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Congresss long-awaited agreement last Friday on an urgent bill to fund government operations is expected to clear the way for the Agriculture Department to unlock its coffers closed since May 1. House and Senate negotiators breaking an extended logjam over fiscal 1987 funding agreed to appropriate 5.6 billion dlrs to the Commodity Credit Corp. The bill which is expected to be approved by both Houses this week and signed into law soon by the president would cover all farm program costs through September 30 and provide a 1.0 billion dlrs cushion congressional sources said. Elevator operators transportation companies and dairy processors have been especially hard hit by the freeze on CCC payments now entering its ninth week USDA sources said. Reuter | U.S. CONGRESS RESOLVES CCC FUNDING CRISIS |
FRENCH 13-WEEK T-BILL AVERAGE RATE FALLS TO 7.66 PCT FROM 7.72 PCT - OFFICIAL |
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French retail prices rose a confirmed 0.2 pct in May compared with a 0.5 pct rise in April and 0.2 pct in May last year the National Statistics Institute (INSEE) said. The rise took the year-on-year inflation rate to 3.4 pct in May from 3.5 pct in April and brought cumulative inflation over the first five months of this year to 2.0 pct compared with 0.7 pct for the same period of 1986. REUTER | FRENCH INFLATION CONFIRMED AT 0.2 PCT IN MAY |
BET Plc <BETL.L> said it will apply for listings on the New York and Toronto stock exchanges. BET said it filed its registration statement with the authorities in North America for the share issue cleared by its shareholders at the extraordinary meeting on March 19. The combined offering will involve up to 25.8 mln new BET shares in the form of American Depositary Receipts with four BET shares per ADR. The shares were valued at 77.3 mln stg at Fridays London closing price of 300p. Reuter | BET TO APPLY FOR LISTINGS IN NEW YORK, TORONTO |
British Airways Plcs <BAB.L> May passenger and cargo traffic figures provided evidence of recovery from last years setbacks and this trend will be reflected in first quarter results due in August chairman Lord King told the annual meeting. Earlier this month the newly-privatised airline reported a 29 pct rise in passenger traffic figures for May with cargo traffic up 22 pct. In the year to March British Airways reported a drop in pre-tax profits to 162 mln stg from 195 mln previously. However King said this result was satisfactory considering the difficulties posed by the Chernobyl disaster and the U.S. Raid on Libya. He said British Airways intended to return its tour travel operations to profitability when questioned by shareholders. In 1986/87 this division reported an operating loss of nine mln stg the fifth year of losses. However he said the group might reconsider its course of action if a turnaround seemed unlikely in the long-term. Reuter | BRITISH AIRWAYS SEES FIRST QUARTER RECOVERY |
The New York Stock Exhcange said it is reviewing the eligiblity for continued listing of the common stock and 5.875 dlrs cumulative convertible preferred stock series C of Allis-Chalmers Corp in view of its announcement that it has filed a voluntary petition under Chapter 11 of the Federal bankruptcy code. Reuter | ALLIS-CHALMERS <AH> LISTING EXAMINED BY NYSE |
Lead manager Algemene Bank Nederland (ABN) said it has completed the formation of a syndicate for Dutch chemical firm Akzo NV <AKZO.AS>s three-year 14 pct 50 mln Australian dlr bonds priced at 101.5 pct. Co-lead manager is Hambros Bank of London ABN said. Co-managers are Bankers Trust International Ltd Banque Bruxelles Lambert Bank Mees & Hope Banque Nationale de Paris Deutsche Bank Capital Markets Dresdner Bank EBC Amro Kredietbank NV Van Lanschot Bankiers Nederlandsche Middenstandsbank Pierson Heldring en Pierson Rabobank Vereins & Westbank and S.G. Warburg Securities. REUTER | ABN DETAILS SYNDICATE FOR 50 MLN AUS DLR AKZO LOAN |
Staley Continental Inc said it sold its 50 interest in Sociedad Iberica de Molturacion S.A. (Simsa) a soybean and sunflower seed processing company based in Madrid Spain. Staleys investment in Simsa no longer fit its overall coporate strategy and an agreement to sell the interest was completed in May it said. Staley said the Simsa transaction will not have a material effect on its balance sheet. Reuter | STALEY <STA> SELLS INTEREST IN SPANISH VENTURE |
MARTIN PROCESSING SAID IT ACCEPTS 20 DLRS/SHARE BID FROM COURTAULDS PLC |
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Lac Minerals Ltd said it filed a preliminary prospectus for an initial offering in Canada of flow-through common shares. Size and pricing of the issue have not yet been determined the company said. Reuter | LAC <LAC> FILES TO ISSUE FLOW-THROUGH SHARES |
Helene Curtis Industries Inc said due to increased expenditures budgeted to promote its new Salon Sectives brand the company will likely produce a loss for the second quarter ending August 31. In the 1986 second quarter it earned 1947000 or 53 cts a share. Earlier the cosmetics company posted first-quarter net of 139000 or four cts a share versus a loss in the year-ago period of 799000 or 22 cts a share. Reuter | HELENE CURTIS <HC> SEES 2ND QTR LOSS |
Conquest Exploration Co said it will not extend the exercise date of its publicly traded warrants after July 15 the current expiration date. Reuter | CONQUEST EXPLORATION <CQX> WARRANTS EXPIRE |
Frontier Insurance Group Inc said it acquired the malpractice book of business generated by Medical Quadrangle Inc and Medical Professional Liability Agency Ltd a producer of medical malpractice coverage. It said the acquisition will enable all of Frontiers medical malpractice coverage to be serviced internally. Reuter | FRONTIER <FRTR.O> BUYS MALPRACTICE BUSINESS |
Texas American Energy Corp said it will release information soon following the halt of its stock on the NASDAQ exchange. Reuter | TEXAS AMERICAN ENERGY <COLD.O> TO RELEASE NEWS |
Japan said an international agreement on loans to Poland was needed before Tokyo extended fresh loans to Warsaw to help a Japanese car maker set up a factory there. Prime Minister Yasuhiro Nakasone explained the conditions during the first round of talks with the visiting Polish leader Wojciech Jaruzelski foreign ministry sources said. They quoted Jaruzelski as saying of a private Japanese plan to export car production facilities to Poland If this project goes well it will serve as an engine in future economic relations between Poland and Japan. Nakasone speaking of the possibility of resuming extending official loans to Poland said It is necessary that an agreement should be established at an international arena such as the Paris Club of creditor nations. He hoped that such an agreement will be achieved at an early date but he did not make firm commitments about Japanese loans the sources said. Along with western nations Japan has witheld new official credits to Poland since February 1982 following the 1981 declaration of martial law in Poland. The Japanese car maker Daihatsu Motor <DMOT.T> and three trading houses including Mitsui Co Ltd plan to export production facilities to Polands state-owned car maker FSO to make the Charade minicar according to Mitsui officials. We are pushing the plan on the premise of an official credit to be extended eventually a Mitsui spokesman said. Nakasone also said that a joint Japan-Poland economic committee would discuss the proposed conclusion of an investment protection agreement later this year the sources said. REUTER | JAPAN SETS CONDITION FOR CAR PLANT LOAN TO POLAND |
Fidelcor Inc said it will take a one-time 30 mln dlr special provision in the second quarter for possible losses in loans to developing countries. The corporation said it will be profitable in the quarter despite the action that will reduce quarterly net income by 23 mln dlrs or 37 cts a share on a fully diluted basis. For the year-ago second quarter Fidelcor reported earnings of 24.8 mln dlrs or 95 cts a share. (Corrects spelling on company name) Reuter | CORRECTED-FIDELCOR <FICR.O> TO ADD TO LOAN LOSSES |
