Arizona Republic from Phoenix, Arizona • Page 75

THE ARIZONA REPUBLIC BANK ON THIS Think your bank is stodgy? Many bankers agree. Business Insider, E2. TOWER LEASE A new bank signs a lease at the former First Interstate Tower on Central Avenue. Real Estate Briefs, E2. FRIDAY! OCTOBER 20, 1995 Editor, Marian Frank 238-4438 BUSINESS FORUM BUSINESS BRIEFS Home Depot in Scottsdale to put emphasis on design ji i 1 5 1 Irunn CAru SCOTTSDALE SQUARE Camelback Indian, School SCOTTSDALE MALL I 14 mile 14 km Design Pantn i 5 1 2 CIVIC CENTER I and thus far has opened of them, with another on the next month.

say the store offers a retail environment and gives Depot a chance to extend its considerable reach in the business. expect to find lumber, or sprinkler parts at The stores promise to sell you need to design a from the walls ip." stores offer upscale products lighting, fabric, wallpaper, kitchen and bath, faucets, fashion bath, tile, built-in appliances, doors and windows, floor coverings, patio, counter tops, wall decor, custom framing, and such hardware as hinges and locks. The Scottsdale EXPO also will enhance the city's downtown-redevelopment efforts. At 150,000 square feet, EXPO will have a footprint Vi times the size of the typical Home Depot store. "The store represents one of most unique retailing concepts out there now," said L.

Wayne Hood, a See HOME DEPOT, page E2 iii Builder ranks No. 19 on list of growing firms 0i By Glen Creno and Ray Schultze Staff writers Upscale do-it-yourselfers will have a huge place to indulge their house fantasies and add some pages to their credit-card bills when Home Depot opens its new design store in Scottsdale. Home Depot, the home-improvement warehouse chain based in Atlanta, is buying the old site of Scottsdale High School for. one of its new EXPO Design Center stores. Home Depot is putting the new stores in select markets across the Cafe founder a hard rock to crack Serves up reticence on Phoenix eatery By Ken Western Staff writer Maybe he's just reserved, a private person who shuns the limelight.

Or perhaps he really is preoccupied with running a celebrated business, as a spokesman contends. But Hard Rock Cafe founder Peter Morton is reticent, at best, talking about Saturday's opening of his high-decibel restaurant in Phoenix. For what little excitement he can muster in a telephone interview from his Los An- Peter Morton geles office, you'd think Morton was talking about opening the Burger King, not what is billed as the world's ultimate rock-and-roll restaurant. Hard Rock's stature as an American country three way Experts unique Home already fix-up Don't hammers EXPO. "everything home EXPO in bedding, By Catherine Reagor Staff writer Diamond Key Homes jumped into the Valley's home-building market during the late 1980s when other companies were pulling out.

The company's president and founder, Larry Davis, credits that move with its success. Phoenix-based Diamond Key has been named the fastest-growing home builder in the country, breaking into the top 20 on Inc. magazine's recently released list of ON THAT NOTE: The Hard Rock Cafe gives locals a chance to dig into 40 years of rock-and-roll history, D1. i icon is such that it doesn't need publicity, although its paid boosters still seek it out. So consider Morton's clipped responses to questions that other restaurateurs would seize to hype their businesses.

What's the appeal of the Hard Rock Cafe, now in its 25th year and renowned for its rock-history memorabilia and T-shirts with the famous logo? 1 "You should ask the customers that," Morton says. Exploring that a little further, because the 270-seat restaurant in Phoenix hasn't opened yet, he says the appeal is "great food at reasonable prices," and the memorabilia. Who frequents his restaurants? "All ages." OK. "If we have a core audience, it's 18 to See RESTAURANTS', page E3 iff 4 tmmL i -rftytmrn the nation's 500 fastest-growing companies. It leaped onto the list at No.

