officials

how many were asked?

1 Time Warner Inc. is considering a legal challenge to Tele-Communications Inc. 's plan to buy half of Showtime Networks Inc., a move that could lead to all-out war between the cable industry's two most powerful players. 2 Time is also fighting the transaction on other fronts, by attempting to discourage other cable operators from joining Tele-Communications as investors in Showtime, cable-TV industry executives say. 3 Time officials declined to comment. 4 Last week, Tele-Communications agreed to pay Viacom Inc. $225 million for a 50% stake in its Showtime subsidiary, which is a distant second to Time's Home Box Office in the delivery of pay-TV networks to cable subscribers. 5 Tele-Communications, the U.S.'s largest cable company, said it may seek other cable partners to join in its investment. 6 Tele-Communications is HBO's largest customer, and the two have a number of other business relationships. 7 Earlier this year, Time even discussed bringing Tele-Communications in as an investor in HBO, executives at both companies said. 8 The purchase of the Showtime stake is 'a direct slap in our face,' said one senior Time executive. 9 Time is expected to mount a legal challenge in U.S. District Court in New York, where Viacom in May filed a $2.5 billion antitrust suit charging Time and HBO with monopolizing the pay-TV business and trying to crush competition from Showtime. 10 Executives involved in plotting Time's defense say it is now preparing a countersuit naming both Viacom and Tele-Communications as defendants. 11 The executives say Time may seek to break up the transaction after it is consummated, or may seek constraints that would prevent Tele-Communications from dropping HBO in any of its cable systems in favor of Showtime. 12 Viacom officials declined to comment. 13 Jerome Kern, Tele-Communications' chief outside counsel, said he wasn't aware of Time's legal plans. 14 But he said that any effort by Time to characterize the Tele-Communications investment in Showtime as anti-competitive would be 'the pot calling the kettle black.' 15 'It's hard to see how an investment by the largest {cable operator} in the weaker of the two networks is anti-competitive, when the stronger of the two networks is owned by the second largest' cable operator, Mr. Kern said. 16 In addition to owning HBO, with 22 million subscribers, Time Warner separately operates cable-TV system serving about 5.6 million cable-TV subscribers. 17 Tele-Communications controls close to 12 million cable subscribers, and Viacom has about one million. 18 In its suit against Time, Viacom says the ownership of both cable systems and cable-programming networks gives the company too much market power. 19 Time argues that in joining up with Tele-Communications, Viacom has potentially more power, particularly since Viacom also owns cable networks MTV, VH-1 and Nick at Nite. 20 Ironically, Tele-Communications and Time have often worked closely in the cable business. 21 Together, they control nearly 40% of Turner Broadcasting Systems Inc.; Tele-Communications has a 21.8% stake, while Time Warner has a 17.8% stake. 22 But since Time's merger with Warner Communications Inc., relations between the two have become strained. 23 Each company worries that the other is becoming too powerful and too vertically integrated. 24 Meanwhile, some legal observers say the Tele-Communications investment and other developments are weakening Viacom's antitrust suit against Time. 25 Viacom accuses Time in its suit of refusing to carry Showtime or a sister service, The Movie Channel, on Time's Manhattan Cable TV system, one of the nation's largest urban systems. 26 But yesterday, Manhattan Cable announced it will launch Showtime on Nov. 1 to over 230,000 subscribers. 27 Showtime has also accused HBO of locking up the lion's share of Hollywood's movies by signing exclusive contracts with all the major studios. 28 But Showtime has continued to sign new contracts with Hollywood studios, and yesterday announced it will buy movies from Columbia Pictures Entertainment Inc., which currently has a non-exclusive arrangement with HBO.

Time officials declined to comment .

declined to comment

Why did they decline to comment?

1 Time Warner Inc. is considering a legal challenge to Tele-Communications Inc. 's plan to buy half of Showtime Networks Inc., a move that could lead to all-out war between the cable industry's two most powerful players. 2 Time is also fighting the transaction on other fronts, by attempting to discourage other cable operators from joining Tele-Communications as investors in Showtime, cable-TV industry executives say. 3 Time officials declined to comment. 4 Last week, Tele-Communications agreed to pay Viacom Inc. $225 million for a 50% stake in its Showtime subsidiary, which is a distant second to Time's Home Box Office in the delivery of pay-TV networks to cable subscribers. 5 Tele-Communications, the U.S.'s largest cable company, said it may seek other cable partners to join in its investment. 6 Tele-Communications is HBO's largest customer, and the two have a number of other business relationships. 7 Earlier this year, Time even discussed bringing Tele-Communications in as an investor in HBO, executives at both companies said. 8 The purchase of the Showtime stake is 'a direct slap in our face,' said one senior Time executive. 9 Time is expected to mount a legal challenge in U.S. District Court in New York, where Viacom in May filed a $2.5 billion antitrust suit charging Time and HBO with monopolizing the pay-TV business and trying to crush competition from Showtime. 10 Executives involved in plotting Time's defense say it is now preparing a countersuit naming both Viacom and Tele-Communications as defendants. 11 The executives say Time may seek to break up the transaction after it is consummated, or may seek constraints that would prevent Tele-Communications from dropping HBO in any of its cable systems in favor of Showtime. 12 Viacom officials declined to comment. 13 Jerome Kern, Tele-Communications' chief outside counsel, said he wasn't aware of Time's legal plans. 14 But he said that any effort by Time to characterize the Tele-Communications investment in Showtime as anti-competitive would be 'the pot calling the kettle black.' 15 'It's hard to see how an investment by the largest {cable operator} in the weaker of the two networks is anti-competitive, when the stronger of the two networks is owned by the second largest' cable operator, Mr. Kern said. 16 In addition to owning HBO, with 22 million subscribers, Time Warner separately operates cable-TV system serving about 5.6 million cable-TV subscribers. 17 Tele-Communications controls close to 12 million cable subscribers, and Viacom has about one million. 18 In its suit against Time, Viacom says the ownership of both cable systems and cable-programming networks gives the company too much market power. 19 Time argues that in joining up with Tele-Communications, Viacom has potentially more power, particularly since Viacom also owns cable networks MTV, VH-1 and Nick at Nite. 20 Ironically, Tele-Communications and Time have often worked closely in the cable business. 21 Together, they control nearly 40% of Turner Broadcasting Systems Inc.; Tele-Communications has a 21.8% stake, while Time Warner has a 17.8% stake. 22 But since Time's merger with Warner Communications Inc., relations between the two have become strained. 23 Each company worries that the other is becoming too powerful and too vertically integrated. 24 Meanwhile, some legal observers say the Tele-Communications investment and other developments are weakening Viacom's antitrust suit against Time. 25 Viacom accuses Time in its suit of refusing to carry Showtime or a sister service, The Movie Channel, on Time's Manhattan Cable TV system, one of the nation's largest urban systems. 26 But yesterday, Manhattan Cable announced it will launch Showtime on Nov. 1 to over 230,000 subscribers. 27 Showtime has also accused HBO of locking up the lion's share of Hollywood's movies by signing exclusive contracts with all the major studios. 28 But Showtime has continued to sign new contracts with Hollywood studios, and yesterday announced it will buy movies from Columbia Pictures Entertainment Inc., which currently has a non-exclusive arrangement with HBO.

