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CHUBB CORP <CB> COMPLETES ACQUISITION
| The Chubb Corp said it completed the
previously-announced merger of its subsidiary with and into
Sovereign Corp <SOVR>, a life insurance holding company.
Under the terms of the merger, Sovereign stockholders
wil receive, in a tax free exchange, 0.1365 of a share of Chubb
common stock for each share of Sovereign held, the company
said.
This equals 9.11 dlrs per share of Sovereign stock based on
the closing price of Chubb common stock on March 30.
| Financial Reports |
ENVOY ADVISES NAKASONE TO PREPARE FOR U.S. VISIT
| The Japanese ambassador to the U.S.
Suggested that Prime Minister Yasuhiro Nakasone make efforts to
present "advanced' proposals on trade issues when he visits
Washington next month.
Ambassador Nobuo Matsunaga made the recommendation at a
meeting with Nakasone, Kyodo News Service said.
Matsunaga also advised that the prime minister should be
prepared to discuss U.S.-Japan economic issues.
Matsunaga cited issues such as a U.S.-Japan micro chip
trade pact, foreign access to the Kansai international airport
project, and a new international telecommunications firm.
Matsunaga returned on Sunday to report to Japanese leaders
on recent U.S. Developments over trade, in preparation for
Nakasone's visit to Washington, April 29 to May 5.
Kyodo quoted Nakasone as telling reporters after meeting
the envoy, "I entirely accept what ambassador Matsunaga
recommended." Nakasone did not elaborate.
The U.S.-Japan trade dispute intensified last week when
President Ronald Reagan said the U.S. Would impose heavy
tariffs on Japanese imports in retaliation against alleged
Japanese breach of the computer chip trade pact.
Meanwhile, Nakasone's ruling Liberal Democratic Party (LDP)
is to consider measures to boost imports and open up the
Japanese market, such as government purchase of supercomputers
and expanding foreign access to the Kansai airport project,
party sources said.
The LDP international economic affairs council was
responding to Nakasone's request for measures to reduce Japan's
increasing trade surpluses with the U.S. And Europe, they said.
| Industrial and Sector News |
LYNG HAS NO COMMENT ON WHEAT SUBSIDY TO SOVIETS
| U.S. Agriculture Secretary Richard
Lyng declined to confirm statements made today by a farm state
congressman that the United States will offer subsidized wheat
to the Soviet Union within the next 10 days to two weeks.
When asked to clarify comments by Rep. Pat Roberts of
Kansas that the administration would soon offer Export
Enhancement wheat to the Soviet Union Lyng said, "well it won't
be today," and then added, "we have no official comment one way
or the other."
Lyng would not comment on whether a wheat subsidy offer to
the USSR is under more active consideration at the USDA, saying
that any remarks by him would be tantamount to an official
announcement and could be construed inappropriately.
| Financial Reports |
NEW HARDING GROUP SETS FIRST PAYOUT SINCE 1978
| <New Harding Group Inc>,
formerly Harding Carpets Ltd, said it declared its first
dividend since fiscal 1978 of 10 cts per subordinate voting
share and multiple voting share, pay April 15, record April 8.
The company said the dividend establishes a new policy for
the payment of quarterly dividends.
New Harding earlier reported profit of 653,000 dlrs or 19
cts a share for first quarter ended January 31. It said prior
results were not comparable due to the company's November, 1986
acquisition of a 57 pct stake in Continuous Colour Coat Ltd.
| Financial Reports |
LAROCHE DROPS CONDITION TO NECO <NPT> OFFER
| Investor David F. Laroche said he has
decided to drop the condition to his tender offer for 170,000
shares of NECO Enterprises Inc at 26 dlrs each that at least
170,000 shares be tendered.
He said he has extended the expiration of the offer until
April 14.
Thorugh March 27, he said 45,696 NECO shares had been
tendered.
Laroche said he may obtain a short-term loan of up to one
mln dlrs from Amoskeag Bank to help finance the purchase of
shares under the offer, bearing interest of up to nine pct.
| Corporate News |
CHEVRON <CHV>, NIPPON OIL FORM JOINT VENTURE
| Chevron Corp said its Chevron
U.S.A. Inc unit and Tokyo-based Nippon Oil Co Ltd agreed to
conduct a joint-venture oil exploration and development program
on selected Chevron leaseholds in the United States.
About 50 onshore and offshore exploratory wells will be
drilled under the agreement and Chevron will be the operator of
the project and pay some costs, the company said.
It said Nippon will contribute an initial investment of
more than 100 mln dlrs.
The Japanese government will also participate in the
venture by providing financing to Nippon through the Japanese
Oil Corp, Chevron said.
It said drilling will begin during the second quarter.
Properties to be evaluated are located in California,
Colorado, Kansas, Oklahoma, Mississippi, Montana, North Dakota,
Texas, Utah, and Wyoming, along with Federal Outer Continental
Shelf leases offshore Southern California and in the Gulf of
Mexico, Chevron said.
| Commodities and Trade |
TELECAST <TCST> COMPLETES ACQUISITION FINANCING
| Telecast Inc said it closed on
the financing portion of its previously-announced acquisition
of approximately 14,600 hotel rooms from <Dynavision Inc>.
The three mln dlr financing package was provided by Sanwa
Business Credit Corp, a subsidiary of <Sanwa Bank Ltd> of
Japan, the company said.
| Financial Reports |
NEW GASOLINE GRADE TO RAISE U.S. REFINING COSTS
| A new grade of unleaded gasoline
now being test marketed will increase refining costs when
refiners can least afford it, according to officials attending
the National Petroleum Refiners Association conference here.
The new grade of unleaded gasoline has an octane level of
89 compared with over 90 for super unleaded and 87 for regular
unleaded gasoline.
Amoco Corp <AN> has test-marketed the new mid-grade
gasoline and hopes to sell it on a regular basis in the South,
East and Midwest by the beginning of June, according to Paul
Collier, executive vice president of marketing.
Phillips Petroleum <P> expects to begin marketing the new
89 octane unleaded gasoline in May, sources said.
Converting current refinery operations to produce the 89
octane unleaded gsoline could cost hundreds of millions of
dollars per refinery but that depends on the present capacity
and intensity of the refinery, said Amoco's Collier.
But not all oil company's welcome the introduction of
another grade of unleaded gasoline.
"Three grades are not warranted," said Henry Rosenberg,
chairman of Crown Central Petroleum <CNP>. "Refiners will have
to upgrade again," he added.
"An investment will have to be made," said Archie Dunham,
executive vice president of petroleum products at Conoco, an
operating subsidiary of DuPont Corp <DD> in order to upgrade
refinery operations.
| Financial Reports |
CHARTER POWER SYSTEMS INC <CHP> 4TH QTR JAN 31
| Shr profit 18 cts vs loss 21 cts
Net profit 766,000 vs loss 510,000
Sales 32.4 mln vs 25.5 mln
Year
Shr profit 71 cts vs loss 23 cts
Net profit 2,337,000 vs loss 747,000
Sales 132.1 mln vs 119.6 mln
NOTE: Prior year results pro forma for acquisition of C and
D Power Systems divisions of Allied-Signal Inc <ALD>.
| Corporate News |
RENAULT <RENA.PA> YR ENDED DEC 31 1986
| Consolidated net loss 5.54 billion francs vs loss 10.93
billion.
Consolidated net turnover 131.06 billion francs vs 122.14
billion.
Consolidated debt 54.3 billion francs vs 61.9 billion.
Net loss car making 4.14 billion francs vs loss 10.99
billion.
Net loss industrial vehicles 990 mln vs loss 1.54 billion.
Note - The company said the consolidated net loss was after
costs and provisions for restructuring of 3.90 billion francs,
which includes exceptional items arising from the planned sale
of its stake in American Motors Corp <AMO> to Chrysler Corp
<C>.
Full company name is Regie Nationale des Usines Renault.
| Corporate News |
TUNISIA TENDER EXPECTED FOR 100,000 TONNES WHEAT
| Tunisia is expected to tender shortly for
100,000 tonnes of soft wheat for shipment between April and
June, covered by COFACE export credits, trade sources said.
Over 300,000 tonnes of French soft wheat have been sold to
Tunisia since the beginning of the 1986/87 campaign, of which
225,000 to 250,000 tonnes have already been shipped, they said.
| Corporate News |
PIZZA INN INC <PZA> 4TH QTR LOSS
| Shr loss 48 cts vs loss 35 cts
Net loss 1,587,000 vs loss 1,063,000
Revs 45.3 mln vs 50.9 mln
Avg shrs 3,322,032 vs 3,054,457
Year
Shr profit three cts vs loss 19 cts
Net profit 112,000 vs loss 587,000
Revs 211.2 mln vs 199.3 mln
Avg shrs 3,220,163 vs 3,038,361
NOTE: Net includes tax credits 1,411,000 dlrs vs 929,000
dlrs in quarter and tax provision 689,000 dlrs vs credit
1,288,000 dlrs in year.
1986 year revenues include 18.7 mln dlrs from gain on sale
of Quality Sausage Co Inc.
