The Indianapolis Star from Indianapolis, Indiana • Page 41

FTXT 1 XTl? IIE Star ixVX 1 V- JL rpmiv mi via khk Obituaries 17 Classified FRIDAY, JULY 19, 1985 PAGE 41 Merchants' Hancock move no surprise Off The By BILL KOENKj STAR STAFF WRlftR Tape A top official of Greenfield Banking Co. said American Fletcher plans to buy Franklin bank Thursday that few were surprised that Merchants National Corp. was buying a stake in a competing FROM STAR WIRE SERVICES Greenfield bank. The mam signal, the official said, was in June SearN merjrer sel when Donald J. Hatke.

president of Hancock Banc-shares, resigned to join the Indianapolis bank holding company. Scarle a pharma It was this week that Merchants said it was buying ceutical company, and Monsanto a chemical company, an nounced they have agreed to merge in a $2.7 billion deal. The a 17 percent stake in Hancock Bancshares. owner of Hancock Bank Trust Co. Merchants officials said the purchases could lead to an eventual acquisition offer.

merger would come about by Monsanto acquiring Searle for Hatke said. Merchants sent an announcement to the Hancock County news media, and the resignation was reported June 10 in the Greenfield Reporter. Hatke. whose title is not set. will act as a- liaison between Merchants executives and officials of banks that affiliate with the Indianapolis company.

Since the Indiana General Assembly legalized crosscounty banking this year. Merchants has acquired Farmers National Bank in Shelbyville. "What makes a lot of sense to us is there's a big difference in the culture between Merchants and a smaller bank like Farmers," Tanselle said. Hatke will work with executives of such banks to integrate their operations with Merchants, he added. Tanselle said Hatke was offered the position because he was familiar with the operations of smaller banks.

"He's a good manager, well experienced and well respected in the Indiana banking community." Hatke declined to comment about his duties, saying that information should come from Merchants. Merchants had previously held less than 5 percent of Hancock Bancshares stock. This week, it filed notice of its intent to increase its stake; federal regulations require companies to make a filing when their holdings in a bank reach 5 percent. Strickland, the Greenfield Banking official, said if Merchants does acquire Hancock, it will not affect his bank. "As far as a change in operations, I see none whatsoever," he said.

"We pride ourselves as a strong community bank." Greer.fieid Banking is the community's No. 1 bank. Hancock is the second largest. Asked if that was a surprise. Robert H.

Strickland, $65 a share in cash. Besides its senior vice president of Greenfield Banking, said: "To the Greenfield business community, no. It had been pharmaceuticals. Searle makes lowcalorie sweetener products. statement, he said.

"We intend to build on the banking tradition of service excellence established by the management of Union Bank." Chloral H. Hilderbrand. chairman of Union Bank, also could not be reached. He said in a statement that becoming part of American Fletcher was "a solid banking opportunity which will expand our consumer financial services" and other services in Johnson County. The two bank groups have had ties before this.

The estate of Frank E. McKinney the American Fletcher chairman's late father, owned 32.9 percent of Union Bank's stock. Union Bank, as of June 30. had assets of $84 million and deposits of $73.3 million. American Fletcher on that date had assets of $3.5 billion and deposits of $2.6 billion.

hinted that might be on the horizon. Was Hatke departure a major hint? MVes." American Fletcher Corp. finally took the plunge. The Indianapolis bank holding company announced Thursday it had entered into an agreement to acquire Union Bank and Trust Co. of Franklin.

The Johnson County bank will become a unit of American Fletcher Corp. Until Thursday, American Fletcher, owner of American Fletcher National Bank, was the only one of the "big three" Indianapolis bank companies that had not announced an acquisition since the Indiana General Assembly legalized cross-county banking. The agreement calls for American Fletcher Corp. to pay $140 per share of Union Bank stock, a total transaction of $10.2 million. Frank E.

McKinney American Fletcher chairman, could not be reached for questions. In a prepared including NutraSweet. Monsanto is a leading producer of herbi Hatke will not leave the bank until late August. He cide and electronic grade silicon. will join Merchants on ScpL 16.