Last week , Tele - Communications agreed to pay Viacom Inc . $ 225 million for a 50 % stake in its Showtime subsidiary , which is a distant second to Time ' s Home Box Office in the delivery of pay - TV networks to cable subscribers .

agreed

What were some of the terms of negotiation that may be of significance?

1 Time Warner Inc. is considering a legal challenge to Tele-Communications Inc. 's plan to buy half of Showtime Networks Inc., a move that could lead to all-out war between the cable industry's two most powerful players. 2 Time is also fighting the transaction on other fronts, by attempting to discourage other cable operators from joining Tele-Communications as investors in Showtime, cable-TV industry executives say. 3 Time officials declined to comment. 4 Last week, Tele-Communications agreed to pay Viacom Inc. $225 million for a 50% stake in its Showtime subsidiary, which is a distant second to Time's Home Box Office in the delivery of pay-TV networks to cable subscribers. 5 Tele-Communications, the U.S.'s largest cable company, said it may seek other cable partners to join in its investment. 6 Tele-Communications is HBO's largest customer, and the two have a number of other business relationships. 7 Earlier this year, Time even discussed bringing Tele-Communications in as an investor in HBO, executives at both companies said. 8 The purchase of the Showtime stake is 'a direct slap in our face,' said one senior Time executive. 9 Time is expected to mount a legal challenge in U.S. District Court in New York, where Viacom in May filed a $2.5 billion antitrust suit charging Time and HBO with monopolizing the pay-TV business and trying to crush competition from Showtime. 10 Executives involved in plotting Time's defense say it is now preparing a countersuit naming both Viacom and Tele-Communications as defendants. 11 The executives say Time may seek to break up the transaction after it is consummated, or may seek constraints that would prevent Tele-Communications from dropping HBO in any of its cable systems in favor of Showtime. 12 Viacom officials declined to comment. 13 Jerome Kern, Tele-Communications' chief outside counsel, said he wasn't aware of Time's legal plans. 14 But he said that any effort by Time to characterize the Tele-Communications investment in Showtime as anti-competitive would be 'the pot calling the kettle black.' 15 'It's hard to see how an investment by the largest {cable operator} in the weaker of the two networks is anti-competitive, when the stronger of the two networks is owned by the second largest' cable operator, Mr. Kern said. 16 In addition to owning HBO, with 22 million subscribers, Time Warner separately operates cable-TV system serving about 5.6 million cable-TV subscribers. 17 Tele-Communications controls close to 12 million cable subscribers, and Viacom has about one million. 18 In its suit against Time, Viacom says the ownership of both cable systems and cable-programming networks gives the company too much market power. 19 Time argues that in joining up with Tele-Communications, Viacom has potentially more power, particularly since Viacom also owns cable networks MTV, VH-1 and Nick at Nite. 20 Ironically, Tele-Communications and Time have often worked closely in the cable business. 21 Together, they control nearly 40% of Turner Broadcasting Systems Inc.; Tele-Communications has a 21.8% stake, while Time Warner has a 17.8% stake. 22 But since Time's merger with Warner Communications Inc., relations between the two have become strained. 23 Each company worries that the other is becoming too powerful and too vertically integrated. 24 Meanwhile, some legal observers say the Tele-Communications investment and other developments are weakening Viacom's antitrust suit against Time. 25 Viacom accuses Time in its suit of refusing to carry Showtime or a sister service, The Movie Channel, on Time's Manhattan Cable TV system, one of the nation's largest urban systems. 26 But yesterday, Manhattan Cable announced it will launch Showtime on Nov. 1 to over 230,000 subscribers. 27 Showtime has also accused HBO of locking up the lion's share of Hollywood's movies by signing exclusive contracts with all the major studios. 28 But Showtime has continued to sign new contracts with Hollywood studios, and yesterday announced it will buy movies from Columbia Pictures Entertainment Inc., which currently has a non-exclusive arrangement with HBO.

Tele - Communications , the U . S . ' s largest cable company , said it may seek other cable partners to join in its investment .

U . S . ' s largest cable company ,

who is the second largest?

1 Time Warner Inc. is considering a legal challenge to Tele-Communications Inc. 's plan to buy half of Showtime Networks Inc., a move that could lead to all-out war between the cable industry's two most powerful players. 2 Time is also fighting the transaction on other fronts, by attempting to discourage other cable operators from joining Tele-Communications as investors in Showtime, cable-TV industry executives say. 3 Time officials declined to comment. 4 Last week, Tele-Communications agreed to pay Viacom Inc. $225 million for a 50% stake in its Showtime subsidiary, which is a distant second to Time's Home Box Office in the delivery of pay-TV networks to cable subscribers. 5 Tele-Communications, the U.S.'s largest cable company, said it may seek other cable partners to join in its investment. 6 Tele-Communications is HBO's largest customer, and the two have a number of other business relationships. 7 Earlier this year, Time even discussed bringing Tele-Communications in as an investor in HBO, executives at both companies said. 8 The purchase of the Showtime stake is 'a direct slap in our face,' said one senior Time executive. 9 Time is expected to mount a legal challenge in U.S. District Court in New York, where Viacom in May filed a $2.5 billion antitrust suit charging Time and HBO with monopolizing the pay-TV business and trying to crush competition from Showtime. 10 Executives involved in plotting Time's defense say it is now preparing a countersuit naming both Viacom and Tele-Communications as defendants. 11 The executives say Time may seek to break up the transaction after it is consummated, or may seek constraints that would prevent Tele-Communications from dropping HBO in any of its cable systems in favor of Showtime. 12 Viacom officials declined to comment. 13 Jerome Kern, Tele-Communications' chief outside counsel, said he wasn't aware of Time's legal plans. 14 But he said that any effort by Time to characterize the Tele-Communications investment in Showtime as anti-competitive would be 'the pot calling the kettle black.' 15 'It's hard to see how an investment by the largest {cable operator} in the weaker of the two networks is anti-competitive, when the stronger of the two networks is owned by the second largest' cable operator, Mr. Kern said. 16 In addition to owning HBO, with 22 million subscribers, Time Warner separately operates cable-TV system serving about 5.6 million cable-TV subscribers. 17 Tele-Communications controls close to 12 million cable subscribers, and Viacom has about one million. 18 In its suit against Time, Viacom says the ownership of both cable systems and cable-programming networks gives the company too much market power. 19 Time argues that in joining up with Tele-Communications, Viacom has potentially more power, particularly since Viacom also owns cable networks MTV, VH-1 and Nick at Nite. 20 Ironically, Tele-Communications and Time have often worked closely in the cable business. 21 Together, they control nearly 40% of Turner Broadcasting Systems Inc.; Tele-Communications has a 21.8% stake, while Time Warner has a 17.8% stake. 22 But since Time's merger with Warner Communications Inc., relations between the two have become strained. 23 Each company worries that the other is becoming too powerful and too vertically integrated. 24 Meanwhile, some legal observers say the Tele-Communications investment and other developments are weakening Viacom's antitrust suit against Time. 25 Viacom accuses Time in its suit of refusing to carry Showtime or a sister service, The Movie Channel, on Time's Manhattan Cable TV system, one of the nation's largest urban systems. 26 But yesterday, Manhattan Cable announced it will launch Showtime on Nov. 1 to over 230,000 subscribers. 27 Showtime has also accused HBO of locking up the lion's share of Hollywood's movies by signing exclusive contracts with all the major studios. 28 But Showtime has continued to sign new contracts with Hollywood studios, and yesterday announced it will buy movies from Columbia Pictures Entertainment Inc., which currently has a non-exclusive arrangement with HBO.

