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CLEVITE <CLEV> GETS 13.50 DLR/SHR OFFER | Clevite Industries Inc said it
received a written proposal from J.P. Industries Inc <JPI>
seeking to buy all of its outstanding shares for 13.50 dlrs a
share.
Clevite's stock was trading on NASDAQ at 13-1/4.
J.P. Industries recently completed the acquisition of
Clevite's Engine Parts Division.
J.P. Industries said its proposed transaction would be
financed through borrowings under its available bank lines and
a bridge financing facility which Donaldson Lufkin and Jenrette
Securities Corp agreed to arrange.
To expedite the transaction, J.P. Industries said it would
be willing to start a cash tender for Clevite's shares within
five days after agreeing upon a definitive merger and
confirmation of Clevite's financial results and condition.
Reuter
|
MERCANTILE STORES MARCH SALES UP 0.5 PCT
| |
JAPAN BUSINESS LEADERS SAY G-7 ACCORD WORRYING | The leaders of two of Japan's top business
groups said in separate statements the Group of Seven (G-7)
accord reached in Washington yesterday is of deep concern to
Japan because it shows the major industrial nations regard the
yen's current level as appropriate.
Eishiro Saito, chairman of the Federation of Economic
Organizations (Keidanren), said the yen's present rate is well
above adequate levels. He did not elaborate.
Takashi Ishihara, chairman of the Japan Committee for
Economic Development, said the accord will not prevent the yen
from rising further.
"We do not understand why the G-7 approved present rates as
the yen has risen excessively since the Paris accord," Ishihara
said.
Reuter
|
ARGENTINE CATTLE MARKET REPORT | ABOUT 3,314 HEAD OF CATTLE WERE
AUCTIONED IN LINIERS CATTLE MARKET, AGAINST 13,952 ON WEDNESDAY
AND 9,217 LAST THURSDAY, TRADE SOURCES SAID.
MAXIMUN PRICES, IN AUSTRALES PER KILO, WITH DOLLAR
EQUIVALENT IN BRACKETS, INCLUDED:
TODAY WEDNESDAY
STEERS OVER 480 KILOS 1.02(0.658) 1.015(0.654)
STEERS 460 TO 480 KILOS 1.05(0.677) 1.032(0.665)
COWS FOR CANNING 0.56(0.361) 0.56 (0.361) REUTER
|
WEST GERMANY'S THESING ISSUES 10 MLN SFR BOND | <Thesing-Verwaltungsgesellschaft GmbH> of
Coesfeld, West Germany, is issuing a 10 mln Swiss franc eight
year bond with an indicated 6-3/8 pct coupon and par issue
price, joint lead managers Fintrelex SA and E.Gutzwiller und
Cie, Banquiers said.
Subscription is from May 7 until May 13.
The issue is guaranteed by Schallplattentruhe A. Thesing
GmbH und Co Kommanditgesellschaft, Martin Thesing
Handelsgesellschaft.
REUTER
|
MERCANTILE STORES <MST> MARCH SALES UP 0.5 PCT | Mercantile Stores Co Inc said
sales for the five weeks ended April four were up 0.5 pct to
184.7 mln dlrs from 183.7 mln dlrs a year earlier, with
same-store sales off 1.7 pct.
Mercantile said sales for the first nine weeks of its
fiscal year were up 2.9 pct to 297.9 mln dlrs from 289.6 mln
dlrs a year before, with same-store sales up 0.5 pct to 288.6
mln dlrs from 287.3 mln dlrs.
Reuter
|
BEST PRODUCTS <BES> MARCH SALES OFF 0.5 PCT | Best Products Co Inc said sales
for the five weeks ended April four were off 0.5 pct to 151.2
mln dlrs from 152.0 mln dlrs a year earlier.
It said year-to-date sales were off 5.9 pct to 263.2 mln
dlrs from 279.6 mln dlrs a year before.
Reuter
|
AMERICAN WOODMARK <AMWD> TO BUILD PLANT | American Woodmark Corp said it
plans to build a 100,000 square foot kitchen cabinet component
plant in Toccoa, Ga., with completion expected in the spring of
1988.
Reuter
|
K MART <KM> MARCH SALES SHOW INCREASE | K mart Corp said its sales for the
five weeks ended April One rose 4.6 pct to 2.18 billion dlrs
from 2.08 billion dlrs a year earlier. On a comparable store
basis, sales rose one-tenth of one pct.
It said year-to-date sales increased 7.9 pct to 3.64
billion dlrs from 3.37 billion dlrs in the same 1986 period. On
a comparable store basis, the increase was 3.2 pct.
Reuter
|
U.K. MONEY MARKET DEFICIT REVISED DOWNWARD | The Bank of England said it has revised
its estimate of today's shortfall to 350 mln stg from 400 mln,
before taking account of 103 mln stg morning assistance.
REUTER
|
PHYSIO TECHNOLOGY <PHYT> SEES LOSS, IN DEFAULT | Physio Technology Inc said it
expects to have a third quarter, ended March 31, loss of about
200,000 dlrs and is in default on its bank loan because of the
resignation of chairman and chief executive officer.
The company said the loss followed four quarters of modest
profits. In the year ago quarter it earned 11,000 dlrs, or one
cent a share. For the first half of fiscal 1987, it reported a
profit of 42,000 dlrs, or two cts a share, compared to a year
earlier loss of 294,000 dlrs, or 17 cts a share.
It said President Michael R. Hall will assume the duties of
chief executive officer.
Physio Technology said the resignation of Chairman James C.
Lane can constitute non-compliance with its Series A
convertible subordinated debentures due 1996 and a default
under its agreement with the Merchants Bank of Kansas City.
It explained a declaration of non-compliance under the
debentures would create a a default under the loan agreements
requiring immediate payment of 1.8 mln dlrs of debentures and
about 450,000 dlrs outstanding under the bank credit line.
The company said the debenture holders intend to waive the
non-compliance, but reserve the right to withdraw the waiver at
the end of any 30 day period.
Physio Technology said it is changing its field sales force
to independent representatives and dealers from employees to
"significantly reduce its fixed overhead."
Its statement did not indicate how many employees would be
affected by the move.
The company said Lane will become an independent dealter
for the company in certain midwestern states. He will continue
to serve as a director, it added.
Reuter
|
TEXAS INTERNATIONAL <TEI> RETIRES SOME NOTES | Texas International Co said it has
retired 2,700,000 dlrs of its 10 pct third delayed convertible
snior subordinated notes of 1993 Series A and B.
As a result, it said it has eliminated the scheduled May
1987 conversions of 1,300,000 dlrs of Series A notes and
1,400,000 dlrs of Series B notes.
Reuter
|
DERLAN INDUSTRIES PLANS PRIVATE PLACEMENT | <Derlan Industries Ltd> said it plans to
issue 2.1 mln common shares in a private placement at a price
of 14 dlrs per share for gross proceeds of 29.4 mln dlrs.
The issue will be placed by McLeod Young Weir Ltd and
Loewen, Ondaatje, McCutcheon and Co Ltd.
Proceeds will be used by the company to continue its
acquisition program and for internal expansion.
Reuter
|
COMPAQ <CPQ> AWARDED 1988 GSA CONTRACT | Compaq Computer Corp said the General
Service Administration has awarded it a contract allowing
federal agencies to purchase COMPAQ personal computers until
March 31, 1988. The previous Compaq GSA contract expired March
31.
Under the new agreement, federal agencies can order the
COMPAQ presonal computers through any one of 1,400 authorized
COMPAQ computer government dealers without going through
time-consuming competitive bids.
Puchases of over 300,000 dlrs, however, must still be bid
competitively, Compaq said.
Reuter
|
WASHINGTON FEDERAL SAVINGS <WFSL> 2ND QTR NET | Qtr ends March 31
Shr one dlr vs 76 cts
Net 11.9 mln vs 8,929,000
Six mths
Shr 1.92 dlrs vs 1.43 dlrs
Net 22.8 mln vs 16.8 mln
NOTE: full name of bank is washington federal savings and
loan association.
Reuter
|
COMINCO <CLT> TO FORM EXPLORATION UNIT | Cominco Ltd said it is forming a new
publicly held company, Cominco Resources International Ltd, to
continue exploration and development of its mineral holdings
outside Canada, Alaska and Australia.
Cominco will maintain a majority position in the company,
but the remaining interest will be sold in offerings led by
Wood Gundy Inc and First Marathon Securities Ltd in Canada, and
S.G. Warburg Securities and Wood Gundy Inc internationally.
Cominco said it is filing a preliminary prospectus with
securities regulators in all Canadian provinces.
Reuter
|
CALFED <CAL> FORMS INSURANCE UNIT | CalFed Inc said it has entered the
property-casualty insurance business through the formation of
Anglo-American Insurance Co Ltd, a London-based subsidiary
initially capitalized at 80 mln dlrs.
The company said <London United Investment PLC> will share
equally in all risks, premiums and reinsurance with
Anglo-American and perform all underwriting activities for
Anglo-American.
