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SOUTH AUSTRALIA AGENCY ISSUES ZERO-COUPON BOND | The South Australia Government Financing
Authority is issuing a 25 mln Australian dlr zero coupon bond
priced at 51.75 pct, lead manager Hambros Bank Ltd said.
The bonds, due April 2, 1992, are available in
denominations of 5,000 and 10,000 dlrs and will be listed in
Luxembourg.
Fees comprise 1/4 pct selling and 1/4 pct management and
underwriting combined.
The deal is fully fungible with the 125 mln dlr zero coupon
deal on the same terms issued for the authority early last
month, Hambros said.
REUTER
|
NEWMAN, HAWKER DISCUSS ELECTRIC MOTOR MERGER | <Newman Industries Plc> said it was
discussing the possible merger of its electric motor operations
with Hawker Siddeley Group Plc's <HSID.L> <Brook Crompton
Parkinson Motors Ltd> unit.
Newman has electric motor operations in the U.K. And
Australia. The company gave no further details but said a
further statement would be made shortly.
Newman shares eased one penny on the announcement to 43p
while Hawker was unchanged at 528p, three pence higher on last
night's close.
REUTER
|
AKZO BUYS RHONE-POULENC HOUSEHOLD UNITS | Dutch chemical group Akzo
N.V. <AKZO.AS> said it agreed to take over household product
subsidiaries of French group Rhone-Poulenc <RHON.PA> for an
undisclosed sum.
Under the agreement, Akzo will acquire the household
product activities of the Lyons-based <Rhodic> and
Remalard-based <Buhler-Fontaine> units of Rhone Poulenc.
Together, these activities account for over 180 mln French
francs in annual sales and employ 170, Akzo said.
Akzo will integrate the firms, to be partially joined with
its own French activities, in its consumer products division.
REUTER
|
SWISS BANKER WANTS BOND RATINGS, SHARE DISCLOSURE | A top Swiss banker called for an
obligatory, continuous rating for all Swiss franc bonds and
said he believed anyone buying more than five pct of a company
should be made to declare their share.
In comments at a news conference of <Vontobel Holding AG>,
chairman Hans Vontobel said he believed it was up to the banks'
own self-regulating bodies, such as the Swiss Admissions Board,
to take such action before governmental bodies stepped in.
A decline in the average quality of borrowers on the Swiss
franc market and a debate on the use of registered shares to
prevent takeovers have made both major issues among bankers.
Vontobel noted that many borrowers already came to the
market with ratings from the major U.S. Agencies, which were
readily available to professionals through specialised
information systems.
"We should make this classification obligatory and publish
it in places that are easily accessible to lay people," he said.
The quick changing nature of the financial market meant these
ratings should also be continually updated, he said.
Vontobel also noted that recent years had seen companies,
worried about takeovers, increasingly issuing registered shares
and participation certificates rather than bearer shares.
However, both types of issue had a drawback, he said. The
recent attempt by Jacobs Suchard AG <JACZ.Z> to take over Hero
Conserven Lenzburg <HERZ.Z> had shown the limits of a 1961
pledge by the banks not to sell registered shares to someone
who was not eligible according to the company's statutes.
Excessive issue of participation certificates, which do not
carry voting rights, would also be contrary to the principle of
greater democracy in the new share law before Parliament.
"People buying, for example, more than five pct of a
company's shares should be made to declare their purchase," he
said.
REUTER
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ITALIAN JANUARY INDUSTRIAL OUTPUT FALLS 3.4 PCT | Italian industrial production fell 3.4 pct
in January, compared with the same month last year, the
national statistics institute Istat said.
The rise follows a year-on-year increase in December 1986
of 4.5 pct.
Istat's industrial production index, base 1980, not
seasonally adjusted, registered 93.3, compared with 96.6 in
January 1986.
Istat said there were 20 working days in January, the same
as December, but one fewer than January last year.
Istat said the year-on-year fall reflected poorer
performances in the footwear, clothing, textiles, chemicals and
metals industries.
It said office machinery and data sectors, wood and
furniture, precision mechanics, oil and electricity showed
improved activity.
Calculations based on Istat figures showed industrial
production rose 2.4 pct in January, on a month-on-month basis,
after falling 12.0 pct in December over November.
REUTER
|
U.S. CREDIT MARKET OUTLOOK - BUDGET DEFICIT | Economists' forecasts vary widely for
the February monthly U.S. budget deficit to be released today.
However most agree on one point -- that the budget deficit for
the 1987 fiscal year will narrow substantially from 1986
levels.
The report is likely to mean very little to the moribund
credit markets, however, which have been stilled by a stable
dollar and perceptions of steady Federal Reserve policy.
Economists said that a leaner federal budget could help the
credit markets if it lowers the Treasury's financing needs and
results in lower interest rates, but investors may not respond
until they see evidence that this is taking place.
Economists' forecasts for the February deficit range from
20 billion dlrs to nearly 30 billion dlrs, with most forecasts
clustered in the 26-28 billion dlrs range. This compares with a
deficit of 24.6 billion dlrs in February 1986.
In January, the budget deficit was 2.1 billion dlrs,
leaving the fiscal year-to-date deficit at 65.6 billion dlrs.
Most economists expect the 1987 fiscal deficit to fall to
180-190 billion dlrs from 220.7 billion dlrs in fiscal 1986.
Kathleen Stephansen of Donaldson, Lufkin and Jenrette
Securities Corp, expects a 26.3 billion dlr February budget
deficit, and a 186.5 billion dlr fiscal 1987 deficit.
Stephansen expects widening in the February deficit
relative to last year based on two developments.
First, total revenues showed a slowdown in their yearly
growth rate relative to prior months' growth rates, she said,
as corporate and individual tax payments net of tax refund
payments appear to have been weak in February.
"The second factor... is relatively strong outlay
performance," Stephansen wrote in a weekly report. "Data
available to date suggest that their year-over-year growth is
close to 4.3 pct, well above the 0.5 pct average that prevailed
in the last four months of the fiscal year."
Joe Liro of S.G. Warburg Securities and Co expects the
February budget deficit to total 26-28 billion dlrs and the
fiscal 1987 deficit to be 190 billion dlrs.
He said that as a result of the change in the 1987 tax code
and the new structure for determining withholding of personal
income tax payments, the Treasury is receiving less tax
receipts than it received at this time last year.
"The Administration compounded a tricky situation by saying
how difficult it is to fill out the new W-4 tax forms he said.
"The wage earner was underwithholding at the beginning of the
year and continues to be underwithheld."
By contrast, Ward McCarthy of Merrill Lynch Government
Securities Inc said that many taxpayers have probably delayed
filling out the new tax withholding forms, so that this has not
been a drag on tax receipts as others have argued.
"The first half of the year brought strong tax receipts
from capital gains and the repeal of the investment tax credit,
which is expected to contribute a substantial portion of the
corporate taxes to be paid this week," he said in the firm's
weekly credit market memo.
He forecast a February budget deficit of 20 billion dlrs,
and a fiscal 1987 deficit of 180 billion dlrs.
In March, McCarthy expects to see a deficit of 23 to 24
billion dlrs compared with 30 billion dlrs in March 1986.
But economists agreed that the federal budget deficit is
far from occupying center stage in the credit market's focus
and is unlikely to have an impact now regardless of its size.
Yesterday, the key 7-1/2 pct Treasury bonds of 2016 closed
unchanged at 99-28/32 to yield 7.51 pct after trading in a
narrow range throughout the session.
Fed funds traded from six pct to 6-1/8 pct yesterday, up
slightly from Wednesday's 5.97 pct average, and are expected to
open within that range today.
Reuter
|
REAGAN DEFENDS IRAN-DEAL, BUT WOULDN'T REPEAT IT | President Reagan, staying cool under
a televised grilling on the Iran-contra scandal, insisted he
has told all he knows about the crippling affair and said he
would do it all differently given a second chance.
"No, I would not go down that same road again," the president
said last night during a 32-minute news conference, his first
in exactly four months, when asked if he would again sell arms
to Iran in hopes of freeing U.S. hostages in the Middle East.
But he added, "I'll keep my eye open for an opportunity
again for improving relations. And we will continue to explore
every legitimate means for getting our hostages back."
As expected, the televised conference was almost completely
dominated by questions about the secret sales of U.S. arms to
Iran and the diversion of funds to "contra" rebels in Nicaragua.
From an investigators' standpoint, the toughest question
concerned 76-year-old Reagan's knowledge of the contra
operation.
As expected, the president repeatedly stated -- now calmly,
now with some fire -- that he knew nothing about that
scheme, said to have been run by White House National Security
aide Oliver North, since fired, with the knowledge of
presidential adviser John Poindexter, now resigned.
"No, that is not true at all," the president replied sternly
when asked about a report Poindexter had told him, twice, about
the secret channeling of millions of dollars to the contras.