1986 net includes costs of 900,000 dlrs in quarter and
1,200,000 dlrs in year from proposed merger.
| Corporate News |
TREASURY'S BAKER SAYS U.S. REMAINS PREPARED TO FOSTER EXCHANGE RATE STABILITY
|
TREASURY'S BAKER SAYS U.S. REMAINS PREPARED TO FOSTER EXCHANGE RATE STABILITY
| Financial Reports |
ARVIN <ARV> SES FLAT 1ST QTR RESULTS
| Arvin Industries Inc said higher
interest costs from borrowings to make acquisitions will
produce earnings flat with last year's 59 cts a share results.
Arvin said it might earn 57 cts to 60 cts a share in the
quarter.
These results also reflect the seasonally low sales pattern
of automotive replacement parts in that period.
Arvin forecast about 85 cts a share net in the second
quarter compared with 68 cts in last year's period.
The company said revenues for full year 1987 it will exceed
1.4 billion dlrs, net earnings will increase more than 30 pct,
while per share earnings should increase 12 to 18 pct.
Arvin's 1986 revenues were 995.6 mln, net reached 41.2 mln
and earnings per share 2.46 dlrs.
It based these forecasts due to the addition of Schrader
Automotive Inc and Maremont Corp, both acquired last year.
Chairman James Baker said 1987 quarterly comparisons will
not conform to historical patterns for the year because the
acquisitions of Schrader and Maremond occurred in different
quarters.
He said Arvin will complete the purchase of Systems
Research Laboratories in the second quarter of 1987. This will
also increase revenues.
| Financial Reports |
TREASURY'S BAKER SEES 15-20 BILLION DLR U.S. TRADE DEFICIT REDUCTION THIS YEAR
|
TREASURY'S BAKER SEES 15-20 BILLION DLR U.S. TRADE DEFICIT REDUCTION THIS YEAR
| Financial Reports |
TREASURY'S BAKER SAYS REAGAN UNLIKELY TO ALTER OPPOSITION TO OIL IMPORT FEE
|
TREASURY'S BAKER SAYS REAGAN UNLIKELY TO ALTER OPPOSITION TO OIL IMPORT FEE
| Financial Reports |
FED SETS 1.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS
|
FED SETS 1.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS
| Financial Reports |
CORTRONIC CORP <CTRN> YEAR LOSS
| Shr loss 23 cts vs loss 15 cts
Net loss 1,121,664 vs loss 640,862
Sales 37,485 vs nil
NOTE: Company in development stage.
| Corporate News |
FED ADDS RESERVES VIA CUSTOMER REPURCHASES
| The Federal Reserve entered the U.S.
Government securities market to arrange 1.5 billion dlrs of
customer repurchase agreements, a Fed spokesman said.
Dealers said Federal funds were trading at 6-3/8 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.
| Other |
WINTER WEATHER HURTS EAST GERMAN GRAIN - USDA
| Shifts from mild to very cold
weather in East Germany damaged winter barley and late sown
winter wheat in central regions and barley north of Berlin, the
U.S. agricultural officer in East Berlin said.
In a field report, the officer said indications were that
winter kill might well be more than 100,000 hectares compared
with 38,000 last year.
He said the damage was probably more limited in southern
and central regions and most widespread in the north.
Damage was most severe on plants above the ground where
little or no snow cover was present, he added.
The officer said heavy frosts at night followed by sunshine
during the day led to some heaving, particularly for well
developed plants and for winter barley.
Furthermore, as the ground surface thawed, some standing
water occurred in the fields.
The officer said repairing damage will probably call for
special measures this spring in fields with damaged plants and
where stands are thin. Harrowing, as well as well-timed
applications of nitrogen, will be necessary, he added.
| Financial Reports |
WATSO INC <WSOA> SETS REGULAR PAYOUTS
| Qtrly Class A div five cts vs five cts prior
Qtrly Class B div four cts vs four cts prior
Pay May 29
Record April 30
NOTE: company changed date for its annual shareholders'
meeting to June 24 from June 15 due to a scheduling conflict.
| Financial Reports |
EATERIES INC <EATS> YEAR NET
| Shr profit 10 cts vs loss two cts
Net profit 140,332 vs loss 21,290
Revs 4,202,305 vs 1,692,976
Avg shrs 1,400,945 vs 1,106,500
| Financial Reports |
3-MAR-1987 11:58:47.35
| 3-MAR-1987 11:58:47.35
| Financial Reports |
TREASURY'S BAKER SAYS U.S. BACKS STABILITY
| Treasury Secretary James Baker said
the United States and the five other industrialized nations
signing the recent Paris Accord remain committed to fostering
the exchange rate at around current levels.
But he declined to comment on what he believed to be an
appropriate level of the dollar in world markets.
"I'm not going to comment on that because invariably the
exchange markets read either more or less into my remarks than
I might intend," he said in response to a question from the
House Appropriations Committee.
Baker said the six nations participating in the Paris
meeting in February had "acknowledged that the currencies are
within ranges that are broadly consistent with the economic
fundamentals and we and the others as well remain prepared to
cooperate closely to foster stability in exchange rates around
those levels."
| Financial Reports |
MAY <MA> TO SELL SYCAMORE DIVISION
| The May Department Stores Co said it
has signed an agreement to sell its Sycamore Specialty Store
Division to an investment group that includes Syacmore senior
management.
May said it expects to close the deal, which includes the
entire division and its 1,000 employees, in April.
Sycamore has 111 women's apparel stores in Indiana, Ohio,
Illinois, Kentucky and Michigan, May said.
May added that the Indiana National Bank of Indianapolis
provided a portion of the deal's financing.
| Financial Reports |
CPL REAL ESTATE <CNTRS> CUTS REGULAR PAYOUT
| Qtrly div 26 cts vs 27 cts prior
Payable April 27
Record April 10
NOTE: full name of company is cpl real estate trust
investment.
| Corporate News |
NATIONAL BANCSHARES <NBCT> TO HAVE GAIN ON SALE
| National Bancshares Corp of Texas
said it has completed the previously-announced sale of 90,000
credit card accounts of to Lomas and Nettleton Financial Corp
<LNF> for 45.6 mln dlrs, resulting in a gain of 5,800,000 dlrs.
| Other |
TRADERS EXPECT SHARP DROP IN U.S. CORN ACREAGE
| Grain trade analysts expect a sharp
drop in corn acreage, with most expecting a more modest decline
in soybeans, in the U.S. Agriculture Department, USDA,
plantings intentions report due out at 1500 est (2100 gmt).
The average trade guess for 1987 planted corn acreage was
66.06 mln acres, ranging from 60.7 to 69.0 mln, all well below
the 76.67 mln planted last year due to improved incentives by
the USDA for farmers to retire acres. Corn acres totalled only
60.22 mln in 1983, when the PIK program was introduced.
The average soybean planted acreage quesstimate was 59.49
mln, ranging from 58.0 to 63.0 mln and compared with the 61.48
mln planted in 1986
With substantial grain stocks, less interest was expressed
among analysts in the USDA stocks report also scheduled today.
| Other |
USDA'S AMSTUTZ CONFIDENT OF EC OILS TAX DEFEAT
| U.S. Agriculture Undersecretary
Daniel Amstutz said he was confident that a European Community,
EC, proposal to tax vegetable and marine oils and fats would
not be approved by the Community.
Asked by Reuters if he was confident the plan eventually
would be defeated, Amstutz said, "Yes, I am, but I also know
that things like this take constant vigilance."
The USDA official said the EC Council of Ministers held an
ad hoc meeting yesterday.
Commenting on that meeting, he said, "So far, so good."
Yesterday British Farm Minister Michael Jopling said enough
EC states appeared to be opposed to the proposals by the
commission for a 330 European Currency Unit a tonne tax on
vegetable oils, fats and marine oils for the moves to be
defeated.
| Commodities and Trade |
CPL REAL ESTATE <CNTRS> SEES LOWER DIVIDENDS
| CPL Real Estate Trust
Investment said its regular quarterly dividend distribution
will be lower than its present 26 cts per share, and could be
significantly lower starting with the third quarter of 1987.
The company, which lowered the payout from 27 cts to 26 cts
this current quarter, said it did not know how low the payout
would go.
The company said the reason for the cutbacks was because it
would not be purchasing a property it had anticipated, and
alternative investments will produce significantly lower yields
than anticipated.
| Financial Reports |
HANSON TRUST <HAN> SELLS UNIT
| Reichhold Chemicals Inc said
it is part of a group that has purchased PCR Inc from Hanson
Trust PLC's SCM Corp subsidiary.
It said other group members include Jacksonville, Fla.,
businessman Jack C. Demetree and managers of PCR.
Reichhold said it made a "modest" cash investment. PCR
makes high-performance materials for a variety of industries.
| Commodities and Trade |
AMERICAN RECREATION CENTERS INC <AMRC> 3RD QTR
| Shr 13 cts vs 17 cts
Net 553,000 vs 728,000
Revs 6.9 mln vs 7.5 mln
Nine months
Shr 17 cts vs 18 cts
Net 732,000 vs 776,000
Revs 18.5 mln vs 18.2 mln
NOTE:Share earnings reflect 5-for-4 stock split effective
July 31.
| Corporate News |
TREASURY'S BAKER SEES REAGAN OPPOSING OIL TAX
| Treasury Secretary James Baker told
the House Appropriations Committee that he believes the
president remains opposed to an oil import fee.