It said more than half of the venture's business is
expected to be in the U.S.
Reuter
|
SEKISUI CHEMICAL ISSUES EQUITY WARRANT EUROBOND | Sekisui Chemical Co Ltd is issuing a 200
mln dlr equity warrant bond due May 7, 1992 paying an indicated
coupon of two pct and priced at par, lead manager Yamaichi
International (Europe) Ltd said.
The issue is guaranteed by Sanwa Bank Ltd and is available
in denominations of 5,000 dlrs. The selling concession is 1-1/2
pct while management and underwriting combined pays 3/4 pct.
The payment date is May 7 while listing will be in Luxembourg.
Final terms will be fixed on April 15. The warrants are
exercisable from May 20, 1987 until April 20, 1992.
REUTER
|
PAYLESS CASHWAYS <PCI> MARCH SALES UP | Payless Cashways Inc said its
sales for the five weeks ended April Four rose to 167.4 mln
dlrs from 147.5 mln dlrs a year ago, or one pct on a comparable
store basis.
Year to date, it said sales gained to 499.6 mln dlrs from
422.0 mln dlrs, or four pct on a comparable store basis.
Reuter
|
U.S. ENERGY FUTURES CALLED UNCHANGED TO LOWER | Traders expect U.S. energy futures will
open unchanged to slightly lower this morning with support near
yesterday's lows.
Crude futures are called unchanged to five cts weaker
tracking unchanged domestic crudes and North Sea Brent crude,
which traded at 18.01 dlrs a barrel today, about ten cts below
yesterday's New York close.
Traders said the supply squeeze in 15-day forward April
Brent appears to have ended.
Product futures, which fell sharply yesterday, are due to
open unchanged to 0.25 cent lower, traders said.
Traders expect some followthrough selling in products but
said gasoil futures in London will probably lend some support
since they are trading as expected. May gasoil futures were off
1.50 dlrs a tonne this morning while June was down 1.25 dlrs in
thin conditions.
Reuter
|
PONCE FEDERAL BANK F.S.B. <PFBS> 1ST QTR NET | Shr 63 cts vs 89 cts
Net 3,425,216 vs 3,370,682
Avg shrs 5,421,330 vs 3,803,425
NOTE: net for both qtrs reflects gains on sales of
securities of 1,755,137, or 51 pct of net, in 1987; and
3,001,222, or 89 pct of net in 1986.
Reuter
|
BUNDESBANK SEES NO REASON TO CHANGE MONETARY COURSE -
VICE-PRESIDENT SCHLESINGER
| |
U.K. MONEY MARKET DEFICIT REMOVED | The Bank of England said it has satisfied
its revised estimate of today's shortfall in the money market,
providing 261 mln stg assistance in afternoon operations.
The Bank bought in band one, 60 mln stg bank bills at 9-7/8
pct and in band two 200 mln stg bank bills and one mln stg
treasury bills at 9-13/16 pct. This brings the total help so
far today to 364 mln stg, compared with its deficit estimate of
350 mln stg.
REUTER
|
STOP AND SHOP'S <SHP> BRADLEES MARCH SALES RISE | Stop and Shop Cos Inc said its Bradlees
Discount Department Stores Division's sales for the five weeks
ended April four were up six pct to 156 mln dlrs from 147 mln
dlrs a year before, with same-store sales up one pct.
The company said sales for the first nine weeks of the year
were up six pct to 259 mln dlrs from 245 mln dlrs a year
before, with same-store sales up two pct.
Reuter
|
CHINA LIKELY TO JOIN GATT, DIPLOMATS SAY | China is likely to succeed in joining
GATT despite policies that contradict free trade, because
western countries support its entry, western diplomats said.
China applied to join the General Agreement on Tariffs and
Trade (GATT) in July 1986. The organisation, formed in 1948 to
integrate the world's free market economies, now regulates 80
pct of world trade.
The GATT secretariat is expected to submit a list of
detailed questions to China next month at the start of long and
complex entry negotiations, the diplomats said.
One diplomat said China's prospects are good, with its
application supported by the United States, Japan and the
European Community for political and economic reasons.
"The fear is that if China was refused entry, it would draw
back the bamboo curtain and go back to the way it was," he said.
Another said the Soviet Union was waiting in the wings.
"If GATT accepted China, it would be hard not to accept the
Soviet Union," he said. "China's agreement will be seen as a
model for the Soviet Union. GATT is not a political body."
But serious problems have to be tackled during the talks,
including China's pricing system and trade subsidies.
GATT is based on free trade and aims to lower tariffs and
promote trade, with prices alone dictating who buys what.
One diplomat said it was very hard in China to establish
the real cost of goods because many prices are set by the state
and often contain subsidies.
Reuter
|
WANG <WAN> SIGNS MARKETING AGREEMENT | Wang Laboratories said it signed
an agreement with <Desk Top Financial Solutions Inc> giving
Wang the right to market the Desk Top Financial Planning System
for Wang's Office Information Systems (OIS) product line.
Wang said the Desk Top Financial Planning System for its
OIS comes in two basic packages -- the Advanced Planning
System, priced at 2,995 dlrs, and the Budget Reporting System,
priced at 1,995 dlrs.
Both are avialable on eight inch and 5-1/4 inch diskettes,
Wang said.
Reuter
|
LEBANESE POUND FALLS SHARPLY AGAINST DOLLAR | The Lebanese Pound fell sharply against
the U.S. Dollar again today with dealers attributing the
decline to continued political uncertainty.
The pound closed at 118.25/118.75 against the dollar
compared to yesterday's close of 115.60/115.80.
"Political deadlock is reflected in the pound's position.
There was more demand and less on offer in the market," one
dealer told Reuters.
The pound, which was at 18 to the dollar in January, 1986,
has lost more than 30 pct of its international value over the
past three months.
REUTER
|
BROWN BOVERI UND CIE AG LIFTS 1986 DIVIDEND | Dividend on 1986 business 12 marks per share vs seven
marks.
(Company is a subsidiary of Switzerland's BBC AG Brown
Boveri und Cie <BBCZ.Z>).
Reuter
|
RIO TINTO CUTS DEBT-EQUITY RATIO | Rio Tinto-Zinc Corp Plc <RTZL.L> cut its
balance sheet gearing, measured as net debt as a proportion of
equity, to 35 pct at the end of 1986 from 61 pct a year
earlier, finance director Andrew Buxton told reporters.
He said currency movements last year did not greatly affect
the earnings outcome, though had a greater impact on the
balance sheet.
At year-end, 40 pct of its assets were industrial, 35 pct
in metal mining and processing and 25 pct in energy.
Earlier, RTZ reported 1986 net attributable profit of 245
mln stg against 257 mln the previous year.
Reuter
|
TALKING POINT/SEMICONDUCTOR BOOK TO BILL RATIO | The Semiconductor Industry
Association is expected to report the sixth straight increase
in its three-month average book-to-bill ratio, reflecting a
continued modest recovery in the computer chip industry,
semiconductor analysts said.
Semiconductor analysts contacted by Reuters put the March
book-to-bill -- which is the ratio of new orders to actual
sales -- at around 1.15, up from a preliminary 1.13 in the
three months ended in February. The association is expected to
release its estimates later today or on friday.
The analysts said they expect strong March performance both
in new orders and actual sales.
Michael Gumport, analyst with Drexel Burnham Lambert Inc,
projected the three-month average of new computer chip orders
at about 835 mln dlrs, up from 788 mln dlrs in February.
He put three-month average sales at about 720 mln dlrs,
also an increase from the 700 mln dlrs reported last month.
Gumport said average new orders over 850 mln dlrs would be
a plus for semiconductor industry stocks, while orders under
800 would be interpreted negatively on Wall Street.
Gumport said cut backs in Japanese computer chip production
are aiding U.S. chip maker orders and sales.
Edward White, analyst with E.F. Hutton Group Inc, said
while Japanese cut backs may be a small factor, their effect
should be more readily apparant in April and May.
White, who put the March book-to-bill ratio at 1.15-1.16,
said the ratio might hit 1.20 later this spring, before showing
a normal seasonal decline during the summer.
He forecast three-month average orders at 825 mln dlrs for
March, with three-month average billings at about 711 mln dlrs.
"This says the industry is still in a phase of moderate
recovery...it is not dramatic yet," said White.
He said the industry still has not seen a pick-up in high
technology capital spending needed to create a strong recovery.
He said a boost in spending on such big-ticket items as
mainframe computers would enhance the recovery, which is now
focused on personal and small business computers.
Kidder Peabody and Co analyst Michael Kubiak agreed the
industry is showing a recovery trend, that while encouraging,
is not dramatic.
Kubiak projected the March book-to-bill ratio at 1.14. He
said the three-month average for orders will be up about 4.5
pct from last month, while shipments rise about one pct.
He noted, however, orders during the month of March alone,
a statistic the Semiconductor Industry Association does not
publish, should show a 15-20 pct rise from February orders.