"When I went on the air right after the news broke (about
Iran arms deal last November), I did not know at that time
there was any money involved."
He said he learned of the contra diversion -- which may
have broken U.S. laws and will be the top priority of
congressional investigative hearings on this affair -- only
when Atty. Gen. Edwin Meese told him on November 25.
Just as important from Reagan's standpoint, however, was
the manner in which he handled his first non-scripted public
accounting of the scandal since the details first began leaking
out last November and plunged his administration into deep
political crisis.
He appeared to bring it off without major stumbles, abetted
by a press corps that seemed at pains to maintain a civil
manner until the very end when it crowded round him trying to
get in one last question as he was leaving the rostrum in the
White House East Room.
He often responded slowly and deliberately but never seemed
at a loss for words, or vintage Reagan mannerisms.
At one point in the contra discussion he furrowed his brow
in puzzlement as he said he was just as mystified as everyone
about where all the unaccounted millions had gone from the Iran
arms sales of 1985 and 1986.
"I'm still wanting to find out the source of all the extra
money, the bank accounts and where that extra money went," he
said.
At another point, he laughed off a question on whether he
might have been told about the contra connection and forgotten,
saying, "Oh, no," pausing to chuckle and adding:
"You'd have heard me without opening the door to my office
if I'd been told that."
Reuter
|
BERLINER BANK SUFFERS LOSSES ON STUTTGART LOANS | <Berliner Bank AG> has suffered
losses of between 10 and 100 mln marks through credits granted
by its Stuttgart branch by officials there exceeding their
powers, a bank spokesman said in answer to queries.
The spokesman declined to say exactly how large the losses
were. Berliner Bank has suspended the three managers of its
Stuttgart branch and is continuing an investigation into the
case, in which state prosecutors are also participating.
The fact that powers had been exceeded emerged in a routine
check at the branch. The City of West Berlin owns 74 pct of
Berliner Bank and the rest is held by small shareholders.
REUTER
|
PRESIDENT REAGAN VOWS TO VETO ANY TAX INCREASE | President Ronald Reagan said he
would veto any tax increases voted by Congress.
"My pledge to veto any tax rate increase remains rock solid,"
Reagan said during a televised news conference.
The president said he opposed efforts by some members of
Congress to back away from deficit reduction targets set by the
Gramm-Rudman balanced budget law. He urged passage of a
constitutional amendment to balance the budget.
"It's time Congress cut the federal budget and left the
family budget alone," Reagan said.
He said the congressional budget process was in desperate
need of reform and urged passage of an amendment to the U.S.
constitution that would require a balanced federal budget.
"This yearly deficit feeding process must stop," he added. "We
must act now to pass a constitutional amendment to balance the
budget."
In the meantime, he said, Congress cannot back away from
the deficit reduction goals set by federal law he said.
Reuter
|
REAGAN SAYS U.S. NEEDS TO LESSEN OIL IMPORTS | President Reagan said the United
States must do more to lessen its reliance on imported oil.
President Reagan said during a nationally televised news
conference that the rising U.S. reliance on foreign oil is a
problem that the administration is studying.
"We have to study this more," Reagan said. "This is why we
increased the Strategic (Petroleum) Reserve, but we have to do
more," he said.
Reagan said his administration has already proposed
deregulating natural gas and eliminating the windfall profits
tax on crude oil production.
However, he complained that Congress had not yet approved
those measures.
The Department of Energy earlier this week released a
report that warned of rising U.S. reliance on foreign oil
imports at a time when domestic production is declining. It
suggested options for the administration to consider, but made
no specific recommendations.
Reuter
|
REAGAN SAYS U.S. STILL PROBING ACID RAIN PROBLEM | President Reagan said the U.S.
government is still looking into the problem of acid rain.
"We're still investigating this," he told a nationally
televised news conference.
Reagan added that the government will now work with U.S.
industry to help address the problem.
However, he declined to endorse the writing of federal
standards for emissions that would help alleviate the problem.
The Reagan administration yesterday announced a 2.5 billion
dlr, five-year program to deal with acid rain, a problem that
troubles U.S. relations with Canada.
Reagan was asked by a reporter whether the government
should set emission standards.
He responded that the deeper that officials went in
examining the acid rain problem, the more complex it appeared.
He said the government did not want to rush into adopting a
measure that might ultimately prove fruitless.
Reuter
|
LCE AND IPE TO INTRODUCE TIME-STAMPING | The London Commodity Exchange (LCE) and
International Petroleum Exchange (IPE) are to introduce revised
trading slip systems incorporating the time that futures
business is executed, an LCE spokeswoman said.
The LCE's six week trial system starts on April 1, with
buyers and sellers filling in slips which carry not only the
transaction, but also the date and time of execution.
These slips will then have to be forwarded to market staff
for entering into International Commodities Clearing House
(ICCH) terminals within 15 minutes of the trade being
transacted, the spokeswoman said.
The IPE system is similar, although here traders will use
time-stamping machines which automatically enter the date, as
is the practice on futures exchanges in the U.S. And on the
London International Financial Futures Exchange.
Time-stamping of U.K. Futures business becomes mandatory
later this year under the Financial Services Act, to meet the
Securities and Investments Board's requirement on audit-trails,
the LCE spokewoman said.
REUTER
|
BANK OF SPAIN SUSPENDS ASSISTANCE, DRAINS FUNDS | The Bank of Spain suspended its daily
money market assistance and offered to drain funds with three-
and seven-day repurchase agreements at 12-1/2 pct, money market
sources said.
The sources said the measures were a further attempt to
rein in money supply and were likely to force some institutions
to scramble for funds before the 10-day accounting period for
reserve requirements closes on Monday.
The bank, which raised its rate for ordinary overnight
assistance to 13-3/4 from 13-1/2 pct on Wednesday, opened its
special borrowing facility for overnight funds at 14-1/2 pct.
Money market sources said institutions in need of funds
were likely to have to return to the bank tomorrow for further
assistance.
The bank rarely invites applications for ordinary
assistance on a Saturday and the sources said it was more
likely to open its special borrowing facility again.
REUTER
|
PACIFICORP <PPW> SELLS SERIAL PREFERRED STOCK | PacifiCorp said an offering of
50 mln dlrs of 7.12 pct serial preferred stock is underway at
100 dlrs per share through underwriters led by Salomon Inc
<SB>, Merrill Lynch and Co Inc <MER>, L.F. Rothschild,
Unterberg, Towbin Inc <R> and Printon, Kane and Co.
The company said its proceeds from the offering were 99.20
dlrs per share. A sinking fund starting in 1993 will start
retiring the issue, with retirement to be completed in 2027.
PacifCorp also said James P. Best, senior vice president of
its telecommunications unit, has temporarily switched jobs with
parent company vice president and controller Stan M. Marks to
broaden management experience within the company.
Reuter
|
CINEPLEX ODEON OFFICERS BUY SHARES FROM COMPANY | <Cineplex Odeon Corp> said chairman
Garth H. Drabinsky and vice chairman Myron I. Gottlieb have
each purchased from the company's treasury 750,000 common
shares at 17.50 dlrs each.
Reuter
|
WYERHAEUSER <WY> FILES TO OFFER PREFERENCE STOCK | Weyerhaeuser Co said it has filed
for an offering of four mln shares of convertible exchangeable
preference shares through underwriter Morgan Stanley Group Inc
<MS>.
The company said the preference shares will be convertible
at any time into common shares, and on any dividend payment
date starting June 15, 1990, the company may exchange all the
preference shares for convertible subordinated debentures due
2017.
The company said the preference shares will not be
redeemable before June 15, 1989 unless the closing price equals
or exceeds 150 pct of the then-effective conversion price per
share for at least 20 trading days within a 30 consecutive
trading day period that ends within five trading days before
issuance of a notice of redemption.
Weyerhaeuser said proceeds will be used to reduce
outstanding commercial paper, although initially they may be
invested in marketable securities.
Reuter
|
TRICO <TRO> GETS CHINESE CONTRACT | Trico Industries Inc said it has
received a six mln dlr contract to supply hydraulic lift
equipment for heavy crude oil production for the Chinese
Ministry of Petroleum Industry.
The company said the equipment is for use in the Laiohe
oilfield 350 miles northeast of Peking and will equip a
140-well program.
Reuter
|
COLORADO VENTURE CAPITAL <COVC> ASSET VALUE UP | Colorado Venture Capital corp
said its net asset value rose 215,239 dlrs or two cts per share
during the fourth quarter and 175,712 dlrs or two cts per share
during the full year 1986.
