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The Bank of France said it will offer 7.5 billion francs worth of negotiable Treasury bills at its next public weekly tender on March 9. The total includes two billion francs of 13-week bills 2.5 billion francs of two-year bills and three billion francs worth of five year bills. No maximum or minimum price has been set. Reuter | FRANCE SETS 7.5 BILLION FRANC T-BILL TENDER |
Nissan Motor Corp U.S.A. said domestic car sales in the February 21 to 28 period rose to 3501 from 2578 cars at the same time last year. For the month of February U.S. car sales increased to 7200 from 6843 cars in the comparable month a year ago Nissan Motor a wholly-owned subsidiary of Nissan Motor Ltd said . For the year-to-date Nissan Motor domestic sales advanced to 13769 cars from 12846 cars in 1986 the automaker said. Reuter | (NISSAN MOTOR) LATE FEBRUARY U.S. CAR SALES UP |
Standard and Poors Corp said it has upgraded approximately two billion dlrs of securities for the Williams Cos. and its related entities. S and P said recent sales of non-regulated oil and gas coal fertilizer and telecommunications assets significantly reduce business risk. With 900 mln dlrs of proceeds available to reduce debt the financial profile should also improve. Among issues upgraded were Williams debentures raised to BB-plus from BB-minus and Williams Natural Gas Cos debentures and preferred stock to BBB-minus from BB-plus. Northwest Pipeline Corp issues also were upgraded. Reuter | S/P UPGRADES WILLIAMS COS <WMB> DEBT SECURITIES |
General Motors of Canada Ltd wholly owned by General Motors Corp said February car sales fell 17.8 pct to 25779 units from 31361 units the previous year. Year-to-date car sales fell 23.8 pct from last year the company said. It did not immediately disclose actual year-to-date figures. Reuter | GM <GM> CANADA FEBRUARY CAR SALES OFF 17.8 PCT |
Merrill Lynch and Co analyst Richard Vietor said he reiterated a buy recommendation on several drug stocks today. The stocks were Bristol-Myers Co <BMY> which rose 2-1/4 to 101 Schering-Plough Corp <SGP> 2-7/8 to 97 and Syntex Corp <SYN> 1-3/8 to 82. Vietor described these stocks as a middle group of performers. Vietor said the prices of these stocks look pretty cheap relative to the leading performers in the drug group such as Upjohn Co <UPJ> Merck and Co Inc <MRK> and Squibb Corp <SQB>. Vietor said he also mentioned Pfizer Inc <PFE> up two to 72-3/4 and Warner-Lambert Co <WLA> up 1-1/2 to 74-1/2 as being in the middle group. But he did not recommend those stocks which he rates as neutral. Reuter | ANALYST REITERATES BUY ON SOME DRUG STOCKS |
Oper shr loss 16 cts vs loss 10 cts Oper net loss 1569000 vs loss 990000 Sales 50.3 mln vs 50.1 mln Nine mths Oper shr loss nine cts vs loss two cts Oper net loss 849000 vs loss 199000 Sales 159.9 mln vs 156.6 mln NOTE: Current nine mths net includes 1036000 dlr pretax gain on sale of property. Prior year net both periods includes pretax gain 1095000 dlrs on pension plan termination. Current quarter net includes 580000 dlr tax credit. Prior year net includes losses from discontinued operations of 200000 dlrs in quarter and 573000 dlrs in nine mths. Results restated for discontinued operations. Reuter | STEEGO CORP <STG> 3RD QTR JAN 31 LOSS |
MCA Inc said noted film maker Steven Spielberg will serve as creative consultant for Universal Studios Tour Florida. The tour is a joint venture between MCA and Cineplex Odeon Corp that is scheduled to open in 1989. MCA is also planning a major expansion of its Universal Studio Tours. The expansion includes four live-action shows based films and TV series including Spielbergs E.T.. MCAs actions are seen as spurred by The Disney Cos <DIS> Chairman Michal Eisners intention to build a new attraction in the Los Angeles area possibly a studio tour. Reuter | MCA <MCA> NAMES SPIELBERG CREATIVE CONSULTANT |
Qtly div 12-1/2 cts vs 12-1/2 cts prior Pay April One Record March 13 Reuter | E-SYSTEMS INC <ESY> SETS QUARTERLY |
Resource Exploration Inc said it has agreed to let <Langasco Energy Corp> drill 50 oil and natural gas wells on its Clinton Sandstone formation within its Tuscarawas and Harrison County Ohio area of operation. Resource said it would receive a cash payment and an overriding royalty interest on oil and gas production from wells drilled on the property. Resource said gas produced from the property will be transported through its existing pipeline. Also Resource said it will provide service work to complete the wells and it will operate the wells after they are completed. Reuter | RESOURCE EXPLORATION <REXI> IN DRILLING PACT |
CME POSTPONES CONSIDERATION OF PETITION TO BAN DUAL TRADING UNTIL NEXT WEEK |
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Texas Railroad Commissioner James Nugent saying that the ailing oilpatch cannot wait for Congress to act today urged Texas state lawmakers to adopt incentives to find new oil reserves and to exempt severance taxes on oil produced from stripper wells. Nugent said in a speech to the Texas house of representatives that the state must take the initiative in molding U.S. energy policy and finding new ways to assist troubled oil producers. His proposal to revitalize Texas oil industry would exempt stripper wells that produce 10 barrels of oil or less each day from the states 4.6 pct severance tax. He said that the majority of Texas oil wells fall within the stripper well category and a price swing of two to three dlrs a barrel can be crucial in determining if the well remains in production. Nugent also called for state lawmakers to exempt new wildcat wells from the state severance tax for up to five years as a financial incentive to explore for new oil reserves. Secondary and tertiary oil production expensive methods of production that inject water or gas into the ground to recover oil should also be exempted from the severance tax Nugent said. His plan would exempt existing secondary and tertiary wells that produce at a rate of less than three barrels a day for three years or until the price of oil reaches $25 a barrel. Weve been sitting back and waiting on two federal administrations to develop a coherent energy policy for the nation to follow. I say we have waited long enough Nugent said. In other words lets tell Washington to either lead follow or get out of the way. Nugent said that the financial losses to the state treasury by exempting marginal oil production from state severance taxes would be more than made up by stimulating new business for the oil supply and service industry. Reuter | TEXAS OIL REGULATOR CALLS FOR STATE TAX BREAKS |
General Motors of Canada Ltd wholly owned by General Motors Corp said February car sales fell 17.8 pct to 25779 units from 31361 units the previous year. Year-to-date car sales fell 23.8 pct from last year the company said. It did not immediately disclose actual year-to-date figures. Reuter | GM CANADA FEBRUARY CAR SALES OFF 17.8 PCT |
CHRYSLER TO IDLE 2,800 WORKERS AT ILLINOIS PLANT |
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Qtly div 15 cts vs 15 cts prior Pay March 31 Record March 13 Reuter | UNICORP AMERICAN CORP <UAC> SETS QUARTERLY |
Colombian finance minister Cesar Gaviria blamed an inflexible U.S. position for the failure of last weeks International Coffee Organisation ICO talks on export quotas. We understand that the U.S. Position was more inflexible than the one of Brazil where current economic and political factors make it difficult to adopt certain positions Gaviria told Reuters in an interview. The U.S. and Brazil have each laid the blame on the other for the breakdown in the negotiations to re-introduce export quotas after being extended through the weekend in London. Gaviria stressed that Colombia tried to ensure a successful outcome of the London talks but he deplored that intransigent attitudes both from producing and consuming nations made it impossible. In a conversation later with local journalists Gaviria said the U.S. attitude would have serious economic and political consequences not necessarily for a country like Colombia but certainly for other Latin American nations and for some African countries. He told Reuters that Colombia because of the relatively high level of its coffee stocks would probably suffer less. According to Gaviria Colombia can hope to earn about 1500 mln dlrs this calendar year from coffee exports which traditionally account for 55 pct of the countrys total export revenue. That estimate would represent a drop in revenues of 1400 mln dlrs from 1986. Colombia which held stockpiles of 10.5 mln bags at the start of the current coffee year exported a record 11.5 mln bags in the 1985/86 coffee year ending last September 30. Reuter | COLOMBIA BLASTS U.S. FOR COFFEE TALKS FAILURE |
