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Reno Gazette-Journal from Reno, Nevada • Page 16

Location:
Reno, Nevada
Issue Date:
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16
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Today's tip 8B Saturday, July 25, 1987 Reno Gazette-Journal BUSINESS EDITOR: MIKE NORRIS, 788-6336 usines Nevada small businesses looking to expand and create jobs may be eligible lor funding under Nevada's Small Business Revitalization Program. Details: 885-4420 or 1-800-992-0900. in landmark case Union Carbide pays record responsibility but does not admit guilt," Mikelson said But he said the "willful" characterization by OSHA of the violations also stands as part of the agreement, including one chat accused managers at the Institute plant of requiring workers to "sniff" for the presence of deadly phosgene gas when alarms indicated a leak of it. "They used to use canaries for that," Labor Secretary William E. Brock said when OSHA issued the citations 16 months ago, warning that other companies which "blatantly violate safeguards" could expect the same type of penalties.

Company officials said Friday that continuing the fight before Labor Department law judges and possibly later in court would cost several times the amount of the reduced settlement WASHINGTON (AP) Union Carbide Corp. agreed Friday to pay a record $408,500 fine for contested job health and safety violations, settling a landmark case involving two West Virginia plants including one where it was accused of exposing unprotected workers to a deadly gas. The nation's fourth-largest chemical company denied violating the law. But it said resolving the case and agreeing to pay a reduced fine was cheaper than continuing, to fight charges of more than 500 violations filed against it last year by the Occupational Safety and Health Administration. The settlement ends what was a landmark case for OSHA in enforcing the nation's job safety laws.

OSHA originally fined the company $1,377,300 for 221 violations, including 127 enforcement policy to was to lump together similar violations by an employer and treat them as one citation with one fine of $10,000 or less. "There should no employer in the country today who is unaware of how this agency feels," Terry Mikelson, an OSHA spokesman, said Friday. Just three weeks ago, OSHA collected its largest penalty ever, nearly $1.6 million from the Chrysler Corp. for exposing workers to hazardous levels of lead and arsenic at auto assembly plants. Chrysler, however, did not contest the fine.

Mikelson said the Carbide settlement is the largest ever collected by the agency from a company that had challenged its citations. The settlement agreement with Carbide includes the "standard non-admission clause in which the company accepts described as "willful" or deliberate disregard of the law, at its chemical plant in Institute, W.Va. Later, another $90,000 in fines were levied for 335 alleged "willful" violations at another Carbide plant less than 20 miles away at South Charleston, W.Va. The Institute fines levied in April 1986 were the first time during the Reagan administration that the agency sought the maximum $10,000 penalty for each individual "willful" violation of the law. In the interim, OSHA has sought more than $8 million in fines against 15 other major corporations, including proposing one of nearly $2.6 million earlier this week against IBP the nation's largest meatpacker.

Most, like IBP and Union Carbide, have contested the citations and fines. Previously, the administration's OSHA Judge grants Texaco extension NEW YORK A federal bankruptcy judge on Friday gave Texaco Inc. a 120-day extension of the period in which the energy giant has the exclusive right to file a Chapter 11 reorganization plan. Pennzoil which had opposed the extension, said the extra time "materially reduces the possibility of settlement" of the multibillion-dollar court dispute between the two companies, and its previous $4.1 billion settlement offer no longer, stands. U.S.

Bankruptcy Judge Howard Schwartzber agreed with Texaco's contffition (hat the complexity of the Chapter 11 case the biggest in U.S. history plus the burden of dealing with the Pennzoil legal battle warranted the extension. Pennzoil had asked the court to shorten the exclusivity period, and on Monday proposed a reorganization plan that included the $4.1 billion settlement. Texaco is appealing a Texas state court jury's order that it pay $10.35 billion in damages to Pennzoil for wrongly interfering in Pennzoil's attempted merger with Getty Oil Co. in 1984.

Economy grows at 2,6 rate; no Slowdown see in r-. v. --jb. 11 1 Jiff' A NX v4 Market climbs higher NEW YORK Prices closed higher on Wall Street Friday as the stock market registered no reaction to the government's gross national product figures and there was little other news to influence traders. The Dow Jones average of 30 industrials closed up 13.39 at 2,485.33, recording a 24.71-point decline for the week.