He said Reagan last year rejected the idea and he added:
"In my personal view he is not likely to change his thinking
on that."
He said Reagan last year opposed the idea because the
energy industry was divided on the issue, a tax would require a
new bureacracy to administer and the resulting higher energy
prices would harm U.S. competitiveness.
| Corporate News |
FRENCH MARKET TALK OF SYRIAN WHEAT PURCHASES
| Syria may have bought 80,000 tonnes of
French soft wheat, some traders here said.
But others said it may instead have given payment
guarantees to allow for the shipping of an old contract to go
ahead.
Syria has bought around 320,000 tonnes of soft French wheat
since the beginning of the 1986/87 campaign, of which only
121,000 tonnes had been exported by the end of last month.
The country also bought around 30,000 tonnes of EC soft
wheat 12 days ago at 80 to 81 dlrs a tonne, fob, they said.
| Corporate News |
TREASURY'S BAKER SEES SMALLER TRADE DEFICIT
| Treasury secretary James Baker
predicted the U.S. trade deficit would decline 15-20 billion
dlrs this year.
However, he acknowledged signs were still lacking on such a
decline.
"We think we are beginning to see changes," he told the House
Appropriations Committee.
"It has begun to level off (but) we don't see it beginning
to go down yet," he told the panel.
| Commodities and Trade |
BANGEMANN CALLS FOR CURRENCY CALM
| West German Economics Minister Martin
Bangemann urged a halt to the talking down of the dollar by
both official and private institutions in the U.S., Saying calm
was needed on the foreign exchanges.
Speaking at the opening of the 40th Hanover Industry Fair,
Bangemann said radical changes in foreign exchange parities had
left their mark on exports and investments. He added that
without these external difficulties, West Germany's economy
would have grown by 3.5 pct last year instead of the 2.5 pct
reported.
Bangemann said he could not deny that the economic climate
in West Germany had cooled, but he stressed the country was not
in a downtrend.
The minister also criticised state subsidies, which he said
mainly favoured large companies and created a tax burden for
smaller and medium sized firms.
Bangemann referred specifically to subsidies in the steel
industry, which he said had to be fought with all legal means
when they did not correspond to European Community guidelines
on grants.
He added that in light of the declining demand for steel
capacities had to be adjusted, saying the Bonn government would
not successfully be able to stand in the way of any change in
this industry.
Bangemann also spoke out against protectionism and called
for more competition, citing as an example the Federal Post
Office.
The Post Office enjoys a monopoly in West Germany,
especially as far as deciding who is able to provide
telecommunications equipment.
| Financial Reports |
NECO <NPT> BIDDER EXTENDS TENDER OFFER
| Investor David LaRoche said he has
extended his cash offer to buy 170,000 shares of NECO
Enterprises Inc at 26 dlrs each until April 14. The tender
offer was to have expired yesterday.
In a filing with the Securities and Exchange Commission,
LaRoche, a North Kingstown, R.I., investor who already holds
nearly one-third of NECO's total outstanding commonstock, also
waived a condition of his offer that a minimum of 170,000
shares actually be tendered.
NECO has 957,000 shares outstanding.
| Financial Reports |
TREASURY'S BAKER PURSUING S. ASIAN REVALUATIONS
| Treasury Secretary James Baker told
the House Appropriations Committee the United States is still
pressing newly industrialized south Asian nations that have
tied their currencies to the dollar to let those currencies
strengthen against the dollar.
"We have seen some strengthening of those currencies (but)
not as much as we would like," he said.
"We have been somewhat disappointed in the results so far,
but we intend to continue these discussions," he said.
| Corporate News |
PIER 1 IMPORTS <PIR> AMENDING DATES ON SPLIT
| Pier 1 Imports Inc said it
amended its record and distribution dates for its previously-
announced three-for two common and 25 cts preferred stock
split.
The split common and 25 cts preferred shares will be
distributed on July 2, 1987, to shareholders of record June 24,
1987.
The stock split requires shareholder approval of an
increase in authorized shares of common stock to 100 mln from
25 mln and an increase of authorized shares of preferred stock
to five mln from one mln, the company said.
The change in the dates was based on the company's desire
to have the additional common and 25 cts preferred shares trade
for the shortest practical period of time on a "when issued"
basis following a favorable shareholder vote at the annual
meeting June 24, it said.
The previously announced record and distribution dates were
May 13, 1987, and June 29, 1987, respectively, the company
said.
| Commodities and Trade |
INTERNATIONAL BIOTECHNOLOGIES <IBIO> 4TH QTR
| Shr loss 34 cts vs loss 14 cts
Net loss 798,000 vs loss 213,000
Revs 1.5 mln vs 1.5 mln
Year
Shr loss 61 cts vs loss 2.08 dlrs
Net loss 1.4 mln vs 1.0 mln
Revs 6.8 mln vs 6.0 mln
NOTE:1986 net loss includes non-recurring charges of
132,000 dlrs and 270,000 dlrs. Full name is INternational
Biotechnologies Inc.
| Corporate News |
U.S. OFFICIALS DEFEND OIL RESERVE SALE PLAN
| Treasury Secretary James Baker and
Office of Management and Budget chief James Miller defended an
administration plan to sell the U.S. Naval Petroleum Reserves.
In response to hostile questioning from a member of the
House Appropriations Committee, the officials said the plan was
justified to help bring the fiscal 1988 budget deficit and to
get the government out of the oil business.
Miller acknowleged the estimated sale proceeds at 3.3
billion dlrs would actually bring down the deficit by about 2.2
billion dlrs because of the loss of revenues from the sale of
oil from the reserves.
Miller said the sale price may end up higher.
"We'd sell it to the highest bidder," Miller said.
"If we can get more we'll take it."
| Financial Reports |
TRADERS CUT BAHIA TEMPORAO COCOA CROP ESTIMATE
| Trade estimates of the coming
May/September temporao harvest in Brazil's main cocoa growing
state of Bahia are now in the 1.5 mln to 2.0 mln 60-kilo bag
range against 2.0 mln to 2.5 mln two weeks ago.
Traders in the state capital Salvador told Reuters the
effects of a dry period in the first six weeks of the year had
been harsher than thought earlier.
Although good flowering had followed the onset of rains in
mid-February subsequent pod setting was dissappointing.
Last year's temporao, also hit by a dry spell, was 2.77 mln
bags. In 1984 severe drought cut the crop to 1.79 mln bags.
The traders said another factor leading to lower crop
predictions is that many farmers are not caring properly for
plantations because of low returns on their investment.
Manpower, fertiliser and other costs have been cut back as
farmers feel the pinch of the rise in interest rates over the
past six months coupled with low bean prices.
If such economies continue into the winter months both the
temporao and the developing October/April main crop could face
serious damage from pod rot attacks on trees which would
normally be treated against the disease.
Recent very wet weather has already caused some isolated
incidences of pod rot but reports from the growing regions say
these are not yet significant.
The traders said they expect very low deliveries of
temporao beans in the first three months of the harvest and the
bulk will not appear until the last month, September.
Despite the low loads, trees are said to be in excellent
condition and recent flowering and pod setting - which will
lead to late temporao/early main crop beans - has been good.
| Corporate News |
TREASURY'S BAKER NOT CONCERNED BY BOND DECLINES
| Treasury Secretary James Baker,
asked whether he was concerned about yesterdays precipitous
decline in bond prices, said he was not.
Questioned by reporters as he left a House committee
hearing, Baker said "no," when asked about the bond decline,
adding that it was a reflection of concern about the
possibility of a trade war.
"It is what the markets think would be the adverse
consequences of a trade war."
He said the administration was concerned that protectionism
would lead to international trade problems adding that he
thought the action against the Japanese was still consistent
with this policy.
| Market and Economy |
U.S.-JAPAN NOT IN TRADE WAR, YEUTTER SAYS
| The United States and Japan are not
involved in a trade war, despite U.S. sanctions announced last
week against Japanese semiconductors, U.S. Trade Representative
Clayton Yeutter said.
"In my judgement, we're not even close to a trade war,"
Yeutter told a House Agriculture Committee hearing.
Yeutter said if Japan takes action to honor its agreement
with the U.S. on semiconductor trade, "Then the retaliatory
response will last a relatively short period."
Yeutter said Japan must stop dumping chips in third
countries and buy more American computer chips.
| Corporate News |
CSCE ALTERS RULES ON TRADING LIMITS
| The Coffee, Sugar and Cocoa Exchange
amended regulations governing expanded trading limits on
coffee, cocoa and sugar contracts to provide uniformity.
Effective today, the exchange will permit normal daily
price limits in those commodities to expand whenever the first
two limited contract months move the limit in the same
direction for two consecutive sessions.
The normal daily limits will be reinstated once the first
two limited deliveries close by less than the normal limit for
two successive trading days.
Previously exchange rules required the first three limited
months to move the limit in coffee and cocoa. It had required
the first two limited sugar deliveries to make such moves for
three consecutive sessions.
| Financial Reports |
UAL <UAL> COMPLETES BUY OF HILTON INT'L
| UAL Inc said it completed the
acquisition of Hilton International from Transworld Corp <TWT>,
paying 982.5 mln dlrs in cash and securities.