Kubiak said a book to bill ratio of 1.14 would have little
or no effect on semincondutor industry stocks, while a ratio of
1.13 would be negative for the market and a ratio of 1.16 would
likely cause the stocks to rise.
Reuter
|
LONDON FREIGHT MARKET FEATURES GRAIN OUT OF U.S. | Moderately active grain fixing was
reported out of the U.S. But none of the business involved the
significant voyages to the Continent or Japan, ship brokers
said.
A steady 13.50 dlrs was paid from the U.S. Gulf to Morocco
and 23.25 dlrs was paid for 27,000 long tons from the Gulf to
Taiwan. A vessel carrying 13,500 long tons of bagged wheat
flour from the Gulf to Aqaba received a lump sum of 472,500
dlrs.
Grain from the Great Lakes to Algeria made 28 dlrs against
27.75 paid for similar fixing towards the end of March.
Market talk suggested a Federal Commerce vessel had been
booked to move grain from the Great Lakes to Morocco on Comanav
account at about 22 dlrs and 15.50 had been paid for a cargo of
oilseeds from British Columbia to Japan, but no confirmation
was obtainable.
On the Continent, shippers agreed 19 dlrs for wheat from La
Pallice to Buenaventura and 10.75 dlrs for grain from Ghent to
Naples/Venice range. Elsewhere, maize from East London to Japan
paid 22 dlrs.
Soviet charterers reappeared in the timecharter sector and
secured a 30,000 tonner from Savona for a trans-Atlantic round
trip at 4,450 dlrs daily and a 31,000 tonner from
Antwerp-Hamburg for a similar voyage at 4,250 dlrs daily.
Reuter
|
HOG AND CATTLE SLAUGHTER GUESSTIMATES | Chicago Mercantile Exchange floor
traders and commission house representatives are guesstimating
today's hog slaughter at about 287,000 to 295,000 head versus
292,000 week ago and 322,000 a year ago.
Cattle slaughter is guesstimated at about 124,000 to
128,000 head versus 129,000 week ago and 134,000 a year ago.
Reuter
|
SENETEK <SNTKY> UNIT TO MARKET AIDS TEST | Senetek PLC said its
Senetek A/S Danish subsidiary has signed a letter of intent to
market <Diagnostic Biotechnology Co Pt Ltd> of Singapore's AIDS
antibody tests to the health care industries in Britain and the
Scandinavian countries.
The company said its 49 pct owned Tessek Ltd joint venture
affiliate in Prague has also signed a letter of intent to
market Diagnostics AIDS tests in Czechoslovakia and other
Comecon countries. It said Tessek has agreed to exchange
research information with Diagnostic in the development of a
new AIDS diagnostic kit using Tessek technology.
Reuter
|
EUROCHEQUE EXPECTS AROUND 10 PCT CARD GROWTH | The number of cards in the Eurocheque
system, Europe's biggest personal payments system, grew by 11
pct to 39.1 mln last year and is expected to continue
increasing by around 10 pct in coming years, Eurocheque
International Secretary General Mark Van Wauve said.
He told a news conference Eurocheque cards can now be used
in 40 European and Mediterranean countries to back Eurocheques
written in local currency and, where facilities are available,
as electronic debit cards. The system would have 5,000
automatic cash dispensers by the end of this year and aimed to
have 25,000 throughout Europe by 1992.
Eurocheques and cards are issued by banks in 21 countries.
Van Wauve said Italian banks, who already accept
Eurocheques, had recently asked to be allowed also to issue
Eurocheques and cards to their clients. It was possible these
would be launched in Italy this year if the Rome government
agreed to lift exchange controls that prevent residents writing
cheques abroad in any currency but lira, he told Reuters.
Eurocheque International, the system's Brussels-based
coordinating centre, was also reviewing a request from the
Soviet Union for permission to issue cheques and cards.
Eurocheque's agreements with banks do not permit them to
charge commissions from clients using Eurocheques, and Van
Wauwe said problems with French banks that have demanded such
commissions had been reduced to a minimum last year.
Eurocheques can also be used to pay in local currency for
goods and services bought in over five mln retail outlets in 28
countries, with Hungary, Tunisia and Greece added to the system
this year. East Germany last year became the 40th country to
accept Eurocheques, made out in dollars, at banks and shops.
Eurocheque International estimated the total of Eurocheques
used nationally and internationally at over one billion a year.
REUTER
|
WHIRLPOOL CORP 1ST QTR SHR 66 CTS VS 67 CTS
| |
BRAZILIAN SOY RAINFALL | THE FOLLOWING RAINFALL WAS RECORDED IN
THE 24 HOURS UP TO (1200) GMT TODAY
PARANA STATE: CASCAVEL NIL, PONTA GROSSA NIL,CAMPO MOURAO
NIL, LONDRINA NIL, MARINGA NIL.
RIO GRANDO DO SUL STATE: PASSO FUNDO NIL, SANTA MARIA 7.0
MILLIMETRES, CRUZ ALTA 8.5 MM, SAO LUIZ GONZAGA 4.4 MM. REUTER
|
BIOTHERAPEUTICS <BITX> REPORTS DRUG FINDINGS | Biotherapeutics Inc said its
cooperative findings on interleukin-2, the anti-cancer drug,
were published today in the "New England Journal of Medicine".
Biotherapeutics, along with the Biological Therapy
Institute and the National Cancer Institute, said the
publication focused on a reduction in toxicity through the use
of a constant infusion mode of intravenous administration
protocol.
Reuter
|
WAL-MART STORES <WMT> MARCH SALES RISE | Wal-Mart Stores Inc said March
sales were up 32 pct to 1.13 billion dlrs from 855 mln dlrs a
year earlier, with same-store sales up eight pct.
The company said sales for the first two months of its
fiscal year were up 37 pct to 2.01 billion dlrs from 1.47
billion dlrs a year before, with same-store sales up 11 pct.
Reuter
|
BUNDESBANK SEES NO CHANGE IN MONETARY COURSE | The Bundesbank sees no current reason
to change monetary course, vice-president Helmut Schlesinger
told Reuters in a telephone interview.
Schlesinger was responding to questions following remarks
yesterday by Bundesbank board member Claus Koehler and West
Berlin state central bank president Dieter Hiss, which, dealers
said, revived some speculation that German interest rate cuts
may once again be under discussion.
Schlesinger said he had no comment on the remarks of his
two central bank council colleagues.
But he added that the last central bank council meeting on
April 2 had discussed the economic situation with a mood of
"subdued optimism," particularly influenced by the news brought
by several state central bank presidents.
"Much is going better than the impression gained by the
public from the January figures, which have been in the
meantime superseded," he said.
German January industrial output fell 3.0 pct after a
decline of 0.9 pct in December. New industry orders fell 1.9
pct after they had been unchanged in December.
Bank economists said that the two together showed the
economy would either stagnate or contract in the first quarter
of 1987.
Aside from the economic developments, Schlesinger added, a
steady monetary course was important to hold the dollar/mark
rate around current levels as Bundesbank president Karl Otto
Poehl had said while attending the Washington World Bank/IMF
meeting.
Asked, however, if the Bundesbank could move to cut rates
on repurchase agreements at the setting of the next repurchase
tender, due next Tuesday, Schlesinger said, "Since the central
bank council gives its opinion on this theme only every 14
days, this is hardly probable."
Responding to the question whether the Bundesbank had moved
away from a policy of targetting monetary growth toward one of
targetting currency rates, Schlesinger said he could have no
comment on the subject while negotiations were still in
progress in Washington.
REUTER
|
BRAZILIAN COFFEE RAINFALL | THE FOLLOWING RAINFALL WAS RECORDED IN
THE AREAS OVER THE PAST 24 HOURS
PARANA STATE: UMUARAMA NIL, PARANAVAI NIL, LONDRINA NIL,
MARINGA NIL.
SAO PAULO STATE PRESIDENTE PRUDENTE NIL, VOTUPORANGA NIL,
FRANCA NIL, CATANDUVA NIL, SAO CARLOS NIL, SAO SIMAO NIL.
MINAS GERAIS STATE: GUAXUPE NIL, TRES PONTAS NIL. REUTER
|
HOKKAIDO TAKUSHOKU CONVERTIBLE EUROBOND COUPON CUT | The coupon on the 100 mln dlr, 15-year,
convertible eurobond for Hokkaido Takushoku Bank Ltd has been
set at 1-3/4 pct compared with the indicated two pct,
joint-lead bookrunner Yamaichi International (Europe) Ltd said.
The conversion price was set at 1,052 yen, while the
foreign exchange rate was fixed at 146.20 yen per dollar.
REUTER
|
E.F. HUTTON LBO INC SAID TENDER OFFER BY PC ACQUISITTION
FOR PUROLATOR COURIER EXPIRED
| |
WORLD BANK TO SUPPORT SRI LANKA IF DEFICITS CUT | The World Bank will support Sri Lanka's
development program provided the country reduces its budget and
current account deficits, the Ministry of Finance said.
It said Bank President Barber Conable at a meeting with Sri
Lanka's Finance Minister Ronnie de Mel in Washington also
emphasised the need for structural adjustment and reform to the
economy, battered by five years of separatist disturbances.
