St. Louis Post-Dispatch from St. Louis, Missouri • Page 21

ST. LOUIS POST-DISPATCH MJSINE SECTION THURSDAY. JULY 17, 1997 wag SIHWB8 3 Radio Stations Bought By Group WW I ITT To Split In 3, Buy Back Stock To Halt Hilton Bid Hotel and casino giant ITT Corp. launched a massive restructuring plan Wednesday to thwart a $6.5 billion hostile bid from rival Hilton Hotels File photo by Wendi FitzgeraldPost-Dispatctl The lobby of Heritage Media's radio stations here, which are being sold. revenue in St.

Louis, at $12.1 million. tions Act of 1996 will bolster St. Louis as one of Sinclair's most important markets. Sinclair already operates KDNL-TV, the ABC affiliate, and WVRV-FM "The River" and KPNT-FM "The Point" here. Sinclair acquired those properties and 32 other radio stations just last year when it bought St.

Louis-based River City Broadcasting for $1.2 billion. "We're very committed to St. Louis," said David Amy, Sinclair's chief financial officer, adding that his company's strategy is to focus on middle-sized markets that rank between 15th and 75th in size. St. Louis is the nation's 20th-largest television market and 17th-largest radio market.

Sinclair now operates 29 television stations in 21 markets, and 34 radio stations in eight markets. The deal for Heritage's broadcast holdings includes six television stations and 24 radio stations. Amy declined to say whether Sinclair plans to make any change in the St. Louis WIL-FM Is Among Sinclair Additions By Kyung M. Song Of the Post-Dispatch Staff Three St.

Louis radio stations awaiting the merger of their parent with a company that is not interested in radio are being sold to a Baltimore broadcast company. WRTH-AM, WIL-FM and KIHT-FM also known as "KHITS96" will be acquired by Sinclair Broadcast Group one of the nation's 10 largest television and radio broadcasters. The $630 million cash deal will take place after the close of the merger between the stations' parent, Heritage Me- dia Group of Dallas, and News Corp. of Australia. That merger is expected to occur in the first quarter of 1998.

The acquisition just the latest among a spate of sales and swaps in the broadcast industry unleashed by the Telecommunica Media mogul Rupert Murdoch, whose News Corp. announced plans to buy Heritage in March, wasn't interested in keeping Heritage's radio operations. Rather, News' Corp. wanted Heritage for its Actmedia, a $350 million in-store couponing and market', ing business, and for Dimac, a $220 million full-service direct-mail marketing firm based, in St. Louis.

stations' formats or staff. WIL is a country station, WRTH plays standard hits and KIHT has a 70s rock format. In April, the three stations had about 50 employees in their leased offices at 8081 Manchester Road. Arbitron ratings for this winter showed that Heritage's three radio stations had 13.8 percent of the St. Louis radio market.

WIL was the No. 2 station, after KMOX, among listeners age 12 and older. In the 1997 edition of Duncan's American Radio, Heritage is ranked fourth in radio is awaiting regulatory That merger approval. 160.00 i i The Merger Keeps Getting Richer Boeing Stock Price Ijuiy it: stock at 33.t3; merger worth $16.3 billion ii 57.50 B- 55.00 Corp. by splitting into three companies and buying back $2.1 billion in stock.

Under the long-awaited plan, ITT would split into a hotel and casino company, to be called ITT Destinations; ITT which will publish telephone directories; and ITT Educational Services which will run technical schools. Following the news, ITT's stock jumped $4.81 to $67.44 while Hilton rose 50 cents to $29.50 on the New York Stock Exchange. Hilton wants to acquire 50.1 percent of ITT's stock at $55 a share. Hilton said it would mount a legal challenge to ITT's spinoff plan. It called the plan a "smoke-and-mirrors scheme" that would be "value destructive" and said a combination of ITT with Hilton would create greater value.

Under the plan, ITT stockholders will keep their ITT shares, which will represent ownership in the telephone directories business. For each share they hold, they will receive one new share in ITT Destinations and about 0.25 share of ITT Educational Services. Reuters U.S. Asks Nine Airlines For Frequent Flier Data The Department of Transportation is asking Trans World Airlines and eight other U.S. air carriers what percentage of seats on a given flight are allocated for frequent flier award travel.