Qtly div 12.5 cts vs 12.5 cts in prior qtr Payable March 13 Record February 27 Reuter | LIBERTY FINANCIAL GROUP <LFG> REGULAR DIVIDEND |
CHRYSLER CANADA FEBRUARY CAR SALES FALL TO 9,640 UNITS FROM YEAR-AGO 11,967 |
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Pacific Telesis Group chairman Donald Guinn told a meeting of security analysts that the company sees continued earnings growth in 1987 above the 1.08 billion dlrs or 5.02 dlrs per share earned in 1986. Guinn also said that capital spending stood at about 1.8 billion dlrs in 1986 and the company expected the figure to remain flat each year through 1989. He noted that all captial spending will be internally financed. Guinn also told analysts that the company faced some regulatory uncertainties in ongoing rate cases at its Pacific Bell operating company. In rates hearings before the California Public Utility Commission Guinn said the company faced a potential 76 mln dlr revenue reduction and due to ongoing discussions with the commission he said the figure might even be greater. The company also faces some opposition to a 225 mln dlr rate hike requested for 1986. Guinn said the commission found 180 mln dlrs of the hike was based on questionable calculations and assumptions while 45 mln dlrs might represented unneeded modernization costs. Guinn also said that the company is still studying whether to join an international consortium that plans to lay a transpacific telephone cable between the U.S. and Japan. We have not agreed to anything Guinn said but added he would soon recieve a feasibility study on the venture and the company would make a decision soon on participating. Asked by an analyst about the recent recommendation by the U.S. Department of Justice which would allow the Bell operating companies to offer limited long distance services Guinn said the company would likely shy away from that type of expansion. (Long distance services) is a very competitive business. Its a commodity business and becoming more so he said. Im not so sure we would be interested in getting back into that business. However Guinn generally applauded the U.S. recommendations saying they would give more latitude for the Bell operating companies to expand into non-regulated businesses and provide more flexibility to form strategic alliances with other companies. He added that while the company welcomes the expansion into new areas it is not currently involved in any acqusition talks. We do not have anything actively under consideration he said. Reuter | PACTEL <PAC> SEES EARNINGS GROWTH |
TRANS WORLD AIRLINES MAKES 52 DLR/SHARE CASH MERGER PROPOSAL FOR USAIR |
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The Senate Banking Committee has issued a revised draft bank regulation bill which would permit so-called non-bank banks to continue all their activities in progress as of March 5 1987. The bill which the committee is scheduled to consider tomorrow would prohibit non-bank banks from beginning any new activities after March 5 increase the number of their locations or cross-market products or services not permissible for bank holding companies. The bill would also impose a one-year moratorium on bank securities or insurance activities. The bill would establish a financing corporation to raise 7.5 billion dlrs for the Federal Savings and Loan Insurance Corp and give federal regulators more power to arrange out-of-state mergers for failed or failing banks with 500 mln dlrs or more in assets. Committee chairman William Proxmire D-Wis had wanted to ban all non-bank bank activities started after July 1 1983 but opposition from other committee members forced him to revise the legislation. The House Banking committee is also considering bank regulation legislation but is waiting for the Senate to act. Reuter | SENATE COMMITTEE ISSUES REVISED BANK BILL |
Texas Air Corps Continental Airlines subsidiary said it will serve Las Vegas from several Northeastern cities from its Newark hub starting March 15 with MaxiSaver fares as low as 99 dlrs each way for off-peak and 119 dlrs for peak flights. It said a daily non-stop Newark-Las Vegas flight will carry passengers from such cities as Boston Buffalo Hartford Norfolk Portland Providence Rochester Syracuse and Washington. Unrestricted coach fares to Las Vegas will be as low as 149 dlrs from Newark 163 dlrs from Boston and 280 dlrs from Rochester. Reuter | TEXAS AIR <TEX> UNIT SETS LAS VEGAS FLIGHTS |
Shr 13 cts vs 70 cts Net 1279000 vs 7979000 Revs 16.4 mln vs 19.6 mln Year Shr 89 cts vs 2.43 dlrs Net 10.3 mln vs 29.8 mln Revs 56.2 mln vs 83.8 mln Avg shrs 12.1 mln vs 13.1 mlnm NOTE: 1986 year net includes gain 12.9 mln dlrs from sale of eight real estate properties. Reuter | UNICORP AMERICAN CORP <UAC> 4TH QTR NET |
Kenya has signed an agreement with British and German interests to establish a shipping line that will handle 40 pct of the countrys external trade sources close to the deal said. The state-owned Kenya Ports Authority KPA signed an agreement with the Hamburg-based shipping line Unimar Seetransport to establish the Kenya National Shipping line with an initial capital of 100 mln shillings sources said. KPA will hold 70 pct of the shares in the new company. The line will initially charter vessels to operate services between Mombasa and the main ports of industrial Europe but may eventually build or buy its own ships. The sources said it would aim to carry a large part of Kenyas coffee and tea exports and oil and fertiliser imports. Reuter | KENYA SIGNS PACT TO ESTABLISH OWN SHIPPING LINE |
U.S. and U.K. bank regulators are asking banks to set aside more reserves than is necessary to cushion them against the risks posed by the interest rate and currency swap transactions they carry swap dealers said. After viewing proposed guidelines released jointly today by the Bank of England and the Federal Reserve Board dealers said that in effect regulators are asking them to set aside reserves twice for the same risk. Market participants will have 60 days to respond to the proposals. Adoption of stiffer capital requirements is especially significant in the eurobond markets which saw new issue volume of about 183 billion dlrs in 1986 according to figures compiled by Euromoney magazine. While no firm figures exist dealers in eurobonds estimate that 80 pct of all new issues are involved in some swap arrangement. Separately the ISDA estimates that about 300 billion dlrs worth of swap transactions are outstanding. Kenneth McCormick co-chairman of the International Swap Dealers Association (ISDA) and President of Kleinwort Benson Cross Financing Inc said that the Association has no comment and will study the proposals. What they are proposing is really double counting Patrick de Saint-Aignan managing director of swaps for Morgan Stanley and Co said. Instead he argues banks should either be required to hold a percentage of the face value -- say one pct per year to maturity -- or to hold a percentage of the cost of replacing the contract in the event of a counterparty default. The potential risk factors are very large relative to what we had expected said a director at one U.K. merchant bank. What they are really doing is asking you to capitalize now -- to borrow money now -- to cushion you against risk you might have 10 years from now he added.(Adds title first paragraph). Dealers also said they believe that banks not covered by the agreement such as those based in Japan will have a competitive advantage because they will not have to pass the costs on to customers. Indeed regulators are apparently also concerned about the exclusion of other countries from the new requirements. Federal Reserve Board Governor Martha Seger following approval of the proposed guidelines by the Fed said she is concerned that Japan was not involved in the U.K.-U.S. effort to draft new capital rules. Dealers said they were somewhat relieved to see that bank regulators recognized the concept of netting that is offsetting the amounts receiveable from and payable to a single counterparty against each other. The paper said that regulatory authorities recognize that such arrangements (netting) may in certain circumstances reduce credit risk. Furthermore the paper said if a netting agreement could be reached that would withstand legal tests it might be willing to reduce capital requirements accordingly. But dealers said they fear regulators may insist on an airtight netting agreement that is impossible to design. One problem is that there has never been a major default in the swaps market. So we dont know if any of the swap arrangements will really stand up in court said one bank official. Reuter | NEW BANK RULES TOUGHER THAN NEEDED, DEALERS SAY |