19. Diamond Key started business in 1989, when Arizona's real-estate market was bottoming out. The firm posted a 6,228 percent jump in growth from 1990 to 1994, with its sales jumping to $45.5 million from $720,000 during that period. "We set our sail in the home-building market, and the wind I Larry Davis came," said Davis, who also was named the 1995 Arizona Entrepreneur of the Year by Ernst Young Inc. and Merrill Lynch.

"Now, all of a sudden, the wind is still coming and our ship has grown to a vessel." Seven other Arizona businesses made the prestigious Inc. list: NIE International, a computer firm, No. 32; See DIAMOND, page E2 Wells Fargo; gives prey little room to wiggle Rd. Rd. By Edward Iwata San Francisco Examiner SAN FRANCISCO Like a boxer pounded by the reigning heavyweight, First' Interstate Bancorp may be trapped: on the ropes by ajiostile, $10.

bil- lion bid by Wells Fargo Co. The Los Angeles bank, the ripest takeover target in the' banking industry this year, has been outfoxed and nearly beaten by San Francisco's Wells Fargo, according to analysts, investment bankers and lawyers whoi specialize in mergers and acquisi- tions. In the genteel world of banking, Wells Fargo, nicknamed the "Evil Empire" by First Interstate insiders, has started playing rough. "To be honest, I don't think First Interstate has many options," said Raphael Soifer, an industry analyst at Brown Brothers Harriman in New York. "They've got to sit down and negotiate with Wells." Bloomberg Business News, quoting a source familiar with' the' situation, reported Thursday that Wells Fargo Co.

is offering First Interstate Bancorp powerful incentives to accept its hostile bid, including top positions in the combined company. Top on the list is an offer to make First Interstate Chairman and Chief Executive William Siart president of, the new Wells Fargo, which would be the nation's seventh-largest bank.i with more than $100 billion in assets. Wells, in negotiations leading up to its offer sent in a letter to First, Interstate on Tuesday night, also' offered to keep a major regional headquarters in Los Angeles, First Interstate's hometown. Also, First Interstate was offered about half the board seats on the new bank, said the source, who has been involved in the talks. Industry experts say First Interstate would face a long, brutal fight" if it chose to challenge Wells Fargo's "bear hug," a Wall Street term for.

unsolicited bids to buy a corpora- tion. If the bid is turned down, a hostile takeover erupts to win over shareholders of the target company. "Wells has been wanting to do this for years, and they feel they have to take a different, more aggressive strategy," 'said James Marks, a senior vice president at' Sutro Co. in San Francisco. "First Interstate cannot ignore this." Industry experts said a rejection of the Wells Fargo offer would clearly anger many First Interstate-shareholders who arc thrilled about the deal.

A merger would create a banking behemoth with $107 billion in assets. Speculation over a deal has fired up the stock of both- banks in recent weeks. See FIRST, page E3 Stall artist department. He also said the seasonally! adjusted unemployment rate has been slowly rising since June. Anderson predicted that the number of migrants to Arizona from other states probably will begin to slow next year as word i gets out that the state's unemployment ratej has started to creep higher.

Even so, he said, job creation lately has been stronger than his department predicted, reflecting healthy employment totals in most sectors of the economy. Economists consider the number of payroll jobs to be more accurate than overall employment, which includes agricultural workers, self-employed people and others in See STATE'S JOB, page E2 1 4 4 4.98 Avg. 30-yr. mortgaga rate; 7.38 Dow sets record Blue-chip stocks shot to record highs in the final hours of trading Thursday. The Dow Jones industrial average rose 24.93, to 4,802.45, beating its record close of 4,801.80 set Sept.

14. Story and chart, PageE3. Salomon losing key support Legendary investor Warren Buffett said Thursday that he will cash out a portion of his huge investment in Salomon the Wall Street firm he helped rescue from a Treasury market scandal in the early 1990s. Salomon's stock immediately tumbled about 6 percent on the news before recovering somewhat, even though it was announced in a report by Salomon of unexpectedly strong earnings in the third quarter. By late morning, the stock was down $1.50 a share, to on the New York Stock Exchange.

