The Indianapolis Star from Indianapolis, Indiana • Page 59

PAGE M- WEDNESDAY. MAY 22. 1583 THE INDIANAPOLIS STAR- Finance Elkhart buyout bank OKs by Detroit firm The (3fll Tape uj-4-J ing Co, with assets of $556 million. NBD has 21 Michigan banks and financing, mortgage and other subsidiaries. The Detroit company has $15 9 billion in assets.

Armstrong said that being affiliated with NBD will increase Midwest's lending capacity. The Midwest chairman said Elkhart area banks have been unable to meet all the lending needs of large employers in the area, including those in the recreational vehicle, pharmaceutical and electronics industries. This al lows up to keep our corporate customers." What's more, Armstrong said. NBD has developed ways to utilize new technology in banking. For example, he said, the Detroit company is trying to market systems where customers can use personal computers to do their bank business.

Armstrong said Midwest could not develop such capacity as an independent bank. When the Indiana legislature considered banking reform, the administration of Gov. Robert D. Orr unsuccessfully sought to delay the interstate banking provision for three years. Both Orr and Lt John M.

Mutz expressed fears that out of state companies could seize control of Indiana banking assets. This is precisely the sort of situation I was concerned about" Mutz said Wednesday. That bank (Midwest) has been a very important and influential bank in the economy of Elkhart It is the sort of bank we would like to see remain owned by Hoosiers." The transaction will take longer than other takeovers announced since the new Indiana law was passed. The portion concerning interstate banking doesn't take effect until Jan. the bank law itself is effective July 1.

Both Armstrong and Terrence D. Brennan, presi-. dent of Midwest were executives at the National Bank of Detroit NBD's main unit 20 years ago. By BO! tCOENIO STAR STAf WRITER Midwest Commerce Corp. of Dkhart agreed Tuesday to be purchased by a Detroit bank holding company, making it the first Indiana bank concern to be involved in an interstate transaction.

The Dkhart bank firm agreed to become a unit of NBD Bancorp Inc. of Detroit, Michigan's largest NBD will pay about $517 million for Midwest Midwest's present management will remain. Midwest officials said they entered into formal talks with NBD shortly after the Indiana General Assembly passed a cross-county banking law in April. The statute permits out of state holding companies to buy Hoosier banks if those states also allow their banks to be acquired. "We kind of tike to be on the leading edge of things," Jon S.

Armstrong, Midwest chairman, said in an interview. Michigan, however, does not yet have an interstate bank law. The deal is contingent upon the state Legislature enacting such a measure. Such a bill passed the Legislature last year, but was vetoed by Gov. James J.

Blanchard. No legislation has been acted on so far in 1985. The governor, Michigan lawmakers and the banking industry are negotiating to come up with a bill acceptable to various interests. Armstrong said he believes a bill will be passed this year. "All indications are positive from Lansing (the state capital)," he said.

Charles T. Fisher III, chairman and president of NBD, said in a statement that a Michigan interstate bank measure is needed. "Regional interstate banking is a fact of life, and Michigan's banks must be able to compete in that environment" Midwest's main unit is Midwest Commerce Bank Happiness is Paula Taylor (left) and Lisa Neidich, both depositors at Home State Savings Bank, rejoice upon the passage of legislation allowing for the sale of the closed savings and loan. On a 17-16 vote Tuesday, the Ohio Senate passed the bill. Gov.

Richard F. Celeste quickly signed the legislation, which had failed to pass on a 16-16 vote Friday. Depositors have had their funds locked up for more than 10 weeks. Market 'seers' predict Dow to hit 2,000 by '90 Dow higher in mixed UNITED PRESS INTERNATIONAL C- About Your 3 MONEY By MORRIS D. W1LDEY Disinflation and lower interest rates, which could cause sustained economic growth.

The potential doubling of stock values as they reach the 70 percent-of GNP level. Bostian's third argument revolves around a model describing a relationship between all New York Stock Exchange stocks and annual GNP. Stock values were more than 70 percent of the GNP in 1972. In 1982 they were valued at 33 percent of GNP. The model now shows the relationship at 40 percent.

"A move to the 70 percent level coupled with an expected GNP increase would imply a doubling of equity values," Oberweis said in the market letter. What does all of this positive market speculation mean to individual investors? Not surprisingly, Oberweis says it's a chance to make money. To do so, Oberweis suggests investing in companies that are growing rapidly and avoiding troubled FROM STAR WIRE SERVICES Deficit vs. tax rut House Democrats generally favor making corporations pay a minimum income tax. but are divided sharply on whether the $12 billion it would raise should be used to cut the deficit or reduce tax rates.

"There's no consensus that I could discern," said Rep. Steny Hoyer, emerging from a private meeting of House Democrats. "The issue is whether or not you carry it in the budget or leave it out of the budget and use it for tax reform." Interest rate bill The House passed a bill aimed at holding down interest rates charged on property sales when the seller provides the financing. By a 425-0 vote, the House approved and sent to the Senate legislation that would limit the amount of interest the Internal Revenue Service may assume was charged on such transactions. The bill rolls back part of a crackdown, voted last year, that has been the target of an intense lobbying effort by the real estate industry.