Former White House spokesman Larry Speakes said he and President Reagan misled the public unintentionally on the Iran arms scandal because they themselves were misled by others. In a televised interview Speakes was contrasting the defensive much-criticized efforts Reagan made in early attempts to cool the scandal with the dynamic speech he expected when the president addressed the nation tonight. When we went into those press conferences and that nationwide address in November right after the (Iran) story broke the president did not have the proper information Speakes said. And thats why we were misled. And consequently the president and I misled the public to a certain extent. We were badly served by the people that were involved in the Iranian crisis and running the show. Asked whom he meant Speakes said former National Security Adviser Robert McFarlane; McFarlane successor John Poindexter; and then-National Security Council aide Oliver North. Speakes said those three had prepared a false chronology of events that misled us into thinking that we had all the facts ... McFarlane has said that he North and Poindexter had doctored a White House chronology to obscure and minimize Reagans role in the arms sales. He said they did that as part of an effort to prepare the president for a November 19 news conference. Reuter | SPEAKES SAYS HE, REAGAN MISLED PUBLIC UNWITTINGLY |
The Canadian governments reduced borrowing needs enabled the Bank of Canada to make aggressive use of short term debt instruments and pare the cost of financing in 1986 the central bank said in its annual report. The report authored by retired governor Gerald Bouey also noted advances to Canadian banks fell to under one billion dlrs at the end of the year from more than four billion dlrs in January 1986 and that the countrys economy performed unevenly while inflation remained a major concern. Bouey said the bank was able to reduce the number of new bond issues with maturities of 10 years of more lessen the reliance on Canada Savings Bonds while raising substantailly more through short term treasury bill financings. The aggressive use of the treasury bill program has meant that the government is now able to maintain lower cash balances and lower financing costs said Bouey who was replaced by deputy governor John Crow last month. The amount of treasury bills outstanding at year end was 69.7 billion dlrs an increase of 10.3 billion dlrs over the year and 20 billion dlrs since 1984. The reduction in borrrowing needs was brought about by an eight billion dlr decline in the governments financing requirements a run down in Ottawas cash balances and generation of 2.3 billion dlrs from foreign exchange transactions. Also in pursuit of shorter term financing the bank made greater use of bond auctions to market new issues with two to five year maturities Bouey said. Bouey said payments to chartered banks which are made to banks that are facing liquidity problems dropped to an average of 832.3 mln dlrs at end of December from a peak of 5.2 billion dlrs in March 1986. The advances were made largely to four banks Canadian Commercial Bank Northland Bank Continental Bank of Canada and the Bank of British Columbia. The first two banks have been liquidated which enabled partial repayment of advances and the remaining two banks were sold and the new owners repaid the advances. Reuter | BANK OF CANADA MADE AGGRESSIVE USE OF T-BILLS |
Shr 1.23 dlrs vs 1.33 dlrs Semi-annual div six cts vs six cts prior payment Net 16.2 mln vs 14.8 mln Sales 1.09 billion vs 909.4 mln NOTE: Dividend is payable April one to holders of record March nine Reuter | SHAW'S SUPERMARKETS INC <SHAW> YEAR JAN 3 |
Standard and Poors said it lowered Robert Bruce Industries Incs 15 mln dlrs of subordinated debentures to CCC from B-minus because of a deterioration in earnings and cash flow. Debt leverage has risen to 87 pct and the company has suspended dividend payments to conserve cash S and P noted. Reuter | ROBERT BRUCE <BRUC> DOWNGRADED BY S/P |
Dynamics Corp of America said it has reached an agreement with CTS Corp resolving all differences between the two companies. It said as a result of the settlement CTSs special board committee has stopped soliciting orders to purchase some or all of CTS. Dynamics which now owns 27.5 pct of CTS outstanding stock said it agreed to limit its shareholdings to not more than 35 pct of the outstanding shares for a year following the companys 1987 annual meeting. Dynamics said the CTS board will recommend CTS shareholders vote at the 1987 annual meeting in favor of the company paying Dynamics 2178000 dlrs as a reimbursement for its CTS releated costs and granting Dynamics an option to buy enough CTS common at 29.625 dlrs a share to give it ownership of 35 pct of the outstanding stock. Dynamics said the price of stock under the option exercisable for one year is based on the average closing price for the stock for the five days ending March two. Dynamics said CTS Chairman George F. Sommer will assume the additional title of President. Former President Robert D. Hostetler is resigning as a director as is Chief Financial Officer Gary B. Erekson Ted Ross and Donald J. Kacek. Dynamics said the CTS board will be reduced to seven members for eight with the remaining four members of the current board and three representatives of Dynamics as new directors. Reuter | DYNAMICS CORP <DYA> IN SETTLEMENT WITH CTS <CTS> |
Chicago Mercantile Exchange CME directors have postponed action on a membership petition calling for a ban on dual trading CME Chairman Jack Sandner told Reuters. Consideration of the petition was scheduled for a regular board meeting today but directors first wanted the opinions of a special committee that has been studying trading conditions in the Standard and Poors 500 futures pit for the last six months. We didnt want to preempt the committee Sandner said. Instead Sandner said the board will wait for the findings of the special S and P committee which is considering some type of restriction on dual trading in S and P 500 futures. Dual trading is the legal practice in which an exchange member can execute customer orders as well as trade for his own account. Critics maintain the practice provides an opportunity for traders to front-run or trade their own accounts at more favorable prices before customer orders are executed. Sandner said he expects the special committee to report its findings late next week and the board to act when those findings are presented. In response to reports that the CME board is opposed to a ban on dual trading Sandner pointed out that the board already unanimously approved a partial ban on dual trading in S and P 500 futures at a prior meeting. The change was withheld however at the request of the special committee after a study was released and the committee felt the issue should be addressed more comprehensively Sandner said. Sandner said that he personally had no aversion to a ban on dual trading and the leadership (of the CME) is not opposed to a ban on dual trading. Last week CME special counsel Leo Melamed said the special study committee is considering changes only for S and P 500 futures and options on futures. In addition to the dual trading issue the committee is also expected to make recommendations on the possibility for electronic order entry and execution for S and P 500 futures and rule changes to alleviate crowded conditions in the S and P trading pit Melamed said. Melamed said at the time that in matters where a special committee is appointed recommendations from the committee are usually approved by the exchange board of directors. Reuter | CME POSTPONES RULING ON DUAL TRADING PETITION |
Prospects for renewal of the five-year U.S./USSR grains agreement are uncertain at this point a Soviet trade official told Reuters. The current trade imbalance between the United States and the Soviet Union high U.S. commodity prices and increased world grain production make a renewal of the supply agreement next year less certain Albert Melnikov deputy trade representative of the Soviet Union said in an interview. The current agreement expires on Sept 30 1988. Melnikov said that world grain markets are different than when the first agreement was signed in 1975. Statements from both U.S. and Soviet officials have indicate that a long term grains agreement might not be as attractive for both sides as it once was. We have had one agreement. We have had a second agreement but with the second agreement weve had difficulties with prices Melnikov said. I cannot give you any forecasts in response to the future about the agreement.... I do not want to speculate on what will happen after Sept 30 1988 he said. Melnikov noted that he has seen no indications from Soviet government officials that they would be pushing for a renewal of the agreement. The situation is different in comparison to three five or ten years ago ... We can produce more he said. Reuter | RENEWAL OF U.S./USSR GRAIN PACT SAID UNCERTAIN |