Tele - Communications , the U . S . ' s largest cable company , said it may seek other cable partners to join in its investment .

other cable partners

Who are these other cable partners?

1 Applied Solar Energy Corp. of City of Industry, Calif., said it and its majority shareholder, American Cyanamid Co., signed a non-binding letter of intent for the acquisition of Applied Solar by McDonnell Douglas Corp. for about $38 million. 2 The proposed acquisition provides for a cash payment of $10 a share at closing and a contingent payment of as much as 80 cents a share placed in escrow. 3 Details of the escrow agreement haven't been completed, the companies said. 4 There are 3.5 million shares of Applied Solar, of which American Cyanamid owns 2.7 million. 5 American Cyanamid is a Wayne, N.J., chemicals, drugs and fertilizer concern. 6 Completion of the acquisition is subject to execution of a definitive agreement, approval by all three companies' boards and the approval of Applied Solar's shareholders. 7 An Applied Solar spokesman said completion is expected at the end of the year or early next year. 8 A spokeswoman for the St. Louis aerospace and defense concern said it wanted the acquistion because Applied Solar is involved in solar cells and solid-state laser components, and this fits with McDonnell's business of laser applications for military space.

The proposed acquisition provides for a cash payment of $ 10 a share at closing and a contingent payment of as much as 80 cents a share placed in escrow .

a share

What is the current pre acquistion share value?

1 Applied Solar Energy Corp. of City of Industry, Calif., said it and its majority shareholder, American Cyanamid Co., signed a non-binding letter of intent for the acquisition of Applied Solar by McDonnell Douglas Corp. for about $38 million. 2 The proposed acquisition provides for a cash payment of $10 a share at closing and a contingent payment of as much as 80 cents a share placed in escrow. 3 Details of the escrow agreement haven't been completed, the companies said. 4 There are 3.5 million shares of Applied Solar, of which American Cyanamid owns 2.7 million. 5 American Cyanamid is a Wayne, N.J., chemicals, drugs and fertilizer concern. 6 Completion of the acquisition is subject to execution of a definitive agreement, approval by all three companies' boards and the approval of Applied Solar's shareholders. 7 An Applied Solar spokesman said completion is expected at the end of the year or early next year. 8 A spokeswoman for the St. Louis aerospace and defense concern said it wanted the acquistion because Applied Solar is involved in solar cells and solid-state laser components, and this fits with McDonnell's business of laser applications for military space.

The proposed acquisition provides for a cash payment of $ 10 a share at closing and a contingent payment of as much as 80 cents a share placed in escrow .

proposed acquisition

will it be agreed to?

1 Applied Solar Energy Corp. of City of Industry, Calif., said it and its majority shareholder, American Cyanamid Co., signed a non-binding letter of intent for the acquisition of Applied Solar by McDonnell Douglas Corp. for about $38 million. 2 The proposed acquisition provides for a cash payment of $10 a share at closing and a contingent payment of as much as 80 cents a share placed in escrow. 3 Details of the escrow agreement haven't been completed, the companies said. 4 There are 3.5 million shares of Applied Solar, of which American Cyanamid owns 2.7 million. 5 American Cyanamid is a Wayne, N.J., chemicals, drugs and fertilizer concern. 6 Completion of the acquisition is subject to execution of a definitive agreement, approval by all three companies' boards and the approval of Applied Solar's shareholders. 7 An Applied Solar spokesman said completion is expected at the end of the year or early next year. 8 A spokeswoman for the St. Louis aerospace and defense concern said it wanted the acquistion because Applied Solar is involved in solar cells and solid-state laser components, and this fits with McDonnell's business of laser applications for military space.

Details of the escrow agreement haven ' t been completed , the companies said .

escrow

what is escrow?

1 Applied Solar Energy Corp. of City of Industry, Calif., said it and its majority shareholder, American Cyanamid Co., signed a non-binding letter of intent for the acquisition of Applied Solar by McDonnell Douglas Corp. for about $38 million. 2 The proposed acquisition provides for a cash payment of $10 a share at closing and a contingent payment of as much as 80 cents a share placed in escrow. 3 Details of the escrow agreement haven't been completed, the companies said. 4 There are 3.5 million shares of Applied Solar, of which American Cyanamid owns 2.7 million. 5 American Cyanamid is a Wayne, N.J., chemicals, drugs and fertilizer concern. 6 Completion of the acquisition is subject to execution of a definitive agreement, approval by all three companies' boards and the approval of Applied Solar's shareholders. 7 An Applied Solar spokesman said completion is expected at the end of the year or early next year. 8 A spokeswoman for the St. Louis aerospace and defense concern said it wanted the acquistion because Applied Solar is involved in solar cells and solid-state laser components, and this fits with McDonnell's business of laser applications for military space.

Details of the escrow agreement haven ' t been completed , the companies said .

haven ' t been completed ,

Why wasn't it completed?

1 Applied Solar Energy Corp. of City of Industry, Calif., said it and its majority shareholder, American Cyanamid Co., signed a non-binding letter of intent for the acquisition of Applied Solar by McDonnell Douglas Corp. for about $38 million. 2 The proposed acquisition provides for a cash payment of $10 a share at closing and a contingent payment of as much as 80 cents a share placed in escrow. 3 Details of the escrow agreement haven't been completed, the companies said. 4 There are 3.5 million shares of Applied Solar, of which American Cyanamid owns 2.7 million. 5 American Cyanamid is a Wayne, N.J., chemicals, drugs and fertilizer concern. 6 Completion of the acquisition is subject to execution of a definitive agreement, approval by all three companies' boards and the approval of Applied Solar's shareholders. 7 An Applied Solar spokesman said completion is expected at the end of the year or early next year. 8 A spokeswoman for the St. Louis aerospace and defense concern said it wanted the acquistion because Applied Solar is involved in solar cells and solid-state laser components, and this fits with McDonnell's business of laser applications for military space.

Details of the escrow agreement haven ' t been completed , the companies said .

haven ' t been completed ,

When will they be completed?

1 Applied Solar Energy Corp. of City of Industry, Calif., said it and its majority shareholder, American Cyanamid Co., signed a non-binding letter of intent for the acquisition of Applied Solar by McDonnell Douglas Corp. for about $38 million. 2 The proposed acquisition provides for a cash payment of $10 a share at closing and a contingent payment of as much as 80 cents a share placed in escrow. 3 Details of the escrow agreement haven't been completed, the companies said. 4 There are 3.5 million shares of Applied Solar, of which American Cyanamid owns 2.7 million. 5 American Cyanamid is a Wayne, N.J., chemicals, drugs and fertilizer concern. 6 Completion of the acquisition is subject to execution of a definitive agreement, approval by all three companies' boards and the approval of Applied Solar's shareholders. 7 An Applied Solar spokesman said completion is expected at the end of the year or early next year. 8 A spokeswoman for the St. Louis aerospace and defense concern said it wanted the acquistion because Applied Solar is involved in solar cells and solid-state laser components, and this fits with McDonnell's business of laser applications for military space.