The purpose of the 20-year-old "imputed interest" law is to prevent the seller of a home, farm or business from juggling the sales price and interest rate to reduce artificially the tax implications of such a sale. Anti-takeover moves Gannett Co. shareholders approved a pair of proposals to prevent hostile takeovers, and Chairman Allen H. Neuharth welcomed them as "a signal that most of Gannett shareholders are getting fed up with these corporate raiders." One proposal creates staggered terms for the board of directors so that all directors may not be replaced at one time. The other, a "fair-price" amendment, prevents anyone from offering a premium price to some shareholders to get majority control of the company, and then paying less to remaining shareholders to acquire the rest.

Loopholes created Maryland Gov. Harry Hughes, responding to consumer complaints, created a few loopholes in his order restricting withdrawals from privately insured savings and loans to $1,000 a month. But the governor also tightened up his order issued last week to make sure there would be no renewed run by depositors on the 100 covered by the restrictions. Two other privately insured thrifts are in the hands of conservators and are not covered by the order. Sears banking card Sears, Roebuck and Co.

will test this summer a new consumer banking card that will be accepted by American Airlines, Budget Rent-A Car and several other major companies. The card will be tested in Atlanta before it is distributed nationally. Other companies that will accept the card include Denny's restaurants, Hospital Corp. of America and a national hotel whose identity has not been released. The card, called Discover, is Sears' long promised foray into national consumer banking.

It will be backed by Sears' consumer banking division and will be made available to the retailer's 60 million credit card holders. 880 million loss? Unocal Corp. stock dropped sharply after T. Boone Pickens withdrawal of his hostile takeover bid for the Los Angeles oil company in what could be the corporate raider's first major rout. Analysts estimated Pickens, the chairman of Mesa Petroleum Co.

in Amanllo, Texas, and his Mesa Partners II investors group could lose $80 million on their $11 billion quest to seize control of Unocal. PORTER FIELD By JOE MARTIN "It's from the Internal Revenue Service We may already be audited." Lx At the American Stock Exchange, the market value index fell 0.30 to 232.47. Tuesday's volume was 7.55 million, compared with 9.05 million shares Monday. The NASDAQ composite index for the over-the-counter market closed at 293.94, down 0.54. Prices opened mostly lower and remained on the downside for much of the session, apparently reflecting profit-taking by investors cashing in on the market's sharp gains Monday.

Weakness in the credit markets, where bond prices edged lower, also tempered interest in stocks, trad ers said. But some analysts said they were encouraged that the market avoided a severe pullback from invest mutual funds may be the best way to get involved in the slock market, he said. Besides diversification in the stocks you buy, a portfolio that includes other types of investments is wise, Oberweis said. But getting back to the Dow reaching 2.000 in less than five NASD local firm neting Principal or Reoiifcrsd RerxsunMn to omum Solti Manager pontic. Thi a ground floor opportunity to bocornt purliMi.

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AOS STAR AND NEWS CLASSIFIEDS 6it Fut Ritilti 633-1212 ger convention center The Dow Jones industrial average closed above 1,300 Monday for the first time. But three to five years from now when it reaches 2,000 you might not think that's much of an accomplishment In less than five years? That's what Jim Oberweis and some other stock market observers, are predicting. Oberweis is president of Oberweis Securities which opened an office in Indianapolis this month. Based in Aurora, Oberweis Securities has 15 offices in Florida, Illinois, Michigan, Ohio, Wisconsin and Indiana. Oberweis supports his prediction with the contention that stocks are priced well below the long-term value of the companies.

If that wasn't so, there wouldn't be so many takeover attempts, Oberweis said Tuesday. Oberweis further supports his forecast in the firm's May market letter with comments from David Bostian, president of Bostian Research Associates. Bostian also thinks the Dow will reach 2,000. He supports his claim by pointing to: The past 30 years' performance of the Dow industrial companies relative to the gross national product, which he estimates will pass the $5 trillion mark in 1988. Dome, big viewed as By BRUCE C.

SMITH STAR STAFF WRITER Indianapolis is building a reputation as a leading location in the multibillion-dollar national convention business, accordint to a convention planning executive whose group is meeting here this week. Donald J. Walter, executive director of the National Association of Exposition Managers, said Indianapolis was seen as a "fresh location with an excellent hall." He was referring to the Hoosier Dome and enlarged Indiana Convention Center. Nearly 500 association members are touring attractions of the city, including theaters, museums, sports and convention meeting facilities, hotels and the Indianapolis Motor Speedway. City and Indianapolis Convention and Visitors Association leaders, who are the hosts for the conference, said this was a crucial opportunity to attract millions of dollars in future convention business.