Danaher Corp said it expects higher earnings in 1987 versus 1986. We expect significant increases in earnings and revenues in 1987 Steven Rales Danaher chairman and chief executive officer said. Earlier the company reported 1986 net earnings of 15.4 mln dlrs or 1.51 dlrs a share versus 13.5 mln dlrs or 1.32 dlrs a share in 1985. It also reported fourth quarter net of 7.3 mln dlrs or 71 cts a share up from 4.4 mln dlrs or 43 cts a share in the previous years fourth quarter. Reuter | DANAHER <DHR> EXPECTS EARNINGS INCREASE IN 1987 |
Chrysler Corps Chrysler Motors Corp said it will spend 367 mln dlrs at its Belvidere Ill. assembly plant to modernize the facility. Chrysler said the plant its sixth to undergo extensive modernization will be shut down for model changeover starting March five. Some 2800 workers of the plants 3300 hourly employees will be temporarily laid off for 18 weeks from March five through mid-July. The other 500 workers will remain at the plant in maintenance retooling and material handling jobs. Chrysler said the 367 mln dlr expenditure is part of a 720 mln dlr development program at Belvidere. The rest of the money will be spent developing Chryslers New York and Dodge Dynasty four-door sedans to be built at the plant. Modernization of the 22-year-old facility is part of Chryslers five-year 12.5 billion dlr company-wide program to bring its manufacturing operations up to current standards. Chrysler said it will increase the number of robots at Belvidere to 244 from 41. The robots will be used in welding material handling and sealing. Chrysler will also help retrain the plants workforce. The State of Illinois has committeed 10 mln dlrs in training funds to the project. When the plant reopens in July Chrysler workers will have completed more than five mln classrom and on-the-job hours in retraining the company said. The July restart will be on a single-shift basis. Second-shift production will start this fall. Reuter | CHRYSLER <C> TO MODERNIZE ILLINOIS PLANT |
Shr 71 cts vs 43 cts Net 7274000 vs 4447000 Rev 161.6 mln vs 77.6 mln Year Shr 1.51 dlrs vs 1.32 dlrs Net 15401000 vs 13525000 Rev 454.0 mln vs 304.9 mln NOTE: Fourth qtr net includes extraordinary gain of 3.8 mln dlrs or 37 cts per share versus 2.9 mln dlrs or 28 cts a share in 1985s fourth qtr and an extraordinary charge of 642000 dlrs or six cts a share. 1986 net includes extraordinary gain of 7.4 mln dlrs or 72 cts a share versus 8.0 mln dlrs or 78 cts a share in 1985. Reuter | DANAHER CORP <DHR> 4TH QTR NET |
Trans World Airlines said it has proposed a cash merger of USAir Group with TWA in which the holders of USAir common would receive 52 dlrs in cash in exchange for their stock. TWA said the offer was made in a letter to Edmin Colodny chairman and president of USAir. TWA said however that if the negotiated deal is not acceptable it may make an offer directly to USAirs shareholders for up to 51 pct of USAirs outstanding stock to be purchased in a voting trust at a price lower than todays offer. TWA said it is filing an application with the Department of Transportation seeking approval of the merger as well as an application for approval on an expedited basis of its purchase of up to 51 pct of USAir common and the deposit of the stock in a voting trust pending DOT approval. TWA said that in respect to USAirs recent offer for Piedmont Aviation <PIE> it believes that USAirs shareholders would prefer a cash merger proposal for USAir over its proposed acquisition of Piedmont. TWA said however it also would be interested in discussing a three way deal among USAir Piedmont and TWA. TWA said the merger is subject to the USAir board redeeming the preferred stock purchase rights (the poison pill) issued to shareholders last year and taking action so that the vote of a majority of the outstanding common stock is required to approve its proposed move. Additionally TWA said it would need a satisfactory due diligence review of USAir. TWA said it has not yet had an opportunity to obtain the necessary financing for the deal but added it is confident that it will get it. Reuter | TWA <TWA> MAKES MERGER OFFER FOR USAIR <U> |
Chrysler Canada Ltd wholly owned by Chrysler Corp said February car sales fell to 9640 units from year-earlier 11967 units. Chrysler Canada said year-to-date car sales fell to 18094 units from 22073 units in the same period last year. Reuter | CHRYSLER <C> CANADA FEBRUARY CAR SALES FALL |
Texas Instruments Incorp said its executive vice president Grant Dove will take an early retirement effective July. The company said Dove will become chairman and chief executive officer of <Microelectronics and Computer Technology Corp> of Austin. He will have worked 28 years with Texas Instruments the company said. Reuter | TEXAS INSTRUMENTS <TXN> EXECUTIVE TO RETIRE |
Genossenschaftliche Zentralbank AG <GZB> said that it had increased its three-part bond issue to 1.8 billion schillings from the 1.5 billion orginally planned. GZB said in a statement that the amount being issued between today and March 6 had been raised due to heavy demand. A 12-year tranche caries seven pct interest with an issue price of 100.75 while an eight-year part issued at 100.5 carries a 6.75 pct. The third 20-year tranche offers 6.5 pct interest in the first year but afterwards interest will be fixed annually at the average of secondary market rates. Reuter | GZB INCREASES BOND ISSUE TO 1.8 BILLION SCHILLINGS |
CTS Corp and Dynamics Corp of America reached an agreement resolving all outstanding differences between them according to a joint statment. As a result of the settlement a special committee of the board of directors of CTS stopped soliciting offers to buy all or part of the company it said. CTS and DCA also agreed to dismiss all pending litigation between the two companies except for one appeal pending before the U.S. Supreme Court relating to the Indiana Control Share Chapter it said. Under the agreement the CTS board will immediately be reduced to seven from eight with four current directors and three representatives of DCA being elected to the board it said. This board will be presented as the slate for CTS 1987 annual shareholders meeting it added. CTS directors will recommend to shareholders that they approve reimbursement to DCA of about 2.2 mln dlrs in expenses relating to CTS and grant DCA an option to buy up to 35 pct of CTS shares it said. In addition DCA said it agreed to limit its ownership in CTS for the year following the 1987 annual meeting to not more than 35 pct of the outstanding stock. DCA currently holds 27.5 pct of the outstanding shares of CTS. Both companies said they support the agreement and believe it to be fair to both sides. Reuter | CTS <CTS> AND DYNAMICS <DYA> REACH ACCORD |
Measurex Corp said it completed the sale of its Measurex (South Africa Pty) subsidiary to a group of employees who manage the operation. Measurex a maker of computer integrated manufacturing systems said the subsidiary represented less than one pct of worldwide revenues and the sale will have no impact on this years earnings. Reuter | MEASUREX <MX> SELLS SOUTH AFRICAN UNIT |
Jefferies and Co said it is making a market in the stock of USAir Group Inc at 48-1/2 to 50. USAir received an offer from Trans world airlines to buy the airline at 52 dlrs cash per share. USAir was halted on the New York Stock EXcahnge for dissemination of the news. It was indicated at 47 to 54. Reuter | JEFFERIES MAKING MARKET IN USAIR <U> |
Federal Express Corp said it received a recommendation from an administrative law judge that it be awarded the exclusive air express route between the U.S. and Japan. Federal Express said the recommendation now must be approved by the Secretary of Transporation Elizabeth Dole and President Reagan. Federal Express said it received late last year preliminary approval by a panel over a consortium of United Parcel Service and DHL and other air express competitors. Reuter | FEDERAL EXPRESS <FDX> PURSUES OVERSEAS ROUTE |