Period end May 31 Shr profit four cts vs loss 22 cts Net profit 139000 vs loss 799000 Revs 101.9 mln vs 86.8 mln Reuter | HELENE CURTIS INDUSTRIES INC <HC> 1ST QTR NET |
Sterivet Laboratories Ltd said the U.S. Food and Drug Administration granted expedited review status for its proprietary drug Navicon. The company said future marketability of Navicon in the U.S. will be greatly facilitated by receiving expedited review status and the company should achieve wide penetration once FDA approval for the drug is received. Navicon is a drug designed to treat navicular disease which affects the feet of one-third of all horses aged between five and 15. Reuter | STERIVET <STVTF.O> HAS FDA REVIEW STATUS |
The World Bank is prepared to play a more aggressive role in promoting Third World development bank president Barber Conable said in a magazine interview. Our plans include initiatives on the debt front as well as greater emphasis on debt-equity swaps and the promotion of private investment in Third World countries through our affiliate the International Financial Corporation Conable told Newsweek International. Conable who has just completed his first year as head of the World Bank said the banks mission remains the development of Third World nations. The bank is primarily a development institution not a debt-management agency. But debt must be managed effectively or it hampers development he told Newsweek. Conable said the bank must step in to help relieve the debt crisis which has prompted a number of U.S. commercial banks to write off a portion of their Third World loans. Conable defended his own reorganization plan for the World Bank which he said was aimed at improving efficiency and limiting a growing bureaucracy. And he said environmental considerations will play a larger role in the evaluation of proposed projects. Reuter | WORLD BANK CHIEF STRESSES THIRD WORLD GROWTH |
Period ended May 31 Shr 41 cts vs 35 cts Net 15.4 mln vs 11.9 mln Revs 234.4 mln vs 96.6 mln Avg shrs 38.0 mln vs 34.4 mln Reuter | LE GROUPE VIDEOTRON LTEE <VDO.TO> NINE MTHS NET |
D and N Savings Bank said it aapplied to the Federal Home Loan Bank Board for approval to open three new branches inside K mart Corp <KM> stores in Michigan. It said one of the branches being applied for is in Grand Rapids Mich. which would bring to five the number of K mart locations in that city with D and N Bank Marts. It said the other applications are for branches in Flint K mart stores. Reuter | D AND N <DNSB.O> APPLIES FOR MART BRANCHES |
Oper shr three cts vs one ct Oper net 210000 vs 67000 Revs 10252000 vs 8929000 Avg shrs 7933000 vs 8553000 Six mths Oper shr five cts vs two cts Oper net 420000 vs 133000 Revs 20.3 mln vs 17.1 mln Avg shrs 7952000 vs 8551000 NOTE: 1987 earnings exclude gain from utilization of tax loss carryforwards of 125000 dlrs or one ct a share in the quarter and 150000 dlrs or two cts a share for the six months Reuter | INTER-TEL INC<INTLA.O> 2ND QTR MAY 31 OPER NET |
<New Generation Products Inc> said it has acquired a 20 pct ownership in <Personal Protection Technolgies Inc>. New Generation said Personal Protection is developing a group of personal care products which are effective in killing a variety of viruses and bacteria on contact for U.S. and export markets. Reuter | NEW GENERATION PRODUCTS MAKES ACQUISITION |
Advanced NMR Systems Inc said it extended the exercise period for its class A and class B warrants by one year. The company said class A warrants entitling the purchase of one share in Advanced Systems and one class B warrant at four dlrs per unit will now be execrisable unitl Aug 18 1988. The class B warrants entitling the purchase of one share of common stock at six dlrs per share are now exercisable unitl Aug 18 1989. Reuter | ADVANCED NMR SYSTEMS <ANMR.O> EXTENDS WARRANTS |
Shr 15 cts vs 12 cts Net 1240939 dlrs vs 989714 dlrs Revs 32.9 mln dlrs vs 21.1 mln dlrs Note: first quarter ended May 31. The companys full name is Town and Country Jewelry Manufacturing Corp Reuter | TOWN AND COUNTRY JEWELRY <TNC> FIRST QTR NET |
Shr 19 cts vs 16 cts Net 502000 dlrs vs 401000 dlrs Revs 8.8 mln dlrs vs 6.7 mln dlrs Six mths Shr 38 cts vs 29 cts Net 989000 dlrs vs 745000 dlrs Revs 16.3 mln dlrs vs 12.5 mln dlrs Reuter | DATA ARCHITECTS INC <DAI> 2ND QTR MAY 31 NET |
Martin Processing Inc said its board approved an agreement to be acquired by Courtaulds Plc <COU.L> for 20 dlrs a share. The company said the transaction is valued at more than 99 mln dlrs based on its 4963620 shares of stock outstanding. It said Courtaulds has privately agreed to purchase a majority of Martins common from trusts established by Julius Hermes for 20 dlrs a share. It said Courtaulds intends to conduct a tender offer for all the Martin stock it does not own beginning as soon as necessary documents are prepared. Reuter | MARTIN PROCESSING <MPI> ACCEPTS COURTAULDS BID |
Shr 15 cts Net 3.6 mln dlrs Revs 96.9 mln dlrs Note: the company said year-ago figures are not comparable due to its reverse merger last year Reuter | LIFETIME CORP <LFT> YEAR MARCH 27 NET |
Shr loss two cts vs loss four cts Net loss 199010 dlrs vs loss 398202 dlrs Revs 1284939 dlrs vs 359440 dlrs Nine mths Shr loss 10 cts vs loss 14 cts Net loss 973542 dlrs vs loss 1298203 dlrs Revs 3.9 mln dlrs vs 1269098 dlrs Note:the third quarter ended April 30 Reuter | UNIVERSITY GENETICS CO <UGEN.O> 3RD QTR LOSS |
Nigerias military rulers will transfer power to an elected civilian government in 1992 two years later than previously planned at the conclusion of a gradual handover starting this year official sources said. The Armed Forces Ruling Council has approved the main details of the transition which will probably be announced this week by the President General Ibrahim Babangida. Among other important decisions the council has also chosen to limit the number of political parties under civilian rule to two the sources added. Reuter | NIGERIAN MILITARY MAY DELAY POWER TRANSFER |
The European Communitys annual inflation rate fell marginally to 3.2 pct in May from 3.3 pct in April the ECs statistics office Eurostat said. Prices in the 12-nation bloc rose 0.2 pct in May after 0.6 pct in April. But the annual rate stayed below that of the U.S. For the second month in succession following the release of figures showing U.S. Inflation of 3.8 pct in both April and May. However Eurostat said the EC was still beaten by Japan where prices were provisionally 0.1 pct lower in May than a year earlier. REUTER | EC ANNUAL INFLATION FALLS IN MAY |
BSN Corp said it purchased MacGregor Sporting Goods common stock in recent open market transactions. BSN said its position is less than the five pct ownership which would require specific disclosure. The company will continually review its position and may nelect to increase or decrease the number of shares owned it added. Reuter | BSN <BSN> HAS PURCHASED MACGREGOR <MGS> STOCK |
Shr 38 cts vs 47 cts Net 968000 dlrs vs 1053000 dlrs Revs 15.4 mln dlrs vs 12.6 mln dlrs Note:the year ended March 31. Reuter | TELECOMMUNICATIONS NETWORK <TNII.O> YEAR NET |
Congresss long-awaited agreement last Friday on an urgent bill to fund government operations is expected to clear the way for the Agriculture Department to unlock its coffers closed since May 1. House and Senate negotiators breaking an extended logjam over fiscal 1987 funding agreed to appropriate 5.6 billion dlrs to the Commodity Credit Corp. The bill which is expected to be approved by both Houses this week and signed into law soon by the president would cover all farm program costs through September 30 and provide a 1.0 billion dlrs cushion congressional sources said. Reuter | U.S. CONGRESS RESOLVES CREDIT CORP FUNDING CRISIS |
Shr 27 cts vs 14 cts Net 5664000 vs 2812000 Revs 68.2 mln vs 54.7 mln Avg shrs 21254054 vs 20167714 Reuter | HOVNANIAN ENTERPRISES <HOV> 1ST QTR MAY 31 NET |