American Cyanamid is a Wayne , N . J . , chemicals , drugs and fertilizer concern .

drugs and fertilizer concern

Why is the word concern here?

1 Applied Solar Energy Corp. of City of Industry, Calif., said it and its majority shareholder, American Cyanamid Co., signed a non-binding letter of intent for the acquisition of Applied Solar by McDonnell Douglas Corp. for about $38 million. 2 The proposed acquisition provides for a cash payment of $10 a share at closing and a contingent payment of as much as 80 cents a share placed in escrow. 3 Details of the escrow agreement haven't been completed, the companies said. 4 There are 3.5 million shares of Applied Solar, of which American Cyanamid owns 2.7 million. 5 American Cyanamid is a Wayne, N.J., chemicals, drugs and fertilizer concern. 6 Completion of the acquisition is subject to execution of a definitive agreement, approval by all three companies' boards and the approval of Applied Solar's shareholders. 7 An Applied Solar spokesman said completion is expected at the end of the year or early next year. 8 A spokeswoman for the St. Louis aerospace and defense concern said it wanted the acquistion because Applied Solar is involved in solar cells and solid-state laser components, and this fits with McDonnell's business of laser applications for military space.

American Cyanamid is a Wayne , N . J . , chemicals , drugs and fertilizer concern .

concern

what is the concern?

1 Applied Solar Energy Corp. of City of Industry, Calif., said it and its majority shareholder, American Cyanamid Co., signed a non-binding letter of intent for the acquisition of Applied Solar by McDonnell Douglas Corp. for about $38 million. 2 The proposed acquisition provides for a cash payment of $10 a share at closing and a contingent payment of as much as 80 cents a share placed in escrow. 3 Details of the escrow agreement haven't been completed, the companies said. 4 There are 3.5 million shares of Applied Solar, of which American Cyanamid owns 2.7 million. 5 American Cyanamid is a Wayne, N.J., chemicals, drugs and fertilizer concern. 6 Completion of the acquisition is subject to execution of a definitive agreement, approval by all three companies' boards and the approval of Applied Solar's shareholders. 7 An Applied Solar spokesman said completion is expected at the end of the year or early next year. 8 A spokeswoman for the St. Louis aerospace and defense concern said it wanted the acquistion because Applied Solar is involved in solar cells and solid-state laser components, and this fits with McDonnell's business of laser applications for military space.

American Cyanamid is a Wayne , N . J . , chemicals , drugs and fertilizer concern .

concern

Why is it a concern?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

General Electric Co . executives and lawyers provided " misleading and false " information to the Pentagon in 1985 in an effort to cover up " longstanding fraudulent " billing practices , federal prosecutors alleged in legal briefs .

" longstanding fraudulent "

How did General Electric cover up fraud?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

General Electric Co . executives and lawyers provided " misleading and false " information to the Pentagon in 1985 in an effort to cover up " longstanding fraudulent " billing practices , federal prosecutors alleged in legal briefs .

" misleading

What was misleading about the information?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

General Electric Co . executives and lawyers provided " misleading and false " information to the Pentagon in 1985 in an effort to cover up " longstanding fraudulent " billing practices , federal prosecutors alleged in legal briefs .

fraudulent " billing practices ,

How was General Electric performing fraudulent billing practices?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

The government ' s startling allegations , filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court , challenge the motives and veracity of the nation ' s third - largest defense contractor .

challenge the motives and veracity

What were the motives GE?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

The government ' s startling allegations , filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court , challenge the motives and veracity of the nation ' s third - largest defense contractor .

criminal overcharge trial

What are the fine points of the case?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

The government ' s startling allegations , filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court , challenge the motives and veracity of the nation ' s third - largest defense contractor .

criminal overcharge

What is a criminal overcharge?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

The government ' s startling allegations , filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court , challenge the motives and veracity of the nation ' s third - largest defense contractor .

court ,

is that the highest court?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

In a strongly worded response summarizing a filing made in the same court yesterday , GE asserted that " prosecutors have misstated the testimony of witnesses , distorted documents and ignored important facts . " The company attacked the government ' s allegations as " reckless and baseless mudslinging , " and said its management " promptly and accurately reported " to the Pentagon all relevant information about billing practices .

ignored important facts

What important facts were ignored?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

In a strongly worded response summarizing a filing made in the same court yesterday , GE asserted that " prosecutors have misstated the testimony of witnesses , distorted documents and ignored important facts . " The company attacked the government ' s allegations as " reckless and baseless mudslinging , " and said its management " promptly and accurately reported " to the Pentagon all relevant information about billing practices .

distorted documents

How did prosecutors distort documents?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

The case strikes at the corporate image of GE , which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative , and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance .

future defense contracts

What percentage of defense contracts are associated with GE at the moment?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

The case strikes at the corporate image of GE , which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative , and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance .

corporate image of

do they have a positive image?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices .

company has been considered an industry leader

What reasons were behind GE being considered an industry leader?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices .

voluntary disclosures

Does this come back to them or the individual when it is voluntary?

1 General Electric Co. executives and lawyers provided 'misleading and false' information to the Pentagon in 1985 in an effort to cover up 'longstanding fraudulent' billing practices, federal prosecutors alleged in legal briefs. 2 The government's startling allegations, filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court, challenge the motives and veracity of the nation's third-largest defense contractor. 3 In a strongly worded response summarizing a filing made in the same court yesterday, GE asserted that 'prosecutors have misstated the testimony of witnesses, distorted documents and ignored important facts.' The company attacked the government's allegations as 'reckless and baseless mudslinging,' and said its management 'promptly and accurately reported' to the Pentagon all relevant information about billing practices. 4 The case strikes at the corporate image of GE, which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, and could cause a loss of future defense contracts if Pentagon and Justice Department officials take a tough stance. 5 The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices. 6 But the government now claims that a group of company managers and lawyers engaged in an elaborate strategy over five years to obscure from federal authorities the extent and details of 'widespread' fraudulent billing practices. 7 The problems were uncovered during a series of internal investigations of the company's Space Systems division, which has been the focus of two separate overcharge prosecutions by the government since 1985. 8 The dispute stems from pretrial maneuvering in the pending court case, in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 9 Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme to defraud the Army of $21 million on a logistics computer contract. 10 The company, for its part, maintains that many of the disputed documents are privileged attorney-client communications that shouldn't be turned over to prosecutors. 11 A hearing is scheduled on the issue today. 12 The government's 136-page filing covers events leading up to the current case and an earlier indictment in March 1985, when GE was accused of defrauding the Pentagon by illegally claiming cost overruns on Minuteman missile contracts. 13 GE pleaded guilty and paid a fine of more than $1 million in the Minuteman case, which involved some of the same individuals and operations that are at the center of the dispute in the Philadelphia court. 14 In order to show that all of its units had corrected billing problems and therefore should become eligible again for new contracts, prosecutors contend that 'high-level GE executives' and company lawyers provided 'misleading statements' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985. 15 Overall, the government contends that GE's disclosure efforts largely were intended to 'curry favor' with Pentagon officials without detailing the extent of the management lapses and allegedly pervasive billing irregularities uncovered by company investigations. 16 Prosecutors depict a company that allegedly sat on damaging evidence of overcharges from 1983 to 1985, despite warnings from an internal auditor. 17 When GE finally disclosed the problems, prosecutors contend that Mr. Orr 'was erroneously informed that the {suspected} practices had only just been discovered' by GE management. 18 In its brief, the government asserted that it needs the internal GE documents to rebut anticipated efforts by GE during the trial to demonstrate 'its good corporate character.' 19 GE, which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents, countered that senior GE managers didn't find out about questionable billing practices until 1985, and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives. 20 Subsequent meetings, initiated after the company and two of its units were briefly suspended from federal contracts, were held to familiarize Mr. Orr with the company's self-policing procedures and to disclose additional information, according to GE. 21 GE's filing contends that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity. 22 The company's conduct 'does not even raise a question of wrongful corporate intent, ratification or cover-up,' GE's brief asserts. 'On the contrary, it shows a corporation reacting swiftly and aggressively to very difficult issues in largely uncharted waters.' 23 Mr. Orr couldn't be reached for comment yesterday.