Reuter
|
MICRON TECHNOLOGY INC <DRAM> 2ND QTR MARCH FIVE | Shr loss 46 cts vs loss 51 cts
Net loss 10.9 mln vs loss 9,782,818
Revs 20.1 mln vs 9,437,270
Avg shrs 23.5 mln vs 19.3 mln
1st half
Shr loss 90 cts vs loss 1.11 dlrs
Net loss 20.6 mln vs 21.4 mln
Revs 38.9 mln vs 14.5 mln
Avg shrs 22.8 mln vs 19.2 mln
Reuter
|
BIOSEARCH MEDICAL PRODUCTS INC <BPMI> 4TH QTR | Shr loss seven cts vs loss 23 cts
Net loss 381,000 vs loss 1,071,000
Sales 4,531,000 vs 4,409,000
Year
Shr loss 21 cts vs loss 98 cts
Net loss 1,098,000 vs loss 4,658,000
Sales 17.8 mln vs 17.3 mln
Reuter
|
MOORE FINANCIAL GROUP INC <MFGI> SETS PAYOUT | Qtly div 30 cts vs 30 cts prior
Pay April 16
Record April Three
Reuter
|
DUTCH JANUARY INDUSTRIAL PRODUCTION RISES 4.8 PCT | Industrial production rose 4.8 pct on
a seasonally-adjusted basis in January compared with December
while rising 2.8 pct from January last year, Central Bureau of
Statistics figures show.
In December, industrial production fell by 2.8 pct from
November while rising 2.9 pct compared with December 1985.
The industrial production index, base 1980, stood at 109 in
January compared with a downward revised 104 in December, which
was initially put at 105. In January last year, the index stood
at 106 and in December 1985 at 101.
REUTER
|
ISRAELI JETS RAID SOUTH LEBANON | Israeli jets bombed Palestinian targets
east of the south Lebanese port town of Sidon, in the first
such attack this month, local radio stations said.
They said the planes attacked Palestinian targets in the
Darb al-Sim area, a few km (miles) east of Sidon, and smoke was
seen billowing over the area.
Details were not immediately available.
Reuter
|
BONN EXPRESSES SUPPORT FOR U.S. ON EC VEG OIL TAX | The West German government expressed
support for the U.S. Position in opposing the proposed European
Community tax on vegetable oils and fats, a U.S. Embassy
spokesman said.
The spokesman, speaking from Bonn, said, "We have good
reason to think West Germany holds to its resistance to the
proposed tax."
Several top government officials told the American Soybean
Association and the National Soybean Processors Association
delegations there was no reason for American producers and
processors to pay for EC agriculture, the spokesman said.
European agriculture was facing severe problems, but both
the Community and the U.S. Should work closely within the
framework provided by the General Agreement on Tariffs and
Trade, he said.
The delegations will continue their top level meetings in
Bonn today but will not issue a statement before returning to
the U.S. At the weekend.
The EC and the U.S. Realised the tax issue would stay on
the agenda for several months and there were indications that
both sides would have to prepare for some tough negotiations,
the spokesman said.
REUTER
|
SENATE WANTS JAPAN SEMICONDUCTER PACT ENFORCED | The U.S. Senate has unanimously
called for President Reagan immediately to force Japan to live
up to a pledge to stop dumping its microchips and open its
markets to U.S. Chipmakers.
The Senate voted 93 to 0 to urge Reagan to impose penalties
on Japanese high-technology products containing semiconductors
in retaliation for what it sees as Japan's violations of the
semiconductor pact.
While the measure does not bind Reagan to any action,
Senate leaders said its adoption would warn Japan stiffer
legislation would be considered if the violations continue.
"We want to send a message to Japan to let it know how the
Senate feels about this matter," Senate Democratic Leader Robert
Byrd told the Senate.
Senate Finance Committee chairman Lloyd Bentsen told the
Senate the measure was not aimed at retaliation but at
correcting Japan's unfair trade practices.
A key House trade lawmaker, Representative Richard Gephardt
also announced he would seek to force Japan and other countries
with huge trade surpluses to slash their surplus by 10 pct a
year for three years.
REUTER
|
FLEET <FLT> COULD FACE CONNECTICUT DIVESTITURE | Fleet Financial Group said it might
have to sell its First Connecticut Corp subsidiary as a result
of its proposed 1.3 billion dlr acquisition of Norstar Bancorp
<NOR>.
Under Connecticut banking law, New England based bank
holding companies such as Fleet are not allowed to operate
Connecticut banks if they merge with companies from outside the
region. Norstar is based in Albany, N.Y.
First Connecticut has assets of about two billion dlrs.
Fleet has total assets of about 21 billion dlrs.
Fleet said it will seek to have the Connecticut law amended
to allow it to retain First Connecticut, which is based in
Hartford.
Fleet's acquisition of Norstar is now expected to be
completed around July 1, 1988, when a change in laws in Fleet's
home state of Rhode Island allowing interstate banking outside
New England will go into effect.
Reuter
|
JAPAN UNDER ATTACK OVER TRADE SURPLUS | Japan's economic policies face fierce
international attack as hopes fade of a substantial drop in its
trade surplus, international monetary sources said.
At a meeting this week in Paris, senior government
officials from major nations are considering an Organisation
for Economic Cooperation and Development (OECD) staff report
that forecasts a continuing large Japanese trade surplus, they
said.
Though Japanese exports have become more expensive with the
yen's sharp rise against the dollar, they still tend to surge
when growth picks up, according to the OECD.
As a solution, the OECD staff has urged Japan to redirect
its export-driven economy, boosting domestic demand and imports
by adopting a more flexible fiscal policy, they said.
That recommendation echoes calls made recently at secret
meetings of the International Monetary Fund's executive board.
The monetary sources said Japan's policy was criticized
when the board met to consider the country's economy under the
annual consultations it holds with each of its members.
The United States, which until recently has been reluctant
to criticize Japan's fiscal stance, joined in the attack, he
said.
The IMF staff has also cast doubt on the Japanese
government's forecast of 3.5 pct economic growth in the fiscal
year beginning April 1. Most independent forecasters, including
the IMF, believe that growth in calendar 1987 will be below
three pct, monetary sources said.
The Finance Ministry has been particularly sensitive to
such criticism because it is already under mounting domestic
pressure to boost an economy hard-hit by the yen's rise. The
yen's climb has lost exporters sales and profits in the huge
American market.
Tokyo is also eager to avoid any suggestion that a further
yen rise might be needed to cut its trade surplus, which last
year amounted to a record 93 billion dlrs.
Japan cannot tolerate a further rise of the yen, Foreign
Minister Tadashi Kuranari said recently. The yen closed here
today at 151.53 to the dollar. Most Japanese politicians,
including Finance Minister Kiichi Miyazawa, are clearly hoping
the yen will weaken, government officials said.
At a meeting in Paris last month, Britain, Canada, France,
Japan, the United States and West Germany, agreed to cooperate
to hold currencies at around current levels.
Officials said that wording represented a compromise.
Miyazawa hopes the agreement will hold the yen stable for a few
months, before it weakens later in the year.
Japan wanted the Paris communique to imply a higher value
for the dollar, perhaps by substituting the word "recent" for
"current," while the United States wanted it to more clearly
point to the dollar's weaker levels now, perhaps by use of the
word "present," they said.
In the months leading up the February 22 agreement, the
dollar dropped some 10 yen.
The officials also sought to discredit suggestions in the
market that recent U.S. Action to prevent the dollar from
rising above 1.87 marks pointed to a 153 to 155 yen ceiling for
the U.S. Currency.
Japan has also attacked OECD forecasts, which it says do
not take account of the structural changes in the Japanese
economy that will be triggered by the strong yen.
Officials said there are already signs of that. More and
more companies have announced plans to move production
facilities offshore to take advantage of cheaper costs abroad,
they said.
REUTER
|
GEODOME <GOEDF> TO START MINE CONSTRUCTION | Geodome Resources Ltd said
following receipt of a feasibility study from Raytheon Co's
<RTN> Stearns Catalytic unit, it will proceed with construction
and pre-production stripping at its Sunbeam Mine in Custer
County, Idaho, as quickly as possible.
The company said the study found proven ore reserves of
3,302,000 short tons grading 0.077 ounce of gold per ton. It
said the mine will operate at a rate of 626,000 tons of ore per
year, with higher-grade ore being mined in the first three
years for a rapid payback of capital costs.
The company said the feasibility study calls for gold
production averaging 41,000 ounces a year for the life of the
mine and 50,000 ounces a year over the first three years, with
99,000 ounces of silver per year being produced over the miune
life.
Capital costs would be 22.3 mln dlrs with all-new equipment
and 500,000 to one mln dlrs less with used equipment, it said.
It said the mine would be operated by a contract miner but the
associated mill by Geodome.
Geodome said a new ore zone discovered last summer is not
included in reserve calculations. It said eight of the nine
holes drilled there have an average grade of 0.046 ounce of
gold and 2.1 ounces of silver per ton. Also excluded are
reserves of 1,400,000 tons of low-grade material that could be
milled profitably at 425 dlrs a ton for gold. The feasibility
study used a 350 dlr gold price.