Talks between the European Community (EC) and the United States have failed to settle a trade dispute over pasta an EC Commission spokesman said. Diplomatic sources said the dispute could provoke new trade friction unless it was settled soon. Washington is insisting that the EC comply with what it regards as an unambiguous ruling from the world trade body GATT and cut export subsidies which have allowed Italy to take an increasing share of the U.S. pasta market. The EC provides subsidies of about 16 cents a pound on pasta exports. The spokeswoman said the talks foundered on the question of how much the subsidy should be cut. Reuter | ARMISTICE ELUDES EC AND U.S. IN SPAGHETTI WAR |
United Savings Bank said it filed an offering circular with the Federal Home Loan Bank Board covering 13 mln dlrs of its convertible subordinated debentures due 2012. It said Johnston Lemon and Co Inc is acting as representative of the underwriters. Reuter | UNITED BANK <USBK.O> FILES FOR OFFER |
President Reagan is willing to compromise with Democrats in Congress on a plan to raise new federal revenues next year if they back his plan to reform the budget process White House Budget Chief James Miller said. If the Democrats want to insist that the president say whatever is agreed to is a tax increase then theyd better just forget it because hes not going to do that Miller said in an interview with Reuters. But there are a lot of revenues other than those the president proposed (in his January budget plan) I think that we might look seriously at he added. The Reagan budget which has been widely criticized by both Democrats and Republicans in Congress envisages raising 22 billion dlrs in new revenues through the sale of a package of government assets and new fees on certain federal services. President Reagan has repeatedly vowed to veto any tax increase voted by Congress for the 1988 financial year arguing that cutting domestic spending was a better way to reduce the huge federal deficit. The deficit which totaled 221 billion dlrs last year is expected to decline to about 175 billion dlrs this year and would fall to about 140 billion dlrs next year under a budget blueprint recently approved by Congress. The one trillion dlr congressional budget plan contains about 19 billion dlr in additional revenues from new taxes in the governments budgetary year beginning October 1. The plan does not say how the additional revenues are to be raised leaving it to the House Ways and Means and Senate Finance committees to fill in the details later this year. Miller appeared to be signaling that the president might consider some sort of tax increase despite his frequently stated rejection of the concept. However Miller declined to say which new revenue sources might be acceptable to the president. I think it would be counterproductive for me to (set out options) which might suggest that we have one thing or another in mind the White House budget chief said. He cautioned Congress about the political repercussions of certain moves such as raising excise taxes on beer cigarettes or telephone service or raising corporate or personal income tax rates. I think that those in Congress who think it will be a simple matter to go along with some increase in excise taxes are underestimating what they would be getting themselves into he said. What they dont really realize is that the political opposition they are going to feel to excise taxes is going to be a lot hotter tahn the political opposition to user fees in certain ways or asset sales he continued. But there are a lot of other things and revenue issues in government that probably ought to be addressed he said. Before agreeing to a revenue package the president would insist on reform of the budget process Miller said. The president is not going to take a sucker punch. Hes not going to sit down and try to negotiate out a budget when we cant be sure that whatever the president agrees to in fact will be delivered he emphasized. Wed like to have a budget process that gives us a contract so that if the president agrees to something he can depend on its coming through. After returning to the United States from the economic summit in Venice earlier this month President Reagan revived an earlier unsuccessful campaign for budget reform calling for a constitutional amendment requiring a balanced budget and the power -- called a line-item veto -- to block individual items in congressional spending bills. At the Venice summit U.S. trading partners called on Washington to cut its budget deficit to help reduce global trade imbalances. Miller told an Italian journalist here yesterday that U.S. trading partners have to have faith and trust in the ability of the United tates to deal with its problems. He said a deficit cut of about 40 to 45 billion dlrs a year is about the optimal rate of reduction in the deficit. I dont think we can end the deficit overnight... I think weve got to have a gradual reduction over a period of several years. Miller is in Beaver Creek attending the sixth annual World Forum a gathering of current and former government officials and business representatives discussing world economic and political issues. Reuter | REAGAN SAID OPEN TO DEAL ON 1988 U.S. TAX RISE |
The exercise price for the warrants attached to the 100 mln dlr eurobond for Finlands Nokia Oy <NOKS.HE> has been fixed lead manager Morgan Guaranty Ltd said. The five year par-priced deal was launched last Thursday and pays five pct. Each 5000 dlr bond has 134 warrants attached which are each exercisable into one Nokia free preferred share at a price of 169.4 Finnish markka. This compares with todays closing price of 178 markka. REUTER | EXERCISE PRICE SET ON NOKIA EQUITY WARRANT BOND |
The Bangladesh government dropped from its proposed budget some tax increases that had provoked opposition parties to call a national strike for tomorrow. Prime Minister Mizanur Rahman Choudhury told Parliament last night the taxes were dropped to help farmers and the poor but opposition groups said the strike was still on. Choudhury also said the price of soybean oil and the excise duty on some fabrics would be lowered. He said a proposed additional two pct land development tax from the budget which is for fiscal 1987/88 starting July 1 had been dropped. Choudhury said the tax withdrawal would cause a revenue shortfall of 130 mln taka. His announcement came shortly after the 21 opposition parties called a six-hour nationwide strike for tomorrow. Opposition parties had said the taxes would affect the poor and middle class and leave the wealthy untouched and the secretary-general of the opposition Bangladesh Nationalist Party K.M. Obaidur Rahman said the governments action would not avert tomorrows strike. Reuter | BANGLADESH GOVERNMENT DROPS BUDGET TAX PROPOSALS |
Utilicorp United Inc said its UtilCo Group subsidiary completed the purchase of a 38 pct interest in Westwood Energy Properties Limited Partnership for about 10 mln dlrs. The company said the partership is building and will operate a 30-megawatt electric generation facility in Schuykill County Penn. scheduled to begin commercial operation in July. It said the 38 pct interest was sold by Westwood Funding Corp a wholly-owned subsidiary of Combustion Engineering Inc <CSP>. Westwood Funding retains an interest in the partership and serves as a general partner it said. Reuter | UTILICORP <UCU> UNIT BUYS STAKE IN POWER PLANT |
Exxon Co U.S.A. said it is extending marketing of its mid-grade unleaded gasoline Exxon Plus into the Houston and Dallas/Fort Worth metropolitan areas beginning early next month. Exxon Corps domestic subsidiary is already marketing the 89-octane unleaded gasoline along much of the East Coast. As it introduces the third unleaded grade Exxon noted it no longer offers a leaded gasoline in the market except in some rural areas where leaded gaosline will be made available to distributors who have a substantial need for the product to serve customers whose equipment was designed for leaded fuel. Reuter | EXXON <XON> EXTENDS MID-GRADE UNLEADED MARKETING |