Officials said Sri Lanka's budget deficit this year is
expected to surpass the projected 28.7 billion rupees while
defence spending, already up by two billion rupees from a
targetted 10 billion, is also likely grow.
The Ministry said de Mel asked the World Bank to give Sri
Lanka 6.5 billion rupees balance of payments support.
REUTER
|
E.F. HUTTON LBO INC SAYS UNIT TERMINATES MERGER AGREEMENT
WITH PUROLATOR COURIER
| |
GEMINA HAS NO COMMENT ON AMBROSIANO REPORT | Holding company <Gemina Spa> said it had
no comment on an Italian press report today that it has
acquired a 12 pct stake in <Nuovo Banco Ambrosiano Spa>.
Italian daily La Repubblica said that Gemina paid 205
billion lire for the shareholding from several Italian banks. A
Gemina spokeswoman told Reuters, "We have nothing to say about
the report."
A spokeswoman for Milan-based Ambrosiano said, "We have no
information at this time." In February, Ambrosiano chairman
Giovanni Bazoli said foreign and domestic firms have expressed
interest in buying stakes in the bank.
REUTER
|
SEARS, ROEBUCK <S> MARCH RETAIL SALES UP | Sears, Roebuck and Co said retail sales
of its Merchandise Group in March rose 4.2 pct to 2.62 billion
dlrs from 2.51 billion dlrs a year ago.
For the nine weeks ended April Four, Sears Merchandise
Group sales rose 4.5 pct to 4.46 billion dlrs from 4.27 billion
dlrs in the same 1986 period.
Reuter
|
VOLKSWAGEN DIVIDEND UNCHANGED ON 1986 | Dividend on 1986 business unchanged at 10 marks per
ordinary share. Company also set dividend of 11 marks for new
preference shares, which were issued last year.
(Note: Company has said profit will match 1985 level,
despite provisions of 480 mln marks connected with alleged
currency fraud. Group net profit in 1985 was 596 mln marks,
parent company net was 477 mln marks. Company's full name is
Volkswagen AG <VOWG.F>).
REUTER
|
WHIRLPOOL CORP <WHR> 1ST QTR NET | Shr 66 cts vs 67 cts
Net 48,700,000 vs 49,300,000
Sales 961.0 mln vs 870.6 mln
Avg shrs 74,123,837 vs 73,374,398
Reuter
|
U.S. SAID TO VIEW G-7 MEETING AS MAJOR SUCCESS | The United States, which has long
sought Japanese action to stimulate its economy, appears to be
satisfied Tokyo's latest package is a major development and
allows leading industrial nations to reaffirm their agreement
to stabilize currencies.
Monetary sources said they believed that U.S. Treasury
Secretary James Baker considered Tokyo's package, announced
yesterday, to be a major stimulation of the Japanese economy.
But yesterday's statement by seven leading industrial
powers endorses the yen's rise from around 153 to the dollar,
the level at the February 22 Paris Accord, to about 145 today.
And the initial reaction of currency markets in the Far
East demonstrates that financial markets are unconvinced that
currencies yet reflect economic fundamentals, even though the
countries appear to do so. The yen sank below 145 at one point
despite intervention by the Bank of Japan.
Kiichi Miyazawa, Japan's Finance Minister, said the
movement since Paris was consistent with currency trading
ranges the nations agreed to defend in the February talks.
"I would say that what has happened (to the yen) in the past
several weeks was not outside the range we agreed to in the
discussions in Paris," Miyazawa said yesterday.
The supplementary budget worth about 34.48 billion dlrs was
announced by the ruling Liberal Democratic Party on the eve of
Miyazawa's departure for Washington, to attend yesterday's
meetings of leading industrial nations.
In a strongly worded statement terming the Japanese action
"extraordinary and urgent", the meeting reaffirmed the Paris
Accord by noting that current exchange rates are within ranges
broadly consistent with fundamentals, or economic reality.
The Group of Seven -- the United States, Japan, West
Germany, France, Britain, Italy and Canada -- therefore
repeated their willingness to continue close cooperation to
foster exchange rate stability.
The cooperation agreement has resulted in concerted central
bank intervention of 8 billion to 9 billion dlrs to halt the
dollar's fall. While relatively unsuccessful, the scale of
intervention between so many nations is unprecedented in recent
years. Monetary sources also said they understood that
Secretary Baker considered the meeting to be extremely
successful in the light of the Japanese announcement.
They also said there was a growing feeling among the
finance ministers and central bankers that cooperation over
medium-term policies has replaced the bickering over short-term
differences in past meetings.
West Germany, whose currency has not risen anything like
the yen since the Paris Agreement, appears from the face of
yesterday's statement to have won acceptance from other
countries that its exchange rate is acceptable.
Bonn's finance minister Gerhard Stoltenberg argues that
major currency shifts needed to remedy the huge imbalance
between West Germany and Japan's trade surpluses and America's
trade deficit have already taken place.
No mention was made, however, of the U.S. commitment to cut
the budget deficit even though it is implied in the
reafffirmation of Paris.
European nations and Japan believe deficit cuts are
essential to curbing the record U.S. trade shortfall that
reached nearly 170 billion dlrs last year.
A similar argument was made on Capitol Hill earlier this
week by Federal Reserve Board chairman Paul Volcker. A further
sharp fall to redress trade imbalances would "clearly pose
substantial risks of renewed inflationary momentum and could
undermine confidence in future financial stability," he said.
Volcker warned a further dollar fall might force the
politically independent Fed to drive up interest rates.
Monetary sources said that, privately, West Germany
welcomed the rise in the yen against the dollar while its own
currency remained relatively stable against the U.S. unit.
Bonn and other European nations worry that once the weak
dollar blunts Tokyo's export drive to the United States, the
Japanese monolith will concentrate on European markets.
The ministers, meanwhile, also continued talks on making
their policy coordination more binding and one, Canadian
Finance Minister Michael Wilson, said good progress was made.
Wilson said they will meet before the June Economic Summit
to prepare a report for the leaders of the seven nations.
The United States and France, backed by the International
Monetary Fund, want the seven to agree on ranges or "norms" for a
limited number of economic objectives such as growth,
inflation, monetary conditions, trade balances and current
account balances.
Sharp deviations from these guidelines would result in
consultations between the countries on whether corrective
action should be required.
But the inclusion of currencies as one of the objectives
has Bonn and London worried, monetary sources say, because it
implies Washington is moving in the direction of target zones.
The sources said the Reagan administration unsuccessfully
sounded out its allies on a system of target zones to limit
currency fluctuations just before the February meeting.
The concept is a much more rigid one than the secret ranges
of the Paris Accord and would mark a sharp departure from the
relatively free currency markets of recent years.
Reuter
|
BANK OF FRANCE LEAVES INTERVENTION RATE UNCHANGED | The Bank of France said it left its
intervention rate unchanged at 7-3/4 pct when it injected funds
in the market against first category paper in today's money
market intervention tender.
Money market dealers had earlier expressed mixed views on
the possibility of quarter point cut.
The rate was last adjusted on March 9, when it was cut to
7-3/4 pct from the eight pct rate set in January.
REUTER
|
GLOBAL ECONOMIC SLOWDOWN RAISES NEW DEBT FEARS | The global economy is expected to
weaken this year, adding new worries to an already serious
poverty outlook, economic analysts said.
For finance ministers and central bankers attending this
week's semi-annual meetings of the International Monetary Fund
and World Bank, the new figures released by the IMF add an
additional concern.
The Fund estimated world output would only grow by 2.7 pct
this year, versus 2.9 pct last year, and 3.1 pct in 1985.
In the industrial countries, Gross National Product, a
measure of all goods and services, was expected to decline to
2.3 pct this year, compared with 2.4 pct in 1986, the IMF said.
For the developing countries, the Gross Domestic Product,
another measure of economic growth, was expected to fall to 3.0
pct from 3.5 pct last year.
The new figures are considered a major disappointment to
the poorest countries. They had hoped that new vitality in the
industrial countries brought on by a sharp decline in oil
prices would assist their economic recovery and help them cope
with growing mounds of debt.
IMF officials, discussing their outlook, said they believed
the industrial country economies would move up to an annual
growth rate of three pct by the end of the decade.
Economic analysts and the IMF have been saying for some
time that the ability to keep the debt crisis from turning into
an economic rout rests on sustained economic growth.
Since the debtor countries must look to the wealthier
states for markets for their products as well as financial
assistance, economic weakness in the developed nations'
economies poses fundamental worries.
Debtor countries, including the very poorest states, have
only a few avenues open to them for earning foreign exchange,
including the key one of exports.
The U.S. economy, which is in its fifth year of expansion,
has served as a mainstay for developing country exports, but it
too is seen as being rather feeble this year, growing by only
2.3 pct, according to the IMF.
For this reason and because of a high trade deficit, the
United States has been pressuring Japan and West Germany to
ignite their economies but with little apparent success.