The company has been considered an industry leader in advocating cooperation and voluntary disclosures of improper or inflated billing practices .

considered

considered by who?

1 Knight-Ridder Inc. said third-quarter earnings jumped 18%, partly because of the sale of two of its media properties. 2 The media concern said net income rose to $37.8 million, or 72 cents a share, from $32 million, or 57 cents a share, in the year-earlier period. 3 The latest results include a gain of $4.2 million, or eight cents a share, on the sale of television stations in Oklahoma City and Flint, Mich. 4 Revenue increased 7.5% to $540.9 million from $503.1 million. 5 Robert F. Singleton, Knight-Ridder's chief financial officer, said the company was 'pleased' with its overall performance, despite only single-digit growth in newspaper revenue. 6 That division's revenue rose 2.3% to $472.5 million from $461.9 million in the year-ago period. 7 Gains in advertising revenue, however, resulted in operating profit of $78.4 million -- up 20% from $65.6 million. 8 In New York Stock Exchange composite trading, Knight Ridder closed at $51.50 a share, down 12.5 cents.

Knight - Ridder Inc . said third - quarter earnings jumped 18 % , partly because of the sale of two of its media properties .

the sale of two of its media properties

Which two media properties did Knight-Ridder Inc. sell?

1 Knight-Ridder Inc. said third-quarter earnings jumped 18%, partly because of the sale of two of its media properties. 2 The media concern said net income rose to $37.8 million, or 72 cents a share, from $32 million, or 57 cents a share, in the year-earlier period. 3 The latest results include a gain of $4.2 million, or eight cents a share, on the sale of television stations in Oklahoma City and Flint, Mich. 4 Revenue increased 7.5% to $540.9 million from $503.1 million. 5 Robert F. Singleton, Knight-Ridder's chief financial officer, said the company was 'pleased' with its overall performance, despite only single-digit growth in newspaper revenue. 6 That division's revenue rose 2.3% to $472.5 million from $461.9 million in the year-ago period. 7 Gains in advertising revenue, however, resulted in operating profit of $78.4 million -- up 20% from $65.6 million. 8 In New York Stock Exchange composite trading, Knight Ridder closed at $51.50 a share, down 12.5 cents.

Knight - Ridder Inc . said third - quarter earnings jumped 18 % , partly because of the sale of two of its media properties .

two of its media properties .

Why did they sell two of their media properties?

1 Knight-Ridder Inc. said third-quarter earnings jumped 18%, partly because of the sale of two of its media properties. 2 The media concern said net income rose to $37.8 million, or 72 cents a share, from $32 million, or 57 cents a share, in the year-earlier period. 3 The latest results include a gain of $4.2 million, or eight cents a share, on the sale of television stations in Oklahoma City and Flint, Mich. 4 Revenue increased 7.5% to $540.9 million from $503.1 million. 5 Robert F. Singleton, Knight-Ridder's chief financial officer, said the company was 'pleased' with its overall performance, despite only single-digit growth in newspaper revenue. 6 That division's revenue rose 2.3% to $472.5 million from $461.9 million in the year-ago period. 7 Gains in advertising revenue, however, resulted in operating profit of $78.4 million -- up 20% from $65.6 million. 8 In New York Stock Exchange composite trading, Knight Ridder closed at $51.50 a share, down 12.5 cents.

Knight - Ridder Inc . said third - quarter earnings jumped 18 % , partly because of the sale of two of its media properties .

media properties

what are its properties?

1 Knight-Ridder Inc. said third-quarter earnings jumped 18%, partly because of the sale of two of its media properties. 2 The media concern said net income rose to $37.8 million, or 72 cents a share, from $32 million, or 57 cents a share, in the year-earlier period. 3 The latest results include a gain of $4.2 million, or eight cents a share, on the sale of television stations in Oklahoma City and Flint, Mich. 4 Revenue increased 7.5% to $540.9 million from $503.1 million. 5 Robert F. Singleton, Knight-Ridder's chief financial officer, said the company was 'pleased' with its overall performance, despite only single-digit growth in newspaper revenue. 6 That division's revenue rose 2.3% to $472.5 million from $461.9 million in the year-ago period. 7 Gains in advertising revenue, however, resulted in operating profit of $78.4 million -- up 20% from $65.6 million. 8 In New York Stock Exchange composite trading, Knight Ridder closed at $51.50 a share, down 12.5 cents.

The latest results include a gain of $ 4 . 2 million , or eight cents a share , on the sale of television stations in Oklahoma City and Flint , Mich .

sale

What is the demand in these cities that they would benefit from this?

1 Knight-Ridder Inc. said third-quarter earnings jumped 18%, partly because of the sale of two of its media properties. 2 The media concern said net income rose to $37.8 million, or 72 cents a share, from $32 million, or 57 cents a share, in the year-earlier period. 3 The latest results include a gain of $4.2 million, or eight cents a share, on the sale of television stations in Oklahoma City and Flint, Mich. 4 Revenue increased 7.5% to $540.9 million from $503.1 million. 5 Robert F. Singleton, Knight-Ridder's chief financial officer, said the company was 'pleased' with its overall performance, despite only single-digit growth in newspaper revenue. 6 That division's revenue rose 2.3% to $472.5 million from $461.9 million in the year-ago period. 7 Gains in advertising revenue, however, resulted in operating profit of $78.4 million -- up 20% from $65.6 million. 8 In New York Stock Exchange composite trading, Knight Ridder closed at $51.50 a share, down 12.5 cents.

Revenue increased 7 . 5 % to $ 540 . 9 million from $ 503 . 1 million .

Revenue increased 7 . 5 %

Why did revenue increase so much?