John Labatt Ltd said it acquired the Canadian brewing and marketing rights to the Carlsberg group of brands effective July 1 1988. Carlsberg products are now marketed in Eastern Canada by Carling OKeefe Ltd wholly owned by Elders IXL Ltd <ELXA.S>. Labatt said its agreement with United Breweries International Ltd of Copenhagen Denmark is effective July 1 1988 and provides Labatt with the rights to Carlsberg Carlsberg Light Carlsberg Bock and Carlsberg Gold. Labatt did not disclose financial terms of the marketing agreement. Reuter | LABATT <LBT.TO> HAS CARLSBERG BREWIING RIGHTS |
Coradian Corp said a group led by privately held Sage Equities Group agreed to buy a 7.6 pct interest in Coradian. In connection with the agreement the company said it sold 666667 shares at 75 cts a share. It said that in addition to common stock Sage Equities will receive 667667 warrants exercisable at 1.50 dlrs a share. Reuter | CORADIAN <CDIN.O> STAKE ACQUIRED BY SAGE |
Shr 24 cts vs 18 cts Shr diluted 21 cts vs 18 cts Net 2108805 vs 1605278 Sales 28.9 mln vs 24.2 mln NOTE: Share results reflect two for one stock split to be paid July eight Reuter | SIKES CORP <SKA> 1ST QTR MAY 31 NET |
Danish crops are up to two weeks behind normal growth levels due to the cold weather in May and June when mean temperatures were up to four centigrade below average the State Plant Cultivation Bureau said in a report. At the seasons first crop test on June 26 the bureau rated crops at an overall 94 the same as on June 20 last year. The figure of 100 represents normal in a year of average growth conditions with no crop damage. The test gave ratings expressed as a factor of 100 as follows - winter wheat 96 (last year 91) winter rye 97 (98) winter barley 92 (90) spring barley 94 (98) oats 96 (98) fodder and sugar beets 87 (96) winter rapeseed 98 (94) spring rapeseed 94 (98). Final harvest figures for 1986 were not yet available. Reuter | DANISH CROPS TWO WEEKS BEHIND, OFFICIAL REPORT |
Pirelli group unit Pirelli Cable Corps communications division said it signed a cable supply contract with NYNEX Corp <NYN> unit NYNEX Enterprises. The company said Pirelli will supply NYNEX with fiber optic cables over the next year. Terms of the contract were not disclosed. Reuter | PIRELLI GROUP <PIRI.M> UNIT SELLS CABLE |
Unicorp American Corp said it sold three properties in the Boston area for aggregate proceeds of about 6300000 dlrs resulting in a pre-tax gain of of about 3200000 dlrs. Income tax expense totaling about 1700000 dlrs reduced this gain to about 1500000 dlrs for financial reporting purposes the company said. The properties included an industrial building in Westwood Mass. a building containing retail stores in Lexington Mass. and an office building in Bedford Mass. the company added. Reuter | UNICORP <UAC> REPORTS GAIN FROM PROPERTY SALe |
KODAK IS DISTRIBUTING AIDS TEST KIT MADE BY CELLULAR PRODUCTS |
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The Reserve Bank of India RBI announced new rules to allow exporters of 25 products to use foreign exchange up to 10 pct of their firms total annual export earnings for export promotion abroad. The move is designed by the government to improve Indias trade deficit. Products eligible for the new Blanket Exchange Permit Scheme include tea bags cigarettes coffee leather various textiles chemicals pharmaceuticals plastics engineering and electronic goods ready-made garments processed food sports goods fabricated mica and consultancy services. The scheme replaces current rules which allow different amounts of foreign exchange to be used only when firms attain a minimum annual turnover prescribed for each product. RBI said under the new rule 16 other products will qualify on a discretionary basis for overseas promotional spending of not more than two pct of the freight-on-board value of annual export earnings. These include oil cakes cereals raw cotton raw and semi-processed leather gems castor and sandalwood oil psyllium husks and seeds opium and various mineral ores. RBI said exporters of products not covered by either of the two groups will be eligible to use up to five pct of their freight-on-board value of their annual export earnings. Industry sources said the new entitlements considerably higher than the previous limits are also more flexible because holders of new permits no longer need to frequently apply to RBI for release of foreign exchange for export purposes. Reuter | INDIA RELAXES RULES FOR EXPORT PROMOTION |
Textron Inc unit Bell Helicopter Textron Inc said it and two United Auto Workers union locals agreed to a new three-year contract ending a three week strike. It said production and maintenance members of Local 218 had been on strike for three weeks while clerical members of Local 317 had been on strike for a week. A total of 4000 people were out on strike. A company spokesman said the strike was based on a disagreement over the method of future pay rises. The spokesman said the companys original offer was based on lump sum payments over three years at six pct in the first year four pct in the second year and three pct in the third. He said management and the unions later agreed to a system that combined general pay increases with lump sum payments over the life of the contract. Reuter | TEXTRON <TXT> UNIT STRIKE ENDS |
Shr four cts vs one ct Net 335000 vs 67000 Rev 10.1 mln vs 8.7 mln Avg shares 7933000 vs 8553000 Six Months Shr seven cts vs two cts Net 570000 vs 133000 Rev 19.9 mln vs 16.8 mln Avg shares 7952000 vs 8551000 NOTE: Qtr includes extraordinary gain of 125000 dlrs or one ct a share while six months net includes gain of 150000 or two cts a share. Reuter | INTER-TEL INC <INTLA.O> 2ND QTR MAY 31 NET |
ENTERTAINMENT MARKETING DEMANDS CRAZY EDDIE SHAREHOLDER LIST, MAY PURSUE MERGER |
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Unisys Corp said its public sector systems division will market the ICON Series an enhanced microcomputer system for use in the classroom. It said the computer made by Ontario based <Meridian Technologies Inc> allows students and teachers to run multiple programs simultaneously. It said the computer costs 1895 dlrs with a one megabyte of memory. It said the ICON Series is an enhanced version of an instructional system marketed in Canada since 1984. Unisys said it will market the ICON Series in the U.S. under an exclusive licensing agreement with Meridian Technologies. Reuter | UNISYS <UIS> OFFERS NEW CLASSROOM COMPUTER |
Pennzoil Co said it was advised by the Securities and Exchange Commission that that commission will file an amicus curiae brief in the Texas Supreme Court concerning the Pennzoil/Texaco Inc (TX) litigation but said it was not aware whether that brief will adopt the position of one of the litigants. Pennzoil said the brief is expected to be filed about July 20. We do not know whether the brief will adopt the position of one of the litigants or simply be an inquiry and request for clarification of the reasoning of the two previous decisions in this matter both of which have been favorable to Pennzoil a Pennzol spokesman said. Pennzoil said that regardless of the focus of the brief Pennzoil will make an appropritate response in the court in due course. Earlier today Texaco said that in a letter dated June 26 the SECs general counsel told attornys representing Texaco and Pennzoil that the commission will urge the Texas Supreme Court to review the issue of federal securities law in the case between the two companies. The litigation stems from Texacos purchase of Getty Oil Co in 1984 after Pennzoil had made an offer from Getty. Reuter | PENNZOIL (PZL) ADVISED OF SEC BRIEF |