The IMF study also examines the course of the dollar and
the curious lack of impact it has had on the U.S. trade
deficit.
Reagan administration officials have been saying that the
impact is now beginning to show up, although it has been much
slower than expected.
The IMF observed in its World Economic Outlook that "it has
to be recognized that exchange rate adjustments take time to
work through to payments flows -- probably at least three years
to get a resonably complete effect."
The report added, however, "the adjustments may take even
more time on this occasion."
REUTER^M
|
SPANISH EMPLOYERS WORRIED BY HIGH INTEREST RATES | The head of Spain's employers'
federation, Jose Maria Cuevas, said employers were worried
about the government's monetary policies because high real
interest rates were hampering investment.
He told a news conference wage pacts signed so far this
year were not endangering the government's five pct inflation
target. The government's perceived need to control inflation by
keeping a tight rein on credit was unnecessary, he said.
High real interest rates were attracting an influx of
speculative foreign capital which was undercutting the
government's target for monetary growth, Cuevas said.
Spain's most closely-watched measure of money supply,
liquid assets in public hands, grew at an annualised rate of 17
pct in March, against 11.4 pct in December last year and a
target range of 6.5 to 9.5 pct for 1987.
To combat this, the Bank of Spain has raised its call money
rate 14 times so far this year, to 14.5 pct at present from
11.8 at end-1986.
Cuevas said employers were heeding the government's call to
hold wage increases to its five pct inflation target this year,
with increases from salary reviews awarded last year and new
wage pacts averaging 5.6 pct in the first quarter of 1987.
These agreements covered less than 40 pct of Spanish
workers, Cuevas said, with the rest still in wage negotiations.
He said Spain's current wave of strikes mainly affected the
state sector, where the government is trying to impose its five
pct wage ceiling.
Cuevas said employers were also worried about the trend in
Spain's foreign trade balance. The trade deficit in the first
two months of 1987 totalled 233 billion pesetas, a 68 pct
increase over the corresponding period last year.
However, employers did not favour a devaluation of the
peseta to correct the imbalance.
REUTER
|
SHOWBOAT <SBO> DECLARES STOCK SPLIT | Showboat Inc said its board declared a
two-for-one stock split, payable to shareholders of record on
May 15.
Reuter
|
J.C. PENNEY <JCP> MARCH SALES OFF 1.3 PCT | J.C. Penney Co Inc said sales for the
five weeks ended April Four for its JCPenney stores and catalog
were off 1.3 pct to 1.12 billion dlrs from 1.13 billion a year
before, with same-store sales off 1.5 pct.
The company said total company sales were off 0.2 pct to
1.25 billion dlrs from 1.26 billion dlrs.
Penney said sales for ther first nine weeks of its fiscal
year for its JCPenney stores and catalogs were up 1.3 pct to
1.90 billion dlrs from 1.87 billion dlrs a year before, with
same-store sales up 1.2 pct.
Penney said year to date sales company-wide were up 2.3 pct
to 2.14 billion dlrs from 2.09 billion dlrs, with same-store
sales up 2.2 pct.
Penney said "Sales were in line with expectations in light
of the shift of Easter from March in 1986 to April this year.
Sales continued strong for catalog operations and,
geographically, ranged from very active in the East to weak in
the economically depressed Southwest.
Reuter
|
SUPERMARKETS GENERAL <SGL> FIVE WEEK SALES | Supermarkets General Corp said
its sales were 540.9 mln dlrs for the five-week period ended
April 4, 1987, a 7.8 pct increase over sales of 501.8 mln dlrs
for the comparable period a year ago.
For the nine-weeks of its current fiscal year through April
4, the company said sales were 965.8 mln dlrs, a 7.5 pct
increase over 898.2 mln dlrs for the comparable period last
year.
Reuter
|
LEAD PRICES RISE ON FINELY BALANCED PHYSICALS | Lead prices have risen this week against
a background of a finely balanced physical sector, traders
said.
Further gains are possible if the USSR steps up its buying
or if labour problems develop in North America, they added.
London Metal Exchange (LME) prices are unusually buoyant at
a time of year when seasonal demand is normally slackening and
prices tending to drift lower.
This buoyancy is generally attributed by traders to the low
level of LME stocks and steady, if unspectacular, physical
demand in the Northern Hemisphere finding supplies curtailed.
The supply problems are not new but are beginning to be
felt by a market in which, as peak winter demand tails off,
stocks usually build fast and availability increases, traders
said.
The lower supply levels result from a number of different
factors around the globe.
Delayed shipments from Peru to Mediterranean countries
because of production and transport problems, lack of Spanish
exports since the closure last year of Cia La Cruz's smelter at
Linares and lower output in Morocco and Greece have all meant
additional demand being directed to merchants who in turn have
been drawing on LME stocks.
In addition Broken Hill Associated Smelters' Port Pirie,
South Australia, smelter is halting production for five weeks
for maintenance. Although the company said it would meet
commitments, this will put further pressure on stocks.
And the U.S. Company Doe Run has kept its 140,000 tonnes
per year Boss, Montana smelter closed. This cut producer stocks
and contributed to a closer supply/demand balance within the
U.S. Market, for many years depressed by surplus production and
a regular supplier to the world market.
Mexican supplies, which have sometimes swelled LME stocks,
have been normal but are finding ready buyers, traders said.
On the demand side, winter battery manufacture has held up
quite well and some U.S. Buying of lead sheet has been reported
in the U.K. Soviet lead buying, notably absent in Europe in the
first two months of the year, was resumed when a large buying
order was filled by merchants in March.
Merchant demand has fuelled the rise in LME lead prices
this week and has seen cash metal move above 320 stg and
establish a premium of around 10 stg over three months
delivery. Specific demand has been directed towards metal in
Gothenburg and Trieste warehouses. Gothenburg material is often
a target for merchants shipping to the USSR, traders said.
On stocks, the popular LME Continental warehouses, Antwerp
and Rotterdam, have little more than 3,000 tonnes of lead each,
and this is believed to be in strong hands.
Out of a total 22,125 tonnes in LME stocks, the lowest
level since June 1980, just over half is in U.K. Warehouses
which are not popular with merchants putting together
shipments.
But even U.K. Stocks have dropped around 6,000 tonnes since
the start of the year. Traders said this is partly due to
secondary smelters buying ingots to supplement feed supplies
affected by environmental controls, which put restrictions on
the transport of used batteries.
Labour negotiations in North America will play an important
part in determining the direction of prices, with contracts
expiring end-April at Cominco's Trail and Kimberley, B.C.,
Mine/smelter and at Doe Run's Herculaneum, Mo, smelter.
Noranda's New Brunswick mine/smelter also has a contract
expiry in July which may cause some nervousness in view of
strikes by its zinc and copper workers over recent months.
Traders said LME three months delivery, already attracting
speculative buying, could rise to 320/330 stg on current
firmness, while nearby tightness could widen the cash premium
to 20 from four. Three months was quoted at 313 stg at
midsession.
Reuter
|
F. W. WOOLWORTH <Z> MARCH SALES UP 0.2 PCT | F. W. Woolworth Co said sales for the
five weeks ended april 4 rose 0.2 pct to 591 mln dlrs from 590
mln dlrs.
Domestic sales decreased 4.4 pct to 355 mln dlrs from 371
mln dlrs and foreign sales, expressed in U.S. dlrs, rose 7.9
pct, the company said.
If foreign exchange rates had remained constant, foreign
sales would have decreased 4.0 pct and total sales 4.2 pct, it
said.
For the nine weeks, total sales rose 4.3 pct to 1.01
billion from 964 mln dlrs.
Domestic sales of 604 mln dlrs were unchanged and foreign
sales, expressed in dlrs, increased 11.4 pct from the year
earlier period. If foreign exchange rates were constant,
foreign sales would have decreased 1.0 pct and total sales 0.4
pct, the company said.
"As anticipated, March sales were lackluster in our
seasonally sensitive businesses due to Easter's being three
weeks later this year than last," the company said in a
statement.
Reuter
|
REXHAM CORP <RXH> 1ST QTR NET | Shr 70 cts vs 42 cts
Net 2,918,000 vs 1,746,000
Sales 68.3 mln vs 53.5 mln
NOTE: 1987 net includes pretax gain 400,000 dlrs from
change in pension accounting.
1987 results include Production Graphics Corp and Systems
Technology and Weapons System Test Divisions of NEw Technology
Inc, acquired December 30, 1986.
Reuter
|
FIRST EASTERN CORP <FEBC> 1ST QTR NET | Shr 50 cts vs 47 cts
Net 3,445,000 vs 3,193,000
NOTE: Share adjusted for two-for-one stock split in January
1987.