Geodome said operating costs of the mine will average 201
dlr per ounce of gold for the mine life and 171 dlrs for the
first three years, in constant dollars.
Reuter
|
JAPAN ECONOMIC PACKAGE AFTER BUDGET - MIYAZAWA | Finance Minister Kiichi Miyazawa said
Japan plans to announce a package of economic measures
immediately after the 1987/88 budget passes Parliament.
The passage of the full budget is expected after May 20 as
the government has decided to compile a 50-day stop-gap budget
for the year starting April 1. An opposition boycott over a
proposed sales tax has disrupted parliamentary business.
Miyazawa told a press conference Prime Minister Yasuhiro
Nakasone is unlikely to take the package to Washington.
Nakasone hopes to meet President Reagan in late April or
early May to prepare for the Venice economic summit in June.
Asked if he planned to visit the U.S. To attend monetary
conferences including International Monetary Fund meetings in
early April, Miyazawa said he will make a decision carefully on
the matter, taking into account parliament debate.
The package is likely to include a record amount of public
works spending in the first 1987/88 half, Miyazawa said.
Miyazawa said the provisional budget will total about 8,800
billion yen and incorporate a little more than 1,800 billion
for public works. Japan expects the stop-gap budget to help
spur the economy, Miyazawa said.
Miyazawa said the Government and the ruling Liberal
Democratic Party will seek the passage of the bills related to
the controversial sales tax without any revision.
Japanese press reports had previously interpretated remarks
by a top government official as indicating a revision of the
tax but the official did not mean that, Miyazawa said.
REUTER
|
M.D.C. ASSET INVESTORS <MIR> IN INITIAL PAYOUT | M.D.C. Asset Investors Inc, which
recently went public, said its board declared an initial
quarterly dividend of 45 cts per share, payable April 15 to
holders of record April One.
Reuter
|
JAPAN SAYS OECD STUDY ON SUBSIDIES STILL ONGOING | Japanese Agriculture Ministry officials
said a study of agriculture subsidies by the Organisation for
Economic Cooperation and Development, OECD, is still under way
and will be completed sometime next month.
The officials said the study has been inaccurate so far,
and they said Japan would comment on the final results.
A Reuter report from Washington yesterday said the study
has found that Japan has the highest agriculture subsidies in
the world and that dairy farmers benefit more than any other
commodity producers from subsidies. The study has not been
officially released due to objections from some countries.
Japan has withdrawn its objection and decided to accept the
release of the study, the agriculture ministry officials said.
OECD directors are expected to approve the release at a meeting
in mid-May.
One agriculture ministry source said the study so far was
based on the years 1979-81. Japanese subsidies have dropped
sharply since then, partly because of tight budgetary policy,
and foreign currency factors have also changed, he said.
"The study is ... Unfair and unacceptable because it does
not take account of various differences in farming conditions
in each country, such as geography," the source said.
He said it is highly likely that the final study will show
Japan has the highest farm subsidies in the world.
"This would increase foreign pressure to open Japan's farm
market further, but this would have little impact on Japan's
agriculture policy," he said, without giving further details.
A main purpose of the study is to clarify export subsidies
by major exporting nations like the United States and the
European Community, but Japan is a major importer, he said.
Reuter
|
VOLCKER SAYS TRADE DEFICIT IS MAJOR CHALLENGE | Federal Reserve Board
Chairman Paul Volcker said the U.S. Trade deficit is a
challenge for the U.S. Equal to the Soviet Union launching of
Sputnik.
"The international challenge implicit in our huge trade
deficit has become the 1980s equivalent to the launch of
Sputnik by the Russians in the 1950s, when we suddenly feared
we were to be left in the wake of Soviet technological
achievement," he said in an address to Florida educators.
He said the trade problem underscored the need to reform
the U.S. Educational system to improve economic performance.
The Commerce Department reported last week that the
nation's trade gap, calculated on a balance-of-payments basis,
swelled to a record 38.37 billion dlrs in the fourth quarter,
bringing the 1986 deficit to a record 147.71 billion dlrs.
Volcker called on educators to stress the development of
basic reading, writing and mathematics skills and urged them to
help students adapt to the fast-changing economic climate.
Volcker said the challenge was greatest in the education of
low-income minority groups such as blacks and Hispanics.
Reuter
|
(CORRECTED)-MICROPRO INTERNATIONAL CORP <MPRO> NET | 2nd qtr
Shr four cts vs seven cts
Net 500,000 vs 900,000
Revs 9,200,000 vs 10.5 mln
1st half
Shr four cts vs 12 cts
Net 600,000 vs 1,500,000
Revs 17.6 mln vs 20.8 mln
NOTE: Period ended February 28.
Company corrects period in March 19 item
Reuter
|
C.O.M.B. <CMCO> TO ACQUIRE REST OF CABLE VALUE | C.O.M.B. Co said its board has
approved a proposal to acquire the 50 pct of Cable Value
Network held by its cable television industry partners in
exchange for warrants for C.O.M.B. common.
The company, which already owns the other 50 pct of CVN,
said it plans to change its name to CVN.
C.O.M.B. said the proposal calls for its cable partners to
receive about eight mln five year warrants in exchange for
their 50 pct interest in CVN and commit to a long-term
affiliation agreement to carry CVN programming.
C.O.M.B. said the proposed warrants would carry an exercise
price of 18.125 dlrs a share.
It said the 7,869,353 warrants originally offered to cable
partners will continue to vest on the pre-agreed schedule. The
company now has about 18.1 mln shares outstanding.
C.O.M.B. said the transaction is subject to the parties
entering into an agreement which would be subject to approval
by its shareholders and regulatory agencies.
Reuter
|
HOME SAVINGS DURHAM <HSLD> SETS STOCK DIVIDEND | Home Savings and Loan Association
Inc of Durham, N.C., said its board declared a 20 pct stock
dividend, payable April 28 to holders of record April Three.
Reuter
|
TWA IN LEGAL STIPULATION NOT TO PURSUE THE ACQUISITION OF USAIR
| |
Top discount rate at U.K. Bill tender falls to 9.1250 pct
| |
CANADA NORTHWEST TO SELL PREFERRED SHARES | <Canada Northwest Energy Ltd>
said it reached agreement in principle to sell one mln
preferred shares by way of private placement to raise 32.5 mln
dlrs for oil and gas exploration.
The 5.4 pct cumulative redeemable convertible series D
preferred shares will be flow-through shares entitling holders
to tax deductions not claimed by the company.
The shares will be convertible anytime after issue into
common shares at an equivalent conversion price of 32.50 dlrs a
share. After one year, they will be redeemable at any time by
the company at 25 dlrs a share plus accrued dividends.
Reuter
|
INDIA, AUSTRALIA AGREE TO IMPROVE TWO-WAY TRADE | Indian and Australian businessmen
signed a memorandum of understanding to boost two-way trade and
joint industrial ventures in both countries, spokesmen of the
Indo-Australia Business Council told reporters.
The Indian Council said it hoped India's exports to
Australia would improve in the next few months and reduce the
trade balance which is heavily in Australia's favour.
In 1986 Australia sold 428 mln Australian dlrs' worth of
goods, including steel and coking coal, to India and bought
170.5 mln worth of items, including cotton textiles, from India.
Reuter
|
OHIO EDISON SELLS 30 PCT OF NUCLEAR INTEREST FOR 509 MLN DLRS
| |
HIGH WINDS KEEP VESSELS TRAPPED IN BALTIC ICE | Strong south-easterly winds were
keeping many vessels trapped in the ice off the Finnish and
Swedish coasts in one of the worst icy periods in the Baltic
for many years, the Finnish Board of Navigation said.
In Finland and Sweden up to 50 vessels were reported to be
stuck in the ice, and even the largest of the assisting
icebreakers were having difficulties in breaking through to the
stranded ships, coastguard officials said.
However, icy conditions in the southern Baltic at the
Soviet oil ports of Ventspils and Klaipeda had eased, they said.
Weather officials in neighbouring Sweden said the icy
conditions in the Baltic were the worst for 30 years, with
ships fighting a losing battle to keep moving.
In the coastal stretches of the Gulf of Bothnia, which
divides Finland and Sweden, the ice is up to one metre thick,
with drifts and currents packing it into almost impenetrable
walls three metres high, Swedish coastguard officials said.
Weather forecasts say winds may ease during the weekend but
a further drop in temperature could bring shipping to a
standstill, the officials said.
Reuter
|
EC AND COMECON ENDS TALKS WITH PROGRESS | The European Community (EC) and
Soviet-led Comecon ended talks here, having made progress on
setting up formal trade relations, but no breakthrough because
of Comecon's refusal to recognise West Berlin as part of the
EC, delegates said.