Honda Motor Co Ltd of Japans American Honda Motor Co Inc unit said its February sales rose to 56704 from 48443 a year ago. The sales figures include sales of 7056 cars from its new Acura division which was not in place a year ago. Year to date sales totaled 102751 at the end of February up from 98724. This included sales of 12723 from the Acura division. In the companys Honda division sales of the Accord model led the monthly and year-to-date totals followed by Civic sales then Prelude sales. In the Acura division Intera sales outpaced Legend sales. Reuter | AMERICAN HONDA MOTOR CO FEBRUARY SALES RISE |
KLM Royal Dutch Airlines <KLM.AS> in a move following similar steps recently by U.S. carrier TWA said it is cutting its fares on transatlantic flights from April 1. From April 1 a return fare Amsterdam-New York will be cut by eight per cent to 1099 guilders for the low season until mid-June when seasonal increases will come into effect. KLM recently rejected invitations by TWA to coordinate price cuts on the Amsterdam route and a spokesman said KLM had only moved now to start up a nationwide promotional campaign in the Netherlands to boost travel to the U.S. Reuter | KLM LOWERS TRANSATLANTIC FARES |
Anheuser-Busch Cos Metal Container Corp said it plans to build a beverage can manufacturing plant at Chester N.Y. The facility is expected to become operational in late 1988. Metal Container operates six can and lid plants in the U.S. and plans to build three more including the Chester facility. Facilities are under construction at Windsor Colo. and Riverside Calif. The Anheuser-Busch unit said it expects to produce six billion cans and eight billion lids in 1987. Reuter | ANHEUSER-BUSCH <BUD> TO BUILD PLANT |
President Reagan fighting to recover politically from the Iran-contra scandal plans to acknowledge in a critical speech to the nation tonight he needs to change his ways administration officials said. It will be a forward-looking speech in which he will say he accepts the need for change said an official who asked not to be identified. I think the president wants to give his side of the story. The official said Reagan would tell the public what he is doing to set things right in the wake of last weeks scorching Tower commission report on the origins of the scandal. It is not clear whether Reagan will heed the advice of many of his political allies and acknowledge that his Iran policy was wrong and he personally made some mistakes. Asked at his daily news briefing if the president would say he erred White House spokesman Marlin Fitzwater told reporters His views are intensely personal and I wont give you any advance on what he intends to say in that area. He said the speech would be 12 or 13 minutes in length and that Reagan would look beyond the horizon to a revitalized White House that will pursue an active foreign policy. The president will discuss the Tower board report and its recommendations. Hell focus on changes hes making in the structure of the NSC (National Security Council) and his goals for the next two years the spokesman said. To date Reagan has defended his decision to sell arms to Iran and conceded only there were errors in implementation. Senate Republican leader Robert Dole said tonights speech might be Reagans last chance to repair his presidency. Its about the ninth inning ... he has to try and set us on another course. Its hard to do that he probably wont be able to do it Dole told reporters. Reuter | REAGAN IRAN SPEECH SAID TO ADMIT NEED FOR CHANGE |
Trans-Lux Corp said its board declared a five pct stock dividend payable April nine to holders of record March 20. The company said directors also declared regular quarterly dividends on presently outstanding shares of both classes of common payable April nine to holders of record March 16. It said an unchanged dividend of two cts will be paid on the common and 1.8 cts on the Class B stock. Reuter | TRANS-LUX <TLX> SETS FIVE PCT STOCK DIVIDEND |
<Lacana Mining Corp> said Gil L. Leathley was appointed president and chief executive replacing William Gross who retired. The company said Gross will continue as a director and executive committee member. Reuter | LACANA <LCNAF> NAMES NEW CEO AND PRESIDENT |
Noland Co said effective April 23 when Lloyd U. Noland Jr. turns 70 and retires as previously announced as chairman and president Lloyd U. Noland III will become chairman and chief executive officer and Carl Watson president and chief operating officer. The company said Noland III 43 is vice president manager of merchandising for plumbing and heating products. Watson 64 is executive vice president marketing. It said Noland Jr. will also leave the board on April 23 along with S.Q. Groover a retired Noland executive serving as a consultant on real estate and facilities matters. | NOLAND CO <NOLD> NAMES NEW CHIEF EXECUTIVE |
A 100 mln dlr offering of Xerox Credit Corp 12-year notes was given an eight pct coupon and priced at 99.534 to yield 8.061 pct Salomon Brothers Inc said as lead manager. The securities of the Xerox Corp unit are not callable for seven years. The yield reflected a premium of 91 basis points over that of comparable U.S. Treasury issues. Moodys Investors Service Inc rates the notes at A-2 compared with A-plus from Standard and Poors Corp. Reuter | XEROX CREDIT <XRX> NOTES YIELD 8.061 PCT |
Shr loss one cent Net loss 186000 Revs 10.7 mln 11 mths Shr loss 7.26 dlrs Net loss 121.4 mln Revs 46.9 mln NOTE: In February 1986 Kaneb Services Inc contributed all of its domestic oil and gas operations to Kaneb Partners which was newly formed and exchanged approximately 3200000 depositary units respresenting limited partnership interests in KEP for approximately 6400000 million shares of the outstanding common stock of Kaneb Servies Inc. Kaneb now owns approximately 82 pct of KEP. During the 11 mths of operation the partnership wrote down the carrying value of its oil and gas properties by 124.8 mln dlrs. The write downs reduced income by 7.46 dlrs per limited partnership unit. Reuter | KANEB ENERGY PARTNERS LTD <KEP> 4TH QTR LOSS |
Shr profit three cts vs loss two cts net profit 157500 vs loss 60200 Revs 1.1 mln vs 1.0 mln Nine months Shr profit five cts vs profit six cts Net profit 223400 vs profit 260800 Revs 3.2 mln vs 3.1 mln Reuter | DALTON COMMUNICATIONS INC <DALT> 3RD QTR JAN 31 |
Green Mountain Power Corp said it signed an agreement to provide <Bozrah Light and Power Co> a private utility based in Gilman Conn. with all its electric power requirements. Under the agreement which runs through 1996 Green Mountain said it will sell the utility roughly 30000 megawatt-hours generating about 1.5 mln dlrs in revenues. Reuter | GREEN MOUNTAIN <GMP> TO SELL POWER TO UTILITY |
The Federal National Mortgage Association said it wanted to clarify the status of yesterdays offering of one billion dlrs of debentures due March 10 1992. It said the offering was a new issue and not a reopening as stated yesterday. FNMA had said the offering was a reopening of a 1972 20-year issue. The debtentures will settle on March 10 1987. Reuter | FNMA CLARIFIES CURRENT DEBT OFFERING STATUS |
<Venture Funding Corp> said it has extended the exercise period on its outstanding class A and B warrants until April 15 1988. The original exercise date was April 15 1987. The company also said it has executed a non-binding letter of intent to acquire three affiliated California corporations that own and operate Mexican food restaurants. It said it has placed stop transfer orders to prevent exercise of the warrants until adequate information is made available about the proposed business combination and the businesses to be acquired. Reuter | VENTURE FUNDING CORP EXTENDS WARRANT PERIOD |
Duff and Phelps lowered the ratings assigned to Public Service Electric and Gas Companys fixed income securities valued at a total of 3.44 billion dlrs. The companys 2.61 billion dlrs in first mortgage bonds were downgraded to DP-4 (low AA) from DP-3 (middle AA). The ratings on its debentures and preferred stock valued at 213 mln and 619 mln dlrs respectively were lowered to DP-5 (high A) from DP-4. Duff and Phelps said the utilitys debt ratings were lowered because of the recent negative rate order for its Hope Creel nuclear plants. This order included highly stringent performance standards for the companys five nuclear plants the ratings agency said. Reuter | DUFF/PHELPS LOWERS PUBLIC SERVICE ELECTRIC <PEG> |
Advanced Genetic Sciences Inc said Debra Coyman was named director of business development of the company. The company said Coyman was previously director of product development of Agrigenetics Research Corp in Boulder Colo. Reuter | ADVANCED GENETIC SCIENCES <AGSI> NAMES DIRECTOR |