Hilton International will add 90 hotels to UAL's Westin
hotel unit, which operates 61 hotels. The two chains will have
a total of 151 hotels with 67,000 rooms and 71,000 employees,
it said.
Harry Mullikin, chairman and chief executive of UAL's
Westin Hotel unit, has been elected to the additional post of
chairman and chief executive of Hilton International.
UAL will change its name to Allegis at its annual meeting.
| Commodities and Trade |
OCCIDENTAL <OXY> SELLS UNIT TO <HENKEL KGAA>
| Henkel KGaA of Dusseldorf, West
Germany, said it has completed the acquisition of the Process
Chemicals Division of Occidental Petroleum Corp's <OXY>
Occidental Chemical Corp subsidiary for undisclosed terms.
Process Chemicals, acquired from Diamond Shamrock Corp
<DIA> in September, makes specialty chemicals for a variety of
industrial markets and has annual sales of about 160 mln dlrs.
| Financial Reports |
SOUTHWESTERN ENERGY <SWN>, ARKLA <ALG> SET PACT
| Southwestern Energy Co said
it reached an agreement with Arkla Energy Resources for Arkla
to carry gas owned by Southwestern subsidiaries.
Under the agreement, the interstate pipeline division of
Arkla Inc will carry up to 25 mln cubic feet of gas a day until
Dec 31, 1987, and, subject to capacity, up to 50 mln cubic feet
a day in 1988 and 75 mln feet a day for the rest of the pact.
Payment terms vary depending on the type of service
provided, a Southwestern spokesman said.
The deal is effective March one, 1987, expires July one,
1997, and is renewable yearly thereafter, he said.
The pact calls for transmission of gas owned by Arkansas
Western Gas Co, Seeco Inc, Arkansas Gas Gathering Co and
Southwestern Energy Production Co, Southwestern Energy said.
| Financial Reports |
AMERICAN <AMR> SETS SCHEDULE FOR AIRCAL MERGER
| AMR Corp's American Airlines unit said
it plans to complete the integration of AirCal into its
operations within four to five months.
American's merger with AirCal, announced last November,
received final approval from the Department of Transportation
yesterday.
American said Richard D. Pearson, coordinator of the
airline's merger activities, will become chairman and chief
executive officer of AirCal during the period up to completion
of the merger.
American said Pearson succeeds William Lyon, who has been
elected to AMR's board.
It added that David A. Banmiller will continue as AirCal's
president and chief operating officer.
| Financial Reports |
GENCORP SAYS IT EXPECTS TO COMPLETE SALE OF WOR TV THIS WEEK, ALL CHALLENGES RESOLVED
|
GENCORP SAYS IT EXPECTS TO COMPLETE SALE OF WOR TV THIS WEEK, ALL CHALLENGES RESOLVED
| Other |
CHILEAN CONSUMER PRICES RISE 1.7 PCT IN FEBRUARY
| Chile's consumer price index rose 1.7
pct in February to 562.01 (December, 1978 equals 100) after
increases of 2.0 pct in January and 0.9 pct in February 1986,
the government's National Statistics Institute said.
Inflation as measured by the index rose to 17.5 pct over
the 12 months to the end of February, compared with 16.6 pct
last month and 24.5 pct to the end of February, 1986.
In the first two months of the year, inflation was 3.8 pct,
against 3.6 pct in the same period of 1986.
| Corporate News |
SYMS CORP <SYM> 4TH QTR
| Shr 43 cts vs 25 cts
Net 7.6 mln vs 4.4 mln
Revs 72.0 mln vs 66.9 mln
Year
Shr 84 cts vs 72 cts
Net 14.8 mln vs 12.7 mln
Revs 223.1 mln vs 215.2 mln
NOTE: 1986 4th qtr inludes gain of 2.6 mln dlrs on sale of
real estate.
| Corporate News |
NPS TECHNOLOGIES GROUP <NPSGU> 4TH QTR
| Shr N.A. vs N.A.
Net 46,000 vs 106,000
Revs 19.8 mln vs 19.0 mln
YEar
Shr 26 cts vs 26 cts
NEt 1.3 mln vs 1.3 mln
Revs 82.1 mln vs 105.3 mln
NOTE:1986 net includes 870,000 dlrs charge. 1985 net
includes 788,000 credit. No share amounts provided for 4th qtr
as NPS completed initial offering in August.
| Financial Reports |
FREEPORT-MCMORAN RESOURCE LP <FRP> QTLY PAYOUT
| Qtly cash distribution 60 cts vs 60 cts prior
Pay May 15
Record April 30
Note: Full name is Freeport-McMoRan Resources Partners LP.
| Market and Economy |
BUTLER <BTLR> TO BUY SKYLIGHT MANUFACTURER
| Butler Mfg Co said it signed a
memorandum of intent to acquire Naturalite Inc, a manufacturer
of skylights.
It said Garland, Texas-based Naturalite had sales in 1986
of about 20 mln dlrs.
Terms were not disclosed.
| Commodities and Trade |
DATA MEASUREMENT CORP <DMCB> 4TH QTR
| Shr 83 cts vs 60 cts
Net 516,063 vs 328,468
Revs 8.3 mln vs 5.7 mln
NOTE:Shrs reflect 3-for-2 stock split.
| Commodities and Trade |
PUBCO CORP <PUBO> YEAR NET
| Oper shr 12 cts vs nine cts
Oper net 4,027,852 vs 3,200,837
Revs 100.2 mln vs 46.0 mln
Note: Oper net excludes tax credits of 517,916 vs 198,000
Current year results include proceeds from termination of a
pension plan.
| Commodities and Trade |
COPPER STUDY GROUP CONSIDERED AT GENEVA MEETING
| Major copper producing and consuming
countries are considering a U.S. proposal to set up a study
group to review the world copper market, delegates said.
The U.S. initiative was introduced last December at a
meeting held here under the auspices of the United Nations
Conference on Trade and Development (UNCTAD).
The U.S., the world's largest copper consumer and second
biggest producer after Chile, has proposed setting up a body to
improve statistics and market transparency of the copper
economy, and provide a forum for discussion.
The new body would not aim at negotiating measures to
stabilise depressed world prices.
This week's meeting, which began yesterday, is due to end
Friday.
| Financial Reports |
<MONTREAL TRUSTCO INC> YEAR NET
| Shr 94 cts vs 75 cts
Net 27.0 mln vs 18.4 mln
Revs 631.6 mln vs 409.5 mln
Avg shrs 27.1 mln vs 22.6 mln
| Corporate News |
TRADESTAR <TIRR> ACQUIRES IMAGE VIDEO
| Tradestar Corp said it acquired
<Image Video Inc> for an undisclosed sum.
The company said Image Video produces and distributes
videos for the home market.
Image Video is scheduled to release 20 video projects in
1987, it said.
| Other |
CHIRAC, REAGAN DISCUSS ARMS CONTROL, TRADE
| French Prime Minister Jacques Chirac
opened talks with President Ronald Reagan expected to focus on
superpower arms control moves and trade issues.
French officials said a major aim of Chirac's visit was to
present France's concern that the United States might ignore
European security interests in any accord with Moscow on
removing medium-range nuclear missiles from the continent.
But Reagan was expected to assure Chirac that he will not
agree to a deal at the Geneva superpower talks that would give
the Russians superiority in shorter-range systems, diplomats
said.
France has expressed doubts about removing U.S. missiles
from Europe so long as the Soviet Union maintains an edge in
other weaponry, particularly shorter-range rockets,
conventional forces and chemical weapons.
Speaking last night, Chirac set out the French position
saying: "Any agreement on intermediate nuclear forces should
mention how equality can be achieved in short-range missiles."
Reagan and Chirac meanwhile signed an agreement ending a
dispute between two leading research institutes over patent
rights to a blood screening test for the deadly disease AIDS.
In a joint statement, Chirac and Reagan said the Pasteur
Institute in Paris and the National Cancer Institute, of
Bethesda, Maryland, agreed to give part of the royalties from
the test to a new foundation dedicated to the wordwide fight
against AIDS (Acquired Immune Deficiency Syndrome).
"This agreement opens a new era in Franco-American
cooperation, allowing France and the United States to join
their efforts to control this terrible disease in the hopes of
speeding the development of an AIDS vaccine and cure," Reagan
said at the signing ceremony.
He said the two parties would share the patent and give 80
per cent of the royalties received to the new foundation.
The foundation would also raise private funds and would
donate 25 per cent of its money to combat AIDS in less
developed countries.
Both leaders stressed the long ties between France and the
United States during a welcoming ceremony in the White House
East Room, with Reagan describing France as "America's oldest
ally in war and peace."
"I have come to tell you that we are remain motivated by the
same ideals of freedom, by the same will to face the dangers
which we both confront -- terrorism, war, hunger, poverty, new
diseases and drugs," Chirac replied.
But the two countries are likely to have less to agree on
over the issue of trade, where Chirac is worried about a rise
in protectionism in the U.S. Congress.