Eastman Kodak Co said it is marketing a test kit for the AIDS antibody developed and manufactured by Cellular Products Inc. Kodak said the kit is the first in a series of diagnostic tests for certain retroviruses infectious diseases and various forms of cancer the company will distribute. A Kodak spokesman would not give financial details of the agreement with Cellular Products. The spokesman said the AIDS test is the first biotechnology product Kodak will market. He said the test is mainly suited for blood banks and blood products supply businesses. He told Reuters that Kodak does not yet have a contract for the test with any businesses but several are pending. Kodak said its AIDS test will cost about one dlr to 1.50 dlrs each depending on volume. A positive test means there has been contact with the AIDS virus but it does not mean that a person has or will develop AIDS. Kodak also said it also market a test developed by Cellular that will detect a virus causing adult T-cell leukemia. It said that test is pending regulatory approval at the Food and Drug Administration. Reuter | KODAK <EK> MARKETING CELLULAR <CELP.O> AIDS TEST |
DataCard Corp said it adopted a dividend rights plan in response to Deluxe Check Printers Inc <DLX> having agreed to sell its 38 pct interest in DataCard to National Computer Systems Inc <NLCS.O>. DataCard declared a dividend distribution of one preferred stock purchase right on each outstanding share its common stock. The dividend is designed to deter National Computer or other potential suitors from preventing DataCard from evaluating all alternatives to maximize shareholder value DataCard said. National Computer told Reuters June 22 it could make a bid for DataCard. On June 25 DataCard filed suit in Hennepin County District Court in Minnesota to block the sale of the 38 pct stake of its stock to National Computer. In announcing the rights plan DataCard said it is not designed to deter takeovers that would be consistent with the objective of maximizing stockholders value to all of DataCards stockholders. The rights will not become exercisable until 10 days after an announcement that a person or group has acquired beneficial ownership of 44 pct or more of DataCards common stock. Once exercisable each right would entitle a holder to buy 1/500th of a share of DataCard Series A junior participation preferred Stock for 35 dlrs. Holders other than an acquirer would be entitled to purchase for six-months after the right becomes exercisable a number of shares of the new preferred stock with a market value equal to twice the exercise price of the rights. The rights dividend distribution is payable July 9 to shareholders of record July 9. Reuter | DATACARD <DATC.O> ADOPTS DIVIDEND RIGHTS PLAN |
Shr 12 cts vs one cent Net 546000 vs 48000 Revs 22.3 mln vs 16.0 mln Nine mths Shr 44 cts vs seven cts Net 1857000 vs 303000 Revs 65.5 mln vs 46.0 mln NOTE: Per share figures adjusted for three-for-two stock split paid April 1987. Reuter | SHELDAHL INC <SHEL> 3RD QTR MAY 30 NET |
Federal Resources Corp said it has acquired the capital stock and related real estate assets of <New Generation Inc> a regional consumer electronics specialty retailer. Terms of the acquisition were not disclosed. New Generation has annual sales volume of about 30 mln dlrs Federal Resources said. Federal Resources said it will search for additional acquisitions including but not limited to specialty retailers. Reuter | FEDERAL RESOURCES <FDRC.O> ACQUIRES RETAILER |
First Union Corp said its second quarter (ending June 30) earnings will be down around 13 cts a share from 65 cts a share in the second quarter last year to an estimated 59 mln dlrs or 53 cts a share. The company said this will be the result of adding 25 mln dlrs to its reserve for Latin American loan exposures bringing its reserve to 57 mln dlrs. It said it expects its return on equity and return on assets to be among the highest for major United States banks this year. Reuter | FIRST UNION CORP <FUNC.O> SEES LOWER 2ND QTR |
Enetertainment Marketing Inc and its president Elias Zinn have demanded a list of Crazy Eddie Inc shareholders from the company and said they may pursue a merger of the Edison N.J. electronics retailer. In a filing with the Securities and Exchange Commission Zinn said the demand for the shareholder list was made on June 26 because he may desire to communicate with other Crazy Eddie shareholders regarding the affairs of the company. Zinn and his firm which disclosed they hold a 5.1 pct stake in Crazy Eddie common stock said they may acquire more shares through a negotiated merger or tender offer. Entertainment Marketing was informed on June 25 by Shearson Lehman Brothers Inc. acting on behalf of Crazy Eddie that it would be provided with certain information about Crazy Eddie it told the SEC. Entertainment Marketing a Houston-based firm involved in electronics wholesaling and televised home shopping sales proposed an eight dlr a share merger acquisition of Crazy Eddie on May 29 and modified the proposal on June 9 to include the possible participation of Crazy Eddie management. Entertainment Marketing told the SEC it expects to meet with Crazy Eddie representatives in the near future. Entertainment Marketing also disclosed that it retained Drexel Burnham Lambert Inc as its financial advisor and investment banker. In light of a June 17 announcement from Crazy Eddie that Chemical Bank would no longer fund a 52 mln dlr credit facility with the company plus further declines in the price of its stock Entertainment Marketing and Zinn said they are continuing to evaluate their alternatives with respect to their investment in Crazy Eddie stock. Depending on its evaluation of the company including actions by Crazy Eddies board and any possible third party bids for the company Entertainment Marketing and its president said they may hold their present stake in the company sell some of their shares or purchase more shares on the open market through private purchases or in connection with a merger or tender offer. According to the SEC filing Entertainment Marketing and Zinn bought their current holdings of 1560000 Crazy Eddie common shares between May 20 and June 17 at 7.42 dlrs to 7.93 dlrs a share or a total of about 11.9 mln dlrs. Reuter | ENTERTAINMENT <EM> MAY SEEK CRAZY EDDIE <CRZY> |
U.S. moves to increase its warships in and around the Mideast Gulf could trigger more attacks on unprotected merchant ships but run little risk of sparking a direct military clash with Iran diplomats said. They said the American decision inevitably carries some risk of armed confrontation but Iran -- despite its blunt rhetoric -- would want to avoid this as much as Washington. As Iran knows very well what America is bringing into the Gulf could do serious damage said one western diplomat. Diplomats see the greatest potential danger in more attacks on soft targets such as merchant shipping not protected by American or other western navy vessels patrolling the Gulf. The risk of Iranian attack on U.S. Warships or Kuwaiti oil tankers carrying the U.S. Flag and under naval escort is rated by diplomats as low. However There is the threat that the Iranians seeing these heavily protected U.S.