Reuter
|
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES | The Federal Home Loan Bank Board
adjusted the rates on its short-term discount notes as follows:
MATURITY NEW RATE OLD RATE MATURITY
30-174 days 5.00 pct 5.00 pct 30-87 days
175-190 days 5.85 pct 5.82 pct 88-103 days
191-270 days 5.00 pct 5.00 pct 104-179 days
271-288 days 5.92 pct 5.85 pct 180-205 days
289-360 days 5.00 pct 5.00 pct 206-360 days
Reuter
|
ANCHOR FINANCIAL <AFCX> TO MAKE ACQUISITION | Anchor Financial Corp said it
has agreed to acquire Waccamaw State Bank of Surfside Beach,
S.C., in an exchange of 1.435 Anchor shares for each Waccamaw
share, subject to regulatory and shareholder approvals.
Waccamaw had assets of 22.8 mln dlrs as of March 31.
Reuter
|
STOLTENBERG NOT SURPRISED BY DOLLAR REACTION | West German Finance Minister Gerhard
Stoltenberg said he was not surprised by the overnight decline
of the dollar in foreign exchange markets.
Speaking briefly with reporters before entering a meeting
of the International Monetary Fund he said, "These minor
movements don't really affect us."
The dollar declined in the initial reaction to a statement
by the Group of Seven industrial countries reaffirming their
Paris agreement in February to maintain their currencies around
current levels.
Reuter
|
ASARCO UPS U.S. LEAD PRICE 0.50 CT TO 26.50 CTS | Asarco Inc said it is increasing its
base spot sales price for refined lead by one-half cent to
26.50 cents a lb, FOB, delivered in carload lots, effective
immediately.
Reuter
|
FRANCE PLANS TO COVER SOCIAL SECURITY DEFICIT | French government ministers will meet next
Tuesday to discuss measures to cover the state Social Security
Fund's deficit before the summer, Prime Minister Jacques
Chirac's social affairs adviser, Marie-Helene Berard, said.
Employment Ministry officials say the fund, in surplus
until 1985, faces a 24 billion franc deficit by the end of this
year, largely because of rising unemployment. Budget Minister
Alain Juppe said the fund needed more resources and a
management overhaul. The government was not in favour of
introducing an additional tax to fund the deficit as did the
previous socialist administration between 1982 and 1985, he
said.
REUTER
|
E.F. HUTTON <EFH> UNIT'S PUROLATOR OFFER EXPIRES | E.F. Hutton LBO Inc said the tender
offer by its wholly owned unit, PC Acquisition Inc, for
Purolator Courier Corp <PCC> expired at 2400 EDT yesterday
without the purchase of any Purolator common stock.
Hutton added that PC Acquisition also terminated its merger
agreement with Purolator.
Hutton said the offer, which had been conditioned upon the
tender of at least 5,116,892 Purolator shares, or about
two-thirds of the outstanding shares, was terminated because
the minimum number of shares was not tendered.
Purolator had entered into a definitive agreement with PC
Acquisition, part-owned by E.F. Hutton LBO Inc, a unit of E.F.
Hutton, and some officers of Purolator's U.S. courier division,
in which PC offered to purchase 6,332,471 Purolator common
stock shares for 35 dlrs a share.
Following that move, PC Acquisition planned to merge a
subsidiary into Purolator, converting all outstanding Purolator
common it did not own into an aggregate 46 mln dlrs principal
amount of 12 pct guaranteed debentures due 2002 and warrants to
purchase 15 pct of a Purolator unit comprised of Purolator's
U.S courier operations.
Hutton said as of 2400 EDT yesterday about 181,000 shares
of Purolator common stock, or about 2.4 pct of the outstanding
shares, had been validly tendered and not withdrawn.
PC Acquisition has instructed its depository for the offer
to return promptly the Purolator stock deposited by, or on
behalf of, tendering shareholders, Hutton said.
Reuter
|
ABBOTT LABORATORIES 1ST QTR NET SHR 62 CTS VS 52 CTS
| |
INDIA FOODGRAIN TARGET 160 MLN TONNES IN 1987/88 | India's national foodgrain target has
been fixed at 160 mln tonnes in 1987/88 (Apr-Mar), unchanged
from the 1986/87 target, the Agriculture Ministry said in its
annual report for 1986/87.
Actual output was estimated at 151 mln tonnes in 1986/87
due to failure of monsoon rains in 15 out of 35 meterological
sub-divisions of the country.
The report gave the targets for various crops with
estimated harvested crops in 1986/87 in brackets as following,
in mln tonnes - rice 65 (60), wheat 49 (49), coarse grains
including sorghum and millets 32 (29) and pulses 14 (13).
Despite failure of monsoon rains in recent years, it was
possible to maintain higher foodgrain production, signifying
growing resilience in agricultural sector, the report said.
The strategy for increasing irrigation potential along with
greater use of high yielding seed varieites and improvement in
fertiliser efficiency is yielding results, it said, adding
total foodgrain output in 1985/86, 1984/85 and 1983/84
respectively was 150.5 mln tonnes, 145.5 mln and a record 152.4
mln.
India has targeted to produce between 178 and 183 mln tonnes
of foodgrains by the last year of the seventh five-year
development plan ending March 31, 1990.
Taking the midpoint of 180 mln tonnes as the target and the
1986/87 estimated production of around 151 mln tonnes, the gap
of 29 mln tonnes has to be made up during the remaining three
years of the plan by increasing grain output annually by more
than nine mln tonnes. But the target can be achieved only with
good weather, the report said.
"The major thrust programme will, therefore, be better water
(irrigation) management. Simultaneously, efforts for spread of
improved technology including timely use of inputs (farm
materials like fertilisers) in adequate quantities have to be
vigrously pursued," it said.
Reuter
|
CERTIFICATED COTTON STOCKS | Certificated cotton stocks deliverable
on the New York Cotton Exchange No 2 cotton futures contract as
of April 8 were reported at 34,661 bales, down 421 bales from
the previous day's figure. There were no bales awaiting review
and 1,218 bales awaiting decertification.
Reuter
|
REICHHOLD CHEMICAL <RCI> SETS ANTI-TAKEOVER PLAN | Reichhold Chemical Inc said its
board adopted a warrant dividend plan in which one preferred
stock purchase right will be distributed as a dividend on each
common share outstanding.
The company said its warrant dividend plan is designed to
protect its shareholders against unsolicted, coercive attempts
to aquire control without making an adequate offer for all
shares.
Reichhold said the adoption is not a response to any
specific takeover attempt.
Reichhold said each right will entitle shareholders to buy
one one-hundreth of a share of a newly created series of
preferred stock at an initial exercise price of 120 dlrs, with
dividend and voting rights approximately equal to those of one
share of the company's common stock.
The rights will be exercisable only if, without Reichhold's
prior consent, a person or group a acquires 20 pct or more of
the voting power or announces a tender offer which would result
in 20 pct ownership, the company said.
Reichhold said it is entitled to redeem the rights at five
cts apiece before a 20 pct position has been acquired, or
before an existing 20 pct shareholder buys an additional two
pct or more of the voting power of the company, or in
connection with certain transactions afterward.
The tax-free distribution will become effective May 1,
1987, and will expire 10 years later, the company said.
Details of the plan are outlined in a letter to be mailed
to stockholders.
Reuter
|
ABBOTT LABORATORIES INC <ABT> 1ST QTR NET | Shr 62 cts vs 52 cts
Net 142.0 mln vs 123.0 mln
Sales 1.00 billion vs 865.0 mln
Reuter
|
HANSON <HAN> TO BUY INT'L PROTEIN <PRO> STOCK | International Proteins Corp said
it has agreed to sell in a private placement 330,000 common
shares at 11.75 dlrs a share to a U.S. subsidiary of Hanson
Trust Plc.
In addition, David Clarke the president of another Hanson
Trust subsidiary, Hanson Industries, will be named chairman of
International Proteins's executive committee upon his election
to the board at the annual meeting.
International Proteins recently acquired Clarke's family
business, Great South Beach Sales Co, for 900,000 restricted
common shares of which 350,000 have been issued to date.
International Proteins said its agreement with Hanson Trust
is subject to stockholder approval at the annual meeting which
is expected to be held in June.
The company said Hanson Trust is purchasing the stock for
investment purposes, adding the agreement includes restrictions
on purchase or sale of the company by Hanson for the next five
years.
International Proteins said it will use the proceeds to
expand domestic operations.
The company has about 2.1 mln shares outstanding.
Reuter
|
EGYPT BUYS PL 480 WHEAT FLOUR - U.S. TRADERS | Egypt bought 125,723 tonnes of U.S.
wheat flour in its PL 480 tender yesterday, trade sources said.
The purchase included 51,880 tonnes for May shipment and
73,843 tonnes for June shipment. Price details were not
available.
Reuter
|
SPAIN HAS 35 MLN DLR CURRENT SURPLUS FEBRUARY | Spain had a 35 mln dlr current account
surplus in February compared with a 68 mln dlr surplus in
January and a 355 mln dlr surplus in February last year, Bank
of Spain figures show.
Spain's trade deficit narrowed to 581 mln dlrs compared
with 664 mln dlrs in January but the large increase in non-oil
imports contributed to the substantial increase over the 159
mln dlr deficit registered in February 1986.
Exports at 2.58 billion dlrs were up 19 pct compared with
February last year, but imports were 46 pct higher than last
February, totalling 3.16 billion dlrs.