 (CORRECTION) - SHAWS SUPERMARKETS EARNINGS In item headlined SHAWS SUPERMARKETS INC <SHAW> YEAR JAN 3 please read per share earnings 1.33 drs vs 1.23 dlrs correcting order of results. Reuter  | |
Shr profit 13 cts vs loss one ct Net profit 853000 vs loss 22000 Sales 41.1 mln vs 20.3 mln Avg shrs 6349753 vs 4403852 Nine Mths Shr profit 57 cts vs profit 28 cts Net profit 2869000 vs profit 1252000 Sales 119.0 mln vs 67.6 mln Avg shrs 5054844 vs 4403852 Reuter | WTD INDUSTRIES INC <WTDI> 3RD QTR JAN 31 NET |
Healthvest a Maryland real estate investment trust said it began selling five mln shares of common stock at 21 dlrs a share. The company said it is also selling 543237 shares to Healthcare International Inc <HII> giving the company a 9.8 pct stake in Healthvest. Reuter | HEALTHVEST <HVT> SELLS SHARES |
There has been no rise in the price of Frozen Concentrated Orange Juice FCOJ a spokesman for the Banco do Brasils Foreign Trade Department Cacex said. He was responding to rumours in the international market that Brazil had raised its FCOJ prices in range of 1075 to 1150 dlrs per tonne. Reuter | CACEX DENIES BRAZIL FCOJ PRICE RISE RUMOURS |
Epitope Inc said it has developed a Western Blot AIDS test and it will begin worldwide marketing efforts immediately. Reuter | EPITOPE <EPTO> TO MARKET AIDS TEST |
Qtrly div 12.5 cts vs 12.5 cts prior Pay April 1 Record March 13 Reuter | E-SYSTEMS <ESY> SETS QTRLY PAYOUT |
Shr 70 cts vs 4.91 dlrs Net 3.7 mln vs 26.3 mln Year Shr 1.99 dlrs vs 3.35 dlrs Net 10.7 mln vs 18.0 mln NOTE:1986 year 4th qtr include capital gains of 3.5 mln dlrs and 1.1 mln dlrs respectively and extraordinary gain of 3.4 mln dlrs and 1.2 mln dlrs respectively. 1985 year and 4th qtr include capital gains of 24.0 mln dlrs and 23.3 mln dlrs respectively and extraordinary gain of 3.9 mln dlrs. Reuter | PIEDMONT MANAGEMENT CO INC <PMAN> 4TH QTR |
Shr 1.52 dlrs vs 17 cts Net 1306000 vs 144000 Rev 758000 vs 670000 Year Shr 2.68 dlrs vs 2.63 dlrs Net 2313000 vs 2285000 Rev 2.8 mln vs 2.7 mln NOTE: Fourth qtr and 1986 had gains on real estate investments of 933000 dlrs or 1.08 a share and 970000 dlrs or 1.12 a share respectively. This compares with a loss of 137000 dlrs or 15 cts a share and again of 1.3 mln dlrs or 1.45 a share for the fourth qtr and year respectively in 1985. Reuter | EASTPARK REALTY TRUST <ERT> 4TH QTR NET |
Irvine Sensors Corp said it completed a public offering of 1.25 mln units consisting of two shares of common stock and one warrant to purchase an additional share. The units were sold at a price of 1.60 dlrs each Irvine Sensors said adding the units will trade under the NASDAQ symbol IRSNU and the new warrants under the symbol IRSNW. Reuter | IRVINE SENSORS <IRSN> COMPLETES UNIT OFFERING |
Qtrly div five cts vs five cts qtr Pay April One Record March 16 Reuter | NL INDUSTRIES INC <NL> SETS QTRLY PAYOUT |
Shr profit 13 cts vs loss one ct Net profit 853000 vs loss 22000 Revs 41.1 mln vs 20.3 mln Avg shrs 6349753 vs 4403852 Nine mths Shr profit 57 cts vs profit 28 cts Net profit 2869000 vs profit 1252000 Revs 119.0 mln vs 67.6 mln Avg shrs 5054844 vs 4403000 Note: Company went public in October 1986. Reuter | WTD INDUSTRIES INC <WTDI> 3RD QTR JAN 31 NET |
Shr four cts vs four cts prior qtr Pay May five Record April 15 Reuter | ALASKA AIR GROUP INC <ALK> QTLY DIVIDEND |
The former chairman of Peoples National Bank of Rockland County N.Y. pleaded guilty to charges of bribery and income tax evasion. Leonard Slutsky 41 faces up to five years in prison on each of two counts of bank bribery and tax evasion. He could also be fined up to 745000 dlrs. In his guilty plea before Judge Charles Brieant of the White Plains N.Y. branch of U.S. District Court Slutsky admitted accepting payments from a tax shelter promoter. Peoples had lent money to investors in the tax shelter. The bank was declared insolvent in September 1984. Another former official of the bank Samuel Yonnone 37 pled guilty today to conspiring to accept money from a broker to make false entries in the banks books. Yonnone who was senior vice president of the bank faces five years in jail and a 250000 dlr fine. The 41-year-old Slutksy admitted accepting 165000 dlrs in bribes. Reuter | FORMER BANK CHAIRMAN ADMITS ACCEPTING BRIBES |
USAir Group Inc said it had no comment on an offer it received from Trans World Airlines to buy USAir for 52 dlrs cash per share. USAir spokesman David Shipley also declined comment on Piedmont Aviation Inc <PIE>. USAir has offered 71 dlrs cash per share for half of Piedmonts stock and 73 dlrs in its own stock for the balance. Piedmont also received an offer from Norfolk Southern Corp <NSC> of 65 dlrs cash per share. Piedmonts board was meeting today but the company declined to say what was on the agenda. A spokesman said he could not comment on the twa action. A Norfolk Southern Corp <NSC> spokesman said the company had no comment on TWAs offer for USAir or on its proposal to negotiate a three-way merger between TWA USAir and Piedmont. We dont have all the details a Norfolk Southern spokesman said. The companys 65 dlr-a-share cash offer for Piedmont stands he said. In its offer TWA said as an alternative to a merger with USAir it would be interested in discussing a three-way combination among USAir Piedmont and TWA. It said the three-way merger would serve the best interests of the shareholders of all three companies employees and consumers. Reuter | USAIR <U> HAS NO COMMENT ON TWA <TWA> OFFER |
Congressmen from beef producing states and representatives of the U.S. livestock industry urged the Reagan administration to press Japan and South Korea to open up their markets to imports of beef. Testifying at a House subcommittee hearing on livestock issues Rep. Hal Daub (R-Nebr.) said the administration should push hard for greater beef imports by Japan and South Korea. Daub was joined by several other lawmakers. U.S. assistant trade representative Suzanne Earley replied were not going to let Japan off the hook or Korea. She noted trade representative Clayton Yeutter met with a senior Korean official last week on the beef issue and that Yeutter and Agriculture Secretary Richard Lyng will visit Tokyo in April for discussions on farm trade issues. Japan maintains a quota on beef imports set at 58400 tonnes high quality beef in fiscal 1987. South Korea has banned beef imports but there are indications Seoul may bow to U.S. pressure and allow some imports soon industry officials said. In testimony today Tom Cook director of industry affairs for the National Cattlemens Association said the Congress administration and the industry must take a strong tough and united stand to impress the Japanese that we mean business and that we expect them to open their markets. Reuter | MORE PRESSURE URGED FOR ASIA TO TAKE U.S. BEEF |
South Africas total gold and foreign assets rose by 700 mln rand in February to 6.2 billion rand after rising by almost one billion rand in January Reserve Bank Governor Gerhard de Kock said. De Kock interviewed on state-run television gave no breakdown of the reserves. He also said that to curb inflation salary increases would have to be below the inflation rate. The state must set an example by keeping wage increases below the inflation rate he said. Consumer prices rose by 16.1 pct in the year to January. Reuter | SOUTH AFRICAN FOREIGN RESERVES UP SHARPLY IN FEB |
President Reagan formally accepted the resignation of White House counsel Peter Wallison and named Arthur Culvahouse an associate of new White House chief Howard Baker to replace him. Wallison who has handled White House legal affairs for the past year was closely identified with former chief of staff Donald Regan and his departure had been expected. His resignation which Reagan accepted with deep regret is effective on March 20. Culvahouse a 38-year old Tennessee native who currently practices law in Washington was Bakers legislative assistant when the new chief of staff was Senate Republican leader. Reuter | REAGAN CHANGES WHITE HOUSE LAWYERS |
E.F. Hutton Group Inc said it named Jerry Welsh to the newly-created post of senior executive vice president for marketing and strategic development. The company said Welsh was previously executive vice president of worldwide marketing and communications for American Express<AXP> Travel Related Services Co Inc. Reuter | E.F. HUTTON GROUP INC <EFH> NAMES EXECUTIVE |
