Reno Gazette-Journal from Reno, Nevada • Page 16

4 Today's tip 8B Saturday. May 28. 1988 Reno Gazette-Journal BUSINESS EDITOR: JIM GOLD, 788 6322 iisines Your Travel Dollar tells how to budget your vacation. Write Money Management Institute, Household Financial Services, 2700 Sanders Road, Dept. CT, Prospect Heights, III.

60070. Cost; $1. Griffin, Trump seal Resorts International deal unenthusiastic drops 10.31 Robert Trump and Griffin spokesman Mark Gill. "As we will be neighbors in Atlantic City, we look forward to a long and mutually rewarding relationship," the men said in their official announcement. Resorts owns the 700-room Resorts Hotel and Casino on the Atlantic City boardwalk and another hotel-casino on Paradise Island in the Bahamas.

"Mr. Griffin is going to pump a lot of money into the two facilities," Gill said. Trump's interest in Resorts was said to be drawn principally by the Taj Mahal, an unfinished hotel-casino conceived as the gambling resort's top attraction but plagued by cost overruns. "It looks like this is it," said Robert S. Trump, Donald's brother and executive vice president of The Trump Organization.

We are pleased, as I think Mr. Griffin is pleased. The agreement, in contrast to a handshake deal that collapsed May 11 amid mutual recriminations, is a definitive pact between Trump and Griffin, though it must be approved by a special committee of Resorts directors. Trump, Resorts' chairman, controls 88 percent of the company through ownership of Class stock that carries special voting rights. Griffin is to pay Trump about $100 million, or $135 a share for that Class stock.

Trump's agreement to buy the Taj Mahal, a grandiose project plagued by construction delays, and associated assets that weren't specified, is "subject to certain closing adjustments," Robert Trump said. Griffin first offered to buy Resorts on March 17 for $35 a share. After weeks of sparring, the men announced in April they had reached an agreement nearly identical to the one closed Friday, only to cancel it a month later. At the time, Trump accused Griffin of failing to line up financing and Griffin maintained Trump had demanded last-minute changes. The final agreement was reached about 3 p.m.

PDT Friday after 36 hours of near-continuous face-to-face bargaining, was untainted by animosity, according to LOS ANGELES (AP) Donald Trump and Merv Griffin's on-again, off-again deal to split up hotel-casino operator Resorts International was officially sealed Friday, the millionaire entrepreneurs announced. Griffin, the TV talk-show host turned investor, will pay more than $300 million for the Atlantic City, N.J., company controlled by New York developer Trump, plus $60 million to end Trump's management contract. Using his profits from the deal and other funds, Trump will buy back the company's unfinished crown jewel, the vast Taj Mahal casino, for $230 million. Public stockholders will get $36 a share, or a total of about $200 million, for the company's common stock. An market NEW YORK The stock market drifted lower Friday in a meandering preholiday session.

A late downturn in interest rates, which left bonds mixed on the day, failed to stir much enthusiasm for stocks. The Dow Jones average of 30 industrials dropped 10.31 to 1,956.44, finishing the week with a net gain of 3.85 points. Declining issues outnumbered advances by about 5 to 4 in nationwide trading of New York Stock Exchange-listed stocks, with 618 up, 777 down and 506 unchanged. Volume on the floor of the NYSE came to 133.59 million shares, down from 164.26 million in the previous session. Nationwide, consolidated volume in NYSE-listed issues, including trading at regional exchanges and on the over-the-counter market, totaled 151.48 million shares.

After rising sharply on Thursday, interest rates moved up again in the credit markets in early trading Friday. Analysts cited a spreading belief that the Federal Reserve was tightening credit further in response to evidence of continuing strength in the economy. As the session passed, bonds attracted some buyers. "The bond market was comforted by the notion that policymakers are attempting to snuff out inflation fears," said analysts at Salomon Brothers Inc. But stocks apparently still suffered from neglect, with many participants getting an early start on the long Memorial Day weekend.

0 9 ra nmcinni s. 1 -I mum timm mm U.S. Chamber boss: Growth to continue Expansion of the U.S. economy is strong and the country will be recession-free for at least the next year, the president of the U.S. Chamber of Commerce said in Reno Friday.

"We are going to continue this economic expansion for the next 12. months," said Dr. Richard L. Lesher. His remarks at a Greater Reno-Sparks Chamber of Commerce's luncheon drew mixed reaction from Sparks Mayor Jim Spoo, who later said Lesher glossed over some flaws in the economy.

Before the luncheon, Lesher endorsed the re-election bid of Rep. Barbara Vucanovich, who Spoo is challenging. The luncheon, part of the chamber's 75th anniversary celebration, honored the 26 living past presidents of the local chamber and chamber volunteers. Chamber officials announced a University of Nevada-Reno business scholarship will be established in honor of the past presidents. Also honored at the Bally's Reno luncheon that attracted about 400 people were Jenny Mae Dickerson, a 50-year chamber employee who now works in the tourist information center, and Jud Allen, a Reno city councilman who was chief executive officer of the chamber for 23 years.