1 Knight-Ridder Inc. said third-quarter earnings jumped 18%, partly because of the sale of two of its media properties. 2 The media concern said net income rose to $37.8 million, or 72 cents a share, from $32 million, or 57 cents a share, in the year-earlier period. 3 The latest results include a gain of $4.2 million, or eight cents a share, on the sale of television stations in Oklahoma City and Flint, Mich. 4 Revenue increased 7.5% to $540.9 million from $503.1 million. 5 Robert F. Singleton, Knight-Ridder's chief financial officer, said the company was 'pleased' with its overall performance, despite only single-digit growth in newspaper revenue. 6 That division's revenue rose 2.3% to $472.5 million from $461.9 million in the year-ago period. 7 Gains in advertising revenue, however, resulted in operating profit of $78.4 million -- up 20% from $65.6 million. 8 In New York Stock Exchange composite trading, Knight Ridder closed at $51.50 a share, down 12.5 cents.

Revenue increased 7 . 5 % to $ 540 . 9 million from $ 503 . 1 million .

increased

Is this increase just from those two television station sales?

1 Knight-Ridder Inc. said third-quarter earnings jumped 18%, partly because of the sale of two of its media properties. 2 The media concern said net income rose to $37.8 million, or 72 cents a share, from $32 million, or 57 cents a share, in the year-earlier period. 3 The latest results include a gain of $4.2 million, or eight cents a share, on the sale of television stations in Oklahoma City and Flint, Mich. 4 Revenue increased 7.5% to $540.9 million from $503.1 million. 5 Robert F. Singleton, Knight-Ridder's chief financial officer, said the company was 'pleased' with its overall performance, despite only single-digit growth in newspaper revenue. 6 That division's revenue rose 2.3% to $472.5 million from $461.9 million in the year-ago period. 7 Gains in advertising revenue, however, resulted in operating profit of $78.4 million -- up 20% from $65.6 million. 8 In New York Stock Exchange composite trading, Knight Ridder closed at $51.50 a share, down 12.5 cents.

Robert F . Singleton , Knight - Ridder ' s chief financial officer , said the company was " pleased " with its overall performance , despite only single - digit growth in newspaper revenue .

revenue

How much do they generate from their newspaper division?

1 Knight-Ridder Inc. said third-quarter earnings jumped 18%, partly because of the sale of two of its media properties. 2 The media concern said net income rose to $37.8 million, or 72 cents a share, from $32 million, or 57 cents a share, in the year-earlier period. 3 The latest results include a gain of $4.2 million, or eight cents a share, on the sale of television stations in Oklahoma City and Flint, Mich. 4 Revenue increased 7.5% to $540.9 million from $503.1 million. 5 Robert F. Singleton, Knight-Ridder's chief financial officer, said the company was 'pleased' with its overall performance, despite only single-digit growth in newspaper revenue. 6 That division's revenue rose 2.3% to $472.5 million from $461.9 million in the year-ago period. 7 Gains in advertising revenue, however, resulted in operating profit of $78.4 million -- up 20% from $65.6 million. 8 In New York Stock Exchange composite trading, Knight Ridder closed at $51.50 a share, down 12.5 cents.

Robert F . Singleton , Knight - Ridder ' s chief financial officer , said the company was " pleased " with its overall performance , despite only single - digit growth in newspaper revenue .

" pleased "

why is it quoted?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

Claude Bebear , chairman and chief executive officer , of Axa - Midi Assurances , pledged to retain employees and management of Farmers Group Inc . , including Leo E . Denlea Jr . , chairman and chief executive officer , if Axa succeeds in acquiring Farmers .

Axa - Midi Assurances ,

What does this company do?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

Claude Bebear , chairman and chief executive officer , of Axa - Midi Assurances , pledged to retain employees and management of Farmers Group Inc . , including Leo E . Denlea Jr . , chairman and chief executive officer , if Axa succeeds in acquiring Farmers .

Axa succeeds in acquiring Farmers

Why would Farmers want to sell, are they in financial trouble?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

Mr . Bebear added that the French insurer would keep Farmers ' headquarters in Los Angeles and " will not send French people to run the company . " Axa would also maintain Farmers ' relationships with the insurance exchanges that it manages .

insurance exchanges

What is an insurance exchange?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

Mr . Bebear added that the French insurer would keep Farmers ' headquarters in Los Angeles and " will not send French people to run the company . " Axa would also maintain Farmers ' relationships with the insurance exchanges that it manages .

French insurer

What does Axa-Midi Assurances insure?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

Mr . Bebear added that the French insurer would keep Farmers ' headquarters in Los Angeles and " will not send French people to run the company . " Axa would also maintain Farmers ' relationships with the insurance exchanges that it manages .

" will not send French people to run the company

What are the full conditions of this agreement, is there an expiration date?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

Mr . Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U . S . for the proposed acquisition .

here

Where is 'here'?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

Mr . Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U . S . for the proposed acquisition .

support

Why do they need support for such an acquisition?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

Mr . Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U . S . for the proposed acquisition .

proposed acquisition

Is Farmers a public company and if so who are all the major shareholders?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

The bid is part of Sir James Goldsmith ' s unfriendly takeover attempt for B . A . T Industries PLC , the British tobacco , retailing , paper and financial - services giant that acquired Farmers last year for $ 5 . 2 billion .

unfriendly takeover

How was the takover unfriendly?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

The bid is part of Sir James Goldsmith ' s unfriendly takeover attempt for B . A . T Industries PLC , the British tobacco , retailing , paper and financial - services giant that acquired Farmers last year for $ 5 . 2 billion .

unfriendly takeover

Why is the takeover unfriendly?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

The bid is part of Sir James Goldsmith ' s unfriendly takeover attempt for B . A . T Industries PLC , the British tobacco , retailing , paper and financial - services giant that acquired Farmers last year for $ 5 . 2 billion .

acquired Farmers last year for $ 5 . 2 billion

Why did Farmers sell last year, were they in financial trouble?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

Axa has agreed to acquire Farmers from Sir James ' s investment vehicle , Hoylake Investments Ltd . , for $ 4 . 5 billion plus a $ 1 billion investment in Hoylake .

Hoylake Investments Ltd

What does Hoylake Investments Ltd. do?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

Axa has agreed to acquire Farmers from Sir James ' s investment vehicle , Hoylake Investments Ltd . , for $ 4 . 5 billion plus a $ 1 billion investment in Hoylake .

investment vehicle ,

What is an investment vehicle?