The chairman of the U.S. House subcommittee on dairy livestock and poultry issues Rep. Charles Stenholm (D-Tex.) said it is likely the U.S. dairy support price will be cut next year. It looks like the price cut may take place Stenholm said at a hearing today on dairy issues. Under the 1985 farm bill the Agriculture Secretary can lower the U.S. milk price support to 10.60 dlrs per cwt from the current 11.35 dlrs if government purchases of dairy products are forecast to exceed five billion lbs in 1988. The U.S. Agriculture Department forecasts government purchases of dairy products will total six to seven billion lbs in fiscal 1987 but says the level of purchases beyond 1987 will depend on the production decisions of dairy farmers. Reuter | U.S. DAIRY PRICE SUPPORT CUT SEEN LIKELY IN 1988 |
Whether the Soviet Union will fulfill its buying obligations under the U.S./USSR grains agreement depends entirely on the United States a Soviet trade official told Reuters. How can I tell that we are ready to fulfill the agreement if the United States does not want to offer us grain at competitive prices? said Albert Melnikov deputy trade representative of the Soviet Union to the United States. We are in the market for grains but it is up to the United States to be the seller ... to offer Soviets competitive prices he said in an interview. Melnikov said that the United States has not lived up the agreement by failing to make available to Moscow U.S. grain at prevailing market prices. We are being accused of not implementing this agreement. We do not consider we are at fault Melnikov said. Article I in the agreement states that purchases/sales of commodities under this Agreement will be made at the market price prevailing for these products at the time of purchase/sale and in accordance with normal commercial terms. The United States should supply to the Soviet Union definite quantities of grain at competitive prices ... Is the United States ready to supply this? he said. The Soviet official said that near-term corn demand has been met by the recent Soviet purchases of U.S. corn which he confirmed at 1.5 mln tonnes but said that if U.S. corn prices remain competitive the Soviets will buy more if they need it. Wheat buying however is a different story Melnikov said. If the United States is interested in selling its wheat then they must offer competitive prices and its up to the United States to decide how these competitive prices will be offered he said. Last years U.S. offer of subsidized wheat to the Soviets was rejected because of an insufficient subsidy Melnikov said. He said that at the time of the 13 dlr per tonne subsidy offer U.S. wheat prices were 26 dlrs over world levels. Reuter | MORE SOVIET GRAIN BUYING FROM U.S. TIED TO PRICE |
Computer Identics Corp said its board elected Frank Wezniak to the new position of chief executive officer and as director and president succeeding David Collins. Collins also founder of the company said he resigned because the company has progressed beyond the entrepreneurial stage and requires the management experience that Weznkiak possesses. Wezniak has been active in several early stage venture capital investments and serves on a number of high tech corporation boards. The board alkso accepted a plan to issue subordinated demand notes for 600000 dlrs to one mln dlrs to an investor group including Wezniak. The board also voted to expand to seven the number of directors and ofer a new board seat to a group of investors represented by N.V. Bekaert S.A. Reuter | COMPUTER IDENTICS <CIDN> NAMES CHIEF EXECUTIVE |
A three-part 160 mln dlr offering of Virginia Housing Development Authority collateralized mortgage obligations was priced First Boston Corp said as a manager. The package includes 84 mln dlrs of CMOs with an average life of 1.1 years priced to yield 6.88 pct and 23.5 mln dlrs of bonds with a 5.5 year average life and eight pct return. Rounding out the financing is a 52.5 mln dlr tranche of floating rate CMOs. These offer a return at the three-month Libor rate plus 45 basis points. Standard and Poors rates all of the securities AAA. Reuter | VIRGINIA HOUSING AGENCY CMO BOND ISSUE PRICED |
HARTFORD STEAM BOILER BUYS 600,000 OF ITS SHARES FROM TRAVELERS |
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TRC Cos Inc said its wholly owned unit Alliance Technologies Corp received a 4.2 mln dlr contract from the U.S. Environmental Protection Agency to develop an inventory of pollutants contributing to acid deposition nationwide. TRC said the program would be the basis for evaluating the relationship between emission sources and their effects on the environment. Reuter | TRC COS <TRCC> UNIT GETS EPA CONTRACT |
Biospherics Inc said its common stock quotations will appear in the NASDAQ stock table published in more than 100 newspapers. The company said higher trading volume is expected from the new listing. Previously Biospherics was listed only in the regional securities sections in the Washington Post and Baltimore Sun. Reuter | BIOSPHERICS INC <BINC> QUOTES TO BE LISTED |
Qtly div 37.5 cts vs 37.5 cts prior Pay April eight Record March 16 Reuter | LEASEWAY TRANSPORTATION CORP <LTC> QTLY DIV |
Shares of Johnson and Johnson rose sharply today following a reiterated recommendation by Kidder Peabody analyst Arnie Snider traders said. Snider said the stock had also been placed on Kidders selected stock list. The stock gained 3-1/2 points to 91. The reiterated recommendation focused on a strong growth rate and the quality of the companys new products. Reuter | JOHNSON/JOHNSON <JNJ> UP ON RECOMMENDATION |
Sugar production in Peru for the 1986/87 season has been revised to 593000 tonnes (raw value) down 10 pct from the previous forecast and 21 pct below the 1985/86 harvest the U.S. Agriculture Department said in its World Production and Trade Report. It said while rains in the northern mountain region are improving the supply of irrigation water the major benefits will not occur until the 1987/88 season. Reuter | PERU SUGAR HARVEST SEEN LOWER -- USDA |
Key tax and budget lawmakers Wednesday expressed reservations about the suggested new securities tax which has has aroused concern on Wall Street and put pressure on brokerage stocks. Grappling with the need to either raise taxes or cut federal spending to meet the fiscal 1988 budget deficit target of 108 billion dlrs House Speaker Jim Wright suggested the tax be studied as one way to raise more federal revenues. The Texas Democrats idea as first presented to House Ways and Means Committee chairman Dan Rostenkowski this week would tax sales and purchases of securities. A tax of 0.25 to 0.5 percent would raise from 8.5 to 17 billion dlrs a year. Rostenkowski the chief taxwriter considers it too early to back any tax increase idea but agreed to add the securities transfer tax to a long list of tax alternatives under review by congressional tax analysts a spokesman said. The Illinois Democrat has repeatedly stressed this year he is reluctant to back a tax increase so long as President Reagan maintains his staunch opposition. First weve got to decide whether to raise additional revenues. Only then can we consider the specific options. At this point nothing is on or off the table. Its just too early Rostenkowski said in a statement. He made no commitment to Wright in a private meeting Tuesday and in fact was not asked for one a House source said. The idea was presented only as something that might or might not be valuable he said. House Budget Committee chairman William Gray agreed it was another option to be looked at if Congress decided it needed to raise revenues to reduce the deficit an aide said. The Pennsylvania Democrat does not intend to recommend specific tax proposals the aide said. The Budget Committee will recommend a certain amount of revenue to be raised in 1988 but will leave to the taxwriting committee the decision on how the taxes will be raised. The securities transfer tax would raise a hefty amount of revenue to ease Congresss difficult task of trimming the deficit by 61 billion dlrs this year to meet the target. But some in Congress feared that such a tax could drive securities business offshore and hurt U.S. investment and there were uncertainties about the details of the tax. Democrats have not united behind any budget alternatives so far this year. This week they are scheduled to discuss the budget and possible spending cuts or tax increases but no decisions are anticipated congressional sources said. At the same time without President Reagans assent to a general tax increase they are left with piecemeal taxes that are guaranteed to anger those who must pay. We could just do all of them one congressional source said of the various tax ideas -- excise taxes securities taxes oil import fee and others. Reuter | LEGISLATORS COOL TO NEW STOCK TAX IDEA |