If these convention managers and agents like the city, they can recommend it. Their elaborate reception and dinner Thursday night in the Hyatt Regency Indianapolis will include a simulated thunder and lightning rainstorm inside the hotel's atrium. Nationally, convention business is estimated to be worth $20 billion a year in "new" money spent in host cities, Walter said. market its rally Monday, with 223 NYSE-listed stocks still able to reach 52-week highs. "After the kind of lavish run it had, it's entitled to a day or two of correction," said Michael Metz, technical analyst at Oppenhei-mer Co.

The gains have followed a half point cut to 7.5 percent in the Federal Reserve's rate on its loans to financial institutions, and a companion reduction in major banks' prime lending rates to 10 percent from 10.5 percent. Wall Street is hopeful that the decline in lending charges will fuel a revival of economic growth, and corporate earnings, during the rest of 1985. years, isn't that an absurd prediction? Oberweis doesn't think so. "The Dow could even reach 3,000," Oberweis said. Don't engrave that in stone.

though. "Nobody knows for sure what is going to happen," Oberweis added. "We give our best guesses." ALLEN EDMONDS Allan-Edmonds shoot ara hind crattnd Irom ttw world linMt luthart, uttlulng 360 well and nailass construction. Classic styling and ndurtng quality make AMon-Edmonds tha finstt man's shoes in tha world. Allen-Edmondi shoes are available in 164 sizes, to 16, AAAA to EEE to assure proper fit.

SHOES UKrWOOD VILLACI SHOPPES lost 71il at Stat 14. 37 64 2-0331 TANDY SB Equal Opportunity Employer The Berwick "3 If. Jf ASSOCIATED PRESS New York The stock market's blue chips extended their record advance Tuesday, but prices overall finished mixed in active trading. Retail and auto stocks paced the gainers, while telephone, computer and financial issues were among the casualties. The Dow Jones average of 30 industrials rose 4.82 to a record high 1,309.70 after spurting nearly 20 points Monday to climb above 1,300 for the first time.

Broader market averages edged lower, however, and declines slightly- led advances among all New York Stock Exchange-listed issues. companies. If you invest in troubled companies you are "betting against the odds," he said. Also, he suggests diversification. "Even if you have a lot of money you should diversify," Oberweis said.

For people with $5,000 or less to meetings thing about Indianapolis is the way the important players do things together, politicians, business people, developers, the community in general," he said. "We selected Indianapolis for this meeting five years ago," he said. That selection was partly on the promise of city officials that the proposed Dome and convention center would be showpieces by this time. "Indianapolis has never disappointed us or failed to. keep its promises," he said, referring to the confidence that convention booking agents have in the city when they are planning for an event many years in advance.

"Indianapolis is now in the big leagues among convention cities with its convention center," he said. "But the people here should not get overly enamoured with bigness." Only about 150 if the 95,000 conventions and shows year are "mega-shows," those requiring 180,000 square feet or more of space and about 5,000 to 7,000 nearby hotel rooms, he said. "But the remainder of the market falls in the size category for Indianapolis, up to 160,000 gross square feet and 2,000 to 4.000 rooms. "Indianapolis is on the threshold of becoming a very strong convention city. It is impressive that a plan for development was conceived and is being followed.

The amateur athletics idea is a brilliant stroke." split OKd in the mid-30s, a price at which brokers should find the stock easier to market, Frenzel said. The stock split is payable July 1. The directors declared a second-quarter dividend of 30 cents per share payable June 21 to shareholders of record June 3. Also declared was a dividend of 25 cents per share payable Sept. 20 to shareholders of record Aug.

30, equivalent to a pre-split dividend of 37.5 cents per share. magnet for "Indianapolis is now in the big leagues among convention cities with its convention center. But the people here should not get overly enamoured with bigness." Donald Walter Indianapolis was the location of 702 conventions in 1984. They brought almost 695,000 delegates to the city, according to the convention and visitors association estimates. The managers assume a delegate spends at least $75 a day, so the conventions were worth $50 million last year to the city.

Walter's only complaint delivered as constructive criticism, was that at least one more large hotel was needed near the convention center. Such hotels, with at least 700 rooms like the one planned north of the convention center, become headquarters for large conventions. "Indianapolis is getting some of those rooms downtown, like the renovation of Union That project sounds like it will be a unique and very impressive facility," he said. "The singularly most impressive Otto N. Frenzel III, chairman of the board.

Of 2.2 million shares of stock outstanding, onlyl million shares are available for trading, Frenzel said. Nearly 20 percent of the firm's shares are held by members of the Frenzel family. The price of Merchants' common stock has risen steadily in recent months it closed at 52 in over the counter trading Tuesday and the split should result in a price Computer Sales Career OUR BUSINESS PRODUCT CENTERS ARE EXPANDING IN THIS AREA. Merchants National stock We are eager to talk to professionals who desire a career in computer sales. Ideally, you'll have sales experience in minimicro computers, educational market, or the office products field.

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