In other reports: Turnover in NYSE-listed issues totaled 184.30 million shares. NYSE's composite index was up 0.67 to 173.70. Standard Poor's index of 400 industrials rose 1.90 to 361.92. Oil prices plummet despite gulf blast NEW YORK (AP) Oil futures prices fell sharply in profit-taking on the New York Mercantile Exchange Friday as the market downplayed the latest incident in the war-torn Persian Gulf but kept a wary eye on future developments in the area. Contracts for September delivery of West Texas Intermediate, the U.S.

benchmark crude oil, tumbled to $20.57 a barrel on the NYMEX, down 66 cents from Thursday's close. A barrel is equivalent to 42 gallons. Analysts said many investors continued to sell futures contracts and collect profits following the recent steep jump in oil prices. The flare-up of tension in the gulf last week had lifted WTI futures to well over $22 a barrel their highest level in 18 months. Friday's decline occurred despite reports that one of the reflagged Kuwaiti oil tankers in the gulf hit an underwater mine and began taking on water as it was being escorted by three U.S.

Navy WASHINGTON The nation's economy, spurred by consumer spending and a resurgence of exports, grew at a moderate annual rate of 2.6 percent during the second quarter of the year, the Department of Commerce reported Friday. The expansion was healthier than many economists had expected, and experts believe that the business recovery, now in its 56th month, shows no signs of flagging. "The odds are the economy will keep growing this year and next," said Allen Sinai of Shearson Lehman a brokerage firm. "The economy looks to be in good shape and much better balanced than a year ago." The 2.6 percent rise in the gross national product, the total measurement of the nation's goods and services, fell well below the 4.4 percent annual growth rate posted in the year's first quarter. The earlier jump was prompted largely by a buildup in inventories, the goods on shelves and in warehouses.

The second-quarter rate, by contrast, was much better in final sales. "It was healthier growth, coming from actual sales to business, government and consumers," said Irwin Kellner, chief economist for Manufacturers Hanover, a major New York bank. Secretary of Commerce Malcolm Bal-drige, encouraged by the news, expressed confidence that the economy will meet the administration's growth target of 3 percent for all of 1987. "Nothing is ever in the bag, but I feel we can do that," he told a news conference. A recovery in consumer spending and a boost in orders for manufacturing equipment helped the quarterly results, Bal-drige noted.

The total output of goods and services grew $24.2 billion. Consumer spending, which had slowed in the first quarter, jumped a hefty $12.8 billion. In another significant development, exports rose for the third straight quarter, indicating that U.S. manufacturing companies have recaptured some of the sales they lost in the years when the dol- Southland settlement DALLAS (AP) Southland parent company of the world's largest chain of convenience stores, announced an out-of-court settlement Friday with shareholders who had challenged a move by members of Southland's founding family to take the company private. In a separate announcement Friday, Southland reported a $34.1 million drop in earnings for the second quarter compared with the same period in 1986.

Wire service reports 10 Vbl TrIStar Viking Vlkonlc NASDAQ TrSI wtW VilSpM t.15 1B 17 Va Vipont TrladSy TrlMlc Trlmad 6H1-161 16H Vj Viratk VaBch .20 6'4 Trlon Michael LeschilnGazene-Journal lar rose against other currencies. Because the dollar has since retreated, American goods are more competitive in price. The decline in the dollar, which has become cheaper in relation to the Japanese yen and West German mark, has produced "a significant export surge" and will help spur U.S. economic growth this year, said Jerry Jasinowksi, chief economist for the National Association of Manufacturers. Exports grew $12.4 billion in the second quarter, while imports rose only $5.5 billion, the Commerce Department said.