Non-oil imports totalled 2.79 billion dlrs compared with
1.91 billion in February last year, reflecting the large
ammount of investment goods entering the country with the
recovery of the Spanish economy, the Bank of Spain said.
Spain's tourism earnings continued to grow and totalled 655
mln dlrs in February, compared with 103 mln dlrs in January and
502 mln dlrs in February last year.
REUTER
|
INDIA OILSEED OUTPUT FORECAST TO RISE | India's oilseed output is expected to
rise to 12.25 mln tonnes in 1986/87 ending October, up on 11.15
mln in 1985/86 but down from 12.95 mln harvested in 1984/85,
the Agriculture Ministry's 1986/87 report said.
But the forecast for 1986/87 is well below a target of 14.8
mln tonnes fixed for the year, it said, adding bad weather hit
groundnut and other oilseed crops.
The National Oilseeds Development Program will invest 300
mln rupees in 1986/87 on supplying improved high-yielding seeds
and other support services to help boost production, it added.
India imports about 1.2 mln tonnes of edible oils a year.
Reuter
|
EXXON <XON> SOUTH AFRICAN UNIT ACQUIRED BY ZENEX | <Zenex Oil Pty Ltd> said it
acquired the interests of Esso South Africa, the local
subsidiary of Exxon Corp <XON), and will use up to 20 mln rand
in profits to finance educational and social programs.
The profit scheme will begin after Zenex has paid Exxon an
undisclosed purchase price for Esso, Zenex chairman John
Truscott said in a statement.
The acquisition follows the Exxon withdrawal from South
Africa announced last December.
Reuter
|
UK, FRANCE TO URGE DEBT RELIEF FOR POOREST LANDS | Britain, France and other European
nations will make a strong plea in high-level meetings today
for urgent debt relief for the very poorest countries, European
monetary sources said.
The request will be put to the International Monetary
Fund's policy-making Interim Committee, which meets here as
part of semi-annual IMF and World Bank talks.
But it is likely to run into opposition from the United
States, which regards debt relief, even for the world's poorest
nations in Sub-Saharan Africa, with distaste.
"If all creditors agreed, (Britain and France) would be
prepared to consider below market interest rates " for the
countries, one source said.
A senior U.S. Treasury official poured cold water on the
plan earlier this week, however. "We are not willing to enter
into arrangements that would forgive debt or provide
concessional interest rates," the official said.
At the heart of the American objection is the fear that
once such a concession is made for the very poorest nations,
then sooner or later Latin debtors will be demanding similar
relief.
African nations owe foreign creditors, most of them
governments, over 70 billion dlrs. Over 21 billion dlrs is debt
owed by poorest Sub-Saharan African nations.
In addition to interest rate concessions, the sources said
European countries wanted repayment of these loans to be
stretched out for up to 20 years, with a substantial delay
before capital repayments start.
The issue was inconclusively discussed in yesterday's
meetings of the major industrial nations -- the United States,
Japan, West Germany, Britain, France, Italy and Canada.
It is already under consideration by the Paris Club of
western creditor nations, to which the United States belongs.
"There are quite obviously differences about it," one source
said of the American attitude. "But it is perfectly clear that
(debt repayment) is an abiding problem for a small number of
the poorest countries."
The plan would also involve the conversion of bilateral aid
to these countries into outright grants, a policy already
adopted by Paris and London.
REUTER^M
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COMMONWEALTH EDISON <CWE> FILES DEBT OFFER | Commonwealth Edison Co filed with the
Securities and Exchange Commission for the sale of 375 mln dlrs
in first mortgage bonds.
It said the proceedings would be used to discharge or
refund outstanding obligations.
No underwriter was named.
Reuter
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SALLIE MAE ADJUSTS SHORT-TERM DISCOUNT NOTE RATES | The Student Loan Marketing
Association said its rates on short-term discount notes were as
follows:
MATURITY NEW RATE OLD RATE MATURITY
5-14 days 5.80 pct 5.75 pct 5-14 days
15-360 days 5.00 pct 5.00 pct 15-85 days
5.80 pct 86-91 days
5.00 pct 92-176 days
5.83 pct 177-183 days
5.00 pct 184-360 days
Reuter
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FREDDIE MAC ADJUSTS SHORT-TERM DISCOUNT RATES | The Federal Home Loan Mortgage Corp
adjusted the rates on its short-term discount notes as follows:
MATURITY RATE OLD RATE MATURITY
33 days 6.00 pct 6.00 pct 33 days
Reuter
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ARGENTINE GRAIN BELT WEATHER REPORT | ARGENTINE GRAIN BELT TEMPERATURES
(CENTIGRADE) AND RAIN (MM) IN THE 24 HOURS TO 12.00 GMT WERE:
...............MAX TEMP..MIN TEMP..RAINFALL
BUENOS AIRES.......24.......12............0
BAHIA BLANCA.......22........7............0
TRES ARROYOS.......22........8............0
TANDIL.............22........7............0
JUNIN..............24.......11............0
SANTA ROSA.........--........6............0
CORDOBA............23.......12............1
SANTA FE...........21.......18...........17 REUTER
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VW SAYS 480 MLN MARKS MAXIMUM FOR CURRENCY LOSSES | Losses for Volkswagen AG
<VOWG.F>, VW, linked to an alleged foreign currency fraud will
not exceed the 480 mln marks provision already made, a VW
spokesman said.
The spokesman was commenting after VW had confirmed it
would pay an unchanged 10 mark dividend for ordinary shares on
1986 business, despite the provision.
One West German newspaper today quoted foreign currency
dealers in Frankfurt as speculating that the total losses from
the currency affair could be as high as 1.5 billion marks, but
the VW spokesman described 480 mln marks as an "upper limit."
VW said in a statement following today's supervisory board
meeting that it had discussed the foreign currency scandal in
detail, and was setting up a new probe into its foreign
currency activities to be carried out by an unnamed auditing
company.
VW has said computer programs were erased and documents
were faked in the alleged fraud in which it believes
transactions intended to protect it against possible foreign
currency losses were not completed.
VW's former foreign currency chief Burkhard Junger was
arrested on Monday on suspicion of embezzlement and of having
evaded justice.
Earlier VW had said that its 1986 results would match 1985
profits. VW's group net profit in 1985 was 596 mln marks and
parent company net was 477 mln marks. It also said it recommend
an unchanged dividend to the supervisory board. The company has
also set a dividend of 11 marks for new preference shares,
which were issued last year. Analysts have described the held
dividend as a move to reassure worried shareholders.
VW increased nominal capital by 300 marks last year to 1.5
billion marks, with the result that its total dividend payment
on 1986 will be 306 mln marks compared with 240 mln on 1985,
since the new capital was in preference shares.
The share analysts say VW will have to dig into reserves in
order to maintain the disclosed 1986 profit at 1985 levels. At
the end of 1985, VW had parent company reserves of slightly
less than three billion marks.
REUTER
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YUGOSLAVIA TO TENDER FOR 100,000 TONNES WHEAT | Yugoslavia will tender April 14 for
100,000 tonnes of wheat, the U.S. Agriculture Department's
Counselor in Belgrade said in a field report.
The report, dated April 7, said the wheat must be from 1986
and 1987 harvest, and imports of soft wheat from Europe and
from other suppliers will not be considered.
It said the imports will be used to rebuild the federal
reserves and as a result will not be subject to import
surcharges.
Reuter
|
FEDERATED DEPARTMENT STORES MARCH SALES UP 4.9 PCT
| |
PRICES GENERALLY LOWER AT NAIROBI COFFEE AUCTION | Prices were lower at this week's coffee
auction for all grades and qualities except better quality AB
grades, which held steady, the Coffee Board of Kenya said.
The board said it offered 35,000 bags and sold 32,876.
So far this coffee year, Kenya has sold 918,707 bags to all
markets, of which 326,182 are for the 1986/7 pool, with an
overall average price of 41,500 shillings a tonne, it added.
The board will offer 35,000 bags at its next auction on
April 14.
BAGS PRICE PER 50 KG
OFFERED SOLD AVERAGE
PB 430 430 2304.78 (2267.21)
AA 7289 6834 2292.92 (2358.96)
AB 12664 11895 2289.99 (2291.13)
C 3198 2867 2073.15 (2107.64)
T 876 876 1508.79 (1510.67)
TT 1375 1375 2053.25 (2095.64)
E 159 159 2250.19 (2252.18)
MISC 9009 8440 1409.50 (1398.60)
TOTAL 35000 32876 AVERAGE FOR SALE 2014.93 (1994.94)
Reuter
|
ALEX. BROWN <ABSB> SETS SPLIT, TO OFFER SHARES | Alex. Brown Inc said it has declared a
three-for-two stock split, payable May 29, record May 22.
The company also said it has filed to offer 912,000 common
shares, including 162,000 to be sold by a shareholder, with
company proceeds to be used for working capital and general
corporate purposes. Its Alex. Brown and Sons Inc subsidiary is
lead underwriter.