An ongoing review of frequent flier programs shows that airlines might not be providing consumers with adequate information about the number of seats that are available for award travel under the programs, the department said Wednesday. The airlines were asked to detail how they notify their frequent flier members about changes in the award system and any seat limits that may apply. The other airlines are Alaska, America West, American, Continental, Delta, Northwest, United and US Airways. Bloomberg ifilii aMX A iiiiiijiipiilillilliiii 52.50 50.00 iiii liiii i iV 11 I I fiii Walter Quits As President Of 1 Company Drops Promise Of Succession To Top JoB By The Associated Press NEW YORK John Walter resigned Wednesday president of Corp. after the company backed out of its promise to make him the successor to chairman and chief executive Robert Allen.

Walter was hired by in October from printer R.R. Donnelley Sons, and was touted as the leader whd could bring the nation's largest long-distance company into a new era after its split-up into three companies. But eight independent directors, with a rec: ommendation from Allen, voted unanimously over the past two days to deny Walter the promotion. Dec. 15: McDonnell merger announced; worth $14.3 billion with stock at $48.38 iiiiHiiiiiiiiiiiiiiiliiiiii'aiiiimiiM 47.50 liiiiiiiiii ijlhiiiiiiiliiiiiiiiiijiijiiiiiiij niiiiijj jjijjj jijilj jjj Hill iiiiiiiiiiiiiiiiiiHiiM li i i I i I i i I 1 1 i i i iii iii i i iiii iii ill i ill i i iiii I jj jj ijli I Iiii i li Mil hii ii iiii I Iii i I jiiiSijjiiiiiiiiiijiiliiiiilliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii'Miiiliiiiii liiiiiiiiii liiiiiiiiii I JULY 45.00 JUNE MAY APRIL MARCH FEBRUARY JANUARY DEC Post-Dispatch Chart Source: Bloomberg Financial Markets MCDONNELL 0OUOJL4JMJ Europeans Ask Bloc For Boeing Rejection JU We became increasingly concerned about whether he could provide the intellectual leadership for this company," said director Walter Elisha, also chairman and chief executive of Springs Industries Inc.

"It may well be that we erred in asking John to take on this responsibility in the first place," Elisha said. "We obviously thought he could do it." Walter, 50, will get $3.8 million for losing out on the top job, in addition to the $22 million he was paid to leave his previous job. He MERGER UPDATE The merger of Boeing and McDonnell, approved Tuesday by the Federal Trade Commission create the world's latest aerospace company. Merger Facts Combined Revenue: $36.5 billion Total Employees: 210,000, including 23,000 in St Louis. Deal's Value: $16.3 billion based on Wednesday's stock prices, What's Next July 23 or 24: European Union ruling due, July 25: Boeing and McDonnell shareholders vote on deal.

Aug. Deal scheduled to close. John Walter Promise pulled sion a series of significant remedies designed to address all of the commission's concerns and to protect the interest of our airline customers, suppliers, and the more than 200,000 employees of Boeing and McDonnell Douglas," said Phil Con-dit, chairman and chief executive. The Federal Trade Commission, which handles antitrust investigations in the United States, reviewed the same information and gave the merger its unconditional approval. Boeing and McDonnell Douglas will have only limited options if the European Union's ruling body decides the merger as structured is illegal.

They could come up with concessions and resubmit their proposal in hopes of winning approval. Or they could appeal to the European Court of Justice. But that process typically takes two years, and the court has never overturned a decision on a major merger. Paul Nisbet, who follows the aerospace industry for JSI Research in Newport, R.I., predicted after the Europeans issued a preliminary ruling against the merger July 5 that the deal could be delayed by several months. Boeing said the Europeans object most strongly to added power it would gain in the jetliner market by absorbing Douglas Aircraft Co.

and the "sole-source" supply agreements it negotiat- Resistance Could Delay Deal By Several Months By Christopher Carey Of the Post-Dispatch Staff The European Union's antitrust experts said Wednesday the 15-nation trading bloc should reject Boeing compromise plan for merging with McDonnell Douglas Corp. The panel's doubts about Boeing's design for preserving competition could complicate or even delay the historic, $16 billion-plus deal. European officials close to the talks said a settlement was unlikely before representatives of the 15 nations issue a final decision July 23. The European Union cannot prevent Boeing and McDonnell from merging. But a trade agreement with the United States gives it the power to impose fines and other penalties that could render the deal unworkable.

Those sanctions include fining the merged company up to 10 percent of its revenue, fining European companies that do business with it, and even seizing any new planes delivered to them. Boeing took issue with the antitrust panel's recommendation, announced after five days of tense negotiations. "We are extremely disappointed, because Boeing submitted to the commis reacted with disappointment. "I believe I am perfectly qualified to be CEO of right now," he said in a company statement. Allen said in June he was pleased with Walter's perforj mance, and said there was no change in the succession plan.

