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REAGAN TO ALLOW REVIEW OF HIS NOTES ON IRAN | President Reagan has agreed to let
the House and Senate select committees investigating the Iran
arms sale review his personal diary notes on the affair,
committee members said today.
The notes will cover the period from January 1, 1984 to
December 19, 1986 when the Iran arms deal was planned and
carried out and will include notes on Iran, Nicaragua and
related subjects, House committee chairman Lee Hamilton said.
The notes will be selected by the White House counsel and
reviewed by Reagan before they are made available to committee
members within a few weeks.
Under terms of the agreement, committee members will be
allowed to review the notes at the White House, but will not be
permitted to make copies of the information.
Reuter
|
NAT'L DISTILLERS SAYS IT AGREES TO SELL SPIRITS UNIT FOR 545 MLN DLRS TO AMERICAN BRANDS
| |
USDA SEEKS COMMENTS ON GRAIN DISCOUNT SCHEDULE | The U.S. Agriculture Department is
seeking public comments on the question of adjusting the
Commodity Credit Corporation's (CCC) discount and premium
schedules to improve the quality of grain it accepts as loan
collateral or under price support programs.
The premiums and discounts schedule are based on quality
factors such as moisture content and kernel damage. The
schedule stipulates the premiums and discounts used for valuing
grain the CCC accepts or purchases during the year.
The department said it is possible that producers could be
encouraged to delivery higher quality grain to CCC by adjusting
the premiums and discounts.
Comments are due by April 24 and a report to Congress is
required by law by May 10.
Reuter
|
BRAZILIAN FOREIGN DEBT REACHES 110.6 BILLION DLRS | Brazil has a foreign debt of 110.6
billion dlrs, according to the latest official figures released
by the Central Bank.
The figure, published in the Central Bank's quarterly
review "Brazil Economic Program," refers to the situation in
December 1986.
The Central Bank said the registered medium and long-term
debt was 101.54 billion dlrs, while non-registered debt was
estimated at 9.03 billion dlrs.
In the previous official figure given at the end of last
year, the total debt stood at 108.8 billion dollars.
Reuter
|
MCF FINANCIAL PLANS INITIAL PUBLIC OFFERING | MCF Financial Corp said it filed
a registration statement with the Securities and Exchange
Commission covering a proposed initial public offering of
1,075,000 common shares.
MCF said proceeds from the offering will be used to repay
debt, to purchase loan participation interests and for working
capital.
MCF is engaged in the commercial finance business.
Reuter
|
CASCADE IMPORTERS UNIT ACQUIRES PARIS COMPANY | <Cascade Importers Inc USA>'s
Cascade International Europa GmbH of West Germany, said it
tentatively acquired worldwide rights for the products of Madam
Gre from the Bernard Tapie Group in Paris.
The agreement calls for Cascade to have the rights for the
manufacturing and trading of perfumes, skin care and treatment
products, and cosmetics of the group, it said.
Cascade said the agreement also includes the exclusive
rights to trade through duty-free channels worldwide the
designer Gres accessories.
In addition, Cascade said it was granted an option to
purchase all the assets including the plant and equipment
located in France.
The company said the cosmetic product line in the U.S.
market alone could represent 20 mln dlrs in revenue.
Reuter
|
ARMEL INC <AML> 4TH QTR LOSS | Oper shr loss 79 cts vs loss 2.32 dlrs
Oper net loss 2,536,896 vs loss 6,562,472
Revs 13.8 mln vs 14.5 mln
Year
Oper shr loss 59 cts vs loss 2.35 dlrs
Oper net loss 1,712,896 vs loss 5,747,472
Revs 43.6 mln vs 44.2 mln
NOTE: 1986 excludes charge of 12 cts per share in the
fourth quarter and gain of 11 cts per share in the year.
Reuter
|
NATIONAL DISTILLERS <DR> TO SELL SPIRITS UNIT | National Distillers and Chemical Corp
said it signed a definitive agreement to sell its spirits
division for 545 mln dlrs to James Beam Distilling Co, a unit
of American Brands Inc <AMB>.
The sale of the spirits division was made under the
company's previously announced plan to sell its spirits and
wines businesses, it said. The wine business was sold last
month for 128 mln dlrs to Heublein Inc, part of Grand
Metropolitan PLC, National Distillers said.
The purchase price will be paid in cash, a National
Distillers spokeswoman said.
The sale permits National to focus on its core businesses,
chemicals and propane marketing.
Proceeds from the sale will be used to repay debt and for
other corporate purposes, the company said.
In a separate statement, American Brands said the sale
would be for 545 mln dlrs plus the assumption of liabilities.
The sale would be subject to compliance with the
Hart-Scott-Rodino Antitrust Improvements Act and other
regulatory approvals, the company said.
National's distilled spirits business has sales of about
580 mln dlrs, American Brands said. National's spirits brands
include Gilbey's gin and vodka, DeKuyper Liqueurs and Windsor
Supreme Canadian Whisky.
Reuter
|
MANAGEMENT SCIENCE <MSAI> LOSS MAY TOP 20 CTS | Management Science America Inc,
clarifying statements made earlier today, said its loss for the
first quarter could exceed 20 cts a share because of
non-recurring expenses associated with the acquisition of
several companies, including Comserv Inc.
Earlier today, the company told a meeting of investors here
that the first quarter loss would be 20 cts a share.
Reuter
|
WOJNILOWER SEES DROP IN U.S. INTEREST RATES | The Federal Reserve will promote lower
interest rates this year to sustain world economic growth,
First Boston Corp managing director Albert Wojnilower said.
As much as the Fed would like to take a tough line against
inflation, it cannot act to slow the growth of credit without
subverting national U.S. economic policy.
"On selected occasions when the dollar seems steady, and,
because the trade deficit is not responding, the United States
decided to push Germany and Japan harder to meet their
commitments to economic growth, the Federal Reserve will do its
part by moving rates down," Wojnilower said in a report.
"Justifiably not anticipating either a recession or
seriously higher interest rates, securities market participants
have seen little to fear," Wojnilower said.
He said last week's "hiccup" in money and currency rates
and bond and stock prices was probably caused by Japanese
window dressing for March 31 end-of-fiscal-year accounts.
Wojnilower said the U.S. probably enjoyed above-average
economic growth in the first quarter. However, the pick-up
seems to reflect an unsustainable pace of inventory building
and the prospect for the full year is still for real gross
national product growth of about 2-1/2 pct, he said.
Reuter
|
RAYTECH <RAY> BUYS WEST GERMAN COMPANY | Raytech Corp said it acquired
<Raybestos Industrie-Produkte GmBH> for 7.5 mln dlrs.
Raybestos, with manufacturing facilities in Radevormwald,
West Germany, produces friction materials for use in clutch and
braking applications.
Reuter
|
INTERCARE <CARE> TO POST 4TH QTR LOSS | Intercare Inc said it
expects to report a substantial loss for its fourth quarter
ended January 31 because of a writeoff of expenses associated
with its recently terminated debt and equity offering.
The company also said the write off includes expenses
associated with the acquisition of U.S. Medical Enterprises
Inc, and with the restructuring of certain partnerships.
Intercare also said it increased its reserve against
accounts receivable.
Executives at the company were not immediately available to
provide additional details.
Intercare also said it has implemented a workforce
reduction, closed two medical centers and is considering
additional closings as a means of reducing a working capital
deficit.
Reuter
|
CANADA TO MONITOR STEEL IMPORTS, EXPORTS | Canada plans to monitor steel shipments
flowing in and out of the country in an attempt to appease
concerns in the U.S. over the high level of Canadian steel
exports, Trade Minister Pat Carney said.
"To help maintain our open access to the U.S. steel market,
the government is taking further action to ensure we have more
accurate data on exports and imports and that Canada is not
used as a backdoor to the U.S. market by offshore suppliers,"
Carney said.
Carney also said Canadian companies were being asked to
exercise prudence in the U.S. market and both countries were
considering establishing a joint commission to study the
growing steel problem.
Carney told the House of Commons she will soon announce an
amendment to the Exports and Imports Permits Act to set up the
monitoring program.
Canadian steel shipments to the U.S. have risen to 5.7 pct
cent of the U.S. market in recent months, almost double the
level just two years ago, Canadian trade officials said.
The increase in Canadian shipments comes at a time of
growing anger in the U.S. over rising steel imports from
several countries in the face of a decline in the domestic
steel industry.
Some U.S. lawmakers have proposed Canada's share of the
American market be limited to 2.4 pct.
Reuter
|
UNITED TECH <UTX> SEES NO EARNINGS IMPACT | United Technologies Corp said
the decision by an international consortium not to develop a
new engine would have no impact on 1987 or 1988 earnings.
<International Aero Engines>, IAE, 30 pct owned by United
Technologies' Pratt and Whitney division, has decided not to
launch a superfan version of its V2500 engine.
"We've told analysts that IAE's decision not to launch a
full development program of the IAE superfan for certification
in 1991 will have no short term impact on earnings," a United
Technologies spokesman told Reuters.
Short term refers to 1987 and 1988, the spokesman said. He
declined to elaborate.
IAE's other owners are Rolls Royce PLC, <Japanese Aero
Engines Corp>, Fiat SPA and <MTU> of West Germany.
Analysts are estimating United Technologies will earn 3.75
dlrs to 4.50 dlrs a share in 1987. It reported earnings of 36
cts a share in 1986, which included two large writeoffs.
Reuter
|
STEWART AND STEVENSON <SSSS> 4TH QTR NET | Shr profit 72 cts vs profit 14 cts
Net profit 3,309,000 vs profit 609,000
Revs 72 mln vs 65 mln
Year
Shr nil vs loss 4.13 dlrs
Net profit 1,000 vs loss 19 mln
Revs 249 mln vs 269 mln
NOTE: Full name Stewart and Stevenson Services Inc.
Reuter
|
CANADA PLANS NEW BOND ISSUE APRIL 14 | Canada plans to offer a three-part bond
issue Tuesday, April 14, which will be dated and delivered May
1, the finance department said.
The issue will have a mid-term bond, a bond due in about 10
years and a long term bond. Further details, including the
amount being offered, will be announced Monday.
The deparment said 650 mln dlrs of government bonds mature
May 1, 1987.
Reuter
|
GENERAL ELECTRIC <GE> UNIT OFFERS NEW SERVICE | General Electric Co's RCA Global
Communications said it now offers RCA THRUFAX, a service that
delivers telex messages to facsimile terminals.
No special equipment or extra cost is required to receive
telex messages, but the facsimile terminal must be registered -
without charge - with RCA, the company said.
The company said through the service, every telex terminal
in the world will be able to reach RCA-registered facsimile
terminals in the U.S., of which there are approximately
500,000.