A senior U.S. official yesterday dismissed a French idea to
sell cut-price grain to poor countries in Africa as a way of
lessening surplus stocks.
Chirac is expected to canvass support for the idea, first
proposed by French Agriculture Minister Francois Guillaume,
during his two-day visit to Washington.
The U.S. official described the idea as a "grain producers'
OPEC" -- a reference to the Organization of Petroleum Exporting
Countries -- and said it went against the Reagan
administration's desire to lessen government intervention in
trade.
| Financial Reports |
GENCORP SAYS ALTERNATIVE TO HOSTILE TENDER TO BE ANNOUNCED WITHIN A WEEK
|
GENCORP SAYS ALTERNATIVE TO HOSTILE TENDER TO BE ANNOUNCED WITHIN A WEEK
| Other |
CANADA'S AIRLINE PROFITS SEEN HIGHER
| Canada's airline industry, shaken up by
a recent merger that creates a powerful new competitor for
government-owned Air Canada, has begun its first serious drive
for profitability in 50 years, industry analysts said.
"Now we've got a company that can compete with Air Canada,"
said Thomas Bradley of Richardson Greenshields of Canada Ltd.
"Clearly, it can go head-to-head in any market."
The new airline, which arose from the 300-mln-Canadian-dlr
takeover of Canadian Pacific Air Lines Ltd by the small but
cash-rich Pacific Western Airlines Corp, was launched last week
as Canadian Airlines International Ltd.
Canadian Airlines will have 35-40 pct of the
6-billion-Canadian-dlr domestic market, against Air Canada's
50-55 pct. Wardair International Ltd is third with about nine
pct.
Analysts believe Pacific Western's aggressive and
cost-conscious chairman Rhys Eyton will develop the true
potential of the former CP Air, which floundered for four
decades inside the bureaucracy of conglomerate Canadian Pacific
Ltd.
They said CP Air's management style had been not much
different from that of Air Canada, formed 50 years ago, because
neither airline was held accountable to its owners.
"Not that long ago, maybe even just six months ago, these
two airlines were totally fiscally irresponsible. Neither
seemed that concerned about the bottom line," said Bradley.
"But with CP Air being run by Eyton, it will be very
conscious of profitability and shareholder return. And Air
Canada is on the verge of going that way," he said.
CP Air, always fighting for market share rather than
profits, was "a perennial money-loser," analyst Wilfred Hahn of
Bache Securities Inc said in a recent report.
Prior to its takeover in December, it had accumulated
long-term debt of 600 mln Canadian dlrs. From 1981 to 1985, its
losses totaled 87 mln Canadian dlrs.
Air Canada, widely expected to be privatized later this
year in a public share offering, lost 14.8 mln Canadian dlrs on
revenues of 2.72 billion dlrs in 1985. It has a debt of more
than 2 billion dlrs.
Although only a minority interest is likely to be sold to
the public, the prospect of privatization at a time of
increased competition is forcing Air Canada to pay more
attention to finances, analysts said.
It recently disclosed that it expects to report a profit "in
excess of 35 mln to 40 mln dlrs" for 1986. However, this profit
recovery was due less to management skill than the fact that
all Canadian airlines had a good year in 1986, analysts said.
Tourists came to Canada in record numbers last year,
attracted by the relatively weak Canadian dollar and Expo 86 in
Vancouver, which alone had more than 22 mln visitors.
For the next few years, most analysts see three-six pct air
traffic growth, and they expect profits will come from
cost-cutting and careful spending.
Peter Friend of Walywn Stodgell Cochran Murray Ltd said
institutional buyers will be eager to add Air Canada to their
portfolios as a blue-chip investment, but warned that new
competition makes profit growth less certain.
"The airline with something to lose will be Air Canada. At
one time, it had a fixed system which was theirs and nobody
else's," Friend said.
Many analysts recommend that investors buy and hold airline
shares for at least a year.
Analysts said Air Canada's immediate concern ahead of a
public stock offering will be unloading unprofitable air routes
without setting off a political storm.
It also will be faced with an expensive but necessary
updating of its aging fleet of 111 aircraft.
Wardair, preferring strong medicine now instead of later,
already has embarked on a one-billion-Canadian-dlr purchase of
a dozen aircraft from Europe's Airbus Industrie.
Canadian Airlines, which has 81 aircraft, last week ordered
six commuter planes from British Aerospace and said it would
soon buy as many as six wide-bodied aircraft from Airbus or the
Boeing Co.
Analysts said Canadian Airlines, with its newer fleet,
needs to make fewer replacements and can afford these without
hurting profits.
Steven Garmaise of Wood Gundy Inc expects Canadian
Airlines' profit in 1988 will more than double last year's 29.8
mln Canadian dlrs by Pacific Western.
| Financial Reports |
U.S. DISTILLATE, GASOLINE INVENTORIES SEEN LOWER
| Tonight's American Petroleum Institute
weekly inventory report is expected to show moderate drawdowns
in distillates and gasoline stocks for the week ended March 27,
analysts and traders said.
They said they expect gasoline stocks to fall three mln
barrels or less and heating oil inventories to drop between 1.3
and four mln barrels.
Some analysts see crude stocks falling by as much as six
mln barrels, while others think they could go up as much as 3.5
mln barrels. Crude oil runs are expected to be unchanged from
the previous week or slightly higher or lower.
For the week ended March 20, the API said gasoline stocks
fell 2.7 mln barrels. Mosts analysts expect a modest draw for
the week ended March 27. They said stocks could fall between
700,000 and three mln barrels. Some said there is also a chance
gasoline stocks will be unchanged.
API said distillate stocks dropped four mln barrels for the
week ended March 20. Analysts and traders generally predict a
similar or smaller depletion for last week. They said stock
levels could drop 1.3 to four mln barrels.
The analysts attribute product stockdraws to seasonal
factors but they said crude direction is harder to call.
Crude inventories rose 8.5 mln barrels in the week ended
March 20, API said. Analysts are looking for build of between
3.5 mln barrels to a six mln barrel draw for the week ended
March 27.
API reported the amount of refinery capacity utilized up
three pct for the week ended March 20. Analysts said
utilization could have remained unchanged, or rose or fell by
less than one pct for the week ended March 27.
Moderate product stockdraws would strengthen the market
slightly, analysts said. But bullish expectations are already
partially reflected in today's gains, they added.
| Corporate News |
GENCORP <GY> ALTERNATIVE PLAN DUE WITHIN A WEEK
| A. William Reynolds, chairman and
chief executive of GenCorp Inc, told shareholders he expects to
announce a company alternative to a 100-dlr-per-share hostile
tender within a week.
Last night the company urged shareholders to reject the
tender. Reynolds urged shareholders to be patient, saying the
group sponsoring the tender offer had months to evaluate
GenCorp while "we have had only 10 days to respond."
Reynolds also disclosed the company has resolved legal
challenges to its planned sale of WOR TV, serving the New York
City market, and expects to complete the sale by Friday.
Reynolds said the company expects to book an after tax gain
of 250 mln dlrs from the sale of WOR TV. The company plans to
sell the station to MCA Inc <MCA> for 387 mln dlrs.
Reynolds did not specify whether the legal challenges were
dropped or dismissed. The Federal Communications Commission has
already approved the station's sale.
Money from the sale of the station will play a role in
helping develop an alternative to the tender offer co-sponsored
by AFG Industries Inc <AFG> and Wagner and Brown, Reynolds
said. He provided no other details.
Randall Hubbard, chairman of AFG, and Joel Reed, chief
financial officer of Wagner and Brown, attended the meeting,
which was shifted from a tire plant to a downtown hotel. About
300 people were present despite an overnight snowstorm.
Hubbard and Reed chatted briefly with Reynolds after the
meeting but declined to discuss their proposal with reporters.
Reynolds told the shareholders friends and family members
have been telling him "Bill, just don't pay greenmail" to end
the takeover threat. Greenmail describes a buyout of a minority
shareholder at a price not available to other holders. Reynolds
said he considers it a "repugnant device."
Shareholders elected management's slate of 11 directors.
Mario Gabelli, head of a New York investment firm which owns a
large block of stock, proposed one nominee for the board.
Gabelli said the unsuccessful attempt was designed to "stiffen
the backbone of the board to discourage greenmail."
Hubbard and Reed reiterated previous statements that they
are open to negotiations with GenCorp.
Asked about severance contracts for key executives in the
event of a shift in control of the company, Reynolds asserted
"we're developing alternatives that would not result in a
change in control."
Asked whether the company's plan would be superior to any
proposal of AFG and Wagner and Brown, Reynolds commented, "We
know the company, we know the values and we know the
opportunities better than any outside group."
In response to a question about whether any units are up
for sale, he said only that GenCorp is evaluating alternatives.
| Commodities and Trade |
ILLINOIS POWER CO<IPC> TWO MONTHS FEBRUARY NET
| Shr 65 cts vs 67 cts
Net 49,517,000 vs 47,732,000
Revs 229.2 mln vs 245.7 mln
Avg shrs 65,994,142 vs 63,293,867
NOTE: Per-share results reflect payment of preferred
dividend requirements
| Other |
REAGAN RENEWS ANTI-PROTECTIONISM STAND, WHITE HOUSE SAYS TRADE WAR UNLIKELY
|
REAGAN RENEWS ANTI-PROTECTIONISM STAND, WHITE HOUSE SAYS TRADE WAR UNLIKELY
| Corporate News |
AVERY <AVRY> SEES QTR, YEAR LOSS
| Avery Inc said the company will not
show a profit in the next quarter and will probably not show a
profit in 1987.