-flag tankers will go for softer targets one diplomat said. Tehran Radio quoted Irans top defence spokesman Ali Akbar Hashemi Rafsanjani as saying yesterday that Washington was moving to the brink of an armed encounter with us. The U.S. is increasing its Gulf fleet from seven to 10 warships and sending the refurbished battleship Missouri to patrol just outside the Strait of Hormuz. The build-up ties in with U.S. plans to start escorting Kuwaiti oil tankers next month which have been re-registered to fly the American flag to give them naval protection. Shipping serving Kuwait has come under repeated attack by Iran angered at the emirates war backing of Iraq. Concern in the region has mounted over the threat posed by Chinese-made Silkworm missiles which the U.S. says Iran is preparing to deploy near the Strait of Hormuz. The Missouri with its four-escort flotilla is likely to make Iran think twice about using the missiles diplomats said. A military source in the Gulf has said Iran also set up a launching site for the Silkworms on captured Iraqi soil in the Faw peninsula within range of Kuwait. But anything that went as far as a direct attack on Kuwaiti territory would be a very serious escalation likely moving world opinion against Iran remarked one. Some diplomats believe Iran could also consider carrying out reprisals against the United States outside the Gulf. Rafsanjani who is also parliamentary leader predicted last Friday a river of blood throughout the world in the event of any U.S. strike against Iran. Western diplomats said Iran which Washington has accused of being behind state-sponsored terrorism had no demonstrable capacity to carry out attacks in the U.S. itself. Diplomats saw few potential targets in Lebanon now that most Americans have left in the wake of kidnappings linked to pro-Iranian groups. But Europe and Asia were potential trouble-spots and Kuwait was one of the most obvious targets. Any backlash was likely to take the form of sabotage or other action to make it difficult to blame Iran they added. Reuter | CHANCES OF DIRECT U.S.-IRAN GULF CLASH SEEN LOW |
Chrysler Corp is negotiating with the Chinese Government owned First Autoworks about a project in which the Dodge 600 mid-sized car could be added to the Chinese firms lineup the trade paper Automotive News said. It said Chrysler is discussing the supply of 2.2 liter four-cylinder engines as well as tooling for the 600 which has been on the U.S. market since 1982. Chrysler spokesmen were not available for comment today. But the trade paper quoted an unnamed spokesman as saying Chrysler is competing with French-based Citroen and an unnamed Japanese maker to supply First Autoworks. Reuter | CHRYSLER <C> REPORTED TO BE IN TALKS WITH CHINA |
Conquest Exploration Co said the expiration date of its publicly traded warrants will not be extended after July 15. Reuter | CONQUEST EXPLORATION <CQX> SEES WARRANTS EXPIRE |
Hathaway Corp said it restructured its debt financing which provides 15 mln dlrs for expansion and operations of the company twice the debt financing previously available to the company. As part of the restructuring Hathaway said it obtained 10 mln dlrs of long-term financing from Household Commercial Financial Services Inc and Ford Motor Credit Co. An additional 5.0 mln dlrs of working capital financing was committed by Colorado National Bank of Denver it said. Hathaway said the new financing will be used to repay about 7.0 mln dlrs in existing short-term debt with the balance for expansion. It said 10-year senior secured notes were executed June 15 and are payable with interest at 12 pct a year on a quarterly basis. Reuter | HATHAWAY <HATH.O> RESTRUCTURES DEBT |
Video Jukebox Network Inc said it has extended through July two the exclusive period provided in its May 29 letter of intent the option to sell to a group of investors 3500000 shares of the four mln shares of the companys common stock owned by its founder and president Steven A. Peters. Video said it currently has 7525000 common shares outstanding. The purchasers are Louis Wolfson III vice president of <Venture W Inc> an investment firm; Mark Blank president of <National Brands Inc>; J. Patrick Michaels Jr. president and chief executive officer of <Communications Equity Associates Inc>; and CEA Investors Partnerships II a company Michaels would form for the purchase Video said. Video said it agreed to extend the period at the request of the prospective buyers in order to provide their respective counsels sufficient time to finalize the draft agreement which the parties have negotiated. The company previously said that the outright purchase was valued at three mln dlrs or an option purchase price of 250000 dlrs excersizable until May 28 1988. The exercise price would be 3750000 dlrs plus the initial option purchase price of 250000 dlrs the company said. Video said if the option expires unexercised Video will grant an additional six month option to the buyers enabling them to purchase two mln shares for 1750000 dlrs plus the initial option purchase price of 250000 dlrs. Reuter | VIDEO JUKEBOX <JUKE.O> SETS PURCHASE EXTENSION |
FED SETS TWO-DAY SYSTEM REPURCHASES, FED SAYS |
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Cyclops Corp said shareholders approved a previously announced merger of the company with a subsidiary of dixons Group PLC. It said Dixons held about 83 pct of Cyclops stock following a tender offer and other purchases earlier in the year. With the completion of the transaction Dixons will proceed to pay 95 dlrs a share to the remaining Cyclops shareholders. Reuter | CYCLOPS <CYL> MERGER APPROVED |
Leeco Diagnostics Inc said its sales team will be expanded due to the initial success of its Preview pregnancy test kit. The company said the sales team which sells to test kit to physicians is expected to rise to 150 from 100 in the next 45 days. It said test kits will be sold in U.S. drug stores later this year. The Preview test which takes five minutes and can detect pregnancy within seven days of conception had record sales in its first month on the market the company said. Reuter | LEECO <LECO.O> EXPANDS SALES TEAM |
Amax Zinc Co a division of Amax Inc said it is increasing the price of dyecast alloys No. Three and No. Five by three cents a lb effective immediately. Dyecast alloy No. Three is now 52.5 cents a lb while alloy No. Five is now 53.5 cents a lb the company said. Reuter | AMAX ZINC CO RAISES DYECAST ALLOY PRICES |
The Federal Reserve entered the government securities market to arrange two-day repurchase agreements for system account a spokesman for the New York Fed said. Federal funds were trading at 6-3/4 pct at the time of the direct injection of temporary reserves in line with Fridays 6.72 pct average. Reuter | FED SETS TWO-DAY SYSTEM REPURCHASES |
Chrysler Corp is negotiating with the Chinese Government owned First Autoworks about a project in which the Dodge 600 mid-sized car could be added to the Chinese firms lineup the trade paper Automotive News said. It said Chrysler is discussing the supply of 2.2 liter four-cylinder engines as well as tooling for the 600 which has been on the U.S. market since 1982. Chrysler spokesmen were not available for comment today. But the trade paper quoted an unnamed spokesman as saying Chrysler is competing with French-based Citroen and an unnamed Japanese maker to supply First Autoworks. Reuter | CHRYSLER SAID IN AUTO SUPPLY TALKS WITH CHINA |
Pharmacontrol Corp said it has closed its public offering of 23000 units. The company said each unit consists of 1000 dlrs principal amount of subordinated convertible debentures due 2002 which convert at six dlrs a share into 167 shares of common stock. Also each unit included 70 shares of common stock which were immediately detachable the company said. Pharmacontrol added that it has also converted its seven mln dlr credit facility with its institutional lender into a 12 mln dlr credit facility. Reuter | PHARMACONTROL <PHAR.O> CLOSES PUBLIC OFFERING |
Asea Group AB <ASEAY> said it has been awarded a 110 mln dlr contract from the Swedish State Power Board and the Finnish utility <Imitran Oma Oy>. The company said the contract is for a 500 megawatt 400 kv fenno skan high voltage DC transmission to be built between Sweden and Finland. The company also said three other Asea companies; Asea Transmission Ludvika Sweden and Strondberg Vaasa in Finland received a related order for converter equipment. Reuter | ASEA GROUP AWARDED 110 MLN DLR POWER CONTRACT |
Vernitron Corp said it has set a new record date of July 10 for shareholders entitled to vote on the proposed merger of Vernitron with <SB Holding Corp>. The original record date was May 26. Vernitron said that it currently expects the special shareholder meeting concerning the merger will be held in August. Following its tender offer in November 1986 SB Holding holds 55.2 pct of Vernitron a maker of electromechanical components and related products and services. Reuter | VERNITRON <VRN> SETS NEW RECORD DATE |