The offering is expected to be made before the record date
of the split, the company said.
Reuter
|
JAMESWAY <JMY> MARCH SALES UP 15 PCT | Jamesway Corp said sales for the
five weeks ended April Four were up 15 pct to 54.1 mln dlrs
from 47.1 mln dlrs a year before, with same-store sales up four
pct.
The company said sales for the first nine weeks of its
fiscal year were up 14 pct to 85.8 mln dlrs from 75.1 mln dlrs
a year before, with same-store sales up four pct.
It noted that Easter sales will fall in April this year,
instead of March as last year.
Reuter
|
FEDERATED DEPARTMENT STORES <FDS> MARCH SALES UP | Federated Department Stores Inc said
sales for the five weeks ended April Four were up 4.9 pct to
934.9 mln dlrs from 891.6 mln dlrs a year before.,
The company said sales for the first two months of its
fiscal year were up 6.8 pct to 1.65 billion dlrs from 1.55
billion dlrs a year before.
Reuter
|
ZAYRE <ZY> MARCH SALES UP 12.7 PCT | Zayre Corp said sales for the
five weeks ended April Four were up 12.7 pct to 522.3 mln dlrs
from 463.5 mln dlrs a year before.
The company said sales for the first nine weeks of its
fiscal year were up 17.4 pct to 849.3 mln dlrs from 723.7 mln
dlrs a year before.
Reuter
|
AMR <AMR> UP ON SMITH BARNEY OPINION | AMR Corp, the parent of American
Airlines, rose sharply in active trading after analyst Roland
Moreno of Smith Barney upgraded his opinion of the stock to buy
from accumulate and added it to the brokerage house's
recommended list, traders said.
AMR climbed 1-3/8 to 55-5/8.
A spokeswoman for Smith Barney said the recommendation was
made because the airline group looks cheap relative to the
broad market and the analyst feels AMR is the best in the
group.
In a related action, Moreno downgraded his opinion of UAL
Inc <UAL> to accumulate from buy and took it off the firm's
recommended list, Smith Barney's spokeswoman said. The stock
slipped 1/2 to 71-1/2 on volume of 1.3 mln shares.
She said the Moreno's downgrade of UAL was because the
"stock had risen to a level beyond what current fundamentals
can support." The stock has risen more on merger speculation
than on fundamentals, the opinion continued.
In recent weeks, rumors UAL stock was being accumulated for
a possible takeover bid shored up the stock, traders and
analysts said. In addition, pilots of UAL's United Airlines
unit proposed a buyout of the airline for 4.5 billion dlrs.
The Smith Barney spokeswoman said the postive
recommendation of AMR emphasizes the company's strong marketing
ability, its good management and customer loyalty to the AMR
name. She said the company has been the best financial
performer of the airline group.
The AMR recommendation includes earnings expectations of
4.35 dlrs a share in 1987 as compared to earnings of 4.63 dlrs
a share last year, the spokeswoman said. In 1988, the company
is expected to earn six dlrs a share.
Traders said other airline stocks moved higher today
primarily as a result of fare hikes announced Wednesday by
Texas Air <TEX>, United Airlines and AMR.
Delta <DAL> rose 1/2 to 56-7/8, NWA Inc <NWA> 3/8 to 66,
and Pan Am <PN> 1/8 to 4-5/8.
Reuter
|
HIGHLAND SUPERSTORES INC <HIGH> 4TH QTR NET | Period ended Jan 31
Shr 38 cts vs 61 cts
Net 7,012,000 vs 11,193,000
Revs 223.0 mln vs 200.3 mln
Year
Shr 1.11 dlrs vs 1.36 dlrs
Net 20,214,000 vs 23,602,000
Revs 656.5 mln vs 520.5 mln
Avg shrs 18,257,631 vs 17,376,480
Reuter
|
LVI GROUP <LVI> TO MAKE ACQUISITION | LVI Group Inc said it has agreed in
principle to purchase all outstanding shares of <Spectrum
Holding Corp> for a proposed 13 mln dlrs in cash.
LVI said an additional 10 mln dlrs in common stock and
seven mln dlrs in notes will become payable if Spectrum has
certain minimum future earnings.
LVI, an interior construction firm, said the acquisition is
subject to execution of a definitive agreement and completion
of due diligence.
LVI and Spectrum, an asbestos abatement concern, expect to
close the deal in June, LVI said.
Reuter
|
MACGREGOR <MGS> UNIT FILES TO OFFER SHARES | MacGregor Sporting Goods
Inc said its wholly-owned MacGregor Team Sports Inc subsidiary
has filed for an initial public offering of two mln common
shares at an expected price of 11 to 14 dlrs a share.
The company said after the offering it would continue to
own 8,800,000 shares or at least an 80 pct interest, since
McGregor Team Sports has granted underwriters an option to buy
another 200,000 shares to cover overallotments.
E.F. Hutton Group Inc <EFH> is lead underwriter.
The company said proceeds will be uysed to reduce debt.
The company said MacGregor Team Sports consists of its
Riddell Inc football helmet producing unit, its Sports
Specialties Corp sport cap distributing unit and Equilink
Licensing Corp, which licenses MacGregor trademarks.
Reuter
|
TEXAS AMERICAN <TAE> OMITS PREFERRED PAYOUT | Texas American Energy Corp said
its board has decided to again omit the quarterly dividend on
its 2.575 dlr cumulative convertible exchangeable preferred
stock.
The dividend would have been payable May One. The company
last paid 64.3 cts a share on the issue in August 1986.
Reuter
|
VORNADO INC <VNO> 4TH QTR JAN 31 NET | Shr 1.64 dlrs vs 1.56 dlrs
Net 4,583,000 vs 5,313,000
Revs 20.1 mln vs 19 mln
Avg shrs 2.8 mln vs 3.4 mln
Year
Shr 5.06 dlrs vs 5.92 dlrs
Net 16 mln vs 20.3 mln
Revs 74.6 mln vs 68 mln
Avg shrs 3.2 mln vs 3.4 mln
Reuter
|
BRENDA MINES SELLING KERR ADDISON SHARES | <Brenda Mines Ltd> said it sold
2,830,390 <Kerr Addison Mines Ltd> shares to a group of
underwriters led by Wood Gundy Inc and Brown, Baldwin Nisker
Ltd for redistribution.
Financial terms were undisclosed.
Reuter
|
PHOENIX FINANCIAL <PHFC> BUYS DATA ACCESS STAKE | Data Access Systems Inc said
chairman David Cohen has sold 1,800,000 common shares to
Phoenix Financial corp for undisclosed terms and resigned as
chairman and chief executive officer.
The company said Phoenix Financial now has a 27 pct
interest in Data Access and effective control.
Data Access said Phoenix chairman Martin S. Ackerman has
been named chairman of Data Access as well and two other
Phoenix representatives have been named to the Data Access
board. It said four directors other than Cohen have resigned
from the board.
Reuter
|
HEALTH AND REHABILITATION <HRP> INITIAL PAYOUT | Health and Rehabilitation
Properties Trust said it declared an intitial dividend of 55
cts per share for the period ending March 31, 1987
The dividend will be payed May 20 to shareholders of record
on April 20, the company said.
The company said it organized in late 1986 and closed its
intitial public offering of shares Dec 23, 1986.
The initital dividend includes five cts attributable to the
period between Dec 23 and 31, 1986, and 50 cts attributable to
the first qtr of 1987, ending March 31, 1987.
Reuter
|
T. ROWE PRICE <TROW> SEES HIGHER FIRST QUARTER | T. Rowe Price Associates said its
first quarter earnings rose about 50 pct from the year-ago
2,634,000 dlrs and revenues about 30 pct from the year-ago 24.2
mln dlrs.
It said it expects "very good" earnings and revenue growth
this year. In 1986 it earned 14.8 mln dlrs on revenues of
111.1 mln dlrs.
Reuter
|
CRAY <CYR> GETS 6.6 MLN DLRS ORDER FROM BP <BP> | Cray Research Inc said
British Petroleum ordered a CRAY X-MP/24 supercomputer valued
at about 6.6 mln dlrs.
The leased system will be installed at BP Exploration Co
Ltd's London headquarters in the fourth quarter of 1987,
pending export license approval, it said.
The CRAY X-MP/24 will replace a CRAY X-MP/12 supercomputer
in operation since 1985, it added.
Separately, the company said that a CRAY X-MP/24 system
valued at 8.5 mln dlrs was installed at Lockheed Missiles and
Space Co.
Reuter
|
GENERAL PARTNERS CUTS STAKE IN GENCORP <GY> | General Partners told the Securities
and Exchange Commission it has reduced its stake in GenCorp Inc
to 8.6 pct, from 9.8 pct, by selling 250,000 shares at a price
equal to 118.5 dlrs per share.
General Partners, which includes GC Holdings Inc and
General Acquisitions Inc, said yesterday it was dropping its
100-dlr-a-share hostile takeover bid for GenCorp because of
GenCorp's move to buy back its shares for up to 130 dlrs each.
Reuter
|
Subsets and Splits