Negotiators were trying to reach agreement on the draft of
a joint declaration setting up official relations after 30
years of mutual non-recognition. John Maslen, head of the EC
delegation, told Reuters as he emerged from the final session:
"We made some progress, but we have called for another meeting."
Officials, who asked not to be named, said the Comecon team
had refused to accept a clause in the draft declaration which
would recognise West Berlin as part of the 12-nation EC.
Under the 1957 Treaty of Rome all contracts and agreements
signed by the Community must contain this territorial clause
stipulating West Berlin is an integral part of the EC. An EC
negotiator taking part in the three-day talks said: "We wanted
the territorial clause in, but Comecon said no."
A joint statement issued after the talks said progress was
made towards clarifying positions, but another meeting would be
necessary to complete the work.
Any decision in principle to set up relations would require
approval by the Community's Council of Ministers and by the
executive committee of Comecon.
Zdzislaw Kuroski, deputy director of Comecon, who heads the
East bloc delegation, told Reuters ahead of today's session: "We
have narrowed our differences on a range of questions, but not
on all questions."
Asked whether Comecon would accept EC insistence that any
joint declaration stipulate West Berlin as part of the
Community, he replied: "This question is not contained in the
draft which our side presented."
West German diplomats said they would insist on including
the clause on West Berlin in any EC-Comecon agreement.
The talks followed an earlier round between the two trading
blocs here last September and the first-ever direct talks
between the EC and the Soviet Union on establishing diplomatic
relations in January.
The EC trades with individual Comecon member states despite
non-recognition of Comecon. Last year, the EC had a five
billion dlr trade deficit with East European states, about half
the deficit of the previous year, due to a drop in the price of
Soviet oil imported by the EC.
REUTER
|
OHIO EDISON <OEC> SELLS 30 PCT OF NUCLEAR INTEREST | Ohio Edison Co said it has
completed the sale and leaseback of 30 pct of its 30 pct
interest in Unit One of the Perry Nuclear Power Plant,
receiving 509 mln dlrs for the interest.
The utility said the share of its interest in the 1,205
megawatt generating plant was sold to a group of institutional
investors which leased it back to the company for a period of
about 29 years at a negotiated lease payment rate.
Ohio Edison said the proceeds will be used to finance the
rest of its 1987 construction program and repay bank loans
incurred for the retirement of high-interest long-term debt.
Ohio Edison did not detail the lease payments, but it said
the "payments will reduce the amount of revenue the company
will need to cover our investment in Perry, which translates
into savings for our customers."
The utility said it projects the financing could reduce the
amount of annual revenue needed by about 20 mln dlrs. It plans
on filing a rate application with the Public Utilities
Commission of Ohio to recover the Perry costs later this year.
It said the sale and leaseback was attractive to the
investors because they could take quicker advantage of tax
benefits than the utility could.
Reuter
|
GEODOME SETS IDAHO GOLD/SILVER MINE CONSTRUCTION | Geodome Resources Ltd said
following receipt of a feasibility study from Raytheon Co's
Stearns Catalytic unit it will proceed with construction and
pre-production stripping at its Sunbeam Mine in Custer County,
Idaho, as quickly as possible.
The company said the study found proven ore reserves of
3,302,000 short tons grading 0.077 ounce of gold per ton. It
said the mine will operate at a rate of 626,000 tons of ore per
year, with higher-grade ore being mined in the first three
years for a rapid payback of capital costs.
It said the feasibility study calls for gold production
averaging 41,000 ounces a year for the life of the mine and
50,000 ounces a year over the first three years, with 99,000
ounces of silver per year being produced over the mine life.
Capital costs would be 22.3 mln dlrs with all-new equipment
and 500,000 to one mln dlrs less with used equipment, the firm
said. It said the mine would be operated by a contract miner
but the associated mill by Geodome.
Geodome said a new ore zone discovered last summer is not
included in reserve calculations. It said eight of the nine
holes drilled there have an average grade of 0.046 ounce of
gold and 2.1 ounces of silver per ton.
Also excluded are reserves of 1,400,000 tons of low-grade
material that could be milled profitably at 425 dlrs a ton for
gold. The feasibility study used a 350 dlr gold price.
Geodome said operating costs of the mine will average 201
dlr per ounce of gold for the mine life and 171 dlrs for the
first three years, in constant dollars.
Reuter
|
QINTEX SAYS PRINCEVILLE <PVDC> IN CREDIT DEAL | <Qintex Ltd> of Brisbane said it has
arranged for a leading Australian financial institution it did
not name to provide Princeville Development Corp with the
letter of credit required by the terms of Qintex's proposed
acquisition of Princeville.
The company also said through yesterday, when its tender
offer for 3,300,000 Princeville shares was to have expired, it
had received over seven mln Princeville shares in the bid,
which has been extended until March 23 at 1800 EST.
Qintex said the letter of credit is to insure payment of
Princeville's contingent subordinated notes that would be
distributed to shareholders of record on the date immediately
following completion of the tender offer.
The company said it believes the conditions of the
commitment letter will be satisfactory to Princeville. It said
Princeville had previously held talks with a financial
institution on obtaining a letter of credit but was unable to
reach mutually acceptable terms.
Reuter
|
STANLEY INTERIORS <STHF> SAYS RESULTS REDUCED | Stanley Interiors Corp said
its first quarter shipments and operating income were lower
than expected due to snowstorms in January and February that
forced the closing of some of its manufacturing facilities for
up to six days.
Stanley said, however, that any reduction in first quarter
operating income will be offset by reduced interest expense and
that first quarter net income will be about flat with first
quarter 1986 net income of 14 cts a share, or 286,000 dlrs.
Stanely also said the first quarter's sales losses would be
made up by shipments in the second quarter.
Reuter
|
WYMAN-GORDON <WYMN> TO INVEST 11.7 MLN DLRS | Wyman-Gordon Inc said it plans
to invest 11.7 mln dlrs in two projects to improve the
company's metals technology capabilities.
The projects include the installation of a plasma cold
hearth refining system in its Millbury facility for the
production of nickel-base alloy power metal and titanium alloy
electrodes, the company said.
The other involves the modification of its 35,000-ton
hydraulic forging press, Wyman-Gordon said.
Both projects are scheduled for completion in 1989, the
company said.
Reuter
|
DISCOVERY WEST PLANS CONVERTIBLE NOTE ISSUE | <Discovery West Corp> said it plans to
sell convertible subordinated notes in a principal amount of
between four mln and seven mln dlrs by way of a private
placement through First Marathon Securities Ltd.
Discovery West said the notes will be convertible into
eight pct convertible subordinated debentures, which in turn
will be convertible into common shares at a price of two dlrs a
share.
It said it expects to complete the note sale on April nine
and plans to use up to five mln dlrs of proceeds to buy
convertible notes of <Rayrock Yellowknife Resources Inc>.
Reuter
|
TWA <TWA> IN COURT SETTLEMENT WITH USAIR <U> | Trans World Airlines Inc said it
reached an agreement yesterday in federal court with USAir
Group Inc that prevents TWA from buying additional shares of
USAir.
Under the agreement, TWA, which holds about 15 pct of USAir
stock, will not buy more USAir shares before April 23 and will
not do so after that date without giving 14 days notice to
USAir.
TWA also agreed that it would not knowingly and willingly
interfere with the consummation of the merger between USAir and
Piedmont Aviation Inc <PIE>.
TWA said the court agreement confirms previous
announcements by the company, in filings with the Securities
and Exchange Commission, that it does not presently intend to
seek control of USAir or to acquire additional common stock.
As a result of the agreement, the court removed a previous
temporary restraining order against TWA, the company said.
TWA and USAir have also agreed that all litigation between
them in Pittsburgh and Delaware will be stayed until April 23.
TWA said the agreement does not prevent it from commenting to
regulatory agencies on the USAir, Piedmont merger.
In a separate statement, USAir said the agreement also
included a provision that all USAir shares currently owned by
TWA and its chairman, Carl Icahn, will be voted through a
voting trust in proportion to the votes of other shares not
controlled by TWA or Icahn.
Reuter
|
TREASURY'S BAKER SEES INCREASED TAX COMPLIANCE | Treasury Secretary James Baker said
that over the long-term the tax reform bill and lower marginal
tax rates should increase compliance with the tax law and bring
in additional revenue.
In testimony before a senate appropriations subcommittee
Baker said no savings in the Treasury's budgetary requirements
wil be achieved in the short-run by the new tax law.
"The tax changes occurring in 1987 and 1988 under tax reform
will not directly effect IRS enforcement activities until
financial year 1989 and 1990."
He told the subcommittee that the Treasury's objective was
to strengthen the capability of the Internal Revenue Service to
promote tax compliance and generate revenue.