Speaking at the annual shareholders meeting, chairman
Nelson Peltz declined to estimate when the company would become
profitable.
Peltz said Uniroyal Chemical Co, acquired last year, would
increase Avery's operating earnings but that associated
acquisition costs would prevent Avery from posting net profits
for some time.
At the meeting, stockholders approved an increase in the
authorized number of common shares to 200 mln from 15 mln.
In the fiscal year ended May 30, 1986, Avery reported a
loss of 489,000 dlrs. The company has changed its fiscal year
to end Sept 30.
The increase in common shares would cover, among other
things, the exercise of Triangle Industries Inc's <TRI> and
Drexel Burnham Lambert Inc's warrants issued in relation to
Avery's 710 mln dlr acquisition of Uniroyal Chemical late last
year.
| Financial Reports |
TRADE WAR FEARS MAY PROMPT STOCK MARKETS' DOWNTURN
| The threatened trade war between the
United States and Japan is just the kind of shock that
economists say could send world stock markets into a tailspin.
But they are not so sure if that would be a brief
corrective dip, or whether this week's falling share prices
mark the start of a "bear" market.
"It's the billion dollar question," said Richard O'Brien,
economist at American Express International Bank in London.
Japan's trade surplus -- 92.7 billion dlrs last year -- has
poured into share and bond markets around the world, and funded
a good chunk of the huge U.S. Budget deficit. Around a third of
any new sale of U.S. Treasury bonds has been bought by the
Japanese. However, Japanese investors have lost money as the
dollar falls and will lose more if the United States lets it
fall further to cut the trade deficit. The counterpart of
improving the trade deficit either through a lower dollar or
because the U.S. Increases duties on Japanese electronic goods,
may be to hit the capital inflow which has financed the budget
deficit.
And if the U.S. Trade deficit does fall, the Japanese will
have less money to invest. To entice U.S. Investors to fill the
gap that would be left if the Japanese stopped buying U.S.
Bonds, interest rates would have to soar, O'Brien said. The
subsequent shift from shares to bonds could cause major falls
on the world stock markets.
"A year ago, we could be pretty confident about the markets,"
said O'Brien. "Now, it is much less certain."
Buoyant share prices are supposed to reflect a booming
economy. But the world economy, with sluggish growth at best in
the industrial nations, a massive load of Third World debt and
huge trade imbalances is not in good shape, said O'Brien.
Nevertheless, New York analyst William Raferty, of Smith
Barney Harris Upham said "We're still in a bull market," adding
that corrections are a normal part of a rising market and "The
bear usually strikes slowly."
Economist Evelyn Brody, at Morgan Grenfell and Co in
London, said the huge sums of money going through the world
financial system will keep a floor under share and bond prices.
Although interest by the Japanese in putting their money in
non-dollar denominated bonds and stocks has increased it's very
difficult to see where else they can put their money than in
U.S. Dollars and especially the U.S. Treasury (bond) market,
according to David Butcher, a senior executive at Yamaichi
Securities Co Ltd's bond operation in London.
He said the Japanese are paying much closer attention now
to the French franc and West German mark.
In the longer run, he worries about what trade tensions and
the dollar's slide will mean for securities markets.
| Corporate News |
BIG BEAR INC <BGBR> 2ND QTR FEB 28 NET
| Shr 46 cts vs 31 cts
Net 3,608,000 vs 2,448,000
Revs 223.5 mln vs 218.2 mln
Six mths
Shr 87 cts vs 64 cts
Net 6,788,000 vs 4,992,000
Revs 441.5 mln vs 439.5 mln
| Market and Economy |
NORTHVIEW CORP <NOVC> YEAR NET
| Shr 30 cts vs 51 cts
Net 966,000 vs 1,470,000
Revs 39.8 mln vs 41.3 mln
| Market and Economy |
PENNZOIL SEES LOWER 1ST QTR NET BEFORE UNUSUAL ITEM AGAINST YEAR AGO LOSS 49 CTS
|
PENNZOIL SEES LOWER 1ST QTR NET BEFORE UNUSUAL ITEM AGAINST YEAR AGO LOSS 49 CTS
| Financial Reports |
SCEPTRE RESOURCES LTD <SRL> YEAR NET
| Shr seven cts vs two cts
Net 5,500,000 vs 4,300,000
Revs 69.1 mln vs 115.3 mln
Note: Shr after preferred divs.
| Financial Reports |
TALKING POINT/BORG-WARNER CORP <BOR>
| Borg-Warner Corp will vigorously
resist GAF Corp's 46-dlr-per-share takeover offer, but the
Midwest conglomerate may fall prey to another offer,
either from GAF or its own management, analysts believe.
Analysts also said Borg-Warner may attempt to escape GAF
through a restructuring. The speculation pushed Borg-Warner's
stock up 1-3/8 to 48-1/2 in heavy trading.
Analysts predicted feisty GAF Chairman Samuel Heyman will
stage a tough campaign to gain control of Borg-Warner so he can
add its profitable plastics and chemical business to GAF.
"It seems from at least their dealing with (raider Irwin)
Jacobs that they don't want to be taken over. The question is
now do they acquiesce to GAF. I think instinctively, they want
to remain independent," said Dudley Heer of Duff and Phelps.
Borg-Warner has been under siege by takeover speculation
for almost a year. Last week, Jacobs' investment vehicle,
Minstar Inc, and an investor group sold its 10.1 mln
Borg-Warner shares. The same day, GAF Corp raised its stake by
9.1 mln shares to 19.9 pct of the outstanding.
Jacobs was interested in buying the company, but took no
steps toward a transaction.
"Their (Borg-Warner) policy has been to stonewall them for
the last nine months. It's been one of the dullest corporate
battles I've seen," said one analyst.
The battle, however, has heated up, and the range of
breakup values on Wall Street span from the current market
price to almost 60 dlrs per share. Most analysts said they
think a price in the low 50s would be appropriate.
Arbitragers speculate that GAF will not give up easily on
its 3.16 billion dlr offer to buy the balance of Borg-Warner.
Analysts who know GAF predict Heyman will either end up
with Borg-Warner or enrich his chemicals and building materials
company in some other way. Heyman two years ago attempted an
unsuccessful takeover of Union Carbide Corp, but GAF benefited
from that company's restructuring.
"Borg Warner can't quibble that it's not a legitimate
offer. It seems to me the short of it is Borg Warner is kind of
between a rock and a hard place. They either have to accept a
46 dlr proposal or perhaps work a deal where it's sweetened. I
personally think the company is (worth) around 55 dlrs per
share," said Pershing analyst Richard Henderson.
Henderson also speculated the company might attempt a
restructuring such as the one carried out by Goodyear Tire and
Rubber Co last year when it was being courted by Sir James
Goldsmith. The company bought back the financier's stock and
carried out a wider share repurchase.
Arbitragers, however, said they do not believe Heyman is
seeking "greenmail," or the repurchase of his stock by the
company at a premium.
Analysts noted that Heyman seems to have no problems with
financing the transaction.
Previously associated with "junk bond" experts, Drexel
Burnham Lambert Inc, GAf said it would finance its Borg-Warner
takeover with bank financing. GAF said it would make a tender
offer following a merger agreement approved by the Borg-WArner
board and conditioned on the board's recommendation of the
tender offer and merger.
Heyman said in a letter to Borg-Warner that he expects a
merger would provide job security for Borg-Warner employees
since the two companies businesses overlap. Analysts, however,
believe Heyman would sell off assets he did not want to repay
debt from the transaction.
GAF's stock rose 1-5/8 today, to 48-5/8.
"I believe, obviously, if GAF takes over Borg-Warner at the
level it is proposing it would enhance GAF share values
substantially," said Oppenheimer analyst Charles Rose.
He said at 46 dlrs per share, Heyman's average cost for the
company's stock would be 44 dlrs per share based on GAF's
current holdings.
Rose said the Borg-Warner plastics and chemical business,
which makes thermo-plastics is the asset attracting Heyman.
Analysts said it accounts for a third of Borg's earnings.
The plastics are used in telephone equipment, office
equipment and appliances. "Borg has half the market in the U.S.
and is the leading technical player and the leading innovator,"
Rose said. Its competitors are Dow Chemical Co <DOW> and
Monsanto Corp <MTC>, he said.
Borg-Warner also has an automotive parts business, and a
protective systems business, which includes Wells Fargo
security guards. It also has an information services business,
and is trying to sell its financial services business.
Borg-Warner earned 206.1 mln dlrs or 2.35 dlrs per share on
revenues of 3.62 billion dlrs in 1986. Smaller GAF, in 1986,
earned on an operating basis 80.7 mln dlrs or 2.22 dlrs per
share on sales of 753.8 mln dlrs.