Los Angeles Times 2 1 16 From page 7B SuttFIn .20 14 SuffBn .52 15V4 Ut Sumito 1.16b 27V Summe TritnG 10V4 1 13-32 12 vistaLP visual 1 Vltronlc 1 15-16 Trlt otC 23'4 VJ TrusJo TrstAm 16V Vlvlgan I Vodavl 3 16) 16 Voltlnt 27 1' TrNY 20 2 Sumcrp Hv4 SumltB Vi SumlHI .12 Tsrtcp 1.21 31V Vi Volvo 1.24a 55 4 Vortac 3 Va TucfcDr iTucsW JOCrtln TIDYING UP: Donna Nidever of Reno arranges notebooks on display shelves Friday as the staff of the Target retail store at Kietzke and Moana lanes prepares to open for business Sunday. Target, which has a second area store at East Prater Way and McCarran Boulevard in Sparks, bought the Gemco chain from Dublin, Calif. -based Lucky Stores in 1986. Target is a division of Dayton-Hudson which has six divisions operating 1,210 stores in the continental United States and Puerto Rico. 4' Vh 2 7 16 ,24 61 VulcP 04e 7 3 16 '4 23H Hi TwtTr 2 3 14 1IV 202 DTa 4V4 10H Vj SumSav SunCst Sunafr SunGrd SunMlc SunSISL Sun Id SunMed SunstFd Two Peso TycoTy 34' A 7Vk Va WD 40 1.32a 2Vt WNS 17V WTD 21- Walbro .40 24V4 WlkrTel 3 1-14 wallSnd 4- 1Bi '4 Tyson Sunwst SupRtt .20 Va 'A WaltSv 15'4 36V 'J 19 Vk 4 V4 'A 13 WardWh WrhsaC Warran Warwk WshBcp am Be SupSky i SupEI Suprtax SuprEq SorgAf SorvTc SusqBn .72 Sutron SvanCH 13 2V 6 IJV 13' 22 IIV4 UTL UttrBc Ungmn UnlMrt .0 Unlbcp 5H Hi Ruling delays foreclosure against Dunes 31H Vt 10H WashE 91.71 17 Mi WFSL .80 29V unicra UnicoA Unit) nitre Sybra 7H 17' 12V41 WshFOr 7 Va WshFDC I Mi WMSB .60 UH WsHScI .15 IIV4 WatrtGI 7H Unimad UnNstl 1.32 34V4 lUnPlntr 164 37' 14 27 WatrfG 17'4 Va 13" 1JVi 14 3'.

33 2 4 Va 10 V4 5H Va 10 2JH 444 9H 47 UnSpIC Unwarn jUACm .04 Watrhsa 7 Sylvan SymTk Symbtn SymbT Symbllc Synblo Sync or Synrcm Syrwrgn Syntech Syntrsx Syntro SyrSup Syttln Syilntg 274 1V UBAIsk UnBkn UBCol .541 5 Watts Ind 21 WausP 29V4 Wavar .36 14 Va Wavatk 9 Va Waxmn 9V 19V4 UBkWV 1.06 UCaroB 1.04 Wbstci UCtyGl 1.60 77 lUnCoast VM 1V4 I6V4 16 is 14 7" 12 34 3 1 14-1 16 SySoftw Systmt SytCp II V4 WbstFn WalgTr .40 Waltfld .50 welbilt Wellmn Wandt UnCosF .50 UnDom 1 UnEdS UFnGrp UFiraC .96 30V 1 UGrdn 10 Vh UHltCr UtdHm l'4 UMoB 1 06a 27- wendt wT wernar Wetpc 2 WMM WNawtn Westcp Witrbka wstAut wtBank 1 20 1 3 V4 11 7 3 liv 11H UnNMx 10' UtdSvrt .72 TBC I TCA TCBY TCF Cell TGX TMK TPI En TRC TRV a 17 ,24 27W 1M 13V V4 4 2 7 16 1 16 Oa liv 41 13 1 1 14 1 16 argued the terms of the agreement were violated after the E.F. Hutton purchase fell apart last February, but Dunes attorney John Dawson said the settlement agreement allows the owners until Dec. 31, 1987, to come up with a firm buyer. Jones said he could ultimately decide to let Southmark foreclose, but not until after the Aug. 3 hearing when the two buyers will be before him.

The Hilton's cash offer is for less money $122.5 million vs. at least $135 million from Nangaku's Minami Group (USA), Inc. But the Hilton's money would get to creditors more quickly since it is already licensed and Nangaku would have to get a gaming license, which would probably take more than a year. Anderson and the board of directors representing the 2,000 stockholders favor the higher offer from Nangaku and have voted to accept that offer. The judge said he was "chagrined" that the last plan he approved, the selling of shares by E.F.

Hutton to raise $144 million to buy the Dunes, was not what it appeared, but said he did not know who to blame, By Jane Ann MorrisonGazetie-Joumai LAS VEGAS Dune Hotel majority owner John Anderson got some breathing room Friday in his effort to sell the resort when U.S. Bankruptcy Judge Clive Jones issued a temporary restraining order halting a foreclosure attempt. Jones made it clear his ruling was not based on the merits of the Dunes' claims, but on the irreparable harm a foreclosure sale would do to resort creditors and employees. He also put would-be buyers on notice they may have to come up with $5 million of non-refundable money if they are serious about buying the financially strapped hotel-casino. Japanese billionaire Masao Nangaku has already deposited $2 million in earnest money, but the other prospect, Hilton Hotels has not deposited any money.