Merchants officials say the two developments are Searle last year began exploring possible sale of the company, in order to diversify the Scarle fam not related. "His board was fully aware he was coming here." said Donald W. Tanselle. Merchants president and chief operating officer. "He'll join us ily interests.

Monsanto's offer was "unexpected and unsolicited" but welcome. Searle said. regardless of what happens to HancocK Bann Trust." Hatke said he asked Tanselle if his hiring was tied Mileage rollback to Merchants acquiring the stock, and Tanselle said no. "We have been no percent open aooui mis. Saying the country's two larg est automakers will not be able to meet fuel economy standards.

Orr still the government tentatively rolled back overall mile per gallon requirements for 1986 cars. It also said it would consider reductions in future years. The Transporta Soft drinks may flood consumers tion Department said the current standard of 2i.3 miles per gallon involved in debate over PSI would result in "substantial sales losses for the manufacturers and increased unemployment in the auto industry." General Motors and Ford have been unable to meet the 27.5 mpg standard. That By PATRICK T. MORRISON STAR STAFF WRITER standard will be reduced to 26 An aide to Gov.

Robert D. Orr mpg for 1986 model cars. Further rollbacks may come in the fu ture. said Thursday that the governor is staying involved in the Public Service Indiana case and might soon take a more public stance on it. Cable bid offered R.

Mark Lubbers, an executive "If you're a good marketer, you'll find a niche," said Lupa. And because the number of softdrinkers is increasing, there are more niches. Coke isn't the only soft drink company using the strategy. The companies hope it will help increase the number of soft-drinkers. "No company can afford to upset the customer." Lupa said.

The increasing number of drinks does create some problems for Coke. One of them is finding store shelf space and vending machine space to sell its new products. But Green said grocery store owners and managers in central Indiana have indicated they will make room for Cherry Coke. Vending machine space may be a problem. Lupa said retailers will make space for the product if there is consumer demand.

That's what Green is hoping for. He said in Denver, one of the four test markets for Cherry Coke, the product obtained 9.6 percent of the market. "Cherry Coke has been in a test marketing phase for several months now, and the response has really been outstanding," he said. In Hartford, Charlotte. N.C.: and Atlanta, the three other test market sites.

Cherry Coks obtained about a 4 percent share. While times are changing in the industry, both Coke and its rival. Pepsi-Cola, are profiting from them. "They're both having an enjoyable time with the thing," Lupa said. Coke and Pepsi have about 80 percent of the soft-drink market.

American Express said it assistant to Orr, declined to comment on what steps, if any, the governor might take, but he said a whole range of options is available. made a $450 million bid for Warner Communications' "interest in Warner Amex Cable Commu Lubbers said Orr is interested in nications Inc. Under the terms. Warner has until Aug. 14 either By MORRIS D.

WILDEV STAR ASSISTANT BUSINESS EDITOR Imagine it. You go to a grocery store to buy your favorite soft drink. You take a quick left down Aisle 5 and there it is along with about 100 other carbonated liquid refreshments. One analyst is predicting there will be as many soft drinks some day as there are breakfast cereals now. "The industry probably is only on the fringe of proliferation," said Donald Lupa of Duff 4 Phelps Inc.

in Chicago. Coca Cola Co. seems to be ready to push the industry past the fringe. Its new wave of soft drinks is starting to reach the Indianapolis area. First to be introduced was New Coke, then Classic Coke and now Cherry Coke.

New Coke is here. Cherry will be available in central Indiana beginning Monday, and Classic should be available in three to four weeks, said Paul L. Green, marketing director for Coca-Cola Bottling Co. of Indianapolis. Why so many soft drinks? Coke, which for years had only one product, is trying to recapture the success it has had with Diet Coke.