Reuter
|
CENTOCOR <CNTO> IN PACT WITH AJINOMOTO | Centocor Inc said it entered into
an agreement with <Ajinomoto Co Inc> for the exclusive
distribution of Centocor's Panorex in Japan.
Panorex is a monoclonal antibody, made through recombinant
gene technology, for the treatment of pancreatic cancer. It has
been tested in humans in Europe and the U.S. since 1982.
Centocor said it intends to begin clinical trials in the U.S.
this year with a modified form of the drug.
Under the agreement, Ajinomoto will conduct clinical tests
of the drug in Japan and both companies will jointly file for
marketing approval for the product in Japan.
Reuter
|
G-24 MINISTERS SAY DEBT CRISIS ENTERING NEW AND DANGEROUS PHASE
| |
CENTURY BANCORP FILES FOR STOCK OFFERING | <Century Bancorp Inc> said it
filed for an initial public offering of 1.6 mln shares of Class
A common shares through an underwriting group managed by
Moseley Securities Corp.
The company said the Class A shares are non-voting except
under certain limited conditions.
Reuter
|
WESTAMERICA BANCORP <WAB> 1ST QTR NET | Shr 98 cts vs 63 cts
Net 2,602,000 vs 1,571,000
Loans 834.8 mln vs 729.0 mln
Deposits 1.04 billion vs 942.1 mln
Assets 1.15 billion vs 1.02 billion
Reuter
|
U.S.SENATE LIFTS SOME BANS ON NATURAL GAS | The Senate unanimously approved
legislation to lift a ban on new construction of natural
gas-fired power plants and other large industrial gas-burning
plants.
The bill, sponsored by Senate Energy Committee chairman
Bennett Johnston, also repeals mandatory incremental pricing of
natural gas which was designed to protect residential consumers
from major price increases by forcing some industrial users to
pay higher than market prices.
"This legislation will open up new natural gas markets," the
Lousiana Democrat said.
The gas restrictions were enacted in 1978 in response to a
shortage of natural gas and predictions of higher prices.
"Now both oil and gas prices are severely depressed,"
Johnston said.
In a compromise with coal producers, the bill requires new
baseload electric powerplants be designed to accomodate
modifications necessary to burning coal or another alternate
fuel.
Reuter
|
U.S. FARM LAND VALUE DECLINE MODERATES--USDA | The value of U.S. farmland declined
again last year, but less than in the previous year, the U.S.
Agriculture Department said.
In a summary of its Agricultural Resources Report, the
department said on February 1, 1987, the average value per acre
of farmland stood at 548 dlrs, down eight pct from a year
earlier. Values dropped 12 pct in 1985, it noted.
Real values, which are adjusted for inflation, also
declined less than in 1985, because of the low rate of
inflation in 1986.
Real values fell 10 pct compared to 14 pct in 1985, it
said.
The department said in the Corn Belt and Northern Plains,
which suffered severe losses in the past five years, declines
appear to be moderating. Also there are reports of stable
values in some areas of the Corn Belt, it noted.
The continuing downturn in values reflects the large
acreage of land offered for sale relative to demand, concern
about lower crop prices, and uncertainty over farm programs,
the department said.
Those factors tend to offset the effects of relatively high
cash farm income, lower interest rates, and reduced operating
expenses, it said.
Reuter
|
SOUTHEAST BANCORP <STB> ACTS ON BRAZILIAN DEBT | Following the lead of other major
banks, Southeast Banking Corp told the Securities and Exchange
Commission it would place 54.2 mln dlrs of medium- and
long-term Brazilian debt on non-accrual or cash status.
Based on current interest rates, it estimated in a filing
that the move will reduce net income by about 800,000 dlrs in
the first quarter and 3.2 mln dlrs for all of 1987. The company
also said it did not believe the Brazilian debt situation would
have a "material adverse" effect on it.
It also said it would issue 1,080,000 common shares in
connection with its acquisition of Popular Bancshares Corp.
Reuter
|
WILLIAMS <WMB> SEES FLAT PIPELINE VOLUMES IN 1987 | Williams Cos said it expected oil and
fertilizer transportation volumes to be flat in 1987 but said
operating profits from the pipeline unit should improve from
49.4 mln dlrs earned last year when a seven mln dlr special
charge was incurred.
Williams Pipeline Co took the charge against earnings in
1986 for the removal of more than 500 miles of old pipeline
from service and for casualty losses. Companywide, Williams had
a net loss of 134 mln dlrs on total revenues of 1.85 billion
dlrs, a decline from profits of 32 mln dlrs on sales of 2.46
billion in 1985.
In its annual report, Williams said its Northwest Pipeline
Corp and Williams Natural Gas Co had natural gas costs that are
among the lowest in the nation, averaging 2.04 dlrs and 2.07
dlrs per mcf, respectively, last year. Total natural gas
reserves for both units declined to 10,010 billion cubic feet
in 1986 from 11,334 billion cubic feet the previous year.
The company said its Williams Natural Gas unit, which has
less take-or-pay exposure than most major pipelines, should
show improvement in its 1987 operating results because of
changes tariff and federal tax rates.
The company's gas marketing business is expected to have
somewhat lower earnings in 1987 because of competition in its
operating region, the annual report said. The gas marketing
unit earned 26.0 mln dlrs on sales of 285.6 mln dlrs last year.
Williams also said it expected a substantial decline in its
debt to equity ratio this year because of more than 250 mln
dlrs received in cash from the sale of Agrico Chemical Co and
proceeds from the sale and leaseback of Williams
Telecommunications Co. The telecommunications business, a
2,000-mile fiber optic system for long distance use, will not
be profitable until late 1988, Williams said.
Reuter
|
SUPER VALU STORES INC <SVU> 4TH QTR FEB 28 NET | Shr 38 cts vs 25 cts
Net 28,339,000 vs 18,650,000
Sales 2.27 billion vs 1.97 billion
Avg shrs 74,485,000 vs 74,270,000
Year
Shr 1.20 dlrs vs 1.23 dlrs
Net 89,301,000 vs 91,247,000
Sales 9.07 billion vs 7.91 billion
Avg shrs 74,387,000 vs 74,184,000
NOTE: 1986 period ended February 22, 1986
1986 earnings include net loss of unconsolidated subsidiary
of 162,000 dlrs in the quarter and 702,000 dlrs for the year
Reuter
|
PARKER DRILLING CO <PKD> 2ND QTR FEB 28 LOSS | Shr loss 70 cts vs loss 57 cts
Net loss 20,616,000 vs loss 16,854,000
Revs 23.1 mln vs 60.1 mln
Six mths
Shr loss 1.38 dlrs vs loss 1.02 dlrs
Net loss 40,780,000 vs loss 29,996,000
Revs 61.0 mln vs 114.9 mln
Reuter
|
G-24 SAYS DEBT CRISIS ENTERING NEW PHASE | Ministers from the Group of 24
developing coutries said that the debt crisis was entering a
new and dangerous phase and called for the formation of a
ministerial committee to examine solutions to the problem.
In a statement following a meeting of the ministers, they
said that the "existing (debt) strategy offers no prospect for a
lasting solution to the debt problem."
The statement said that there should be a new attitude and
approach in respect of the existing stock of debt and called
for current flows and future credits to be examined by
governments, multilateral and banking institutions.
The statement also said that the prospects of the least
developed countries continue to deteriorate and "will improve
only if commensurate financing on concessional terms is made
available."
Reuter
|
COFFEE COULD DROP TO 70/80 CTS, CARDENAS SAYS | International coffee prices could drop to
between 70 and 80 cents a lb by next October if no agreement is
reached to support the market, Jorge Cardenas, manager of
Colombia's National Coffee Growers' Federation said.
Speaking at a forum for industrialists, he said one of the
reasons was that the market was already saturated and that
producers will have excess production and stockpiles of 39 mln
(60-kg) bags in 1987.
Today, May futures in New York settled at 107.90 cents a
lb.
Reuter
|
PAN AM <PN> UNIT SETS INTRO FARE TO ATLANTA | Pan American Corp's Pan Am World
Airways said it will begin daily service tomorrow from Atlanta
to New York, Washington and Miami.
The company said it will offer the flights for 49 dlrs
between April 9 and May 9. The 49 dlr fare is unrestricted, but
is capacity controlled, Pan Am said.
Pan Am said the flights are timed to connect with European-
and South American-bound flights.
Reuter
|
CAESARS WORLD <CAW> STAYS ON S/P WATCH, NEGATIVE | Standard and Poor's Corp said it is
keeping 230 mln dlrs of debt of Caesars World Inc and Caesars
World Finance Corp on creditwatch with negative implications.
S and P cited Caesars World's proposed recapitalization
plan that calls for incurring one billion dlrs of bank and
other debt to finance a 25 dlr per share special dividend and
the repayment of about 222.5 mln dlrs of existing debt.
It said the plan's terms would violate dividend convenants
in the rated debt's indentures and likely force refinancing of
those issues. Caesars was placed on creditwatch for a possible
downgrade March nine following investor Martin Sosnoff's bid.
Sosnoff bid 28 dlrs per share, or 725.2 mln dlrs, for the
86.4 pct of Caesars World stock he does not already own,
Standard and Poor's noted.
The rating agency said an increase in Sosnoff's offer is
possible. If successful, the stock bid would markedly raise
Caesars World's financial risk and lead to a large drop in net
income and cash flow, S and P said.
Caesars World currently carries BB senior debt and B-plus
subordinated debt. The finance unit's subordinated debt, which
is guaranteed by the parent, is rated B-plus.
Reuter
|
PHOENIX FINANCIAL <PHFC> BOARD RESIGNS | Phoenix Financial Corp said that,
in connection with its previously announced reorganization,
its board of directors resigned.
Resigning as directors, officers and employees of the
company were Mary Anne Cossa, Thomas C. Amendola and James J.
O'Maller, the company said. It said Martin S. Ackerman and Joel
Yonover, both attorneys, were named directors and constitute
the new board.
In addition, the company said Ackerman was named chief
executive officer.
Phoenix said it acquired a controlling interest in <Data
Access Systems>, which sells and leases computer equipment.
It said Ackerman, Yonover and Diane Ackerman were named
directors of Data Access.
Moreover, the company that it and Data Access are both in
the process of reorganizing and the securities of both
companies represent speculative and risk-related investments.
Reuter
|
ENGINEERED SYSTEMS <ESD> UNIT GETS LOAN NOTICE | Engineered Systems and
Development Corp said Wells Fargo and Co's <WFC> Wells Fargo
Bank has demanded immediate payment of a 1,750,000 dlr loan
made to Engineered's Seaborn Development Inc unit under a
revolving credit arrangment that expired on April 30, 1986.