1 Claude Bebear, chairman and chief executive officer, of Axa-Midi Assurances, pledged to retain employees and management of Farmers Group Inc., including Leo E. Denlea Jr., chairman and chief executive officer, if Axa succeeds in acquiring Farmers. 2 Mr. Bebear added that the French insurer would keep Farmers' headquarters in Los Angeles and 'will not send French people to run the company.' Axa would also maintain Farmers' relationships with the insurance exchanges that it manages. 3 Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour in which he is trying to rally support in the U.S. for the proposed acquisition. 4 The bid is part of Sir James Goldsmith's unfriendly takeover attempt for B.A.T Industries PLC, the British tobacco, retailing, paper and financial-services giant that acquired Farmers last year for $5.2 billion. 5 Axa has agreed to acquire Farmers from Sir James's investment vehicle, Hoylake Investments Ltd., for $4.5 billion plus a $1 billion investment in Hoylake. 6 Any acquisition of Farmers needs the approval of insurance commissioners in the nine states where Farmers operates, and Mr. Bebear's trip will take him to Idaho, Arizona and New York after his stay here; he will meet with insurance regulators, legislators, industry excutives and the press. 7 Hearings on Axa's acquisition application have been set for Nov. 13 in Idaho; Nov. 20 in Illinois; Nov. 24 and Dec. 4 in Arizona; Dec. 11 in Washington state; and Jan. 8 in Oregon. 8 Hearings haven't yet been set in Texas, Ohio and Kansas. 9 California's insurance commissioner doesn't hold hearings on acquisition applications. 10 Although Axa has been rebuffed by Farmers and hasn't had any meetings with management, Mr. Bebear nonetheless appears to be trying to woo the company's executives with promises of autonomy and new-found authority under Axa. 11 He said Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies, and would 'help define policies and strategies of the group.' 12 Farmers was quick yesterday to point out the many negative aspects it sees in having Axa as its parent. 13 For one, Axa plans to do away with certain tax credits that have resulted in more than $600 million paid to the Farmers exchanges during the past few years to offset underwriting losses. 14 Those credits result because of taxes that Farmers, as the management company, has paid, and have 'proved to be very important for the exchanges,' a Farmers spokesman said. 15 Mr. Bebear contended that the tax cost to the exchanges under the revised structure would be about $8 million a year, which he described as 'peanuts.'

Axa has agreed to acquire Farmers from Sir James ' s investment vehicle , Hoylake Investments Ltd . , for $ 4 . 5 billion plus a $ 1 billion investment in Hoylake .

$ 1 billion investment in Hoylake

What are the complete conditions of the $1 billion investment in Hoylake?

1 Combustion Engineering Inc. said third-quarter net income of $22.8 million, reversing a $91.7 million year-earlier loss. 2 The Stamford, Conn., power-generation products and services company said per-share earnings were 56 cents compared with the year-ago loss of $2.39. 3 Sales fell 1.5% to $884 million from $897.2 million. 4 Strong profit in the process industries, including chemical and pulp and paper, were offset by higher interest expense and by lower earnings as the company closed out certain long-term contracts. 5 Combustion reported improved profits in its automation and control products businesses, and it narrowed its losses in its public sector and environmental segment. 6 Power generation had higher sales but lower earnings; the company cited factors including work on certain low profit-margin contracts from previous years. 7 Net in the latest quarter included a pretax gain of $22.4 million from the sale of Combustion's minority interest in Stein Industrie to GEC Alsthom N.V. of the Netherlands. 8 Last year's results reflected a gain of $28.2 million on disposition of assets and a $165 million pretax provision mainly from costs of completing certain waste-to-energy and other power plants.

Combustion Engineering Inc . said third - quarter net income of $ 22 . 8 million , reversing a $ 91 . 7 million year - earlier loss .

loss

Why did Combustion Engineering have a loss the year before?

1 Combustion Engineering Inc. said third-quarter net income of $22.8 million, reversing a $91.7 million year-earlier loss. 2 The Stamford, Conn., power-generation products and services company said per-share earnings were 56 cents compared with the year-ago loss of $2.39. 3 Sales fell 1.5% to $884 million from $897.2 million. 4 Strong profit in the process industries, including chemical and pulp and paper, were offset by higher interest expense and by lower earnings as the company closed out certain long-term contracts. 5 Combustion reported improved profits in its automation and control products businesses, and it narrowed its losses in its public sector and environmental segment. 6 Power generation had higher sales but lower earnings; the company cited factors including work on certain low profit-margin contracts from previous years. 7 Net in the latest quarter included a pretax gain of $22.4 million from the sale of Combustion's minority interest in Stein Industrie to GEC Alsthom N.V. of the Netherlands. 8 Last year's results reflected a gain of $28.2 million on disposition of assets and a $165 million pretax provision mainly from costs of completing certain waste-to-energy and other power plants.

Combustion Engineering Inc . said third - quarter net income of $ 22 . 8 million , reversing a $ 91 . 7 million year - earlier loss .

year - earlier

Was the 91.7M loss for the quarter ending a year ago or was that for the entire year?

1 Combustion Engineering Inc. said third-quarter net income of $22.8 million, reversing a $91.7 million year-earlier loss. 2 The Stamford, Conn., power-generation products and services company said per-share earnings were 56 cents compared with the year-ago loss of $2.39. 3 Sales fell 1.5% to $884 million from $897.2 million. 4 Strong profit in the process industries, including chemical and pulp and paper, were offset by higher interest expense and by lower earnings as the company closed out certain long-term contracts. 5 Combustion reported improved profits in its automation and control products businesses, and it narrowed its losses in its public sector and environmental segment. 6 Power generation had higher sales but lower earnings; the company cited factors including work on certain low profit-margin contracts from previous years. 7 Net in the latest quarter included a pretax gain of $22.4 million from the sale of Combustion's minority interest in Stein Industrie to GEC Alsthom N.V. of the Netherlands. 8 Last year's results reflected a gain of $28.2 million on disposition of assets and a $165 million pretax provision mainly from costs of completing certain waste-to-energy and other power plants.

The Stamford , Conn . , power - generation products and services company said per - share earnings were 56 cents compared with the year - ago loss of $ 2 . 39 .

loss

Why was there a per-share loss the year before?

1 Combustion Engineering Inc. said third-quarter net income of $22.8 million, reversing a $91.7 million year-earlier loss. 2 The Stamford, Conn., power-generation products and services company said per-share earnings were 56 cents compared with the year-ago loss of $2.39. 3 Sales fell 1.5% to $884 million from $897.2 million. 4 Strong profit in the process industries, including chemical and pulp and paper, were offset by higher interest expense and by lower earnings as the company closed out certain long-term contracts. 5 Combustion reported improved profits in its automation and control products businesses, and it narrowed its losses in its public sector and environmental segment. 6 Power generation had higher sales but lower earnings; the company cited factors including work on certain low profit-margin contracts from previous years. 7 Net in the latest quarter included a pretax gain of $22.4 million from the sale of Combustion's minority interest in Stein Industrie to GEC Alsthom N.V. of the Netherlands. 8 Last year's results reflected a gain of $28.2 million on disposition of assets and a $165 million pretax provision mainly from costs of completing certain waste-to-energy and other power plants.

The Stamford , Conn . , power - generation products and services company said per - share earnings were 56 cents compared with the year - ago loss of $ 2 . 39 .

year - ago

Was the $2.39 loss for the quarter ending a year ago or was that for the year?

1 Combustion Engineering Inc. said third-quarter net income of $22.8 million, reversing a $91.7 million year-earlier loss. 2 The Stamford, Conn., power-generation products and services company said per-share earnings were 56 cents compared with the year-ago loss of $2.39. 3 Sales fell 1.5% to $884 million from $897.2 million. 4 Strong profit in the process industries, including chemical and pulp and paper, were offset by higher interest expense and by lower earnings as the company closed out certain long-term contracts. 5 Combustion reported improved profits in its automation and control products businesses, and it narrowed its losses in its public sector and environmental segment. 6 Power generation had higher sales but lower earnings; the company cited factors including work on certain low profit-margin contracts from previous years. 7 Net in the latest quarter included a pretax gain of $22.4 million from the sale of Combustion's minority interest in Stein Industrie to GEC Alsthom N.V. of the Netherlands. 8 Last year's results reflected a gain of $28.2 million on disposition of assets and a $165 million pretax provision mainly from costs of completing certain waste-to-energy and other power plants.