Itel Corp said it obtained commitments from a syndicate of banks for a six-year secured loan of about 325 mln dlrs and had separately filed registration statements for two public offerings for a total of 150 mln dlrs to fund its December 1986 acquisition of <Anixter Bros Inc>. It said one of the offerings will be a new 75 mln dlrs issue of convertible exchangeable series C preferred and the other will be a 75 mln dlr issue of seven-year senior subordinated notes. Both offerings will be through Merrill Lynch Capital Markets. It said a portion of the proceeds from the offerings together with the proceeds form the new bank loan wll be used to repay the 395 mln dlr bridge loan Merrill Lynch and Co Inc <MER> provided for Itel to buy Anixter. Itel said the banks it obtained commitments from include Manufacturers Hanover Trust Co <MHC> <Chemical Bank of New <York> and the <First National Bank of Chicago>. Reuter | ITEL <ITEL> GETS FINANCING FOR ANIXTER BUY |
The Hartford Steam Boiler Inspection and Insurance Co said it will purchase 600000 of its own common stock from Travelers Insurance Companies <TIC>. Hartford said it will buy the stock at 60 dlrs per share. It also said the remaining 200000 shares currently held by the Travelers will be retained for investment purposes. The company said the purchase represents approximately six pct of the 10.6 mln outstanding shares. Reuter | HARTFORD STEAM BOILER <HBOL> TO BUY STOCK |
Great American First Savings Bank said the bank recorded gains exceeding 80 mln dlrs on sales of loans and mortgage securities valued at 1.1 billion dlrs. The San Diego-based bank said in a prepared release of its report to analysts here that the gains included 6.6 mln dlrs in arbitrage profits from the premium paid for the separation of interest and principal components of new Federal National Mortgage Association strip securities. The bank said it reported a profit of more than 20 mln dlrs on the transaction involving 390 mln dlrs of FNMA securities including the arbitrage gain. Great American recently announced plans to acquire <Capital Savings Bank> Olympia Wash. and last year acquired <Home Federal Savings and Loan Association> Tucson Ariz. and <Los Angeles Federal Savings Bank> which resulted in 66 new offices and three billion dlrs in assets. The bank also said it plans to expand into other major western banking markets and is considering an acquisition in Colorado. Reuter | GREAT AMERICAN <GTA> GAINS OVER 80 MLN IN LOANS |
Tandy Brands Inc said it sold its Grate Home and Fireplace division to an investor group that includes some members of Grates management for 1600000 dlrs in cash and secured notes. The company said the sale will not materially offset the 9848000 dlr non-recurring charge it took against the sale of the division. Reuter | TANDY BRANDS <TAB> SELLS UNIT |
The following proposed securities offerings were filed recently with the Securities and Exchange Commission: Intermark Inc <IMI> - Offering of 40 mln dlrs of convertible subordinated debentures due 2007 through Drexel Burnham Lambert Inc. Avery International Corp <AVY> - Offering of two mln shares of common stock through Kidder Peabody and Co Inc and Goldman Sachs and Co. Philadelphia Electric Co <PE> - Shelf offering of up to 1.5 mln shares of common stock through Drexel Burnham Lambert Inc. Pennzoil Co <PZ> - Offering of 100 mln dlrs of debentures due April 1 2017 through Merrill Lynch Capital Markets and Lazard Freres and Co. Reuter | PROPOSED OFFERINGS RECENTLY FILED WITH THE SEC |
The directors of the American Farm Bureau the nations largest farm organization voted Tuesday to urge Congress to leave the 1985 farm bill in place without alterations. We are solidly opposed to opening up the 1985 farm bill said Dean Kleckner president. The current farm bill has been in place for just a little over a year and in our judgment there is more to be gained at the present time from maintaining the legislation. Several independent studies ... indicate the 1985 farm bill is better on balance than any of the alternatives being advanced Kleckner said. The Farm Bureau also urged Agriculture Secretary Richard Lyng to adjust the loan rate for 1987 crop soybeans as much as he deems possible under the farm bill to keep soybeans competitive in the world market. A Farm Bureau proposal suggests that producers should be eligible for supplemental payments in the form of PIK certificates for the difference between 5.02 dlrs a bushel and the new loan rate. The organization also urged Lyng to authorize deficiency payments to farmers who were unable to plant 1987 winter wheat because of adverse weather. Reuter | AMERICAN FARM BUREAU OPPOSES FARM BILL CHANGES |
White House chief of staff Howard Baker said he has no secret plan to raise taxes. Talking to reporters he pointed out that Ronald Reagan is president. I am chief of staff. His program is my program. I have no tax plan at all. Bakers comments came in response to a question as to whether he planned to support higher taxes to reduce the budget deficit. President Reagan has said repeatedly that he opposes higher taxes. Reuter | WHITE HOUSE CHIEF HAS NO SECRET TAX PLAN |
Browning-Ferris Industires Inc said its board declared a two-for-one stock split payable April 24 to holders of record March 31. Reuter | BROWING-FERRIS <BFI> DECLARES 2-FOR-1 SPLIT |
EG and G said its EG and G Services unit was awarded a contract to provide facilities operations maintenance and related services for the U.S. governments chemical decontamination training facility at Fort McClellan Ala. Terms were not disclosed. Reuter | EG AND G <EGG> UNIT WINS GOVERNMENT CONTRACT |
A plan by U.S. semiconductor firms to cooperate in a manufacturing facility to compete with firms in Japan could conflict with anti-monopoly law the plans backers said. The Semiconductor Industry Association announced at a news conference a plan for a consortium to be known as SEMATECH to build an advanced semiconductor manufacturing plant. Asked whether U.S. antitrust regulators might object Charles Sporck president of National Semiconductor Corp said That is a possibility. Sporck said the Defense Department had a strong interest in the project but he declined to estimate how much would be sought from the government or how much funding SEMATECH would require. Sporck said the group hopes to have an operational plan ready by June 1. Then it will search for a site for the manufacturing facility and an executive to head up the consortium. The consortium could be operating by the end of the year and the facility working in 18 months he said. International Business Machines Corp hopes to participate in the effort Paul Low an IBM executive said. He said the project suppliers of raw materials and others vital to the semiconductor industry such as toolmakers would be invited to participate. Sporck said no decision was made on what product would be produced stressing that the emphasis was on developing technology and sharing that with firms which belonged to SEMATECH. Other aspects were still undecided such as whether a Japanese firm with a facility in the United States would be allowed to participate he said. Reuter | U.S. SEMICONDUCTOR PLAN RAISES ANTITRUST ISSUE |
Qtly div 55 cts vs 55 cts prior Payable May one Record April three Reuter | PENNWALT CORP <PSM> QTLY DIVIDEND |
Banner Industries Inc said it completed the purchase of all Rexnord Inc <REX> common shares for its 26.25 dlrs per share cash tender offer that ended Feb 27 1987. The purchase follows Banner receiving earlier today 310 mln dlrs under a credit agreement with Citicorp Industries Credit Inc and the Bank of Nova Scotia and an additional 260 mln dlrs from offerings made for Banner and its subsidiary through Drexel Burnham and Lambert. As a result of the tender offer Banner said it will own approximately 96 pct of the outstanding shares of Rexnord. The company said a merger of Rexnord and a subsidiary of Banner will be completed before mid-May. Reuter | BANNER INDUSTRIES INC <BNR> COMPLETES PURCHASE |
MURPHY RAISES CRUDE OIL POSTED PRICES ONE DLR/BBL. WTI TO 17.00 DLRS TODAY |
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The Commonwealth of Australia is offering in the Yankee bond market 400 mln dlrs of bonds in two tranches said lead manager Morgan Stanley and Co Inc. A 250 mln dlr issue of bonds due 1997 was given a 7-5/8 pct coupon and was priced at 99.25 to yield 7.73 pct or 60.5 basis points more than comparable Treasury securities. A companion 150 mln dlr offering of 30-year bonds was given an 8-3/8 pct coupon and was priced at 99.875 to yield 8.386 pct or 82.5 basis points over Treasuries. Both tranches are non-callable for life. Moodys rates the bonds Aa-1 and S and P rates them AA-plus. Reuter | AUSTRALIA SELLS BONDS IN TWO TRANCHES |