The company said Wells Fargo has also said it will sue to
collect if it does not receive payment immediately.
The parties involved also began negotiations to restructure
the repayment over an 18 month period and the talks are
ongoing, Engineered Systems also said.
Reuter
|
SUMMA <SUMA> TO FILE FOR FINANCING COMMITMENT | Summa Medical Corp said it
intends to file a prospectus with the Securities and Exchange
Commission outling a commitment for a six mln dlr financing,
signed yesterday.
Summa said it expects the filing to take place before April
24.
Reuter
|
HBO <HBOC> URGES SHAREHOLDERS AGAINST ANDOVER | HBO and Co said it sent a letter of
strongly urging shareholders not to sign any proxy cards sent
by Andover Group.
ON March 30, Andover Group, a two-man general partnership
which owns about seven pct of HBO's stock, filed preliminary
proxy materials with the Securities and Exchange Commission
seeking to nominate an alternative slate of directors at the
company's April 30 annual meeting.
Andover had expressed an interest to acquire the company in
September 1986 but HBO has never received an offer from them,
it said.
In addition, HBO said its financial condition is improving
rapidly as the result of a significant restructuring
implemented in 1986.
It expects the company to report net income of about 40 cts
per share in 1987 and a very significant increase in 1988.
For the year ended December 1986, the company reported a
loss of 3.6 mln dlrs, or 16 cts per share.
Reuter
|
(CFCF INC) SIX MTHS FEB 28 NET | Shr 51 cts vs 56 cts
Net 5,645,000 vs 6,153,000
Revs 45.9 mln vs 45.3 mln
Reuter
|
UAP MAKES ACQUISITIONS | <UAP Inc> said it has acquired Slater
Auto Electric Ltd, with two Ontario stores, and United Diesel
Engine Parts Ltd, of Dartmouth, Nova Scotia, for undisclosed
terms. It said the transactions, together with acquisitions
earlier this year, will increase its annual sales by about 4.5
mln dlrs.
Reuter
|
GREECE ACCUSES TURKEY OF AIR SPACE INFRINGEMENTS | Greece accused Turkish warplanes of
infringing the Athens Flight Information Region (FIR) in the
Aegean Sea three times.
The Defense Ministry said the Turkish intrusions took place
over the islands of Chios, Samos, Lesbos and Lemnos. The planes
were identified and intercepted by Greek fighters, it said.
Greece has charged Turkish aircraft with 10 other FIR
infringements and two air space violations in the Aegean over
the last two days.
Reuter
|
EIA SAYS DISTILLATE STOCKS UNCHANGED, GASOLINE OFF 200,000, CRUDE UP 6.3 MLN
| |
PROPOSED OFFERINGS RECENTLY FILED WITH THE SEC | The following proposed securities
offerings were filed recently with the Securities and Exchange
Commission:
First Interstate Bancorp <I> - Shelf offering of up to 112
mln dlrs of debt securities, including notes and debentures, on
terms to be determined at the time of the sale.
Pacificorp Credit Inc, subsidiary of Pacificorp <PPW> -
Shelf offering of up to 250 mln dlrs of debt securities,
including notes and debentures, at prices and on terms to be
determined at the time of the sale.
Reuter
|
USDA DISCUSSING PL 480 AGREEMENT WITH MOROCCO | The U.S. Agriculture Department is
currently discussing an amendment to a PL 480 agreement signed
with Morocco on January 22, but the mix of commodities under
the amendment has not been determined, a U.S. Agriculture
Department official said.
The official noted the agreement signed in January provided
for the supply of about 55,000 tonnes of vegetable oil, 55,000
tonnes of corn and 126,000 tonnes of wheat, all for delivery
during the current fiscal year, ending this September 30.
No purchase authorizations for the commodities provided in
the January agreement have been announced by the department.
Reuter
|
THORN-EMI WINS U.S. RULING IN BEATLES SUIT | <Thorn-EMI PLC> said the New York
Supreme Court dismissed six of the nine actions in a suit filed
by the Beatles for royalties on their songs.
It said the court dismissed charges of fraud and
conversion, and claims of 50 mln dlrs in punitive damages
sought by the companies, <Apple Records Inc>, <Apple Corps
Ltd>, and former Beatles, George Harrison, Ringo Starr and the
widow of John Lennon, Yoko Ono. Paul McCartney was not party to
the suit.
The Beatles brought the suit against Capital Records Inc
and EMI Records Ltd, two units of Thorn-EMI.
The Beatles charged the record companies with defrauding
them by not paying royalties on sales of various recordings
over the past 18 years.
A spokesman for the company in New York said while the
court dismissed six of the nine actions involving punitive
damages, three actions remain, with 30 mln dlrs in claims for
royalties.
Reuter
|
LTV <QLTV> AND STEELWORKERS BEGIN NEGOTIATIONS | The negotiating committees for the
United Steelworkers of America and LTV Corp said they have
begun intensive negotiations and have made a "firm commitment"
to successfully conclude these negotiations by May one.
They said the talks will cover issues related to
termination of pension plans by the Pension Benefit Guaranty
Corp for both active workers and retirees, and insurance
programs for both groups.
The Union and LTV also said they plan to resolve all issues
related to the terms of a basic labor agreement and the
effective use of manpower and equipment.
Reuter
|
EIA SAYS DISTILLATE STOCKS UNCHANGED IN WEEK | Distillate fuel stocks held in
primary storage were unchanged in the week ended April three at
106.9 mln barrels, the Energy Information Administration (EIA)
said.
In its weekly petroleum status report, the Department of
Energy agency said gasoline stocks were off 200,000 barrels in
the week to 248.1 mln barrels and refinery crude oil stocks
rose 6.3 mln barrels to 335.8 mln.
The EIA said residual fuel stocks fell 100,000 barrels to
38.1 mln barrels and crude oil stocks in the Strategic
Petroleum Reserve (SPR) rose 1.1 mln barrels to 520.0 mln.
The total of all crude, refined product and SPR stocks rose
9.4 mln barrels to 1,561.1, it said.
Reuter
|
HAWKEYE <HWKB> 1986 ANNUAL REPORT QUALIFIED | Hawkeye Bancorp's 1986 annual
financial results were qualified by its auditors, according to
the annual report.
"...there are conditions which may indicate that the
company will be unable to continue as a going concern,"
auditors Deloitte Haskins and Sells said in Hawkeye's annual
report to shareholders.
Hawkeye reported a 1986 loss of almost 59 mln dlrs, citing
an increase in its loan loss provision to 34.7 mln dlrs and
restructuring costs of 27 mln dlrs.
However, Hawkeye, with assets of 1.09 billion dlrs at 1986
year end, said it expects "to have sufficient cash to meet its
obligations for the next 12-month period."
Last July the bank holding company reached a debt
restructuring agreement which identifed 17 bank subsidiaries
and five non-bank operations for disposition.
"The restructuring has improved Hawkeye's financial
condition, but it does not assure that Hawkeye will be able to
survive as a going concern," the report said.
Hawkeye's survival will depend on its ability to comply
with provisions of the debt restructuring and regulatory
agreements and on its ability to return to profitable
operations, it said.
There can be no assurance that Hawkeye will be able to meet
these requirements. However, the company "believes it will be
able to do so," Hawkeye said.
Reuter
|
S/P SEES STABLE CREDIT QUALITY IN FIRST QUARTER | Standard and Poor's Corp said that
corporate credit quality stabilized in the first quarter of the
year, even though downgrades outpaced upgrades.
S and P said it reduced 79 debt ratings, affecting 63
billion dlrs of debt securities, and raised 28 ratings,
affecting 12 billion dlrs of debt.
However, the rating agency pointed out that last quarter's
number of downgrades was the lowest since first quarter 1986.
It also said the upgrades were the fewest since early 1986.
It said rating changes quieted in the oil and insurance
sectors, while utilities provided a positive influence.
Standard and Poor's said its major downgrades last quarter
were of Denmark, USX Corp <X>, Chase Manhattan Corp <CMB> and
Manufacturers Hanover Corp <MHC>.
It said the most negative influence on rating changes
occurred in the financial institution sector, where there were
22 downgrades versus five upgrades.
Notably, ratings were reduced for several of the largest
U.S. bank holding companies, reflecting lower asset quality and
weaknesses that were specific to those firms, S/P said.
Among industrials, S and P cut 43 ratings and raised 10.
Lower ratings prevailed in steel and health care, it said.
Reuter
|
<WASHINGTON BANCORPORATION> 1ST QTR NET | Shr 33 cts vs 37 cts
Net 2,051,000 vs 1.8 mln
Assets 1.7 billion vs 1.5 billion
Deposits 1.4 billion vs 1.2 billion
Loans 1.1 billion vs 900 mln
Note: Year-ago results restated to reflect merger with
Colson Inc.
Reuter
|
DOME <DMP> PLAN MAY FORCE SALE OF ENCOR STAKE | Dome Petroleum Ltd's proposal to
restructure debt of more than 6.10 billion Canadian dlrs
includes provisions that may force the company to sell its 42
pct stake in <Encor Energy Corp Inc>, Dome said in a U.S.
Securities and Exchange Commission filing.
Dome said in the filing that its debt plan proposes making
payments under a five year income debenture to the lender whose
debt is secured by Dome's Encor shares.
After the five years are up, "under certain circumstances
the shares of Encor may be required to be disposed," the company
said.
Dome has pledged its 42.5 mln Encor shares as security for
part of its debt to <Canadian Imperial Bank of Commerce>,
estimated last year at 947 mln dlrs.
Analysts have said Commerce Bank was pressing Dome to sell
the stock to pay down its debt.
Dome's Encor shares had a market value of 313 mln dlrs on
March 17, 1987, the company's filing said.
As previously reported, Dome is seeking approval in
principle for the debt restructuring plan. Dome said in the
filing it proposed lenders sign a letter of understanding in
early April, with implementation to be effective July 1, 1987.
Dome Petroleum reiterated in the SEC filing that its
existence as a going concern is dependent on continuing the
interim debt plan, due to expire on June 30, and winning
agreement for its proposed restructuring plan.
"The company believes that the negotiation and
implementation of the proposed debt restructuring plan is
realistic and achievable," Dome said.
"However, the final outcome of the negotiations cannot be
predicted at this time," it said.
Reuter
|
PDVSA SIGNS WITH AGIP, ARCO FOR COAL PROJECT | Petroleos de Venezuela, S.A. signed a
letter of intent with Agip Carbone and Arco Coal Co, a unit of
Atlantic Richfield Co <ARC> to exploit the coal deposits at
Guasare in western Zulia state, PDVSA officials said.