Lupa said. "They're using the Coke name." The company is making products for seeing that the recommendations of his specially appointed Marble Hill task force are followed. to sell its share in the joint- "The logic of the task force re venture cable company or buy out American Express for the same amount. If American Ex port is as valid today as it was when it was issued in December 1983," Lubbers said. press acquires Warner's interest in Warner Amex.

it intends to sell 100 percent of the company Lubbers' comments came as op to American Television and Com ponents of the Plainfield utility asked the Indiana Public Service munications a subsidiary Commission to dismiss PSI's latest of Time and Tele Communi rate case. cations Inc. Claiming that PSI failed to prove different segments of the market. For instance. Diet Coke is for people who watch their weight.

The sweet-tasting Cherry Coke is targeted for soft-drinkers in the 12 to-24 year-old range, according to Green. Ford unveils minivan it is facing a financial emergency, the Indiana Utility Consumer Counselor and the Citizens Action Coalition requested a dismissal. Ford Motor Co. rolled its first PSI is seeking a twostep in Aerostar minivan off the assem crease of 7.6 percent beginning Jan. bly line and joined the other Big Three automakers in the bur 1.

1986. and 1.6 percent on Jan. 1, 1987. If granted, the increases could geoning minivan market. Ford Chairman Donald Petersen said generate an additional $62.4 million he wasn't concerned that Chrys in revenues in 1986 and $14.3 million more than that in 1987.

Another downtown tower planned 30-story building to be near new bank headquarters ler and General Motors beat PSI residential customers using Ford in putting their minivans on 1,000 kilowatts of electricity a month the road, rord makes the Aero- stars at its Hazclwood. would pay an additional $7.44 a month the first year and another $1.39 a month the second year under the proposed new rates. plant. The company predicts it will sell 50.000 Aerostars by year's end. The plant can pro In their filings, the opponents duce 200.000 vehicles a year.

claimed that during hearings in June, PSI failed to prove that it has Salaries reduced an emergency that requires immediate rate increases. They asked the commission to dismiss the case on that basis. A decision on the dis The U.S. Postal Service plans to cut the salaries of 30 top The Mansur tower would replace buildings housing Joseph's Shoes, Rite Aid Pharmacy, Peanut King. Lyric Record Shop and the Clique Lounge.

Alig said his firm would release sketches of the tower and details on parking and tenants in the near future. Mansur's projects include the $10 million historic renovation of the Century Building at 36 South Pennsylvania Street. The firm, which operates out of downtown offices, also is one of two development firms involved in turning the vacant downtown Sears. Roebuck and Co. store into offices and a shopping center.

quality (office) space in 1987." American Fletcher's proposed bank headquarters, with 800.000 to 1 million square feet, wouldn't be ready until late 1988. Huber Hunt Nichols the Indianapolis contractor that was chosen to build the American Fletcher tower will build the Mansur structure, too, Alig said. Mansur's architects will be FCL Associates of Chicago and Dallas and HDG Architects, Indianapolis. Developer Lewis Rothbard also plans an office tower in the same block. Rothbard has said his 22-story tower, to be built beside the Greyhound Bus Terminal, would open in late 1986.

story office tower a block away. "We're not out of the picture at all. We've always factored their product into all our marketing studies." Alig said Mansur has bought or has options to buy all property on the foot corner site, located a block from Monument Circle. The building, which would contain space for retail shops on the lower floors, would be completed in 1987. said Alig.

whose business partner is Harold Garrison. "We're very encouraged by some of the market analysis we've done over the last year. We're estimating there will be a shortage of officials including the post By JEFF SWIATEK STAR STAFF WRITER Mansur Development Corp. plans to build a 30 story office tower downtown, with groundbreaking to occur as early as this year. The $60 million building will contain 540,000 gross square feet and be located at the northeast corner of Market and Illinois streets, where low-level buildings housing several retail stores and a lounge now stand.

