The Indianapolis Star from Indianapolis, Indiana • Page 24

i Finance The Indianapolis Star TUESDAY, FEBRUARY 4, 1986, PAGE 21 Factory Orders Bids on Arsenal, officials say Local thrifts study takeover possibilities Off The i I Seasonally Adjusted in Billions of U.S. Dollars Source: Commerce Oept. FMAMJ ASONO 1985 Dec84 Dec85 193.7 196.9 202.1 ASSOCIATED PRESS r204--202--200- Loan Bank of Indianapolis, also refused to comment on the reports. Robert L. King, executive vice president of Arsenal, spoke for the Institution.

"Right now, I don't know of anything like this," he said. "I personally have not heard. As far as I know, we haven't been talking to anybody." However, R. Trent McWil-liams of Union Federal, said officials of that thrift have talked with Federal Home Loan Bank officials and are considering a possible takeover of Arsenal. "We're looking into it.

but I really can't give you a definite yes or no yet." the vice president said. "I know the Federal Home Loan Bank has talked to several institutions, but I don't know who they all are at this time." McWilliams said he didn't know when Union Federal would come to a decision about "We have talked to the Federal Home Loan Bank Board, but there's nothing in writing or any type of negotiations going on right now," he said. Officials at Indiana Savings Bank have also considered the possibllty of either a takeover or merger with Arsenal. "For our own purposes, we have reviewed some of Arsenal's data as well as (data from) other institutions," said Howard L. Prulm, senior vice president and treasurer of Indiana Savings Bank.

He said that while they have been studying a possible merger with Arsenal for more than a year, they have not yet decided whether to make an offer. Prulm said that his institution had not been officially contacted by the Federal Home Loan Bank Board about a merger or takeover of Arsenal. However, he would not say if there had been unofficial contacts about it. and chief operating officer of Fjrst Indiana Federal Savings Bank in Indianapolis, hinted that his thrift may be Involved. He said since First Indiana is one of the largest thrifts in the state, it gets such requests often.

Melton said Arsenal's net worth has been below the federal limit of 3 percent for at least a couple of years. Arsenal's deposits are insured by the Federal Savings and Loan Insurance Corp. Melton said if a move concerning Arsenal was pending, depositors' money should be safe. Arsenal had S235.2 million in assets and $190.2 million in deposits In 1984, according to the savings league. A spokeswoman for the Federal Home Loan Bank Board in Washington said the board has a policy of giving no comment on the situation of Individual institutions.

David L. Hostetler, vice president of the Federal Home By JAMES G. NEWLAND Jr. And MORRIS D. WILDEY STAR STAFF WRITERS Savings and loan institution officials in Indiana said Monday that the Federal Home Loan Bank Board has asked for bids from area thrifts to take over Indianapolis-based Arsenal Savings Association.

An Arsenal official said he personally was unaware of any such action. However, the president of the Indiana League of Savings Institutions. Richard A. McKasson. said it was his understanding that bids have been accepted.

Officials of two Indiana savings and loans Union Federal Savings Bank in Indianapolis and Indiana Savings Bank in New Castle said they are studying the possibility of either acquiring or merging with Arsenal. There probably are others. Owen B. Melton president GM's strong financial showing may drive it to top of ranking AEtna Life Insurance Company has completed permanent mortgage financing for RIVER BEND APARTMENTS Indianapolis, Indiana in the aggregate of $25,700,000.00 This mortgage financing arranged by INDIANA MORTGAGE CORPORATION in conjunction with OXFORD MORTGAGE INVESTMENT CORPORATION The undersigned assisted in the negotiations and acted as legal counsel to River Bend II Partners Klineman, Rose, Wolf and Wallack, PC. producing its rankings.

The automaker's sales surpassed those of Exxon which reported 1985 sales of $93.2 billion. Exxon has held the top spot on the Fortune list since It unseated GM In 1979. GM's profit margin was down significantly In 1985 compared with 1984. to 4.1 percent from 5.4 percent. GM's net profit for all of last year was put at $4 billion, or $12.28 per common share, compared with $4.5 billion, or $14.27 per share, a year earlier, which Included a $1.34 tax credit.

A company statement attributed the showing to heavy spending on new plants and equipment, costs Incurred in the $5.1 billion acquisition of Hughes Aircraft Co. and cuUrate financing programs on cars and trucks. GM also had a bigger federal tax bill nearly $1.5 billion in 1985 than the year before. And, while remaining the top automaker with 41.7 percent of all car sales in the United States, It continued to watch Ford Motor Chrysler Corp. and imports chip away at Its dominance.

Operating income for the year finished down 10 percent, to $4.2 billion from $4.7 billion, reflecting a third quarter in which GM lost money on the car and truck business. By EDWARD MILLER AP AUTO WRITER Detroit General Motors Corp. on Monday reported strong financial results for the final three months of last year, helping the automaker rival Exxon Corp. as the nation's biggest corporation for the first time since 1978. After-tax earnings in the fourth quarter came to more than SI.

2 billion, or S3. 85 per share, compared with S877 million, or S2.76 a share a year earlier. Sales in the final three months of last year totaled $24.6 billion, up from $20.9 billion a year earlier when the company suffered a strike in Canada. Operating Income for the fourth quarter also was more than $1.2 billion, GM said, compared with $421.6 million the year before. Worldwide sales were up by 14 percent to $96.4 billion from $83.9 billion In 1984.

which appeared to put GM atop the Fortune magazine list of the nation's 500 largest corporations for the first time since 1978. The new ranking will be Issued in the spring. Fortune spokesman Gary Belis said. He added that he could not guarantee GM will move to the top because the magazine may use different criteria In Tape FROM STAR WIRE SERVICES Soviets, Iran talking The Soviet Union has opened high-level talks with Iran on oil exploration and invited Iran foreign minister to Moscow. Iran is believed seeking better relations with the Soviet Union.