The Carbozulia project will include open-pit mining of the
low sulphur content coal, as well as the construction of a
railroad and port facilities, at an estimated total cost of 500
mln dlrs.
The Agip/Arco consortium will own 48 pct of Carbozulia,
while PDVSA will have 49 pct, with the remaining three pct to
be held by private investors.
Carboulia President Luis Urdaneta said work will begin this
month on a preliminary test mine with a capacity of 500,000 mt
a year. A first shipment is scheduled to be ready by third
quarter 1987, he said.
"The purpose of this trial shipment is to let potential
customers know about the quality of the Guasare coal," Urdaneta
said. Long-term plans call for Carbozulia to produce 6.5 mln mt
a year of by 1995, at which time coal exports are expected to
bring Venezuela some 200 mln dlrs a year.
Agip Carbone President Francesco Coffrini said yesterday 60
pct of Carbozulia's coal will be exported to European markets.
Reuter
|
RECENT U.S. OIL DEMAND OFF 2.6 PCT FROM YEAR AGO | U.S. oil demand as measured by
products supplied fell 2.6 pct in the four weeks ended April
three to 15.73 mln barrels per day (bpd) from 16.16 mln in the
same period a year ago, the Energy Information Administration
(EIA) said.
In its weekly petroleum status report, the Energy
Department agency said distillate demand was off 7.9 pct in the
period to 2.90 mln bpd from 3.15 mln a year earlier.
Gasoline demand averaged 6.76 mln bpd, off 3.1 pct from
6.98 mln last year, while residual fuel demand was 1.15 mln
bpd, off 16.9 pct from 1.39 mln, the EIA said.
So far this year, distillate demand fell 2.3 pct to 3.20
mln bpd from 3.28 mln in 1986, gasoline demand was 6.63 mln
bpd, off 0.3 pct from 6.65 mln, and residual fuel demand fell
4.9 pct to 1.35 mln bpd from 1.42 mln, the EIA said.
Year-to-date domestic crude output was estimated at 8.40
mln bpd, off 7.6 pct from 9.09 mln a year ago, while gross
crude imports averaged 3.92 mln bpd, up 27.1 pct from 3.08 mln,
it said.
Reuter
|
DEFICIT CUTS SEEN UNABLE TO CURE TRADE DEFICIT | Financial analysts say they are
pleased with congressional moves to trim next year's federal
budget deficit but believe the actions will do little to help
improve the U.S. trade deficit or buoy the economy.
The House of Representatives is expected to vote tomorrow
to approve a trillion-dollar budget blueprint for the coming
fiscal year that reduces the deficit by 38 billion dlrs.
Similarly, the Senate Budget Committee has approved a plan
that would cut federal red ink by about 37 billion dlrs next
year.
"In terms of the economy, 37-38 billion dlrs is
infinitesimal, so cuts of this magnitude will have little
impact on the economy and the trade deficit," said Stanley
Collander, a Touche Ross federal budget policy analyst.
"At best, it will have a small positive effect," Collander
said in an interview.
Federal Reserve Board Chairman Paul Volcker has repeatedly
told Congress that cutting federal red ink would go a long way
to help reduce the massive trade deficit and also help ease
some of the downward pressure on the value of the dollar.
The U.S. government has attempted to remedy the trade
imbalance by driving down the value of the dollar. But Volcker
has warned that a further fall in the dollar's value is fraught
with danger.
Such a decline, he has said, could refuel inflation as
imported goods become more expensive and chase away foreign
capital needed to finance the federal budget deficit.
In addition, in February, U.S. officials meeting with other
major industrialized nations in Paris agreed that the value of
the dollar had dropped enough and that world exchange rates
should be stabilized at around current levels.
As part of that agreement, Japan and West Germany agreed to
take steps to stimulate their economies and the United States
agreed to cut its budget deficit.
The alternative to driving down the dollar any further as a
way to deal with the trade deficit, Volcker said recently, is
to reduce U.S. consumption, particularly federal spending.
"If you don't deal with the budget deficit, everything else
you do is going to be counterproductive," Volcker said in recent
testimony before the Senate Banking Committee.
Volcker also said he would prefer to further tighten the
government's purse strings than have the Fed tighten the credit
supply if action was needed to fight inflationary pressures or
to assure the continued flow of foreign capital into the United
States.
Analysts say that Fed tightening now could choke off the
current modest economic expansion and threaten a recession.
Kemper Financial Services economist John Silvia stressed
that any deficit reduction was better than none.
But he said the size of the cuts under consideration were
not enough to give the Federal Reserve Board the flexibility it
needs to steer the economy or to keep the value of the dollar
from plunging further in world exchange markets.
"There's no doubt that some deficit reduction helps, but if
your objective is to stabilize the dollar and perserve the
Fed's flexibility to conduct monetary policy, then the answer
is, it's not enough," Silvia told Reuters.
The U.S. trade deficit has become one of the government's
most vexing and persistent problems.
The 1986 deficit was 169.8 billion dlrs and there is as yet
little indication that this year's figure will be any lower,
though administration officials have predicted it will drop by
about 20 to 30 billion dlrs by year's end.
In the past, Volcker has joked that he never lost sleep
worrying whether Congress would cut too much fat from the
federal budget.
On the other hand, he also has made it clear he is not
attached to the gradually declining deficit ceilings set for
the 1986-1991 period by last year's Gramm-Rudman balanced
budget law.
While the new law set a ceiling of 108 billion dlrs for
next year's federal deficit, both the House and Senate Budget
Committees have conceded that their budget plans would fall
short of the deficit reduction goal by about 25 billion dlrs.
"For political reasons, 35 to 40 billion dlrs is about the
most you're going to get" out of Congress at the present time,
said Touche Ross's Collander. "To do something more than that
would be extraordinary, remarkable and very, very difficult."
Collander said the real danger for Congress was to end up
short of the deficit reduction goal set by its Budget panels.
"To an extent, this has become the minimum acceptable
reduction level," he explained. "Anything less than that will now
look like a failure to Wall Street."
The budget plan now under debate on the House floor would
lower an estimated 171 billion dlr deficit for the year
beginning on October one to about 133 billion dlrs by cutting
defense and domestic programs by 38 billion dlrs from their
anticipated spending levels for next year.
The Senate Budget Committee has called for a deficit of
nearly 134 billion dlrs with about 18.5 billion dlrs in new
taxes and about the same amount in spending cuts.
Reuter
|
FORD <F> EXTENDS BUYER INCENTIVE PROGRAM | Ford Motor Co said it has
extended to April 30 its buyer incentive program on 1986 and
1987 Ford Escort and Tempo, and Mercury Lynx and Topaz.
Consumers will have a choice of 3.9 pct to 9.9 pct annual
percentage rate financing or a cash rebate of up to 600 dlrs.
Earlier Ford extended its incentive program to April 30 on
its Taurus and Mercury Sable and several lines of light trucks.
Reuter
|
STEWART AND STEVENSON SERVICES <SSSS> 4TH QTR | 4th qtr ended Jan 31.
Shr profit 72 cts vs profit 14 cts
Net profit 3,309,000 vs 609,000
Revs 72 mln vs 65 mln
Year
Shr profit nil vs loss 4.13 dlrs
Net profit 1,000 vs loss 19 mln
Revs 245 mln vs 269.1 mln
Reuter
|
ORS <ORSC> CHAIRMAN RESIGNS AFTER CONVICTION | Robert A. Alexander resigned
yesterday as chairman, president and director of ORS Corp
following his conviction in the United States District Court in
Tulsa of seven counts of mail and wire fraud, the company said.
The company, which will appoint an interim president, said
Alexander plans to appeal the conviction.
The company said it was not charged in Alexander's
indictment.
Reuter
|
WESTAMERICA BANCORPORATION <WSAM> 1ST QTR NET | Shr 98 cts vs 63 cts
Net 2,602,000 vs 1,571,000
Assets 1.15 billion vs 1.02 billion
Deposits 1.04 billion vs 942.1 mln
Loans 834.8 mln vs 729.0 mln
Return on avg assets 0.92 pct vs 0.63 pct
Reuter
|
COLOMBIA COFFEE REGISTRATIONS REMAIN OPEN | Colombia's coffee export registrations
remain open and there are no plans to close them since a new
marketing policy means an unlimited amount can be registered,
Gilberto Arango, president of the private exporters'
association said.
"The philosophy of the new policy is not to close
registrations. Nobody so far said may would be closed," he told
Reuters.
On March 13, Colombia opened registrations for April and
May for an unlimited amount.
Without giving breakdowns, Arango said private exporters
had registered 1,322,804 bags this calendar year up to April 6,
or roughly 440,000 bags per month, slightly lower than the
average in recent years.
He estimated the amount of bags registered by the national
coffee growers' federation at about the same, meaning a total
of about 900,000 bags registered and sold per month by
Colombia.
"The only change that could happen is, because of the
volume, we would be told that from such a date, registrations
would be for June shipment, etc" Arango said.
Reuter
|
ALBERTA ENERGY PLANS DEBENTURE ISSUE | <Alberta Energy Co Ltd> said it
filed a preliminary prospectus for an issue of convertible
debentures, which may total 100 mln dlrs depending on market
conditions.
It said it had not yet determined the interest rate,
conversion terms, maturity date or size of the issue.
Reuter
|
GATEWAY BANCORP INC <GBAN> 1ST QTR NET | Shr 32 cts vs 34 cts
Net 902,178 vs 662,647
Deposits 174.7 mln vs 134.4 mln
NOTE: Per share amounts adjusted to reflect 10-for-one
stock split effective Sept 16, 1986.
Reuter
|
SELAS CORP OF AMERICA <SLS> SETS SALE/LEASEBACK | Selas Corp of America said it
signed a letter of intent for a three mln dlr sale and
leaseback of its corporate offices and plants.
The sale is subject to a number of conditions, including
approval by the board and the unidentified buyer.
Reuter
|
INVESTOR CHARGES WITH STOCK MANUPULATION | William Rodman, a 43-year-old New York
investor was indicted for allegedly plotting to manipulate the
price of three over-the-counter stocks to drive up their prices
and create interest in the companies.
Rodman was also charged with securities and wire fraud
stemming from the alleged manipulation of the stocks of Memory
Metals Inc <MRMT>, Memory Protection Devices Inc <MPDI> and
<Intravision Inc>, beginning in January 1984.
The indictment charged that Rodman and other unnamed
co-conspirators bought and sold the stocks through 100 accounts
in at least 35 broker-dealer firms.
Reuter
|
FUNARO SAYS BRAZIL'S CREDITORS MUST TRUST HIM | Brazilian Finance Minister Dilson
Funaro, who suspended interest payments to creditor banks two
months ago, said creditors had to trust him when he said Brazil
would achieve a trade surplus large enough to continue
servicing its debt.