But signs of friction between Walter and Allen had emerged in the last few months. As was negotiating to buy SBC Communications there were reports that Walter would have been left out of the top management of the new company. Also last month, named its top lawyer, John Zeglis, to the additional post of vice chairman to run the company, alongside Walter and Allen as part of the chairman's office. The promotion was widely seen as a threat to Walter's authority. Zeglis, who now appears to be a leading candidate to succeed Allen, on Wednesday was put in charge of operations and will lead a team of the heads of biggest units.

stock dropped sharply when hired Walter, falling below $35 per share. News of his resignation sent stock higher in the final minutes of Wednesday's trading, rising $1.31 Vt to close at ed with three big U.S. airlines. The merger would give Boeing roughly two-thirds of the global market for large jetliners, leaving the rest for Europe's Airbus Industrie. Political leaders in France and Germany backed the antitrust panel's findings, with French President Jacques Chirac saying the merger could be "dangerous" for European industry.

Aerospatiale of France and Daimler-Benz Aerospace are the two main partners in Airbus Industrie, Boeing's See BOEING, Page 5 Hospital Chain Served With Search Warrants ColumbiaHCA Healthcare Corp. facilities in six states were served with search warrants Wednesday as the federal government widened its probe of Medicare and Medicaid billings by the country's largest hospital chain. The warrants requested records and documents on hospital laboratory billings and home-care operations, said a statement by the company, based in Nashville, Tenn. Those areas are targets in a broader government crackdown on overbilling of the Medicare and Medicaid health insurance programs for the elderly and poor. The company and the FBI said warrants were served in Tennessee, Florida, North Carolina, Texas, Oklahoma, and Utah.

Bloomberg Banc One To Shut Branches Keeping with a trend toward automation of banking services, Banc One said it will close about 200, or 13 percent, of its 1 ,500 branches nationwide next year. Banc One, based in Columbus, Ohio, disclosed the move in its annual report. The nation's, ninth-largest bank did not say which branches will be closed or how many employees will be affected, but said Wednesday they all will be offered jobs at other branches. Associated Press Belleville Grocery Closes Owners of Belleville's Super Valu have sold one of the city's last independent groceries. A video store, owned by Family Video Movie Club, will open in its place after Super Valu closes in two weeks.

Super Valu store had not been for sale, but Family Video Movie Club approached the owners about purchasing the facility. Post-Dispatch QUOTABLE "For all its good intentions, the proposed settlement is a Trojan camel." HUBERT H. HUMPHREY III, Minnesota attorney general and a leading critic of the proposed tobacco settlement, describing it as a case of good intentions run afoul of what he called "the tobacco industry's long history of deception." BJC's Brown To Head Hospital Association V1 By Judith VandeWater Of the Post-Dispatch Staff Fred L. Brown, an administrator who helped create the area's largest health care system, has been elected to lead the American Hospital Association. Brown will continue as president and chief executive of BJC Health System as he steps into the association's top post.

"This is a personal honor, but it is an honor that is reflective not so much on Fred Brown as it is on the BJC organization and the perception nationally of what BJC has done through the leadership of its board, its physicians and staff," he said. In January, Brown begins a one-year term as AHA chairman-elect. He becomes chairman in 1999. He will be the first Missouri health care administrator to chair the AHA. About 4,600 hospitals and healthcare systems are members of the AHA.

The organization has more than 460 employees at its offices in Chicago and Washington, D.C. In 1995, the most recent year for which data is available, it had annual dues revenue of $57.9 million. The AHA lobbies for its members' See BROWN, Page 5 Fred L. Brown Vita Age: 56. Career: BJC Health System, president and chief executive, 1993-present.

Christian Health System (one of the hospital groups that merged to form BJC), president and chief executive, 1986-1993; same titles at-Christian Hospital Northeast-Northwest, 1982-1989. Memorial Health Services, Elmhurst, executive v. p. and chief operating officer, 1980-82; same titles at Memorial Hospital of DuPage County, 1974-82. Methodist Hospital of Indiana, v.p.

operations, 1972-74. Education: Master's in business administration, George Washington 1966. Bachelor's in psychology, Northwestern 1962. Excerpt from personal mission statement: "Serve my fellow man, make my part of the world a better place for having been there and bring out the best in others." Dow Jones omffip 8038.88 U5.62 JJp Deutsche van Marks 1.7917 immi SAP 500 936.59 Bloomberg 1 St. Louis 30-Year T-Bond 6.47 1 I 195, Fred.

Brown, president and chief executive of BJC Health System, poses Wednesday in front of Barnes-Jewish Hospital, a member of BJC..