He said they were seeking funds to increase staffing to
reduce the backlog of delinquent tax accounts, reducing pending
tax litigation cases under appeal, and resolving unreported
income cases disclosed through a program that matches third
party documents to returns.
"This request will continue our effort to build a stronger
and more credible deterrent against non-compliance with tax
laws," he said.
Baker also told the subcommittee that the administration
would continue the efforts to improve the management of the
government's cash and credit, and its financial information.
In addition a policy of full reimbursement to Federal
Reserve Banks for the fiscal agent services they provide in
marketing and maintaining Treasury securities will be
continued.
Reuter
|
U.K. MONEY MARKET GETS 186 MLN STG AFTERNOON HELP | The Bank of England said it had given
the money market a further 186 mln stg assistance in the
afternoon session. This brings the Bank's total help so far
today to 945 mln stg and compares with its revised forecast of
a one billion stg deficit.
The central bank bought bank bills outright comprising 51
mln stg in band one at 9-7/8 pct and 135 mln stg in band two at
9-13/16 pct.
REUTER
|
CHICAGO PACIFIC CORP TO GET 40 MLN DLRS FROM SETTLEMENT OF HOOVER PLC PENSION FUND
| |
RAYROCK TO ISSUE 24 MLN DLRS OF NOTES | <Rayrock Yellowknife Resources Inc>
said it plans to sell 24 mln dlrs of convertible subordinated
notes by way of a private placement through First Marathon
Securities Ltd.
The notes will be convertible into 7.5 pct convertible
subordinated debentures, which in turn will be convertible into
2.4 mln subordinate voting shares of the company.
Rayrock said it expects to complete the note sale on April
nine. The sale is subject to regulatory approvals.
Reuter
|
STANLEY INTERIORS <STHF> TO SELL CONVERTIBLES | Stanley Interiors Corp said it filed
with the Securities and Exchange Commission a registration
statement covering a 30 mln dlr issue of convertible
subordinated debentures due 2012, plus an additional 4.5 mln
dlrs of the securities to cover over-allotments.
Proceeds will be used to repay in full the company's
indebtedness under a revolving credit agreement, and to reduce
other bank debt, Stanley said.
The company said Salomon Brothers Inc, First Albany Corp
and Wheat, First Securities Inc would underwrite the offering.
Reuter
|
ASAMERA <ASM> TO OFFER THREE MLN SHARES | Asamera Inc said it has agreed for
Merrill Lynch and Co Inc's <MER> Merrill Lynch Canada Inc
subsidiary to offer three mln Asamera common shares at 13.625
Canadian dlrs each, subject to all necessary U.S. and Canadian
regulatory approval.
Reuter
|
CRI INSURED MORTGAGE INVESTMENTS LP <CRM> PAYOUT | Mthly div 16-1/2 cts vs 16-1/2 cts prior
Pay May 15
Record March 31
Reuter
|
ZAMBIAN SCHOOL AND HOSPITAL STRIKES SPREAD | A teachers' strike has spread
from Lusaka to the whole of Zambia, and a walkout by nurses has
virtually paralyzed hospitals in the northern Copperbelt, the
state-owned Zambia Daily Mail newspaper said today.
The teachers and nurses are demanding hefty pay raises,
including a 50 pct increase in basic salary. But their strike
action is unofficial, and the government has condemned the
stoppages, warning that they could lead to violence.
The strikes broke out only three months after food riots in
the Copperbelt last December, which left 15 people dead.
The stoppages began on Wednesday when 1,000 teachers in
Lusaka and 200 nurses in the northern town of Kitwe decided to
walk out in support of pay demands.
Reuter
|
AMERICAN MOTORS <AMO> BOARD MEETING ON TAKEOVER | American Motors Corp's board of
directors is meeting this morning in New York to consider
Chrysler Corp's <C> 1.5 billion dlr takeover offer, an American
Motors spokesman said.
The spokesman reiterated statements made earlier in the
week that the regularly scheduled meeting was being held.
The spokesman would not comment on recurring speculation
that the board might receive a higher offer from Chrysler.
Analysts have said the fact that American Motors' stock has
remained above the four dlrs a share Chrysler offer could lead
the larger company to raise its bid.
The American Motors spokesman said he had not seen any
indication that a higher offer would be received from Chrysler,
although he added, "I don't know what the conversation is in
the meeting."
He repeated statements made earlier in the week by the
automaker that today's meeting will probably not result in a
final decision on the Chrysler bid.
"The board first apprised the proposal on the 11th (of
March). I suspect there will be several more (meetings) after
this," the spokesman said.
The meeting is expected to go through early afternoon.
Reuter
|
HOG AND CATTLE SLAUGHTER GUESSTIMATES | Chicago Mercantile Exchange floor
traders and commission house representatives are guesstimating
today's hog slaughter at about 300,000 to 307,000 head versus
295,000 week ago and 314,000 a year ago.
Saturday's hog slaughter is guesstimated at about 70,000 to
90,000 head.
Cattle slaughter is guesstimated at about 122,000 to
126,000 head versus 122,000 week ago and 124,000 a year ago.
Saturday's cattle slaughter is guesstimated at about 20,000
to 30,000 head.
Reuter
|
BELGRADE UNIONS HIT PAY FREEZE, STRIKES SPREAD | Belgrade trade union leaders have
joined attacks on a controversial wage freeze in Yugoslavia.
Miodrag Lazarevic, president of the Belgrade trade unions
council, said last night the government would be responsible
for the effects of the law imposing the wage freeze. The law,
enacted February 27 and remaining in force until July 1,
reimposed wage levels of the last quarter of 1986. Future pay
raises were pegged to productivity. The move triggered
resentment and widespread industrial unrest.
Another Belgrade trade union council leader, Predrag
Petrovic, was quoted as saying hundreds of workers had been on
strike in Belgrade. The government has officially reported 70
strikes throughout the country, although Yugoslav newspapers
have hinted at more.
Reuter
|
KEATING SEES LOWER AUSTRALIAN CURRENT DEFICIT | Australian Treasurer Paul Keating said
he expects the country's 1986/87 current account deficit to be
one billion dlrs lower than the 14.7 billion forecast in the
August budget. Keating told a financiers' dinner that
February's 750 mln dlr deficit, against January's 1.23 billion,
was "in the groove" of the government's expectations.
"We will probably bring the current account this year under
14 billion, I think, which will probably be about a billion
dollars less than we forecast in the budget," Keating said. "I am
sure we will see a lower current account deficit for next year
... And a fall as proportion of GDP."
Australia posted a 13.82 billion dlr current account
deficit in 1985/86 and Keating said the latest monthly figures
showed an encouraging trend.
Keating said the government would maintain responsible
economic management regardless of whether it was drawn into an
election, because it would take time to stabilise Australia's
80 billion dlr foreign debt.
"We have to build the import competing sector back," he said.
"We are now trying to rebuild our capital structure. We are
trying to rebuild the culture of productivity and
manufacturing."
Keating said the foundation for a transition of the economy
had been laid with the floating of the Australian dollar and
continued with wage restraint and deregulation.
The Government would follow with spending cuts in its
economic statement on May 14, he said.
REUTER
|
POLISH UNIONS WARN AGAINST PRICE HIKES | Sharp price hikes for food and fuel
planned by the government could provoke an open confrontation
with workers and endanger Poland's fragile post-Solidarity
stability, a government trade union leader has warned.
Romuald Sosnowski, deputy chairman of the national trade
union alliance OPZZ, said the unions' strong rejection of the
increases yesterday was prompted by the hostility of lower-paid
workers.
The authorities told the OPZZ on Tuesday that food prices
would rise by an average of 13 pct but ncreases for fuels --
including electricity and gas -- would be much higher.
They said wage increases would be limited to 12 pct in 1987
and that employers who breached the ceiling would be punished
through additional taxes.
Reuter
|
SWANK INC <SNK> CAN'T EXPLAIN STOCK ACTION | Swank Inc said it knows of no
corporate development to account for the volume of activity in
its stock yesterday and can only assume institutional trading
was the cause.
In New York Stock Exchange composite trading yesterday,
Swank stock rose 7/8 to 15-3/4 on volume of 104,700 shares.
Reuter
|
GUILFORD MILLS <GFD> SELLS CONVERTIBLE DEBT | Guilford Mills Inc is raising 75 mln
dlrs via an offering of convertible subordinated debentures due
2012 with a six pct coupon and par pricing, said sole manager
Bear, Stearns and Co.
The debentures are convertible into the company's common
stock at 44.25 dlrs per share, representing a premium of 25.08
pct over the stock price when terms on the debt were set.
Non-callable for two years, the debt is rated Ba-1 by
Moody's and BBB-minus by Standard and Poor's. The issue was
increased from an initial offering of 60 mln dlrs because of
investor demand.