Speaking to reporters at the Brazilian Embassy, Funaro said
he would not seek approval of Brazil's economic program outside
his country, but added, "At the same time we show credibility,
you (the banks) are going to have to trust us."
Asked if creditor banks would accept Brazil's refinancing
needs based on a new economic program not endorsed by the
International Monetary Fund, Funaro said, "What other options do
they have?...They have to try to see our program."
Funaro, who is in Washington to attend the Interim
Committee and Development Committee meetings of the World Bank
and IMF, said he unveiled his refinancing proposals to the
major creditor banks in New York yesterday.
According to Funaro, the creditor banks "agreed on the need
to find a solution to the crisis." He did not elaborate.
Funaro said the commercial banks agreed on Brazil's need
for economic growth and added that creditors were aware that
Brazil cannot continue to export the 24 billion dlrs in net
capital that it transferred over the past three years.
He also said that he told bankers about Brazil's needs to
ensure a seven pct average growth and eight billion to 11
billion dlr trade surplus until 1991.
Administration officials familiar with the negotiations
said Brazil's new economic measures did not make much sense
based on current conditions in that country, and added that
they saw long and difficult negotiations ahead.
Lewis Preston, chairman of J.P. Morgan and Co. Inc., told
Reuters he remains hopeful that Brazil and its foreign bank
creditors will reach a debt rescheduling agreement before the
end of the year.
But Preston, who did not attend the meeting between Funaro
and creditor banks yesterday, added the onus is still on Brazil
to put its economic house in order first.
"They haven't even come up with a plan yet," Preston said
after Morgan's annual meeting in New York today.
Funaro, however, said most creditor banks had
representatives in Brazil who were well aware of Brazil's new
economic measures, designed to curb a surge in inflation and
spending and a sharp drop in exports.
Funaro called Brazil's program very responsible and very
strong, adding that "it is very different from other years,
there has been a tremendous change."
Based on Brazil's current economic situation - suspension
of interest payments on 67 billion dlrs owed to banks, 200 pct
inflation and the need of four billion dlrs in new loans every
year until 1991 - he said he was faced with two options.
REUTER...
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MORE AMERICAN BRANDS <AMB> ACQUISITIONS SEEN | American Brands Inc's 545 mln dlrs
acquisition of National Distillers and Chemical Corp's liquor
business is expected to be one of a series of acquisitions by
the tobacco company, analysts said.
"They were very frustrated with their inability to get
Chesebrough. They said they were looking for an acquisition. It
doesn't surprise me that they came up with another one," said
Allan Kaplan of Merrill Lynch and Co.
American Brands failed late last year in its 2.9 billion
dlrs bid for Chesebrough-Ponds Inc when Unilever N.V. agreed to
buy the company. But since then, Wall Street has been
speculating that American Brands would find another candidate
to help reduce its earnings exposure to tobacco.
"This is just typical," said George Thompson of
Prudential-Bache securities. "There's going to be more to come
here. American Brands had to make an acquisition because
tobacco is still a significant part of earnings. Their position
is a little less favorable than Philip Morris and RJ Reynolds,"
he said.
cash flow from its low growth tobacco, but the tobacco business
does require great amounts of capital expenditures. It can
therefore use its funds to make acquisitions. Analysts said the
National Distillers' spirits company, which makes Gilbey's gin
and vodka, Old Grandad and Old Crow whiskey, is not quite the
type of acquisition they envisioned.
"The distilled spirits business has been in a steady
gradual decline for sometime, as has the tobacco business,"
said Thompson.
REUTER...
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BUNDESBANK CALLS FOR CENTRAL BANK COOPERATION | Bundesbank board member Claus Koehler
called on central banks of major industrialised nations to
cooperate closely on exchange and interest rate policies.
In a lecture at the University of Surrey, pre-released
here, Koehler said that the only alternative to cooperation was
protectionism and control on capital movements.
"Central banks have sufficient experience of exchange market
transactions to steer exchange rates where they want to have
them," he said. He added that West German growth forecasts would
have to be revised downward because of the recent dollar drop
to 1.80 marks from above two marks at the start of 1987.
Koehler said that transactions on foreign exchange markets
had parted company with transactions in goods, services and
investments. It was the scale of speculative transactions that
determined market trends.
Speculative inflows could cause monetary aggregates to
grow. To reverse such a rise in the money stock, interest rates
would have to be lowered to allow funds to drain off.
"In other words, the monetary policy measures required are
different from -- and sometimes diametrically opposed to --
those needed when the money stock is increasing as a result of
mounting economic activity," Koehler said.
The dollar fall was one means of reducing the massive U.S.
Current account deficit. But attempts to keep the depreciation
going by talking the dollar down posed problems.
The sharp drop of the dollar had led to an immediate steep
rise in the cost of U.S. Imports and a sharp fall in the cost
of European imports. But the volume effect of falling imports
to the U.S. And rising imports to Europe would take time to
make itself felt compared with the price effect.
"Hence the depreciation of the dollar may well be going
further than would be necessary to adjust the current account
over the medium term," Koehler said.
A reduction in the U.S. Current account deficit would occur
only if the growth rate of GNP was higher than domestic demand.
In Japan and West Germany by contrast, domestic demand should
rise faster than GNP.
"In Germany this did indeed happen in 1986," Koehler said.
If a further appreciation of the dollar was to be
prevented, the U.S. Current account deficit could be offset by
an inflow of foreign funds into the U.S..
But only if there was an appropriate interest rate
differential would Europe and Japan look for financial
investment in the U.S.
When selecting monetary policy instruments, a central bank
had to pay greater heed than in the past to the impact its
measures might have on expectations and consequent decisions.
Koehler said the Bundesbank was changing money market rates
by operating on the open market rather than adjusting leading
interest rates because of the signal this gives to the market
and its substantial impact on exchange rates.
It was not only important to achieve the domestic goals of
price stability, economic growth and full employment but also
to tackle international problems like the exchange rate
problem, the debt problem and the current account problem.
A strategy had to be designed that helped "the safeguarding
of non-inflationary economic growth in an international
monetary system largely free of disruptions," Koehler said.
Given the system of floating exchange rates, it was
necessary for central banks to agree to intervene. It sufficed
to tell the market where central banks saw exchange rates over
the next few years and intervention points should not be set,
because they were only testing points for the market, he said.
In order to keep the international monetary system free of
disruptions central banks should not only intervene jointly but
also cooperate on interest rate policies, Koehler said.
REUTER
|
AUSTRALIAN UNEMPLOYMENT RISES IN MARCH | Australia's seasonally adjusted
unemployment rate rose to 8.4 pct of the estimated workforce in
March from 8.2 pct in February and 7.9 pct a year earlier, the
Statistics Bureau said.
The number of jobless rose to 650,700 from 631,900 in
February and 593,200 a year earlier, the Bureau said.
Unadjusted, the number of unemployed rose to 702,600 from
699,600 in February but the rate eased to 9.0 pct from 9.1,
reflecting a slight increase in the estimated workforce. In
March 1986, 640,400 persons, or 8.5 pct of the workforce, were
out of work.
REUTER
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CSR SAYS IT IS RETAINING NON-DELHI GAS-OIL STAKES | CSR Ltd <CSRA.S> said its sale of <Delhi
Petroleum Pty Ltd> will not affect the other oil and gas
interests it manages or operates.
CSR sold Delhi, which holds an average 25 pct in the Santos
Ltd <STOS.S>-led Cooper-Eromanga Basin onshore gas and liquids
joint ventures, to an Exxon Corp <XON> unit for 985 mln dlrs on
April 1.
In a statement to clarify the position, CSR said it will
retain its Roma Gas unit, the associated Roma-Brisbane gas
pipeline and the Bula oilfield on Seram, Indonesia, plus
exploration interests in Queensland and Hainan Island, China.
REUTER
|
JAPAN MINISTRY HAS NO COMMENT ON RICE TALKS REPORT | The Agriculture Ministry declined comment
on a local newspaper report that Japan had agreed to hold talks
on its closed rice market in the new GATT round.
"We have no idea about the report and cannot comment," a
spokesman told Reuters.
Nihon Keizai Shinbun, quoting unnamed government sources,
said Japan would tell U.S. Agriculture Secretary Richard Lyng
and U.S. Trade Representative Clayton Yeutter of its
intentions. The two are due to visit Japan later this month for
farm talks.
The U.S. Has been pressing Japan to discuss the rice issue
at the new round of General Agreement on Tariffs and Trade
talks. But Japan has said GATT is not the right forum.
Imports of rice to Japan are banned under the Foodstuff
Control Act.
Nihon Keizai said Japan's plan resulted from worries about
mounting trade tension with the U.S. At the GATT talks, Japan
will try to persuade the U.S. That its rice policy is
justified, it said.
The 93-nation world trade body began the Uruguay trade
round last September. It will take four years to negotiate.
REUTER
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SHOWA DENKO EXPORTS ALUMINIUM CASTING EQUIPMENT | <Showa Denko Ltd> said it is exporting
aluminium billet casting equipment and technology to countries
that have recently begun aluminium smelting.
A company official said it won a 500 mln yen order to
deliver 10 sets of casting equipment to Venezuela's Venalum by
end-1987. He said it received an order for one set from
Aluminium Bahrain B.S.C. Last year and expects further orders
from the Bahrain smelter.
Showa Denko withdrew from smelting last year but expects to
increase its sales of equipment and technology, he said.
REUTER
|
N.Z. GOVERNMENT POPULARITY RISES AHEAD OF ELECTION | New Zealand's ruling Labour Party
government has just completed its three-year economic reform
which threw thousands of people out of work, yet its popularity
has risen as the September deadline for the election draws
closer, a recent poll shows.
An Eyewitness/Heylen Poll, conducted for Television New
Zealand's Eyewitness news broadcast on April 2, showed Labour
had the support of 50 pct of voters compared with the
opposition National Party's 46 pct.
The figures had been reversed in a poll a month earlier.
The poll showed 40 pct of the canvassed voters thought the
economy would improve over the next year, up 12 points on last
month's result.
The increase came in a week when the government turned
seven departments into nine profit-oriented corporations run by
businessmen who promptly sacked some 4,000 employees, including
half the country's 1,700 coal miners.
The latest survey confounded those who proclaimed Labour's
days were numbered because of perceived insensitivity to its
traditional backers, the workers, political analysts said.
The poll indicates people are swinging behind the party and
the arguments of Finance Minister Roger Douglas, who has
presided over the deregulation of the economy and the
construction of one based on market forces without subsidies or
currency controls, the analysts said.