The decision raises questions about Buffett's long-term view of the troubled investment bank. Weaker economy indicated New housing construction slowed for a second consecutive month in September, and claims for unemployment insurance climbed to the highest level since mid-September, signs that the U.S. economy may be weakening. The slowdown in home construction was centered in Midwestern and Southern states. That contributed to an unexpected 0.1 percent decline in September starts to an annual rate of 1.390 million, according to Commerce Department figures.

An increase had been expected. Aztar earnings plummet Aztar-Corp. (NYSE: AZR) on Thursday reported a 40 percent drop in third-quarter earnings. The Phoenix-based casino operator, which has properties in Nevada, New Jersey and Missouri, posted net income of $4.6 million, or 1 1 cents per share, compared with $7.6 million, or 19 cents per share, a year ago. Revenue increased slightly, from $146.8 million to $154.9 million.

Results were weak at each of Aztar's four casinos, particularly the Tropicana Resort and Casino in Las Vegas. BankAmerica earnings rise San Francisco-based BankAmerica Corp. has reporterd third-quarter earnings of $704 million, or $1.72 per share. That was up from $547 million, or $1.36 per share, in the year-ago period. The parent of Arizona's second-largest bank, Bank of America Arizona, said net interest income rose 13 percent, to $252 million, due to an increase in loans, partly stemming from its acquisition of Continental Bank Corp.

BankAmerica also posted higher income from fees and commissions stemming from increased service charges on bank accounts. Iri addition, the bank said, it received a $65 million refund from the Federal Deposit Insurance Corp. for lower insurance premiums. About $50 million of the refund was applied to the third quarter. In the nine months that ended Sept.

30, BankAmerica reported a 24 percent rise in net income, to $1.96 billion, or $4.75 per share, up from $1.59 billion, or $3.95 per share, in the year-ago period. Tucson executive wins award Slivy Edmonds, president of Tucson-based Walnut Capital will receive the Outstanding Director Award from the Black Board of Directors Project at its annual banquet today at the Ritz-Carlton hotel in Phoenix. Edmonds' board memberships include the University of Arizona College of Business and Public Administration, the Greater Tucson Economic Council and the Arizona Theatre Company. The Phoenix-based organization has placed nearly 300 members on government, nonprofit and corporate boards since it began 1 1 years ago, President Marvin Perry said. Mortgage rates fall Thirty-year, fixed-rate mortgages averaged 7.38 percent this week, down from 7.50 percent last week, according to a national survey released Thursday by the Federai Home Loan Mortgage Corp.

At a glance Del Webb Corp. (NYSE: WBB; Pacific) Wednesday declared its 23rd-consecutive quarterly dividend, a 5 cent per common share dividend payable Dec. 8 to shareholders of record Nov. 3. Compiled from staff reports and from the Associated Press and Bloomberg Business News.

A. THURSDAY'S V'j DowJi Jones: 45 24.93 NYSE: 315.39 10 DOW JONES INDUSTRIALS 24.93 New 520 area code mandatory Saturday AREA CODE CHANGES Beginning Saturday, you must dial 520 to reach the following rural prefixes: 200 333 362 421 458 505 555 610 656 686 723 761 828 204 334 363 422 459 507 558 612 657 687 724 763 836 212 335 364 424 462 508 559 613 658 688 725 764 845 215 337 366 425 -463 515 560 614 659 689 728 765 847 216 338 367 426 466 517 562 633 660 691 729 766 851 281.339 368 427 467 518 564 634 662 692 734 767 855 282 346 369 428 472 521 565 638 667 697 735 768 857 283 347 372 430 473 524 567 639 669 698 736 769 859 284 348 378 432 474 532 568 642 672 701 737 781 865 287 353 383 448 475 533 586 643 673 704 738 787 868 288 354 384 452 476 535 587 645 674 705 739 796 871 289 355 385 453 477 536 595 646 677 709 753 805 875 300 356 387 454 478 537 600 651 680 716 754 812 896 315 357 394 455 479 538 604 652 683 718 755 823 916 330 359 402 456 485 550 605 653 684 719 757 824 923 332 361 418 457 487 552 608 654 685 720 758 826 927 Source: US West Communications areas being converted Saturday. Flagstaff, Prescott, Yuma and Tucson will be changed over to mandatory dialing by the end of 1996. In the second phase, customers in the local calling areas of Flagstaff, Prescott and Yuma will change to mandatory dialing June 30. The greater Tucson area will change over for good Dec.