The Stamford , Conn . , power - generation products and services company said per - share earnings were 56 cents compared with the year - ago loss of $ 2 . 39 .

Stamford ,

is that southern connnecticut?

1 Combustion Engineering Inc. said third-quarter net income of $22.8 million, reversing a $91.7 million year-earlier loss. 2 The Stamford, Conn., power-generation products and services company said per-share earnings were 56 cents compared with the year-ago loss of $2.39. 3 Sales fell 1.5% to $884 million from $897.2 million. 4 Strong profit in the process industries, including chemical and pulp and paper, were offset by higher interest expense and by lower earnings as the company closed out certain long-term contracts. 5 Combustion reported improved profits in its automation and control products businesses, and it narrowed its losses in its public sector and environmental segment. 6 Power generation had higher sales but lower earnings; the company cited factors including work on certain low profit-margin contracts from previous years. 7 Net in the latest quarter included a pretax gain of $22.4 million from the sale of Combustion's minority interest in Stein Industrie to GEC Alsthom N.V. of the Netherlands. 8 Last year's results reflected a gain of $28.2 million on disposition of assets and a $165 million pretax provision mainly from costs of completing certain waste-to-energy and other power plants.

Sales fell 1 . 5 % to $ 884 million from $ 897 . 2 million .

Sales fell

Why did sales fall 1.5%?

1 Combustion Engineering Inc. said third-quarter net income of $22.8 million, reversing a $91.7 million year-earlier loss. 2 The Stamford, Conn., power-generation products and services company said per-share earnings were 56 cents compared with the year-ago loss of $2.39. 3 Sales fell 1.5% to $884 million from $897.2 million. 4 Strong profit in the process industries, including chemical and pulp and paper, were offset by higher interest expense and by lower earnings as the company closed out certain long-term contracts. 5 Combustion reported improved profits in its automation and control products businesses, and it narrowed its losses in its public sector and environmental segment. 6 Power generation had higher sales but lower earnings; the company cited factors including work on certain low profit-margin contracts from previous years. 7 Net in the latest quarter included a pretax gain of $22.4 million from the sale of Combustion's minority interest in Stein Industrie to GEC Alsthom N.V. of the Netherlands. 8 Last year's results reflected a gain of $28.2 million on disposition of assets and a $165 million pretax provision mainly from costs of completing certain waste-to-energy and other power plants.

Sales fell 1 . 5 % to $ 884 million from $ 897 . 2 million .

from

Is this qtr-qtr data or is this year-year data?

1 Combustion Engineering Inc. said third-quarter net income of $22.8 million, reversing a $91.7 million year-earlier loss. 2 The Stamford, Conn., power-generation products and services company said per-share earnings were 56 cents compared with the year-ago loss of $2.39. 3 Sales fell 1.5% to $884 million from $897.2 million. 4 Strong profit in the process industries, including chemical and pulp and paper, were offset by higher interest expense and by lower earnings as the company closed out certain long-term contracts. 5 Combustion reported improved profits in its automation and control products businesses, and it narrowed its losses in its public sector and environmental segment. 6 Power generation had higher sales but lower earnings; the company cited factors including work on certain low profit-margin contracts from previous years. 7 Net in the latest quarter included a pretax gain of $22.4 million from the sale of Combustion's minority interest in Stein Industrie to GEC Alsthom N.V. of the Netherlands. 8 Last year's results reflected a gain of $28.2 million on disposition of assets and a $165 million pretax provision mainly from costs of completing certain waste-to-energy and other power plants.

Sales fell 1 . 5 % to $ 884 million from $ 897 . 2 million .

fell

why did they fall?

1 Combustion Engineering Inc. said third-quarter net income of $22.8 million, reversing a $91.7 million year-earlier loss. 2 The Stamford, Conn., power-generation products and services company said per-share earnings were 56 cents compared with the year-ago loss of $2.39. 3 Sales fell 1.5% to $884 million from $897.2 million. 4 Strong profit in the process industries, including chemical and pulp and paper, were offset by higher interest expense and by lower earnings as the company closed out certain long-term contracts. 5 Combustion reported improved profits in its automation and control products businesses, and it narrowed its losses in its public sector and environmental segment. 6 Power generation had higher sales but lower earnings; the company cited factors including work on certain low profit-margin contracts from previous years. 7 Net in the latest quarter included a pretax gain of $22.4 million from the sale of Combustion's minority interest in Stein Industrie to GEC Alsthom N.V. of the Netherlands. 8 Last year's results reflected a gain of $28.2 million on disposition of assets and a $165 million pretax provision mainly from costs of completing certain waste-to-energy and other power plants.

Sales fell 1 . 5 % to $ 884 million from $ 897 . 2 million .

Sales fell

Why did sales fall?

1 Combustion Engineering Inc. said third-quarter net income of $22.8 million, reversing a $91.7 million year-earlier loss. 2 The Stamford, Conn., power-generation products and services company said per-share earnings were 56 cents compared with the year-ago loss of $2.39. 3 Sales fell 1.5% to $884 million from $897.2 million. 4 Strong profit in the process industries, including chemical and pulp and paper, were offset by higher interest expense and by lower earnings as the company closed out certain long-term contracts. 5 Combustion reported improved profits in its automation and control products businesses, and it narrowed its losses in its public sector and environmental segment. 6 Power generation had higher sales but lower earnings; the company cited factors including work on certain low profit-margin contracts from previous years. 7 Net in the latest quarter included a pretax gain of $22.4 million from the sale of Combustion's minority interest in Stein Industrie to GEC Alsthom N.V. of the Netherlands. 8 Last year's results reflected a gain of $28.2 million on disposition of assets and a $165 million pretax provision mainly from costs of completing certain waste-to-energy and other power plants.

Strong profit in the process industries , including chemical and pulp and paper , were offset by higher interest expense and by lower earnings as the company closed out certain long - term contracts .

closed out

Why did the company close out certain long-term contracts?

1 Combustion Engineering Inc. said third-quarter net income of $22.8 million, reversing a $91.7 million year-earlier loss. 2 The Stamford, Conn., power-generation products and services company said per-share earnings were 56 cents compared with the year-ago loss of $2.39. 3 Sales fell 1.5% to $884 million from $897.2 million. 4 Strong profit in the process industries, including chemical and pulp and paper, were offset by higher interest expense and by lower earnings as the company closed out certain long-term contracts. 5 Combustion reported improved profits in its automation and control products businesses, and it narrowed its losses in its public sector and environmental segment. 6 Power generation had higher sales but lower earnings; the company cited factors including work on certain low profit-margin contracts from previous years. 7 Net in the latest quarter included a pretax gain of $22.4 million from the sale of Combustion's minority interest in Stein Industrie to GEC Alsthom N.V. of the Netherlands. 8 Last year's results reflected a gain of $28.2 million on disposition of assets and a $165 million pretax provision mainly from costs of completing certain waste-to-energy and other power plants.

Strong profit in the process industries , including chemical and pulp and paper , were offset by higher interest expense and by lower earnings as the company closed out certain long - term contracts .

lower

How much lower were earnings?