GAF's net earnings included an after tax gain of 201.4 mln
from its participation in a Union Carbide exchange offer, a
special union carbide dividend, and the sale of its Union
Carbide shares.
| Commodities and Trade |
MANHATTAN NAT'L <MLC> HOLDERS VOTE STOCK SALE
| Manhattan National Corp said its
shareholders overwhelmingly approved a proprosal through which
<Union Central Life Insurance Co> took control of the company
by acquiring about 3.6 mln shares of newly issued Manhattan
National common stock for 43.2 mln dlrs.
The company said the transaction gives Union Central, a
Cincinnati-based mutual insurance company, a total of 8,804,397
shares of Manhattan National stock, or 52.2 pct of the total
outstanding.
Manhattan National said about three mln dlrs of the
invested funds will be used to repay short-term debt and two
mln dlrs has been earmarked for other short-term needs.
The remainder will be available for the company's insurance
units, or for other business purposes, it said.
Charles C. Hinkley, president and chief executive officer
of Union Central, is expected to be named chairman, president
and chief executive of Manhattan National, the company said.
| Financial Reports |
PENNZOIL <PZL> SEES LOWER FIRST QTR
| Pennzoil Co Chairman J. Hugh Liedtke
told a meeting of analysts that the company expects its first
quarter net to be down considerably, before an unusual item,
from the loss of 49 cts a share reported a year ago.
Liedtke did not say how large the unusual item would be.
"We're still closing our books on the first quarter, so I don't
have final numbers for you," he said.
| Commodities and Trade |
U.S. WEATHER/COTTON SUMMARY -- USDA/NOAA
| Cotton planting began in California
and was expected to proceed rapidly in the week ended March 28,
the Joint Agriculture Weather Facility of the U.S. Agriculture
and Commerce Departments said.
In a summary of its Weather and Crops Bulletin, the agency
said winds and low soil temperature retarded growth and
hampered seeding in Arizona.
Planting moved into Mohave and Pinal Counties.
Cotton planting progressed well in the Lower Valley,
Coastal Bend and along the Upper Coast of Texas.
However, bad weather continued hampering cotton seedbed
preparations in Oklahoma.
| Commodities and Trade |
QUANTUM VENTURE UPS COMPUTER NETWORK<CMNT> STAKE
| Computer Network Technology Corp
(CNT) said that <Quantum Venture Partners LP>, a private
investment limited partnership, has acquired an additional
600,000 shares of CNT common stock, raising its stake in CNT to
15.3 pct from 9.6 pct of the currently outstanding shares.
CNT said Quantum bought the shares by exercising 1.5 mln
dlrs in warrants, bringing its total investment in CNT to 2.5
mln dlrs.
CNT also said <Sand Technology Systems Inc> of Canada
bought two of its CHANNELink networking units for a data
processing service for major health care facilities in Canada.
| Commodities and Trade |
JAPAN BUYS 5,000 TONNES CANADIAN RAPESEED
| Japan bought 5,000 tonnes of Canadian
rapeseed overnight at an undisclosed price for April shipment,
trade sources said.
| Other |
ELCOR <ELK> UPS QTLY DIV, SETS STOCK SPLIT
| Elcor Corp said it raised its
quarterly common stock dividend to 11 cts a share from nine cts
and declared a two-for-one common stock split.
The company said the increased dividend will be paid on May
13 to shareholders of record April 16.
The stock split, Elcor said, will paid in the form of a 100
pct stock dividend on May 28 to shareholders of record may 14.
| Corporate News |
QUEST <QBIO> SIGNS PACT WITH ALZA <AZA>
| Quest Biotechnology Inc said its Quest
Blood Substitute Inc subsidiary executed an agreement with Alza
Corp <AZA> which will make Alza a preferred shareholder of its
subsidiary.
Quest said the agreement also offers Alza the right to
acquire up to 25 pct of the unit's equity in exchange for the
acquisition of patent rights to Alza technology in an area
where Quest has an interest.
Quest also said its signed a merger agreement with <Hunt
Research Corp> and its affiliate <ICAS Corp>. Quest said it
expects to complete the merger within the next several weeks.
| Commodities and Trade |
CHUBB <CB> COMPLETES SOVEREIGN <SOVR> BUYOUT
| Chubb Corp said it completed the
previously announced acquisition of Sovereign Corp.
Under terms of the acquisition, Sovereign shareholders will
receive, in a tax-free exchange, 0.1365 share of Chubb common
for each Sovereign share held.
Chubb said the transaction was valued at 9.11 dlrs a share
based on the closing price of its stock on March 30.
| Other |
USDA'S AMSTUTZ "SYMPATHETIC" TO WOOD CREDITS
| U.S. Agriculture Undersecretary
Daniel Amstutz said he was "totally sympathetic" with U.S. wood
producers' desire to have their exports eligible for government
credit guarantees.
But he told the Senate Appropriations Agriculture
subcommittee that including wood products in the department's
short- or intermediate-term export guarantee programs would
conflict with U.S. multilateral trade obligations.
Currently, U.S. wood products are not eligible for
government export credit guarantee because they are considered
"manufactured products," Amstutz said.
He said USDA had devoted an "enormous amount" of time to
considering making wood products eligible for the guarantees
and that Congress was considering a measure to do so.
| Commodities and Trade |
ROYAL BANK/CANADA SEES HIGHER 1987 LOAN LOSSES
| <Royal Bank of Canada> said it
estimates 1987 loan losses at one billion dlrs, a 25 mln dlr
increase over last year.
Royal Bank said it set its provisions "given the continued
debt-servicing problems ... in the North American energy
industry and the uncertain outlook for energy prices," and also
continued to add to its general provisions for loans to
troubled borrower countries.
The bank's loan loss provision for the first quarter ended
January 31 rose to 223 mln dlrs from 187 mln dlrs in the
year-ago quarter.
The bank said non-accrual loans, net of provisions for loan
losses, totalled 2.2 billion dlrs on January 31, up from 2.0
billion dlrs a year ago.
In reporting lower first quarter earnings, chairman Allan
Taylor said problems with credit quality--particularly in loans
associated with the energy sector--continue to have a
substantial adverse effect on the bank's earnings.
Taylor said profitability of the bank's international
operations remains weak, reflecting resource-related
difficulties of private and public sector borrowers and
unsatisfactory results from capital market activities.
Taylor said it would be premature to speculate on the
outcome of debt resturcturing negotiations with Brazil or their
potential impact on the Royal Bank.
The bank earlier reported first quarter profit fell to
114.1 mln dlrs from 140.4 mln dlrs a year ago.
| Market and Economy |
INVERNESS BUYS ASSETS FROM PARENT SILVERTON
| <Inverness Petroleum Ltd> said
it acquired the oil and gas assets of its controlling
shareholder <Silverton Resources Ltd> for 26.4 mln dlrs,
effective March 3, 1987.
Inverness said it issued 2,640,000 class A convertible
retractable redeemable preferred shares in exchange for the
assets, which include all Silverton's oil and gas properties,
undeveloped acreage and its shares of Australian subsidiary
S.R.L. Exploration Pty Ltd.
The preferred shares were immediately retracted for cash,
the company said.
The transaction resulted in a discharge of Silverton's bank
debt of 21.0 mln dlrs and a three mln dlr loan to Inverness
from Silverton, Inverness said.
As a result of the acquisition, Inverness has bank debt of
18.0 mln dlrs, it said.
| Commodities and Trade |
BRISTOL-MYERS TRUST <BYU> EXTENDS EXPIRATION
| <Americus Shareowner Service Corp>
said the Americus Trust for Bristol-Myers will continue to
accept tendered Bristol-Meyers Co <BMY> shares until December
one, extending the original expiration date of April one for
eight months.
If the common stock price exceeds the trust's termination
price of 110 dlrs, Americus Shareowner Service said, the trust
will be temporarily closed until the price of the underlying
stock falls below the termination price.
| Industrial and Sector News |
QUEST BIOTECHNOLOGY <QBIO> UNIT IN MERGER PACT
| Quest Biotechnology Inc said its new
subsidiary, Quest Blood Substitute Inc, signed the agreement
and plan of merger with Hunt Research Corp and its affiliate,
ICAS Corp.
It said Quest Blood expects to complete the merger within
the next several weeks. Terms were not disclosed.
In a related transaction, Quest Blood said it executed an
agreement with Alza Corp, which will make Alza a preferred
shareholder of Quest Blood and offer Alza the right to acquire
a total equity position of up to 25 pct of Quest Blood in
exchange for acquisition of patent rights to Alza technology.
| Industrial and Sector News |
LINCOLN FOODSERVICE <LINN> COMPLETES PURCHASE
| Lincoln Foodservice Products
Inc said it completed purchasing certain assets of Redco
product line of food slicers, cutters and wedgers from the
Dean/Alco Food Prep division of <Alco Foodservice Equipment
Co.>
Terms were not disclosed.
| Commodities and Trade |
I.R.E. FINANCIAL CORP <IF> YEAR
| Shr 94 cts vs 77 cts
Net 2.1 mln vs 1.7 mln
Revs 7.8 mln vs 8.8 mln
NOTE:Per share data reflects elimination of 500,000 shares
owned by 50 pct owned subsidiary and reflect one-for-three
reverse stock split effective march 5, 1986.
| Commodities and Trade |
ENERGY VENTURES CINC <ENGY> 4TH QTR NET
| Net profit 510,000 vs loss 5,700,000
Revs 875,000 vs 4,100,000
Year
Net profit 871,000 vs loss 4,100,000
Revs 4,700,000 vs 14.1 mln
| Commodities and Trade |
PANTERA <PANT> AND PIZZA <PZA> AGREE TO MERGE
| Pantera's Corp said it agreed in
principle to acquire Pizza Inn Inc in a cash and stock
transaction.