Centel Corp is raising 60 mln dlrs via an issue of debentures due 1997 said lead underwriter Smith Barney Harris Upham and Co Inc. Smith Barney headed a syndicate that won the debentures in a competitive bidding. It bid the issue at 99.338 and set a 10 pct coupon and reoffering price of par to yield 146 basis points over Treasuries. The net interest charge was 10.07 pct. Non-callable for five years the debt is rated A-2 by Moodys and A by S and P. Gross spread is 6.62 dlrs selling concession is 4.50 dlrs and reallowance is 2.50 dlrs. United Bank of Switzerland and Dillon Reed co-managered the deal. Reuter | CENTEL CORP <CNT> SELLS DEBENTURES |
Energas Co said it has agreed in principle to purchase Western Kentucky Gas Co from Texas American Energy Corp for 61.5 mln dlrs in cash plus assumptrion of certain liabilities. Western Kentucky is a gas distribution company which serves about 143000 customers in 108 towns and communities in Kentucky. Reuter | ENERGAS <EGAS.O> TO BUY TEXAS AMERICAN <TAE>UNIT |
The Franklin Group of Funds said <Franklin Pennsylvania Investors Equity Fund> will pay an initial semi-annual dividend of seven cts July 14 to holders of record July one. Reuter | FRANKLIN PENNSYLVANIA INVESTORS FUND DIVIDEND |
TNT Skypak a unit of TNT Ltd of Australia said it introduced a new worldwide express package delivery service that will starts operation today. At a press conference executive said the service TNT Expressair will delivery packages up to 220 lbs from any location in the U.S. anywhere in the world and from overseas locations to the U.S. Initially TNT Expressair will concentrate its marketing in the U.S. Canada the United Kingdom Europe and Australia. TNT is one of the worlds largest transportation companies with annual revenues of over US 4 billion dlrs. TNT officials declined to project expected annual revenues for the new service. They said final price lists are being prepared. As part of the new service TNT will open another 20 to 25 offices in the U.S. by the end of the year officlals said. It currently has 27 offices in the U.S. Reuter | TNT SETS NEW PACKAGE DELIVERY SERVICE |
Gibraltar Financial Corp said its Gibraltar Savings unit has agreed in principle to buy <First Federal Savings and Loan of Ridgecrest> for about 12.1 mln dlrs cash. The company said the actual price will be determined at the close based on net book value at May 31. It said First Federal is located in Kearn County northeast of Los Angeles and has assets of 130 mln dlrs. It said the transaction is subject to a definitive agreement shareholder and regulatory approval. Reuter | GIBRALTAR <GFC> TO BUY THRIFT FOR 12 MLN DLRS |
Winley Home Builders Inc said it completed a land purchase agreement with M.D.C. Holdings Inc <MDC> for 1090000 dlrs in notes and preferred stock. The company said it bought 33 lots in Colorado from Richmond Homes Ltd an M.D.C. unit in return for 650000 dlrs in promissory notes and 440000 dlrs in preferred stock. The company said M.D.C. has an option to convert Winley preferred stock into 20 pct Winley common in a year. Reuter | WINLEY BUYS LAND FROM M.D.C. HOLDINGS INC <MDC> |
Shr three cts vs two cts Net 97224 vs 58503 Rev 906368 vs 714747 Avg shrs 3300000 vs 3948719 Reuter | STAR CLASSICS INC <SCLS.O> 1ST QTR MARCH 31 NET |
The European Investment Bank is raising 200 mln marks through an eight-year bullet eurobond carrying a 6-1/8 pct coupon and priced at 99-1/2 pct to yield 6.21 pct at issue lead manager Westdeutsche Landesbank Girozentrale said. Payment date is July 16 the bond pays interest on that date annually and matures on that date in 1995. Fees total 1-3/4 pct with 5/8 for underwriting and management and 1-1/8 for selling. Denominations are 1000 and 10000 marks and the bond will be listed in Duesseldorf and Frankfurt. REUTER | EIB LAUNCHES 200 MLN MARKS BULLET BOND |
GABELLI FIRMS HAVE 28.5 PCT STAKE IN DIGIORGIO CORP, MAY SEEK CONTROL |
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Apollo Computer Inc said it introduced a new family of computer workstations and improved the performance and cut prices on some of its existing workstations. In addition the company announced new products that allow personal computers to communicate with workstations. Apollo said its new workstation family the Domain Series 4000 Personal Super Workstations includes the first color workstation priced under 19000 dlrs that can process four million instructions per second. Apollo said the Domain Series 4000 also features a 14000 dlr monochrome workstation and a 13000 dlr workstation server both of which can process four million instructions per second. Apollo said the new Domain Series 4000 models double the performance of its existing Domain Series 3000 workstations and provide performace equivalent to competing workstations at half the price. We are clearly telling users that Apollo is committed to maintaining its price/performance leadership in the workstation marketplace said Thomas A. Vanderslice Apollos chief executive officer. Apollo also said it will offer new color and monochrome models for the Domain Series 3000 its entry-level workstation family. It said it also cut some prices but did not specify. Reuter | APOLLO <APCI.O> OFFERS NEW WORKSTATIONS |
Qtly dividend 23 cts vs 21.6 cts in prior qtr Payable July 14 Record July one Dividend includes short-term capital gain of 20 cts vs 16 cts short-term and 2.2 cts long-term gains in prior quarter Reuter | <FRANKLIN OPTION FUND> SETS DIVIDEND |
DSC Communications Corp said it signed a supply agreement with United Telephone System Inc to deliver DSC Signal Transfer Points valued at about 3.0 mln dlrs. It said the agreement runs through 1990 with product deliveries expected to start later this year. Reuter | DSC COMMUNICATIONS<DIGI.O> IN SUPPLY AGREEMENT |
year ended March 31 Shr three cts vs 11 cts Net 384723 vs 800137 Revs 5.1 mln vs 3.5 mln Reuter | CLEOPATRA KOHLIQUE INC <CLEO.O> YEAR NET |
Interstate Bakeries Corp said its Royal American Foods subsidiary agreed to buy the assets of Landshire Food Products Inc a New-Mexico-based producer of packaged Mexican food products. Terms of the proposed transaction were not disclosed. Reuter | INTERSTATE BAKERIES <IBC>BUYS MEXICAN FOOD FIRM |
Period ended May 31. Shr loss eight cts vs profit six cts Net loss 895000 vs profit 662000 Sales 91.1 mln vs 89.8 mln Reuter | FEDERATED GROUP INC <FEGP.O> 1ST QTR LOSS |
A group of firms led by Gabelli Group Inc told government regulators it holds a 28.5 pct stake in Digiorgio Corp common stock and said two partnerships making up part of the group may seek control of the company. In a filing with the Securities and Exchange Comission the group of firms said it holds 2430100 shares of Digiorgio common stock. Of the total 2059400 shares are held by GAMCO Investors Inc and Gabelli Funds Inc. for investment purposes the group said. Gabelli-Rosenthal and Partners LP and G and R Partners which hold the remaining 370700 Digiorgio common shares told the SEC their purpose is to ultimately obtain control of Digiorgio contingent upon approval of Digiorgio according to the SEC filing. As previously reported Gabelli and Co Inc acting as investment advisor to a group including Gabelli-Rosenthal proposed on June 25 to acquire all Digiorgio common shares for a per share price of 20 dlrs in cash a subordinated note with a face value of eight dlrs 14 pct redeemable preferred stock and one common share of the post-buyout company. The June 25 buyout proposal which remains open until July 17 also provides that key members of Digiorgio management and some of its directors would be invited to remain with the firm and participate in the group acquiring the company. The proposal is also subject to a due diligence review execution of a merger agreement arrangement of financing and receipt of government approvals all of which Gabelli and Co said could be completed within 60 days. Between April 13 and June 26 the entire group led by Gabelli Group Inc made net purchases of 403600 Digiorgio common shares at 22.20 dlrs to 26.79 dlrs a share. Reuter | GABELLI FIRMS HOLD 28.5 DIGIORGIO <DIG> STAKE |