31, 1996. A list of the three-digit prefixes that will be affected by the change to mandatory dialing appears in the accompanying chart. Meanwhile, US West in early November will begin allocating new phone numbers in the new area code. On Nov. 5, the company will Staff report Beginning Saturday, the use of the state's new 520 area code becomes mandatory for more than 200 prefixes in rural Arizona, US West announced.

The Arizona Corporation Commission approved the new area code for areas outside the greater Phoenix calling area earlier this year, to free up badly needed new phone numbers. Callers had been able to reach the 520 numbers by dialing either 520 or 602 during a grace period that has been extended twice since July. Now, the new area code is being phased in over three stages, beginning with the least populous rural begin handing out phone numbers in the area code for one of those 520 13 prefixes to new customers; on numbers, you may reach the wrong Nov. 1 1, one more will be allocated, party at the same seven-digit number This means that if you fail to use in the Phoenix area. State adds 41,000 jobs, total hits a record 1 .77 million 5 2 Arizona economy ranks No.

1 in nation, thanks to job growth By Russ Wiles Staff writer Maybe they should change the state's motto to "Arizona, first in economic performance." Boosted by job growth and a sharp decline in home foreclosures, Arizona's economy ranked No. 1 in a study released this month by Everen Securities of Chicago, formerly known as Kemper Securities. The quarterly study, which evaluates information for the 12 months that ended June 30, looked at six economic factors two relating to employment and four to real estate for the 50 states and Washington, D.C. Arizona placed in the top half in each of the six categories, paced by an especially strong showing in See ARIZONA, page E2 UNEMPLOYMENT Rates for United States, Arizona, and Phoenix-Mesa, including Pinal County. All rales are seasonally adjusted.

JFMAMJJAS '95 Arizona Department ol Economic Security '94 Source' Staff artist 9 8 i Arizona i 70 United 6 States il" Mesa J- By Russ Wiles Staff writer Arizona's economy stayed on track in September, as the state created 41,000 payroll jobs, mostly in the education field, the Department of Economic Security said Thursday. The September increase pushed the job total to a record 1.77 million, eclipsing the previous high of 1.76 million, set in April, before the seasonal summer lull. But the number of job seekers also increased in September, and the effect was to push up Arizona's seasonally adjusted unemployment rate by one-tenth of a point, to 5.4 percent. "The inflow of people looking for jobs is growing faster than job creation," said Dan Anderson, research administrator for the 4 I ONE DOLLAR EQUALS: METALS AND COMMODITIES: CLOSING QUOTES INTEREST RATES Thursday go Thursday go Prime rate 8.75 7.75 6-month T-bills 5.29 5.42 Discount rate 5.25 4.00 1 0-year T-notes 5.96 7.79 Federal funds 5.69 4.70 30-year T-bonds 6.30 7.99 Gn, N.Y. I Comex Troy Pound Mark 1.4071 0.0168 Handy Nfz Harman Troy 5.295 pound Yen 100.45 500: 590.65 3.21 AIKEX: 534.11 fin!) -i iiSf jr 1.3380 u.uuus "Composite "Nasdaq: ftm A.

Peso volume: 1,046.97 6.6800 491,804,300 1.84 Comex 1 1.2810 0.069 Crude oil Cotton 17.32 82.90 Barrel 3-month T- 5.23.