Reuter
|
MARINE MIDLAND <MM> SELLS CAPITAL NOTES | Marine Midland Banks Inc is offering
125 mln dlrs of subordinated capital notes due 1997 yielding
8.66 pct, said lead manager First Boston Corp.
The notes have an 8-5/8 pct coupon and were priced at 99.80
to yield 145 basis points more than comparable Treasury
securities.
Non-callable to maturity, the issue is rated A-3 by Moody's
and A by Standard and Poor's. Merrill Lynch and Salomon
Brothers co-managed the deal.
Reuter
|
LISBON OFFICIAL SAYS "NO PROBLEMS" ON MACAO | A Portuguese official today said no more
problems remained in settling the future of Macao, and China's
Foreign Ministry said an "important announcement" would be made
at the end of talks on the tiny territory.
A Chinese Foreign Ministry spokesman, indicating the two
countries were close to agreement on the handover of Macao to
Peking, told journalists: "The talks are still in progress. When
they end, there will be an important announcement."
Portuguese Ambassador to China Octavio Valerio said there
would be no formal talks over the weekend, but chief Portuguese
negotiator Rui Medina said earlier he would have contacts later
today with his Chinese counterpart Zhou Nan. Valerio said the
next formal talks would be Monday. "It will be the last one and
we hope there will be a communique."
Reuter
|
NORANDA GETTING 41.6 MLN DLRS FROM GOVERNMENT TO CUT ACID RAIN EMISSIONS 50 PCT - OFFICIAL
| |
TREASURY'S BAKER SUPPORTS FED MONETARY POLICY | Treasury Secretary James Baker said
in a newspaper interview that he supports the current course of
Federal Reserve Board monetary policy.
"The course of Fed policy is quite adequate as far as we are
concerned," Baker said in an interview with the New York Times.
In the interview, Baker declined to comment about the
recent Paris accord among the six leading industrialized
democracies when he was asked why the U.S. agreed to stabilize
the dollar at current levels when the trade deficit hit a
record level last year.
Baker said in the newspaper interview that it was "a subject
I prefer not to talk about."
He said that if he explained why the U.S. agreed to help
maintain the dollar at current levels "I would of necessity end
up getting into some of the private agreements that support
such and agreement" on the dollar.
Baker was optimistic about Brazil, which has stopped
interest payments on much of its outstanding debt with foreign
commercial banks.
"They are, after all, paying on time all the debt service
and principal on their official debts, having just rescheduled
with the Paris Club," Baker said in the newspaper interview.
Baker said that Brazilian repreentatives had explained they
intented to pay their commercial bank debts in full but needed
time.
Reuter
|
UNIVERSAL RESOURCES <UVR> TO VOTE ON MERGER | Universal Resources Corp said it
is holding a special shareholders meeting this morning to vote
on the previously-proposed merger between it and Questar Corp
<STR>.
Universal, whose stock was delayed this morning on the
American Stock Exchange, said it will release a statement later
in the day on the vote.
Reuter
|
SONEX RESEARCH <SONX> CUSTOM AUTO USES MORE GAS | Sonex Research Inc said its
modified 1986 British Ford Escort passed the European emissions
test, but reported the engine consumed 35 pct more fuel than
the stock engine.
Sonex said its engine is not equipped with a catalytic
converter and does not use exhaust gas recirculation or an
emission air pump. It said the company expected to realize a
reduced fuel economy, but is working on improving fuel
consumption.
The company said after it installs the new fuel system, it
will retest the automobile.
In a separate announcement, the company said it received
confirmation from the European Patent Office that Sonex
successfully defended its BETA European Patent from a
competitor.
Reuter
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LOUISIANA PACIFIC <LPX> BUYS OREGON SAWMILL | Louisiana Pacific Corp has
agreed to pay 3,475,000 dlrs for the bankrupt Harris Pine
Sawmill in Pendleton, Ore., the mill's bankruptcy trustee said.
Louisiana Pacific refused to indicate whether it would
repoen the lumber mill which was closed after the sawmill owned
by the Seventh Day Adventist Church filed a bankruptcy petition
in Portland federal court in December.
The trustee said the company outbid WTD Industries Inc for
the lumber mill, harvested logs and contracts to harvest timber
in the national forest. It outbidhell bankruptcy trustee said.
Reuter
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INTERNATIONAL PAGURIAN HAS FIVE MONTH PROFIT | <International Pagurian Corp Ltd> said
it had net profit of 3.3 mln dlrs or three cts a share for the
period August 15 to December 31, 1986, based on 55.2 mln shares
outstanding.
Revenues for the full year ended December 31, 1986 were 5.5
mln dlrs and net assets at year end were 317.5 mln dlrs.
The company did not disclose earnings for the 1986 period
before August 15 or prior year results. A company spokesman
said prior results were not comparable due to its August 15
issue of 30 mln common shares.
Reuter
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S. AFRICAN M-3 MONEY GROWTH SLOWS IN JANUARY | South African year-on-year broadly
defined M-3 money supply growth slowed to 8.62 pct in January
from 9.32 pct in December, Reserve Bank figures show.
M-3 fell to 77.98 billion rand in January from 79.31
billion in December, while preliminary February figures show
M-3 at 79.42 billion rand for a year-on-year rise of 10.63 pct.
M-2 showed a rise of 5.09 pct for January at 55.68 billion
rand after 4.30 pct in December, M-1 16.72 pct at 5.12 billion
after 12.80 pct and M-1A 22.79 pct at 14.30 billion rand after
20.54 pct.
REUTER
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ERC INTERNATIONAL <ERC> GETS 17 MLN DLR CONTRACT | ERC International Inc said it has
received a three-year 17 mln dlr U.S. Navyt contract to provide
engineering, technical and administrative support sevices on
weapons systems, subsystems and associated management, manpower
and support systems.
Reuter
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COMPUSCAN INC <CSCN> 3RD QTR FEB 28 NET | Shr loss eight cts vs loss 20 cts
Net loss 469,000 vs loss 1,104,000
Revs 3,093,000 vs 3,056,000
Nine mths
Shr loss 19 cts vs loss 29 cts
Net loss 1,098,000 vs 1,646,000
Revs 9,562,000 vs 12.2 mln
Reuter
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MAJESTIC ELECTRONICS PLANS ISSUER BID | <Majestic Electronic Stores Inc> said
it intends to make a normal course issuer bid to purchase up to
five pct of its 5.2 mln outstanding common shares on the open
market during the 12 month period commencing April 13, 1987.
The company said the purpose of the proposed issuer bid is
to avoid possible dilution of share value under a proposed
employee stock option plan.
Majestic expects to have its employee stock option plan in
place during the year, it said.
Reuter
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FIRST FEDERAL <FFBN> MERGING INTO BANKEAST <BENH> | First Federal Bank FSB said it has
entered into a letter of intent to merge into BankEast Corp for
60 dlrs per First Federal share in BankEast common stock.
First Federal said, subject to certain adjustments,
including First Federal's earnings prior to the close of the
deal, each share of its common stock shall not be converted
into less than 2.9 shares or more than 3.5 shares of BankEast
common.
First Federal said the proposed move is also subject to
execution of a definitive agreement, regulatory approval and
the approval of First Federal shareholders.
Reuter
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ILLINOIS TOOL WORKS <ITW> SELLS TWO DIVISIONS | Illinois Tool Works Inc said it
completed the sale of its Drill and End Mill division, Pine
Bluff, Arkansas and Eclipse Counterbore division, Detroit, to
newly-formed Eclipse Industrial Pruducts Inc, based in St.
Louis. Terms were not disclosed.
All employees at both locations will be retained, it added.
Reuter
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MOST HOME INTENSIVE PREFERRED <KDNYP> CONVERTED | Home Intensive Care Inc
<KDNY> said holders of 431,093 shares of its callable
cumulative convertible preferred of the 499,500 outstanding
were exercised their conversion right prior to the end of the
company's offer of 2.2 common shares for each preferred.
It said holders of the remaining preferred have the option
of converting their stock for two common shares until March 5,
1988.
The company said conversion of the preferred will result in
annual dividend savings of 431,093 dlrs.
Reuter
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NATIONAL PATENT DEVELOPMENT CORP <NPD> IN PAYOUT | Qtly div 2-1/2 cts vs 2-1/2 cts prior
Pay May One
Record April One
Reuter
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THOMPSON MEDICAL CO INC <TM> SETS QUARTERLY | Qtly div 10 cts vs 10 cts prior
Pay April 15
Record March 30
Reuter
|
U.S. FARM CREDIT BANK TO SELL BONDS | The Federal Farm Credit Banks Funding
Corp said its will offer a total of 1.7 billion dlrs worth of
bonds on March 25.
The package includes 540 mln dlrs of three-month bonds and
1.17 billion dlrs of six-month bonds. The issues will be dated
and delivered on April 1.