Mansur's president, Cornelius M. Alig, said his firm has planned the project for more than a year and won't be dissuaded by American Fletcher announcement this week that it will build a 40- to 50- missal requests is expected before hearings resume Aug. 19. master general by 3.5 percent Approximately 549.000 customers in an effort to reduce us losses. The aeencv also will hold off on in 69 counties are served by PSI.

which halted construction on the $7 a 3.2 percent pay raise for 700 billion Marble Hill nuclear plant in December 1983. That action was other officials, including postmasters of Washington, New York prompted by a recommendation to and Los Aneeles, Ihe Washing cancel the project, issued by a spe ton Post said in today's editions. The raise was to take effect today. The postal service is facing a potential loss of $500 mil -type UAW contract cial task force of businessmen who studied Marble Hill for Orr. The task force also suggested a series of steps PSI could take to regain financial health.

Lubbers would not comment on what kind of public stand, if any, the governor might take on the latest rate case. Chrysler seeks Saturn lion this year. Oil firms watched rigid work rules, shop committees Corporate raider T. Boone Pickens Jr. says he continues to watch the oil industry for potential takeover targets but is keep ing his eye on other fields.

Pick ens, the chairman ot lexas-based Mesa Petroleum, said, "I'd like to run a maior oil company. But it's darn tough to win one of "If you have a Japanese equity investment, you get a good deal; and if you're 100 percent American investment, you don't get as good a deal." Lee Iacocca those things. In the meantime, he said, he may borrow against his assets to buy companies in I ff I other fields. ASSOCIATED PRESS Highland Park, Mich. Chrysler Corp.

will go to the bargaining table this fall seeking the type of radical contract changes that General Motors Corp. gets for its Saturn plant. Chairman Lee Iacocca said Thursday. "This is really a watershed period in the history of labor relations," Iacocca told a news conference at Chrysler headquarters. The United Auto Workers and GM have been working for months on a preliminary agreement covering workers for the highly touted Saturn car complex.

GM still hasn't picked a site for Saturn, and neither side will say when the contract outline will be reached. Last week, a union dissident made public a draft that was approved by top UAW officials. It called for more than half of Saturn's 6.000 workers to come from present union ranks, for participation by union members in designing and marketing the Saturn car and for a salaried workforce a longtime UAW goal. In return, the union would agree to cost-cutting moves that eliminate and the traditional grievance procedures. In short, the plant would operate in many ways like those in Japan.

Iacocca said he liked the ideas, especially since the union has agreed not to impose traditional American working conditions on the two UAW-organized plants run by the Japanese the GMToyota Motor Corp. plant in California and the Mazda Motor Corp. plant under construction near Detroit. Chrysler and the UAW begin bargaining for a new U.S. master contract Aug.

12. The next day, negotiations begin with the Canadian auto workers union. Both contracts expire Oct. 15. The Big Three cannot afford to demand less, he said.

It wouldn't make sense, he said. "If you have a Japanese equity investment, you get a good deal; and if you're 100 percent American investment, you don't get as good a deal," he said. "We are. however, the first national contract up." Iacocca said. "These have been individual plants or projects in the future.

This is for Tylenol recalls Elixir Some containers of children's Tvlenol Elixir have been recalled Hospital laying off about 40 workers in Bloomington STAR STATE REPORT Bloomington. Ind. About 40 Bloomington Hospital employees will be laid off beginning Aug. 5 because of a continuing decline in admissions, the hospital's president said Thursday. Roland E.

Kohr said the staff reduction at the 1,250 employee hospital was brought about partly "by the new Medicare payment program, partly by major changes in private insurance reimbursement programs and partly the result of changes in medical practice by physicians." The laid off employees will have first chance at any job openings at the hospital during the next year, Kohr said, and will receive severance pay and insurance coverage until September. from wholesalers because they contained common yeast or mold. Robert Kniffin, director of public relations for Johnson Johnson said affected lots of the product were recalled from warehouse inventories after coi suiting with the Food and DrugV said the union would have no comment on Iacocca's remarks. GM and Ford Motor Co. negotiated new three-year labor contracts with the UAW last fall.

Saturn as a separate business entity from GM, will negotiate its contracts real this fall. "I think, now, we have a new era starting here and we should look at what's good about it," he said. "We should do as well or better (than Saturn). That's progress." UAW spokesman Bob Barbee Administration and determining that there was no public health hazard sufficient to necessitate a consumer level recall. j-u-r a.