Under terms of the proposed transaction, each Pizza Inn
share can be exchanged for either three dlrs in cash plus the
lesser of 1.4 shares of Pantera's common stock or 11.50 dlrs
market value of Pantera's stock, or four dlrs in cash plus a
unit consisting of one share of Pantera's stock and a
non-transferrable right to receive up to 0.55 share of
Pantera's stock under certain conditions, it said.
Completion of the transaction is subject to arrangement of
financing, negotiation of a definitive agreement, and various
regulatory approvals, it said.
Pantera's said Pizza Inn's largest shareholder, F.J.
Spillman, previously granted Pantera's an option to buy more
than one mln shares of Pizza Inn common stock owned by him.
Pantera's also said it retained Drexel Burnham Lambert Inc
to act as its financial advisor in connection with the merger.
Pizza Inn has retained Dean Witter Reynolds Inc to act as its
financial advisor, Pantera's said.
Yesterday, Pantera's stock closed at 9.50 dlrs on NASDAQ,
while Pizza Inn's stock was quoted at 12 dlrs when the Amex
halted trading pending the announcement of the proposed merger.
From its Dallas headquarters, Pizza Inn said completion of
the transaction is subject to certain conditions including that
the price of Pantera's stock average not less than seven dlrs
during the 20 trading days before the merger.
Under the agreement, Pizza Inn said it will still be
permitted to complete a leveraged buyout agreement with Pizza
Inn Acquiring Corp, which has been approved by its
shareholders, but is subject to otaining financing.
More
| Market and Economy |
CHINA CROP WEATHER SUMMARY -- USDA/NOAA
| Moderate to heavy rain continued
over early double-crop rice areas in eastern Guangxi,
Guanghdong, eastern Hunan, Jiangxi, Fujian, and Zhejiang in the
week ended March 28, the Joint Agricultural Weather Facility of
the U.S. Agriculture and Commerce Departments said.
In its International Weather and Crop summary, the agency
said The moisture lessened the need for irrigation. Moisture
for early rice planting is adequate to abundant in most areas,
and inundative rain in Guangdong and southern Jiangxi may have
washed out some rice fields requiring replanting.
Light showers in southern Sichuan increased topsoil
moisture for corn planting, which likely is off to a slow start
due to earlier dryness, it said.
In the North China Plain, dry weather covered winter wheat
in the vegetative stage, and rain is needed to meet increasing
crop moisture requirements, it said.
Weekly temperatures in the North China Plain were near
normal, the agency noted.
| Other |
WILSON BROTHERS COMPLETES SALE
| Wilson Brothers said it completed
the sale of most of the assets of its Enro Shirt Co Inc,
Enro-At-Ease Inc and Foxcroft Shirt Ltd subsidiaries to Enro
Acquisition Corp for about 24.2 mln dlrs, half in cash and half
in subordinated promissory notes.
Enro Acquisition is a newly formed corporation and owns
Ramar Intercapital Corp and Wilson's chief operating officer,
V. Jerome Kaplan, and other managers.
Enro Acquisition also assumed most of the units'
liabilities including a 6.2 mln dlrs term loan.
Completion of the sale and recent sales of substantially
all the assets of the company's 50 pct owned affiliate GMW
Industries INc, are expected to result in a net gain of about
nine mln dlrs in the first quarter of 1987.
For the year ago first quarter, Wilson reported net income
of 28,000 dlrs, including a 103,000 dlrs credit, on sales of
15.8 mln dlrs.
| Commodities and Trade |
SWISS MONEY MARKET PAPER YIELDS 3.286 PCT
| The Swiss Federal Government's new series
of six-month money market certificates raised 177.5 mln Swiss
francs at an issue price of 98.401 pct to give an average
annual yield of 3.286 pct, the National Bank said.
Payment date is March 5.
The last series of six-month paper issued in January raised
159.6 mln francs at 98.392 pct to give an average yield of
3.251 pct.
| Financial Reports |
ELSINORE CORP <ELX> YEAR LOSS
| Shr loss 4.05 dlrs vs loss 2.47 dlrs
Net loss 39,598,000 vs loss 24,152,000
Revs 96.0 mln vs 87.9 mln
Note: Current year figures include 7.2 mln dlr provision
for anticipated loss on note receivable, 25.4 mln dlr writedown
on asset carrying value and 8.5 mln dlr provision for future
operating losses at Elsinore Shore Associates.
Prior year figures include 10.5 mln dlr provision for
future losses at Elsinore Shore Associates.
| Commodities and Trade |
EC MINISTER SEES OILS TAX STILL IN NEGOTIATION
| The outcome of negotiations on
proposals by the European Commission for a 330 Ecus a tonne tax
on EC-produced and imported oilseeds and marine oils remains
difficult to predict, Belgian agriculture minister Paul de
Keersmaeker told a news conference.
De Keersmaeker, who chaired a meeting of EC farm ministers
which ended today, was asked about reports enough countries
were against the tax to ensure that it would be defeated in
negotiations on the EC farm price package for 1987/88.
He said it was true some countries were strongly opposed,
but others were less so and others basically in favour.
"I think there is room for negotiations, and I would not
want to make any predictions at this stage," de Keersmaeker
said.
Yesterday, British minister Michael Jopling said Britain,
West Germany, Portugal, the Netherlands and Denmark were
opposed to the measure. Between them these countries have more
than enough voting power to block it.
Diplomatic sources said at today's meeting the Spanish
delegation also expressed strong reservations about the idea.
| Financial Reports |
GRUNTAL FINANCIAL <GRU> 2ND QTR FEB 27 NET
| Shr primary 33 cts vs 33 cts
Shr diluted 27 cts vs 32 cts
Net 3,669,000 vs 3,556,000
Revs 58.2 mln vs 56.6 mln
Avg shrs primary 11.2 mln vs 11.1 mln
Avg shrs diluted 15.1 mln vs 11.1 mln
Six mths
Shr primary 43 cts vs 46 cts
Shr diluted 37 cts vs 45 cts
Net 4,711,000 vs 4,879,000
Revs 101.9 mln vs 95.7 mln
Avg shrs primary 11.2 mln vs 10.9 mln
Avg shrs diluted 15.1 mln vs 10.9 mln
| Corporate News |
EC MINISTERS EXTEND BEEF, MILK MARKETING YEARS
| European Community agriculture
ministers agreed to extend the 1986/87 milk and beef marketing
years to the end of May, Belgian minister Paul de Keersmaeker
told a news conference.
He said the reason for the two-month extension of the only
EC farm product marketing years which end during the spring
months was that it would be impossible for ministers formally
to agree 1987/88 farm price arrangements before May 12.
This is when the European Parliament is due to deliver its
opinion on price proposals from the EC Commission.
| Financial Reports |
WHITE HOUSE DISCOUNTS THREAT OF TRADE WAR
| President Reagan has reaffirmed his
opposition to protectionism and his chief spokesman said trade
sanctions imposed on Japan were unlikely to start a trade war.
"We don't want to go down that road," Reagan was quoted as
telling Prime Minister Jacques Chirac after the visiting French
official expressed concern about the rising tide of
protectionist sentiment in the United States.
Later, White House spokesman Marlin Fitzwater defended the
new sanctions against Japan and said administration officials
"do not believe this will result in a trade war."
"It is the first time that the United States has taken an
action of this type and it is significant but it is nothing to
be alarmed about," the presidential spokesman added.
"We do not want protectionism ... We do not want a trade
war," he said.
Fitzwater said the president was forced to act in the
Japanese microchip case because Tokyo had failed to fulfill "an
agreement to make some corrections."
Noting that there are "enormous pressures in the Congress
and the land" for the United States to take a tough stand, he
said, "This was a case where we felt we simply had to act."
Fitzwater said the decision to impose sanctions was "well
considered by this administration and not taken lightly."
While the White House official held open the possibility
that Washington and Tokyo will settle their trade dispute, he
indicated a settlement probably would not come in time to head
off the sanctions.
"We are always open to negotations ... Whether it (a
settlement) could occur in time to prevent this (the sanctions)
from going into effect is questionable at this point," the
spokesman said.
The sanctions take effect in mid-April.
| Corporate News |
WHITE HOUSE WELCOMES RISE IN INDICATORS
| The White House welcomed last
month's 0.7 pct increase in the Index of Leading Economic
Indicators, the government's key barometer of future economic
growth.
The increase reversed a decline in January of 0.5 pct.
Presidential spokesman Marlin Fitzwater said the new
figures signalling more economic growth in coming months showed
that the index was "back on track" after its downturn at the
first of the year.
| Other |