The system has 1.6 billion dlrs of bonds maturing on that
date.
Reuter
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GULF CANADA <GOC> ASSERTS NO DAMAGE FROM SPILL | Gulf Canada Corp said a
discharge of material at its Amauligak drilling site in the
Beaufort Sea caused no danger to the environment.
Yesterday, the federal department of energy charged Gulf
Canada with eight counts of illegal dumping for discharging
powdered cement and drilling mud between September 23 and 30
last year.
The charges carry a maximum 50,000 dlr fine on each count.
Gulf said the government's charges relate to discharging
materials without a permit, not to environmental damage
resulting from the action.
Gulf said it voluntarily informed appropriate government
officials when the material was discharged.
The company also said none of the material was discharged
within 12 miles of the closest shoreline. It added that one of
the materials cited, barite, is a naturally occurring mineral
routinely discharged into the sea during drilling operations.
Reuter
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BRITISH COLUMBIA RAISES TAXES TO CUT DEFICIT | British Columbia
will raise income taxes and its small business corporate tax to
reduce the provincial budget deficit while continuing social
programs, finance minister Mel Couvelier said.
He said the province will reduce its budget deficit to 850
mln Canadian dlrs in 1987-88 from the current year's 1.17
billion dlrs.
Total spending is budgeted at 10.22 billion dlrs, a 4.8 pct
rise over the current year, while revenues are expected to
increase by 9.2 pct to 9.37 billion dlrs.
|
METALLGESELLSCHAFT AG <METG.F> | Year to September 30, 1986
Domestic group net profit 69.9 mln marks vs 61.4 mln.
Parent net profit 53.6 mln vs 43.8 mln.
Dividend six marks vs same.
Parent payment to disclosed reserves 20 mln vs 15 mln.
REUTER
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PUBCO <PUBO> DECLARES DIVIDEND RIGHT | Pubco Corp said its board declared a
dividend distribution of one common stock purchase right on
each outstanding share of Pubco's common stock.
It said each right will entitle shareholders to buy one
share of common stock at an exercise price of three dlrs.
The rights will be exercisable only if a person or group
acquires 20 pct or more of Pubco's common stock or announces a
tender which would result in ownership by a person or group of
20 pct or more of the common stock, the company said.
Pubco said it will be entitled to redeem the rights at 0.1
cts per right at any time before a 20 pct position has been
acquired and afterward in certain circumstances. It said the
exercise price will be substantially reduced in the event of an
acquisition of 25 pct or more of common stock.
If Pubco is acquired in a merger or other transaction, each
right will entitle its holder to purchase, at the right's
then-current exercise price, a number of the acquiring
company's common shares having a market value at that time of
twice the right's exercise price, the company said.
The dividend distribution will be made March 31, 1987,
payable to shareholders of record on that date. The rights will
expire ten years later on March 31, 1987, the company said.
Pubco said the rights are not being distributed in response
to any specific effort to change control of Pubco, and the
board is not aware of any such effort.
Reuter
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CORRECTED - NORANDA GETTING 83.2 MLN DLRS FROM GOVERNMENTS TO CUT ACID RAIN EMISSIONS 50 PCT - OFFICIAL
| |
CHICAGO PACIFIC <CPAC> SETTLES HOOVER OVERFUNDING | Chicago Pacific Corp said it received
about 40 mln dlrs in cash from a surplus in the pension fund of
Hoover Plc, its U.K. subsidiary.
As part of an agreement to refund the amount to the
company, Hoover employee and pensioner benefits have been
significantly enhanced, the company's annual report shows.
In addition, Chicago Pacific said the remaining 110 mln
dlrs surplus funds will be kept in the Hoover pension fund and
will be invested so that the proceeds will eliminate or reduce
required future pension contributions for Hoover and its
employees as of December 31, 1986, it said.
The 110 mln dlrs remaining surplus is reported as a
"restricted long-term investment" under current purchase
accounting requirements, according to the report.
The settlement assures employees that their retirement
benefits will be adequately funded and provides for future
funding from the income received on this investment, it said.
Reuter
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TECH DATA <TECD> SETS THREE FOR TWO SPLIT | Tech Data Corp said its board
declared a three-for-two stock split, payable April 30 to
holders of record April 1.
Reuter
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COMSTOCK GROUP <CTTK> FINANCIAL OFFICER QUITS | Comstock Group Inc said John
Halecky Jr resigned his posts of chief financial officer,
executive vice president and director.
Frank MacInnis, vice president and director, was named as
the new chief financial officer, the company said.
Reuter
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TREASURY'S BAKER REITERATES OPPOSITION TO CLOSING NON-BANK BANK LOOPHOLE
| |
VERTEX <VETX> TO BUY COMPUTER TRANSCEIVER STAKE | Vertex Industries Inc and
<Computer Transceiver Systems Inc> jointly announced an
agreement for Vertex to acquire a 60 pct interest in Computer
after it completes a proposed reorganization.
Computer has been in reorganization proceedings under
chapter 11 since September 1986.
The companies said the agreement would allow Computer's
unsecured creditors and debenture holders to receive new stock
in exchange for exsiting debt, and for shareholders to receive
one new share of Computer's stock for each four shares
previously held.
The companies said the United States Bankruptcy court for
the Southern District of New York has given preliminary
approval for the proposal, which is subject to formal approval
by Computer's creditors and the court.
Under the agreement, Vertex also said it would supply
Computer with 250,000 dlrs of operating funds, and arrange
renegotiation of its secured bank debt, among other things.
Reuter
|
RENT-A-CENTER <RENT> VOTES 3 FOR 2 SPLIT | Rent-A-Center Inc said its
directors approved a three-for-two stock split payable April
20, record April 3.
Reuter
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TREASURY'S BAKER OPPOSES CLOSING BANK LOOPHOLE | Treasury Secretary James Baker said
the administration still opposes Senate Banking Committee
legislation that would close a key loophole in federal bankinng
law.
The loophole has spawned a proliferation of limited service
banks known as non-bank banks that can engage in risky
activities barred to traditional banks.
Baker has been asked to support the legislation by Banking
Chairman William Proxmire (D-Wisc).
Proxmire's panel approved closing the loophole in a bill
recapitalizing the thrift insurance fund.
Baker said the administration supports moving a bill
through Congress that would address only the recapitalization
issue, for fear such "collateral provisions" as the
loophole-closing measure would stall the bill.
Proxmire later told reporters he backs the committee bill
with or without administration support.
"I'm going to push it through in any event," he said.
The administration also opposes the committee bill on
grounds it bars new banking powers.
The administration is a long time backer of banking
deregulation.
Reuter
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USACAFES <USF> SETS HIGHER DIVIDEND | USACafes LP said its board declared a
quarterly dividend of 20 cts per unit -- its first since
converting to a limited partnership.
The company, as USACafes Inc, had paid a quarterly dividend
of nine cts per share.
It said the restructuring as a partnership has
substantially increased the cash available for distribution to
unitholders, as it had predicted.
Reuter
|
ATARI <ATC> TO SELL CONVERTIBLE DEBENTURES | Atari Corp said it filed with the
Securities and Exchange Commission a registration statement
covering a 75 mln dlr issue of convertible subordinated
debentures due 2012.
Proceeds will be used to expand the company's business
through capital expenditures and acquisitions and for general
corporate purposes, Atari said.
The company named PaineWebber Inc as lead underwriter of
the offering.
Reuter
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COOPER CANADA SAID IT RECEIVED TAKEOVER OFFERS | <Cooper Canada Ltd> said it has
received takeover offers from "a number of companies."
The company also said that "discussions are continuing, but
no definitive arrangements have been made."
It gave no further details.
Reuter
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BPI SYSTEMS <BPII> LAUNCHES PRODUCTS | BPI Systems Inc said it
introduced an enhanced version of its Entry series general
accounting software, Version C.14, that includes budgeting,
more printing options and additional features.
The company also said it introduced an accounting software
package, Entry one, that sells for 89 dlrs.
Reuter
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U.S. GRAIN ANALYSTS SEE LOWER CORN, SOY PLANTING | Grain analysts surveyed by the American
Soybean Association, ASA, projected acreage this year at 59.1
mln acres of soybeans and 64.7 mln acres of corn.
In 1986, farmers planted 61.5 mln acres of soybeans and
76.7 mln acres of corn, according to the February 9 USDA
supply/demand report. The USDA is to release its 1987 planting
intentions report March 31.
The survey included 15 soybean estimates and 13 corn
estimates and was released in the March 16 Soybean Update
newsletter sent to members.
Estimates ranged from 56.0 mln to 63.0 mln acres of
soybeans and 59.5 mln to 68.0 mln acres of corn.
An ASA spokesman said the association plans no survey of
farmers' planting intentions this year.
Reuter
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Subsets and Splits