The economic reforms, by a party increasingly regarded in
New Zealand as more akin to the West European-style Social
Democrats than working class socialists, have rattled the
National Party, which is now regretting it was not as
innovative in the decade it ruled until Prime Minister Robert
Muldoon was ousted in 1983, one analyst said.
The National Party was further shaken, the analyst said,
when the Press, a Christchurch daily, said on April 2 the party
was "on the verge of flying apart" with the prospect of a coup
attempt against leader Jim Bolger by Muldoon. Bolger said the
article was an April Fool's joke.
Labour's reforms have brought unexpectedly strong tax
revenues, a lower budget deficit and less state borrowing, an
improvement in the balance of payments, a reduction in foreign
debt and improved productivity, economists said.
Inflation should peak at 19.5 pct in the quarter ended
March 31 and fall to about eight pct within a year, they said.
Labour's reforms have hit every sector, but the most
dramatic was the "corporatisation" of seven government
departments on April 1, which critics argue is the first stage
step towards the sale of state assets, the analysts said.
The move stops short of privatisation, as the state will
retain ownership, but the new corporations are expected to be
financially self-supporting and pay dividends.
Arguments have already broken out over money. One utility,
Electricorp, said its assets are worth less than 3.8 billion
dlrs yet the Treasury wants 8.5 billion for them.
No agreement has been reached on the value of assets of the
former forest service, the analysts added.
Chairman Alan Gibbs said in a speech the forest service had
been losing 100 mln dlrs annually, yet due to economies it now
employed less than 30 pct of its previous workforce and the new
corporation would pay the state a dividend of at least 20 mln
dlrs in its first year.
Uncertainties have also arisen over the government, as the
only shareholder, retaining the right to order the new
corporations to undertake certain projects although the full
cost must be met by the state, the analysts said.
Deputy prime minister Geoffrey Palmer said managers would
be held accountable for performance, with the government paying
for projects undertaken for social or environmental reasons.
This policy has already caused problems, the analysts
added. For example, Electricorp has refused to spend several
hundred million dlrs to build a hydro project at Luggate,
further up the Clutha river from the Clyde high dam now under
construction in Central Otago.
Prime Minister David Lange said this week that Labour MPs
had decided last year that Luggate be built and it was
important that the government honour its promises.
"But it is also a matter of importance that we do not see
many more jobs lost because of economic distortion than we
would save by having that promise honoured to the last," he
added.
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HOSPITAL CORP OF AMERICA <HCA> GETS MERGER BID | Hospital Corp of America said it
received a letter today from an investor group offering to buy
the company for 47 dlrs a share.
Based on 82 mln outstanding shares, the offer is worth
about 3.85 billion dlrs. But the company said that it would
take more than five billion dlrs to consummate the merger and
retire certain company debt.
It said it does not believe the offer is in the best
interest of shareholders, but added that it is referring the
matter to its board for discussions and would respond in due
course.
Hospital Corp of America said the letter was sent by
Charles Miller and Richard Ragsdale, two former officers of
<Republic Health Corp>, and Richard Scott, a partner in a
Dallas law firm.
The investors' letter stated that based on discussions with
several major financial institutions they were confident
financing for the transaction could be arranged, Hospital Corp
of America said. But it said the letter did not indicate that
the investors had made arrangements to obtain financing.
It said no further significant details were outlined in the
letter.
Hospital Corp of America, a manager and owner of hospitals,
earned 174.6 mln dlrs or 2.08 dlrs a share, on revenues of 4.93
billion dlrs in 1986.
Reuter
|
GOODMAN FIELDER PLANS 100 MLN DLR NOTE FACILITY | <Goodman Fielder Ltd>, an Australian
food products and supermarket firm, is planning a 100 mln U.S.
Dlr multi-option note issuance facility, lead manager BT Asia
Ltd said.
Under the three-year "evergreen" facility, which can be
extended annually, notes will be issued by its subsidiaries
<Goodman Fielder New Zealand Ltd> and <Goodman Fielder
Industries Ltd> and guaranteed by the parent company.
The facility is underwritten up to 75 mln dlrs at a maximum
of 17.5 basis points over the London interbank offered rate.
The underwriting fee is 10 basis points, BT Asia said.
The facility will allow the issuers to opt for notes not
exceeding 50 mln Australian dlrs and 50 mln New Zealand dlrs on
a non-underwritten basis, but the outstanding total is limited
to 100 mln U.S. Dlrs, BT Asia said.
The notes, in denominations of 100,000 U.S. Or Australian
or New Zealand dlrs, will have maturities of one to 12 months.
The borrower has a further option to issue, also on a
non-underwritten basis, medium term notes with maturities of
one to three years, it added.
The management fee was not disclosed and syndication is
expected to close tomorrow.
REUTER
|
ECONOMIC SPOTLIGHT - TELECOM IS KEY JAPAN MINISTRY | Japan's little-known Ministry of Posts and
Telecommunications (MPT) has emerged as an international force
to be reckoned with, political analysts said.
MPT, thrust into the spotlight by trade rows with the U.S.
And Britain, is in a position of strength due to its control of
a lucrative industry and its ties with important politicians,
they said.
"The ministry is standing athwart the regulatory control of
a key industrial sector, telecommunications and information,"
said one diplomatic source.
"They are a potent political force," the diplomatic source
said.
But MPT is finding domestic political prowess does not
always help when it comes to trade friction diplomacy, analysts
said.
"The ministry was a minor ministry and its people were not
so internationalized," said Waseda University professor Mitsuru
Uchida. "Suddenly they're standing at the centre of the world
community and in that sense, they're at a loss (as to) how to
face the situation."
Most recently the ministry has been embroiled in a row with
London over efforts by Britain's Cable and Wireless Plc to keep
a major stake in one of two consortia trying to compete in
Japan's lucrative overseas telephone business.
The ministry has favoured the merger of the two rival
groups, arguing the market cannot support more than one
competitor to Kokusai Denshin Denwa Co Ltd, which now
monopolizes the business.
It has also opposed a major management role in the planned
merger for any non-Japanese overseas telecommunications firm on
the grounds that no such international precedent exists.
The ministry's stance has outraged both London, which has
threatened to retaliate, and Washington, which says the merger
plan is evidence of Japan's failure to honour pledges to open
its telecommunications market.
Washington is also angry over other ministry moves which it
says have limited access for U.S. Firms to Japan's car
telephone and satellite communications market.
Much of MPT's new prominence stems from the growth of the
sector it regulates.
"What has been happening is an important shift in the
economy which makes the ministry a very important place," said
James Abegglen, head of the consulting firm Asia Advisory
Service Inc.
A decision to open the telecommunications industry to
competition under a new set of laws passed in 1985 has boosted
rather than lessened MPT's authority, analysts said.
"With the legal framework eased, they became the de facto
legal framework," said Bache Securities (Japan) analyst Darrell
Whitten.
Close links with the powerful political faction of the
ruling Liberal Democratic Party (LDP) nurtured by former Prime
Minister Kakuei Tanaka are another key to MPT's influence, the
analysts said.
"Other factions ignored MPT (in the 1970s), but the Tanaka
faction was forward looking and ... Recognized the importance
of MPT," Uchida said. Many former bureaucrats became members of
the influential political group, he added.
The ministry also has power in the financial sector due to
the more than 100,000 billion yen worth of deposits in the
Postal Savings System, analysts said.
MPT has helped block Finance Ministry plans to deregulate
interest rates on small deposits, a key element in financial
liberalisation, since the change would remove the Postal
Savings System's ability to offer slightly higher rates than
banks, they said.
Diplomatic sources, frustrated with what they see as MPT's
obstructionist and protectionist posture, have characterized
the ministry as feudal.
Critics charge MPT with protecting its own turf, limiting
competition and sheltering the former monopolies under its
wing. Providing consumers with the best service at the lowest
price takes a back seat to such considerations, they said.
But many of the ministry's actions are not unlike those of
its bureaucratic counterparts in much of the Western world
including Britain, several analysts said.
"The United States is really the odd man out," Abegglen said.
"For a government to take the view that it wants to keep order
in utilities markets is not an unusual and/or unreasonable
view," he said.
REUTER
|
MEMBERS OF JAPAN'S RULING PARTY SHUN NAKASONE | Members of prime minister Yasuhiro
Nakasone's ruling Liberal Democratic Party (LDP) have shunned
his support in their campaigns for upcoming local elections.
"His presence will do more harm than good," an LDP candidate
in Tokyo told Reuters. The candidate is one of several
conservatives who have rebelled and joined the public outcry
against Nakasone's proposal for a five pct sales tax.
Political analysts said Nakasone might have to step down
before the Venice summit of industrial democracies on June 8-10
if the LDP lost too many major local seats.
Nakasone's popularity has dropped sharply since he led his
party to its greatest-ever election victory last July, and
analysts said the proposed tax was one reason for the decline.
Over 2,500 local seats will be filled during two rounds of
polling. The first round is on Sunday, the second on April 26.
Political analysts said a seat to watch would be the
governorship of Fukuoka, southern Japan. The LDP and two centre
parties are challenging the incumbent governor, Hachiji Okuda,
who is supported by the opposition socialist and communist
parties.
The proposed tax is a key campaign issue.
"The LDP and the centrist parties should have about
1,350,000 votes against 700,000 for Okuda. But Okuda is the
incumbent and has the sales tax weapon," said Rei Shiratori,
professor of political science at Dokkyo University.
"Nakasone will serve out his term to the end of October if
the LDP wins in Fukuoka," he said.
Analysts believe the opposition is likely to win the
governorship of the northern island of Hokkaido.
But Kenzo Uchida, professor of political science at Hosei
University, said, "Nakasone can afford to get fairly tough if
the LDP loses only in Hokkaido."
The opposition parties are campaigning to scrap the sales
tax proposal.
The tax is one of the main pillars of Nakasone's plan to
overhaul the tax system, which has remained unchanged for 36
years.
It is also a key element in plans to boost Japanese
domestic demand and cut back on exports. Without the tax
revenue the government would have less to spend on stimulating
the economy.
REUTER
|
AUSTRALIAN SHARE MARKET CLOSES AT ALL-TIME HIGHS | Keen demand for gold stocks and quality
industrials pushed the Australian share market to all-time
highs in active trading, brokers said.
A higher close on Wall Street, a strong local dollar and
easier domestic interest rates boosted sentiment in the
industrial sector, while demand for gold stocks continued
despite a slightly softer bullion price.
Brokers said Western Mining featured in trading, gaining 30
cents to 9.00 dlrs after announcing a five-for-eight bonus
issue. By the close of trading, the all ordinaries index had
risen 12.5 points above yesterday's close to a record 1,771.6.