Burton Cohen, who is running the Dunes, said if the judge allowed it to go into foreclosure, the two prospective buyers both indicated they would withdraw their offers and it would have a chilling effect on other purchasers coming forward. The Dunes was on the edge of being closed when it fled to the protection of the bankruptcy court and filed for reorganization under Chapter 11 on Nov. 6, 1985. For the past 21 months, various sale offers have been negotiated, but no sale was completed. Rejected offers included a $100 million bid from New York investor Donald Trump and a $115 million offer from Golden Nugget Chairman Stephen Wynn.

Southmark the Dallas-based financial services and real estate conglomerate, bought the first mortgage at a discount of $88 million several months ago, and now wants to foreclose to guarantee it will receive the $102 million the mortgage is now worth on its face. Attorneys for Southmark and Investment the Dunes' operating company, argued throughout an 8Vi-hour hearing Friday whether the Dunes violated its court-approved reorganization plan by not having a buyer in place by June 1, 1987. Southmark attorney Stan Hunterton 9H USvBk USB Or 14'41 1514 WsTCap USBkVa .50 141 US Ant 19 1: WnFncI .06 Vi WstFSL 20V TS ind US Be 27V4 TSI .10 14 24 WnWste US Enr WMIcTc US Fc1.04a 5H Mi US HltC .14 134 TSO TSR TVX TacVIv Talman 3V 1H USHItl 64 14 1314 17 '4-27'4 21V 14' T4 Mi! WstnPb WSter WtTIA wstmrk WmorC A Westn a WstwO US ME I US Play US Pre 64 1 13 1 Tandon Taunton 13' 2V 339 TchDta 12 Tchnal .20 us 5nan US Sur .40 iUSTrk .40 lUS Tr a 1 6k Vi TcCom 22 1 404 Tacogen fVi wattra 1.04b 47V Waynbg 43 Whlclub 4V4 Wicat 31114Mi Wiland 1 Mi 19 Vi UStatn .24 Tacum 3.20a 136 2 33 Mi UnTclav UnVTBn .92 'A Takalac 30 1 15H UVaBk 1.04 2914 Webb could test anti-takeover law PHOENIX, Ariz. (AP) A New Zealand-born financier's acquisition of a large stake in the Del E. Webb case could spark the first court test of Arizona's brand-new anti-takeover law, a specialist said Thursday.

"If Del Webb chooses to view it as a hostile situation, they definitely have more leeway," said Mark Pastin, a management professor at Arizona State University who helped shape the measure signed into law on Wednesday by Gov. Evan Mecham. Michael P. Green, a Phoenix attorney who served as the measure's chief advocate, agreed with Pastin but noted that some provisions would not kick in unless the financier's stake topped 10 percent. Webb spokesman Bill Acton, meanwhile, said his company was waiting to hear from the financier, Ronald Brierly.

An analyst for Industrial Equity (Pacific) the Hong Kong group through which Brierly made the purchases, said the group had no interest in a takeover despite a declaration that it might seek to increase its shares beyond its current 9.3 percent stake to a possible majority position. "We're a long-term investor," said the La Jolla, analyst, William Ganelin. "We invest in companies with under-valued assets." Industrial Equity "has never done a hostile takeover, and we never intended to," he added. "We just have longer-term horizons than most people." Pastin said Ganelin's scenario was quite possible, especially because Hong Kong businesses are worried about what will happen when the British colony comes under control of China in 1999. Industrial Equity, owned in large part by Brierly, filed papers with the U.S.