Henley Group Inc unit Wheelabrator Technologies Inc said it won a 243 mln dlrs contract from <Mississippi Chemical Corp> unit Newsprint South Inc. The company said the contract is for the construction of a 224000 ton-per-year newsprint production facility in Grenada. Reuter | HENLEY GROUP <HENG> UNIT WINS NEWS PLANT ORDER |
Brazils motor industry facing the worst crisis of its history today sent thousands of workers on collective leave because of a sharp drop in demand. Company spokesmen said Autolatina which last Friday laid off 4000 workers sent nearly 9000 of its 56500 employees in Brazil on collective leave until July 12. General Motors do Brasil said it would give 10 days leave to part of its 22000 workforce from Wednesday. Fiat is giving 2000 workers a months holiday from July 6. Jacy Mendonca industrial relations director of Autolatina a merger of Volkswagen and Ford in Brazil and Argentina said last week this would be the worst year ever for Brazils auto industry. He forecast that 1987 would be worse than 1981 when domestic sales dropped 40 pct to 580000 units. This year well be lucky if we can sell 550000 units he said. Since Friday there have been two positive developments for the industry. The government announced that it was scrapping a 15 pct surcharge on all new car sales. The surcharge created in July last year was originally set at 30 pct to help curb a car-buying boom and was in theory refundable. Brazilian car distributors which since June 16 had halted all car purchases in protest against high government taxes responded to the government move by resuming purchases. But industry spokesmen said taxes on vehicles were still high 108 pct and the sector still faced major problems. Reuter | BRAZIL MOTOR INDUSTRY SENDS 9,000 ON LEAVE |
Finance Minister Gibson Chigaga said all of Zambias traditional financial backers apart from Britain had pledged continued backing for the countrys new go-it-alone economic program announced last month. Chigaga told Reuters in an interview it was not true that Western states had threatened to withold financial aid following Zambias abandonement of a tough IMF-inspired program that included the auctioning of the local kwacha. It is only Britain which has openly come out to say it would withhold funds intended for the auction system of foreign exchange Chigaga said. All the other countries have said their relationship with us cannot be affected by the abandonment of a system that only lived for 18 months when they have been supporting us for over 20 years now he said. Chigaga said that Britain was now considering its stand following representation by the Zambian government. Chigaga told Reuters that guidelines on the functioning of the new economic prgram would be released soon. REUTER | WESTERN DONORS STILL BACKING ZAMBIA, SAYS MINISTER |
Consolidated-Bathurst Inc said three of its Quebec newsprint mills have been shut down by strikes which began over the weekend. The company said about 2000 workers members of the Canadian Paperworkers Union and another independent union walked out at its Wayagamack mill at Trois-Rivieres its Laurentide mill at Grand-Mere and its Belgo mill at Shawinigan. Their contract expired April 30. The Laurentide mill has an annual capacity of 200000 tonnes the Belgo mill 350000 tonnes and the Wayagamack mill 70000 tonnes. The strikes are the first at Consolidated-Bathurst mills since an industry-wide walkout in 1976 company spokeswoman Denise Dallaire said. As far as management is concerned negotiations are going on right now Dallaire said adding she could not elaborate. Union officials were not immediately available for comment. Company officials had said at the annual meeting in April they expected no labor problems this year. reuter | STRIKES HIT CONSOLIDATED-BATHURST <cb.to> MILLS |
IBM Credit Corp said it filed with the Securities and Exchange Commission a registration statement covering a 500 mln dlr issue of medium-term notes. Proceeds will be used for general corporate purposes. The company named First Boston and Salomon Brothers as agents for the offering. Reuter | IBM CREDIT <IBM> FILES FOR NOTE OFFERING |
Unicoa Corp said it agreed to a merger with its wholly-owned subsidiary United Insurance Co of America. Under the agreement each outstanding share of Unicoa common stock will be converted into one share of United common stock. The agreement is subject to shareholder and regulatory approval. Teledyne Inc <TDY> owns about 98.4 pct of Unicoas outstanding shares. A shareholder meeting is expected to be held in August. Reuter | <UNICOA> TO MERGE INTO ITS UNITED INSURANCE UNIT |
Epitope Inc said it has developed a set of independent control reagents for laboratories performing AIDS testing. The control set consists of human blood serum free of AIDS antibodies serum with early signs of antibody formation and serum with strong antibody components. The company said the control sets are designed for use with all Food and Drug Administration-licensed AIDS screening and supplemental test and will be marketed worldwide. Reuter | EPITOPE <EPTO.O> SETS AIDS TEST CONTROL SERUM |
Weekend rain over the Western Corn Belt brought further relief to crop areas that had been dry earlier this month and developing weather patterns will bring welcome moisture to central and eastern belt locations this week according to Dale Mohler senior meteorologist for Accu-Weather Inc. There is going to be more rain for the next two three days he said. Were in a fairly wet pattern with normal to above normal moisture this week. Mohler said rainfall averaged 1/2 inch across southern Minnesota 3/4 inch over southwest Iowa one inch in eastern Nebraska and 1-1/2 inches in south-central Nebraska. Illinois fields saw virtually no rain over the weekend but were receiving scattered thundershower activity today he said. Rain patterns will move across Indiana to Ohio with thudershower activity yielding to more general rains he said. Tomorrow that eastern area will get 1/4 to one inch a pretty good rain Mohler said. Rain was heavier than expected over the weekend sparking an early selloff in soybean futures at the Chicago Board of Trade. Prices were off 14 to 20-1/2 cents with November off 19-1/2 cents at 5.43-1/2 dlrs. Mohler said the cold front now over the eastern belt is expected to move over the central Midwest then move north later in the week. That could bring new rain patterns across the Corn Belt and assure good crop conditions as early-developed corn moves into the crucial pollination stage in early July he said. Reuter | RAINS HELP U.S. WESTERN CORN BELT, MORE SEEN |
U.S. car production is scheduled to drop by 10.4 pct to about 1.47 mln in the third quarter from last years 1.63 mln as domestic automakers react to a drop in sales from last years record levels trade paper Automotive News said. Automotive News said General Motors Corp <GM> has slashed its planned car production by 12.6 pct from last years third quarter totals while Ford Motor Co <F> is scheduling its plants to build 5.4 pct fewer cars and Chrysler Corp <C> will be off 18.4 pct. But the paper quoted analysts as saying the production should be cut by at least 200000 more units to avoid excessive inventory build-up in view of a relatively soft market for new cars. Through June 20 sales of new domestic-built cars are off 11.9 pct from last years levels. Only Ford among the Detroit Big Three is enjoying a sales gain. GM and Ford may be working to stockpile cars despite the market conditions because of the prospect of a strike in September by the United Automobile Workers union analysts said. Reuter | U.S. CAR OUTPUT SEEN DROPPING IN 3RD QTR |