The all industrials index gained 20.8 points to 2,639.3 and
the all resources 6.2 to 1,110.2. The gold index passed
yesterday's record close by 73.6 points to reach 3,156.2.
National turnover was a high 206.7 mln shares worth 376.3
mln dlrs, with rises outnumbering falls five to three.
Turnover was boosted by a large number of special sales,
including one for 5.0 mln Kalimantan Gold at 65 cents, 5.95 mln
Minora Resources at 23 cents, 3.57 mln Barrier Reef at 65, and
about 13 specials in Elders IXL totalling more than 2.0 mln
shares, brokers said. Elders rose 14 to 5.64 as more than 6.0
mln traded following news it will float Courage hotels.
Elsewhere in the industrials sector, investors concentrated
on banking and insurance stocks and those in the food and
alcohol and tobacco sectors. ANZ gained 12 cents to 3.70 dlrs,
Westpac and National Australia four each to 5.06 and 5.64, and
FAI 10 to 10.60 after reaching a high of 10.90.
Goodman Fielder advanced 10 to 4.60, Southern Farmers 20 to
8.40, and Arnotts 10 to 4.70. Amatil gained 10 to 10.70 and
Rothmans 20 to 7.20.
Others to gain included Bell Group, up 15 to 10.85, IEL, 16
higher at 5.36, and Wormald, up 20 at 3.65. Coles Myer rose 20
to 7.00 after reports it plans to expand overseas.
REUTER^M
|
G-7 ISSUES STATEMENT AFTER MEETING | Following is the text of a statement
by the Group of Seven -- the U.S., Japan, West Germany, France,
Britain, Italy and Canada -- issued after a Washington meeting
yesterday.
1. The finance ministers and central bank governors of
seven major industrial countries met today.
They continued the process of multilateral surveillance of
their economies pursuant to the arrangements for strengthened
economic policy coordination agreed at the 1986 Tokyo summit of
their heads of state or government.
The managing director of the International Monetary Fund
also participated in the meeting.
2. The ministers and governors reaffirmed the commitment to
the cooperative approach agreed at the recent Paris meeting,
and noted the progress achieved in implementing the
undertakings embodied in the Louvre Agreement.
They agreed, however, that further actions will be
essential to resist rising protectionist pressures, sustain
global economic expansion, and reduce trade imbalances.
In this connection they welcomed the proposals just
announced by the governing Liberal Democratic Party in Japan
for extraordinary and urgent measures to stimulate Japan's
economy through early implementation of a large supplementary
budget exceeding those of previous years, as well as
unprecedented front-end loading of public works expenditures.
The government of Japan reaffirmed its intention to further
open up its domestic markets to foreign goods and services.
3. The ministers and governors reaffirmed the view that
around current levels their currencies are within ranges
broadly consistent with economic fundamentals and the basic
policy intentions outlined at the Louvre meeting.
In that connection they welcomed the strong implementation
of the Louvre Agreement.
They concluded that present and prospective progress in
implementing the policy undertakings at the Louvre and in this
statement provided a basis for continuing close cooperation to
foster the stability of exchange rates.
REUTER
|
HONDA TO SELL FOUR-WHEEL STEERING CARS | Honda Motor Corp <HMC.T> will sell cars
equipped with four-wheel steering in Japan from tomorrow and
will export the cars to the U.S. And Europe later this year,
company officials said.
They told a press conference shipments to the U.S. Will
begin around July and to Europe around October.
Four-wheel steering will be available on the Prelude saloon
at an added cost of 80,000 yen, they said.
Honda expects to sell 48,000 Prelude saloons in Japan and
to ship 80,000 to the U.S., 10,000 to Canada and 20,000 to
Europe by year-end.
REUTER
|
BRITISH AIRWAYS ISSUES 100 MLN STG EUROBOND | British Airways Plc <BAB.L> is issuing a
100 mln stg eurobond due May 6, 1997, paying 9-1/2 pct and
priced at 101-1/2, lead manager Union Bank of Switzerland said.
The non-callable bond is available in denominations of
1,000 and 10,000 stg and will be listed in London. The selling
concession is 1-1/4 pct while management and underwriting
combined pays 3/4 pct.
Payment date is May 6.
REUTER
|
BANK OF FRANCE TO HOLD MONEY MARKET TENDER TODAY | The Bank of France said it has invited
offers of first category paper today for a money market
intervention tender.
Money market operators were divided over whether the Bank
of France will use to occasion to cut its intervention rate,
which has stood at 7-3/4 pct since March 9.
Some thought a price cut unlikely while others said there
was room for a further 1/4 point cut by the bank.
REUTER
|
RIO TINTO-ZINC CORP PLC 1986 PRETAX PROFIT 601.7 mln stg
vs 614.4 mln
| |
RIO TINTO-ZINC NET ATTRIBUTABLE PROFIT LOWER | Year to December 31, 1986
SHR 78.91p vs 83.05p
DIV 16.5p making 23.5p vs 22p
PRETAX PROFIT 601.7 mln stg vs 614.4 mln
NET ATTRIBUTABLE PROFIT 245 mln stg vs 257 mln
TURNOVER 3.34 billion stg vs 3.09 billion
Note - Accounts have been restated
Full name of company is Rio Tinto-Zinc Corp Plc <RTZL.L>
Group operating profit 529.4 mln stg vs 470.7 mln
Operating costs 2.81 billion stg 2.63 billion
Share of profit less losses of related companies 104.4 mln
stg vs 165.0 mln
Interest receivable/other income 41.5 mln stg vs 47.4 mln
Interest payable 73.6 mln stg vs 68.7 mln
Tax 274.8 mln stg vs 277.1 mln
Leaving 326.9 mln stg vs 337.3 mln
RTZ' investment in Australian associate CRA has been equity
accounted for 1986 and 1985 figures restated on the same basis
after the reduction of RTZ's interest to 49 pct in October
1986.
REUTER
|
AUSTRALIAN SHARE VOLUME HITS FIRST QUARTER RECORD | The value of turnover on the Australian
Stock Exchange (ASX) soared to a record 17.11 billion dlrs in
the first three months of 1987 from 7.50 billion in the
corresponding months of 1986, the ASX said.
Its statement did not give the previous peak.
First quarter volume also rose sharply, to 9.95 billion
shares from 4.31 billion a year earlier, it said.
The record volume reflected increased investment in
Australian companies by local and overseas institutions and the
popularity of gold mining and other resource sector shares, the
ASX said.
In the nine months ended March 31, turnover value climbed
to 38.52 billion dlrs from 20.72 billion a year earlier, the
ASX said.
Volume in the nine month period rose to 24.07 billion
shares against 13.15 billion a year earlier, it added.
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.
"Even when you go in person to a factory or a company to try
to find out the real cost of something, officials do not give
you a clear answer. The political meaning is evident. They do
not want to answer," he said.
China's position, as set out in a memorandum to GATT in
February, is that it is gradually reforming its price system to
bring prices in line with real production costs and replace
administrative controls with market ones.
Another diplomat said countries with centralised economies
such as Hungary and Yugoslavia had joined GATT. However, China
would not apply for membership on similar terms, but rather as
a less developed country entitled to preferential treatment.
He added that the economies of Hungary and Yugoslavia are
small, while China's is huge and its weight would be felt.
"It (China) is the world's number two producer of coal, for
instance," the diplomat said. "It could have a very large impact
on world trade."
Another sticking point is the subsidies China pays its
companies to export so it can earn foreign exchange to pay for
vitally needed technology, equipment and raw materials.
A Japanese trader said China lost money on every tonne of
grain it exported, because it had to make up the difference
between a low world price and a high domestic price.
A western diplomat said an official of a foreign trade
bureau of a major inland Chinese city told him export subsidies
might be as high as 100 pct for some products.
"When I asked what the subsidy figure was for the whole
country, he referred me to the Ministry of Finance, adding with
a grin that they would not tell me," he said.
He said officials were unwilling to give figures because of
the sensitivity of the subject.
"Unless something is done to change this, China will find
many countries in GATT putting restrictions on imports from
China," the diplomat added.
In a major speech on the economy late last month, Planning
Minister Song Ping made an indirect reference to this problem.
"While trying to expand exports to earn more foreign
exchange, we must improve economic accounting practices and
reduce the cost of exports," he said.
One diplomat said China's freedom to change its foreign
trade and pricing system to bring them more in line with GATT
principles could conflict with domestic pressures. China has
said there will be no major price reforms this year following
widespread discontent in 1985 and 1986 from a public used to
stable prices since the Communist takeover in 1949.
"So the question is how fast and how thoroughly can China
reform its economy?," the diplomat said. "How can it balance the
requirements of GATT membership with domestic political needs?"
But he added the advantages of China's entry would in the
end outweigh these problems.
"China's entry would force it to modernise and become more a
part of the world economy," he said.
"Just as China would get increased access to foreign
markets, so it would have to give more access to its domestic
market to foreign countries."
REUTER
|
Burmah Oil 1986 pre-tax profit 105.9 mln stg vs 79.6 mln.
| |
GERMAN BANKERS' REMARKS REVIVE TALK OF RATE CUT | Remarks by two leading central bankers
sparked renewed speculation in financial markets that a cut in
the West German three pct discount rate may be under
discussion, currency dealers said.
Bundesbank board member Claus Koehler said in a speech that
monetary growth resulting from speculative capital inflows
required cuts in interest rates.
Separately, West Berlin state central bank president Dieter
Hiss told journalists that the discount rate could fall below
its lowest ever point of 2.75 pct. He made clear that he was
not making a forecast on interest rates, however.
Currency dealers here and in the Far East said the dollar
gained slight background support from the speculation.
But German dealers noted that the Bundesbank kept the 3.80
pct rate unchanged at which it offered liquidity to the money
market this week, dashing some expectations that it may either
offer lower fixed rate money or offer a reduced minimum rate
and let the strength of banks' demands set the allocation rate.
It allocated 6.1 billion marks in new liquidity, much less
than the 14.9 billion leaving the market as a prior pact
expired. This further weakened sentiment the Bundesbank could
move to a more accommodative monetary stance, dealers said.
Koehler said in a speech in Surrey, England, speculative
capital inflows may cause monetary growth, regardless of
whether central banks intervened or exchange rates fell.
"In other words, the monetary policy measures required are
different from -- and sometimes diametrically opposed to --
those needed when the money stock is increasing as a result of
mounting economic activity."
Though Koehler was known to be the most liberal of the
generally monetarist Bundesbank board, his comments marked the
first time cuts in rates had been concretely suggested as a
counterpoint to overly strong monetary growth, dealers said.