Securities and Exchange Commission on Wednesday in which it said it had acquired 9.3 percent of the outstanding shares of common stock and was seeking permission to increase its share to more than 50 percent. 3 37H Va UnvFr UnvHIt UnvHId UnvMad .30 SH Taknwd Talco Tate A TalcN Talcrd .24 Talmatc Taivid Tel aba Taloa 13V 3 2 UnvSac UnVoJt UrtvBk UFSBk .40 UpRght UPenP 7.16 A 14 Taixon Ola 34' WllyJ ALIO 44 Wlllamt 1 Of 52V1 WillW .60 14'xi WIIIAL II Wlllml 15 Va WIISFS 13 WllmT .72 71 "4 WilsnF 9H Wilton 3 Wlndmr 11V Va WlngWt 5 WiserO .40 70 woburn .20 IIV4 Va wolohn .20 14 Vb WolvEx 204 '4 WolE wt 3 32 WolvTc 11 Va Woodnd .40 15 WCYS .10 12 WorlcDI Vh 5 I Tamco Tarn tax TndrLv Tanara .00 Tannant TarmDt TntrPr 31 Band New law fails to thwart bid for Dayton Hudson 4 V4I VLI VLSI 14 II14 vm sn 9V VMS 1.00 VMS II .55 TrwmAn Thrmlnt Thatfd .14 12 Va 20V 7 10 VMS SL .40 Thomsn 50a 43H ThmAV 5 TnouTr tt-YU VMX 3 1 11 14 1-14 WOW 10'4 Mi Worttte a .34 21 Vfe Writer 5 Wvman 18 '4 14 .24 VSE VWR Wyse 31H 1 16H 2 3 16 3C1 3Com Tloara TlmbrM ValidLg vallan ValyB 1.52 VlyCsp .40 ValFS IV XYZ 23V V4 31 1V 25V1Vi 1414 M. Tipton VM ToddAO livy-1 TokloF Hl 72V4V4 ValFrg .10 ValNBc 1.40a Tolland .40 144 ValNtl 1.44 30Vh XL Dt 1 XOMA XRttt .1 Xtc Xlcor X)dx Xldx wt Xytoolc vaimnt UV1 IJ JH4- tt 13Vh depending upon circumstances during the next 12 months, purchase amounts of 50 percent or more." Haft added that he was notifying federal authorities to comply with the Hart-Scott-Rodino antitrust law, which requires that the Federal Trade Commission be told when an individual or partnership intends to buy $15 million or 15 percent of a company. At Dayton Hudson's current stock price, $15 million would represent about 0.3 percent of the 97.4 million outstanding common shares. Dayton Hudson launched a campaign in early June to strengthen the state's anti-takeover law after learning that Dart Group a Landover, holding firm controlled by Haft and his son Robert had bought an as-yet-undetermined stake in the company.

The Minnesota legislature passed that law June 25, allaying fears of a hostile bid. As a result, the Haft letter, though not a full-fledged takeover proposal, came as somewhat of a surprise to the company and analysts. With an unknown but presumably sizable percentage of Dayton Hudson stock now in the hands of arbitrageurs, or professional stock speculators, Dayton Hudson might find it difficult to thwart Haft's stock purchases. Los Angeles Times Apparently undeterred by tough new anti-takeover legislation in Dayton Hudson's home state of Minnesota, corporate raider Herbert H. Haft ended weeks of suspense by announcing his intention to buy a sizable stake in the retailer and possibly seek majority control.

In a July 23 letter that Dayton Hudson the Minneapolis-based parent of the Mervyn's and Target chains made public Friday, Haft told Kenneth A. Macke, the retailer's chairman, that a group that Haft controls called Madison Partnership intended to buy outstanding common shares "in an amount exceeding $15 million" and "may, Tompfc t.1r 25Vfc Toppa .07 UVS Va TopMkt 33 Tor Roy 4 5-163-16 TotlHIt 9Vt TotlSy 22V TowarP 134 ToysPIt 3 xvvsn YlowF ValLn .40 VanGld VngSB Vaniatt VarlCr 04 Varlan .40 ValoBd vantrex Vantur 2'4 17 4 YrkFn 17W 14V. Vt YorhRt Yrkrda 2M4 14V tv, Vii 1 v2ZBl 1-U ZZBSt WT ZHiNtl .1 25 Varonx Versa .20 Vastar tlv 34 VlconF 1JA Va 14 11V 314 Ml 17 5 15-14 14 Mi Va I 11 Va li4 1 Tradlnd TrafcAw Tranin i TrnLtg TrnMu Trnadcr Trnant Trntch Trrct TrvRE .97 TrvRt 1.12 Trnwck TrSt wt3 104 13 I ZOINC Znn 3 Mi Zltgwr SM K'm ZionUt 1.44 42 'A Zittt 3' Zondvn 11 Vkorp VktBn Victor VidOitp vidt-ib 15 3'4 Mi Via deFr.23 5 Zycxl 5 (klzyiTKM 31HII4 VlawM 10.

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