Talks on Sunday dealt with possible cooperation in oil exploration projects. Beatrice buyout QKd Beatrice Cos. board has ap proved a modified $6.1 billion takeover bid by the New York investment banking firm of Kohlberg. Kravis. -Roberts making it the biggest leveraged buyout ever.

Under the new takeover agreement approved Sunday, for each Beatrice common share Kohlberg. Kravis will pay $40 in cash and $10 In preferred stock. 85 worst for insurers Hurricane Gloria and a number of other "national catastrophes" made 1985 the most expensive year in history for insurance companies, the Insurance Information Institute reported. Samuel Schiff. an institute spokes man, said insurance companies paid out $2.82 billion for property and casualty losses in 1985.

That exceeded the previous record of $2.25 billion, set in 1983. Brewer, buys waters Anheuser-Busch Cos. announced it has purchased the assets of Sante' Mineral Waters Inc. of Santa Rosa. as a further incursion into the fast growing bottled water market.

T. Michael Carpenter, a brewery vice president, said Sante' Mineral Waters meets the Buschs objective of expanding "to new products that have generated a high level of consumer demand and have long-term growth potential." Arbitration refused Boat owners at New Bedford. refused Monday an offer to end a strike that has crippled the nation's most lucrative fishing port by submitting the dispute to binding arbitration. "We feel that it not appropriate to have some third party out there compromising Issues that are important to the boat owners." said David Barnet. spokeman for the Seafood Producers Association of New Bedford.

Oil price fall feared Oil prices tumbled below $18 a barrel for the first time this decade. OPEC's president predicted a "major price collapse" unless producers restrain output. Arturo Hernandez Grlsantl. the oil minister of Venezuela and president of the 13-natlon Organization of Petroleum Exporting Countries, urged producers to avoid a price war. LTV plant sold LTV Corp.

says it has com pleted the sale of Its steel plant In Gadsden. to the Brenling Group of Akron, ending a bid by an em ployee group to purchase the mill. The Justice Department had ordered LTV to divest the 82-year-old mill under terms of the department's 1984 decree that permitted the company to acquire Republic Steel Corp. that year. 8.06 16.12 TAX FREE TAXABLE Center for laid-off GM employees opens it's tax timQ.

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The company is building a new high-tech truck assembly plant near Fort Wayne. Moreover. It Is Investing heavily In modernization projects at major facilities in Indianapolis and Marion among others. Osos and GM officials have discussed such a training center for 14 months. It will receive $1.2 million from a national fund in which GM sets aside money for each hour worked by employees.

The center will conduct testing of workers, provide tuition assistance and arrange for schooling of UAW members. Similar programs have been set up at GM officials in Buffalo. N.Y. and Michigan. Meanwhile, another training set-up Is set to begin today for Ford Motor Co.

employees In Indianapolis. Ford hourly employees will begin a computer literacy and training program. It will be based at UAW Local 1111. 431 South Shortridge Road, and will Include other courses. bonds are rated triple-A.

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and United Auto Workers officials on Monday dedicated a facility they said represents a new era In labor relations. The automaker and Its union opened a training center for laid-off GM employees in Indiana and Kentucky. The complex, at 8455 Castlewood Drive on the North-eastsldc. will be run Jointly by GM and the UAW. Leaders of both groups said there could be resistance to such an idea.

"There will be many people who say management Is giving up its right to manage." said Alfred S. Warren GM vice president of industrial relations. "There will be some people who say the union Is giving up Its right to represent workers. "You and I have to work to break that down." Warren told a gathering of union and plant officials from the two states, which comprise UAW Region 3. Donald F.

Ephlln. a UAW vice president and director of Its GM division agreed. "We have two very large bureaucracies that have a long relationship." he said. But both officials said a Joint approach Is necessary. "The people problems caused by technology are much harder." Ephlln said.

While new technology will Executives of the Indianapolis company said they made the move because the Elkhart market Is attractive. Frank E. Mcklnney American Fletcher's chairman, said in a prepared statement. "We pride ourselves on this strategic move which will provide AFC with a viable banking entry Into the vital and highly-valued northern tier of Indiana as well as southern Michigan." First National' Bank. Elkhart's largest bank with about $700 million In assets, Is being acquired by AmerlTrust Corp.

of Cleveland. And Midwest Commerce Banking with $570 1 I I I AFNB to buy Elkhart banking firm Please send me a free prospectus on The mint. I am am not a Moseley customer NAME1 aBWsT CiTT HQME PHONE PHONE RflOGELEV BUSINESS i STAR STATE REPORT Elkhart. Ind. American Fletcher Corp.

said Monday It will buy the stock of Citizens Northern Co. parent firm of Citizens Northern Bank of Elkhart. The move will put the state's No. 2 holding company Into direct competition with large banking concerns based In Detroit and Cleveland. American Fletcher said it will pay about $5 million for the Citizens Northern Co.

stock. Citizens Northern, with about $46.5 million In assets. Is by far the smallest of Elkhart's three banks. million In assets, Is being taken over by NBD Bancorp Inc. Jerry K.

Pillmore. president of Citizens, said his Institution had also been approached by out-of-state firms. But he said Citizens decided to affiliate with the Indianapolis company because "the banking philosophies of American Fletcher and Citizens Northern are similar." Both NBD and AmerlTrust are much larger that American Fletcher. But Pillmore said that would not be a disadvantage. "Once you get above a billion or half-billion (dollars In assets) the services a bank holding company can offer you are about the same." he said.

1 Unit Trust Department One New York Plaza. New York, NY 10004 55284 I.