REUTER^M
|
XYVISION ISSUES CONVERTIBLE EUROBOND | XYVision Inc is issuing a 25 mln dlr
convertible eurobond due May 5, 2002 paying an indicated coupon
of between 5-3/4 and six pct and priced at par, lead manager
Credit Suisse First Boston Ltd said.
The issue is callable after 30 days at 106 pct declining by
one pct per annum to par thereafter. It is not callable for
three years unless the conversion price exceeds the stock price
by 130 pct.
The selling concession is 1-1/2 pct while management and
underwriting each pay 1/2 pct. Final terms will be set on, or
before, April 15.
The issue is available in bearer and registered form in
denominations of 5,000 dlrs. It will be listed in Luxembourg
while the payment date is May 5.
REUTER
|
SOVIET TRADE DEFICIT WITH WEST SOARS IN 1986 | The Soviet trade deficit with the West
almost quadrupled last year, reaching 2.72 billion roubles
compared with 713 mln in 1985, official figures showed.
Statistics published by the monthly journal Foreign Trade
showed Soviet trade turnover for 1986 fell to 130.9 billion
roubles from 142.1 billion the previous year, a drop of 7.8
pct.
Moscow's trade surplus with East Bloc countries continued
to grow in 1986.
Western analysts attributed the deficit rise with the West
to the world oil price slump, which hit Moscow's main export
and cut hard currency earnings needed for purchases in the
West.
REUTER
|
BURMAH OIL PROFIT CLIMBS TO 105.9 MLN STG | Year 1986
Shr 33.54p vs 34.2p.
Final div 9.5p, making 14p vs 12.75p.
Pre-tax profit 105.9 mln stg vs 79.6 mln.
Net profit before minorities 56 mln vs 52.1 mln.
Turnover net of duties 1.32 billion stg vs 1.46 billion.
Minorities 800,000 stg vs same.
Extraordinary debit 20.4 mln vs 28.2 mln.
NOTE: Company's full name is The Burmah Oil Co Plc <BURM.L>
REUTER^M
|
CHINA'S WHEAT CROP THREATENED BY PESTS, DISEASE | Pests and disease, which destroyed 1.1
mln tonnes of wheat in China in 1986, are threatening crops on
11.64 mln hectares this year, the China Daily said.
About 14.54 mln hectares of wheat were affected in 1986.
The paper said abnormal weather conditions had encouraged
the spread of wheat midges in 2.47 mln hectares in Shanxi,
Henan, Sichuan, Anhui, Hebei and Jiangsu.
In Henan, Shandong and Hebei wheat aphids are affecting
4.67 mln hectares, wheat red mite 2.8 mln hectares and wheat
powdery mildew 1.7 mln hectares.
REUTER
|
RTZ SEES RISING U.S. OUTPUT AIDING 1987 RESULTS | Rio Tinto-Zinc Corp Plc <RTZL.L>, RTZ,
said the predicted rise in industrial production in the U.S.
And Europe should boost its 1987 performance.
Consumption of some base metals and their dlr prices are
showing signs of improvement, although iron ore markets have
weakened. The oil price in U.S. Dlrs is above the 1986 average,
and if sustained, should improve energy earnings.
The company was commenting in a statement on its 1986
results which, on a restated basis, showed net attributable
profits lower at 245 mln stg after 257 mln the previous year.
Pretax profits also dipped to 601.7 mln stg after 614.4 mln.
RTZ said the excellent performance of its expanding range
of industrial businesses in 1986 was offset by the collapse in
oil prices.
Industrial businesses contributed 202 mln stg to net
profit, a 40 pct increase from 144 mln in 1985, and 60 pct of
the total. Trading performance improved at wholly-owned
subsidiaries RTZ Borax Ltd, RTZ Cement Ltd, RTZ Chemicals Ltd
and RTZ Pillar Ltd. First time contributions from recent
investment and acquisitions mainly in speciality chemicals and
minerals also aided performance.
Metals activities contributed 83 mln stg to net profit.
|
SOUTH KOREA SIGNS CONTRACTS FOR TWO NUCLEAR PLANTS | State-owned Korea Electric Power Corp
(KEPCO) has signed contracts with three U.S. Firms to supply
equipment and services for its tenth and eleventh nuclear power
plants, a KEPCO spokesman said.
Combustion Engineering Inc <CSP> will supply pressurised
light-water reactors, General Electric Co <GE> will provide
turbines and <Sargent and Lundy Engineers> will supply
engineering and design services, he said.
Work on the two plants, at Yongkwang in the southwest of
the country, is due to start around June 1988 and be completed
in 1995 and 1996.
The firms will receive a total of 430 mln dlrs, or 11.5 pct
of the construction cost of 3.74 billion dlrs.
The three suppliers were chosen from 13 bidders after
tenders closed in April 1986.
South Korea operates six atomic stations, is building
another three and has plans for about 20 by the year 2000.
REUTER
|
BRIDGESTONE CORP <BRIT.T> YEAR TO DECEMBER 31 | Group shr 35.99 yen vs 38.28
Net 21.01 billion vs 21.08 billion
Current 47.73 billion vs 48.06 billion
Operating 55.04 billion vs 54.99 billion
Sales 792.71 billion vs 864.28 billion
NOTE - Company forecast for current year is group shr 37.70
yen, net 22 billion, current 52 billion and sales 800 billion.
REUTER
|
CHINESE BANK TO MAKE FIRST FOREIGN BORROWING | The state-owned People's Construction
Bank of China is making its first foreign borrowing, 300 mln
dlrs to finance a large ethylene plant in Shanghai, the
People's Daily said.
The newspaper's overseas edition said the plant will
produce 300,000 tonnes of ethylene a year.
It said the bank last year started foreign exchange
services for the first time on an experimental basis in
Shenzhen, Zhuhai and Xiamen, but it gave no more details.
REUTER
|
EQUITICORP H.K. UNIT TO RAISE 30 MLN U.S. DLRS | <Equiticorp Hongkong Ltd> is planning
a 30 mln U.S. Dlr transferrable loan facility to raise working
capital, lead managers <Manufacturers Hanover Asia Ltd> and
<Manufacturers Hanover Ltd>, said.
The two year loan with bullet repayment carries interest at
5/8 of a percentage point over the London interbank offered
rate. It will be guaranteed by parent company <Equiticorp
Holdings Ltd> of New Zealand, the managers said.
Syndication is proceeding and managers and participants are
being invited to participate at four levels with management
fees ranging from 15 to 30 basis points, it said.
REUTER
|
EC SUGAR TENDER SEEN MARKING NO CHANGE IN POLICY | The maximum export rebate granted at
yesterday's EC sugar tender marked no change in policy over
producer complaints that they are not obtaining the EC
intervention price in exporting sugar outside the Community, EC
Commission sources said.
The maximum rebate was 46.496 Ecus per 100 kilos for
118,350 tonnes of sugar, down from 46.864 Ecus the previous
week, but the change is explained by world market conditions.
Producers claim the rebate was short of the level needed to
obtain a price equivalent to the intervention price by over one
Ecu per 100 kilos, and was 0.87 Ecu short the previous week,
the sources said.
They said this was despite the fact that the Commission had
to accept 785,000 tonnes of sugar into intervention from
operators protesting that rebates are too low.
Operators have now until early May to withdraw this sugar.
But they have not given any sign of planned withdrawals unless
the Commission reviews its export policy, they said.
REUTER
|
CIBC UNIT ISSUES AUSTRALIAN DLR ZERO COUPON BOND | CIBC Australia Ltd is issuing a zero
coupon eurobond with a total redemption amount of 125 mln
Australian dlrs due May 15, 1992 priced at 54 pct, sole lead
manager CIBC Ltd said.
The issue is available in denominations of 1,000 and 10,000
Australian dlrs and is guaranteed Canadian Imperial Bank of
Commerce. The selling concession is 3/4 pct, while management
and underwriting combined pays 5/8 pct.
The payment date is May 15.
REUTER
|
BURMAH OIL PROSPECTS REMAIN FAVOURABLE | The current year has opened well, with
trading prospects remaining favourable, Burmah Oil Co Plc
<BURM.L> said in a statement with its 1986 results.
The company plans to maintain a steady rate of investment
in its marketing operations and to obtain improved profit
margins on its liquified natural gas, LNG, project.
Burmah has the financial capacity to continue making
acquisitions within its business sectors, it added. The
rationalisation programme, including sale of the Bahamas oil
terminal and all peripheral activities, is now complete.
Pre-tax profit for 1986 rose to 105.9 mln stg from 79.6
mln.
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GEBRUEDER SULZER 1986 PROFIT UP ALMOST 60 PCT | Year 1986
Consolidated net profit 67 mln Swiss francs vs 42 mln.
Dividend 100 francs per registered share vs 80 francs and
10 francs per participation certificate vs eight.
Consolidated turnover 4.55 billion francs vs 4.54 billion.
Parent company net profit 38.2 mln francs vs 26.4 mln.
Parent company turnover 2.20 billion francs vs 2.29
billion.
Note - Company's full name is Gebrueder Sulzer AG <SULZ.Z>
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MITSUBISHI TO ISSUE TWO CONVERTIBLE BONDS | Mitsubishi Corp <MITT.T> said it will
issue a 50 billion yen unsecured seven-year convertible bond
and a 30 billion yen unsecured nine-year convertible bond on
the domestic capital market through public placement with Nikko
Securities Co Ltd as lead manager.
Coupon and conversion price for both par-priced bonds will
be set at a board meeting to be held later this month and
payment is due on May 14, Mitsubishi said in a statement. The
seven-year bond matures on September 30, 1994, and the
nine-year bond on September 30, 1996. Mitsubishi's share price
fell 30 yen to 1,200 on the Tokyo Stock Exchange today.
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NEW LONDON AIRPORT WILL OFFER FLIGHTS TO EUROPE | The British Civil Aviation Authority
(CAA) has granted licenses for two airlines, <Brymon Airways>
and <Eurocity Express>, to fly three lucrative European routes
from the 20 mln stg London docklands airport.
Brymon plans to offer five flights a day from the London
City Airport to Paris, and three to Amsterdam and Brussels.
Eurocity will also operate flights to Duesseldorf and
Rotterdam.
The airport is due to open in October, and is only a
20-minute taxi ride from the capital's financial district, the
City, compared to an hour to get from the City to the nearest
existing airport, Heathrow.
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JAPAN BUSINESS LEADERS SAY G-7 ACCORD IS 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.
G-7 members Britain, Canada, France, Italy, Japan, the U.S.
And West Germany said in a statement they consider their
currencies are now within ranges broadly consistent with
economic fundamentals.
Saito called on each G-7 member nation to prepare to
intervene in the market strongly enough to ensure exchange
rates are stabilised at appropriate levels.
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