In his address, Lesher denounced "prophets of doom and gloom who say the nation is in terrible shape. It's up to us, the businessmen and women, to keep America on top." Before the luncheon, Lesher reiterated U.S. Chamber support of the reelection bids of Vucanovich and U.S. Sen. Chic Hecht, R-Nev.

Hecht, he said, has a 90 percent favorable voting record on issues of importance to the U.S. Chamber, while Vucanovich has an 88 percent favorable voting record. Lesher said the group representing more than 180,000 American companies automatically supports any incumbent with a better than 70 percent favorable voting record. "These two friends of business deserve to be returned to Congress," Lesher said. "It is people like them who help produce a booming economy, increasing rate of employment and a better standard of living for all Americans." Spoo said he was not surprised at the national chamber's endorsements.

"The national chamber's position is virtually a guaranteed Republican endorsement," Spoo said. "We are far Icahn extends bid Carl C. Icahn has extended for three weeks his $60-per-share offer to buy Texaco, a move that effectively makes the company's shareholder meeting June 17 a referendum on his bid. Icahn also promised Friday to divulge next week how he will pay for it. The action came hours after Texaco's board rejected what it called the "so-called offer," which had been scheduled to expire at 2 p.m.

PDT Friday. The board cited the abrupt expiration date and especially the lack of detail on financing in turning down the offer. A Texaco official said late Friday that Icahn's move "doesn't change our response at all." CHAMBER OF COMMERCE: Dr. Richard We've seen a steady increase in wealth for most Americans. Dr.

Richard Lesher, president U.S. Chamber of Commerce more interested in Nevada business. We've got to deal with the real issues of business back here and not just on an ideological level. I've worked very closely with Nevada businesses. You will note that there was no counterpart endorsement by the local chamber of commerce and that's not to be overlooked.

The local chamber knows what the score is." Ron Watson, executive vice president of the Reno-Sparks chamber, said it is that group's policy not to endorse in elections. "You can imagine how sensitive that was, having Lesher make that announcement," he said. "People don't understand that we are a member of the U.S. Chamber but they don't make policy for us." In other economy-related matters, Lesher said that since 1982, 15 million new jobs have been created in the United States. "Only 7 percent of those are in the low Tax payments chomp into paychecks WASHINGTON (AP) Americans disposable personal incomes fell 0.9 percent in April, the steepest drop in a year, as tax payments took a big bite out of paychecks, the Commerce Department reported Friday.

It was the first decline in disposable income since last November and the biggest setback since a 2.5 percent plunge in April 1987 when federal taxes took an even bigger chunk of Americans' incomes. Faced with higher tax bills, Americans balked at taking on any big purchases, leaving spending basically unchanged in April after a big 0.8 percent rise in March. Before adjusting for taxes, personal incomes edged up a tiny 0.1 percent in April after a giant 1.1 percent rise in March. Analysts said they were not unduly concerned about either the weak income growth or the lackluster spending in April, saying the month was influenced by a host of special factors. They noted that in addition to tax bills, spending was also depressed by the impact of an early Easter which meant consumers did their shopping in March, siphoning off sales that normally would have occurred last month.

The income gain looked weaker because the March figure had been inflated by annual bonus payments made to workers at Ford Motor Co. plus a big jump in farm subsidy payments. Excluding those factors, incomes before taxes would have risen 0.6 percent in April and 0.3 percent in March. But economists said that the big drop in the important category of disposable income will have some effect in coming months. "After the shock they got in April, I think people will adjust their withholding statements to have more taken out of their paychecks.

That will be a slight damper on consumer spending," said John Hagens, senior economist at the WEFA Group, an economic forecasting firm. But analysts said they were not too concerned because of Thursday's report that the economy was far stronger in the first three months of the year than previously believed. The government revised its estimate of overall growth, as measured by the gross national product, up to a brisk 3.9 percent, compared to an original estimate of 2.3 percent GNP growth. Hagens said he now believed that growth for the year would come in at between 3.5 percent and 4 percent, up as much as a full percentage point from his original forecast. itjkV4fl travels out to gulf INGLESIDE, Texas (AP) -Watching "Bullwinkle" head into the Gulf of Mexico on Friday brought tears to the eyes of some who worked on the colossal offshore drilling platform that will be taller than Chicago's landmark Sears Tower.

"We've worked hard for three years, and an event like this can be somewhat emotional," said Gordon Sterling, Shell Offshore project manager for Bullwinkle. "There were a few tears watching it go by." After the Bullwinkle settles on the ocean floor off the Louisiana coast, workers will install a deck and two drilling rigs, bringing the leviathan's weight to 78,000 tons and its height to 1,615 feet. "That compares to the world's tallest building, which is the Sears Tower, which is about 1,450 feet," Sterling said. The tallest drilling platform is the Shell Cognac platform, installed off the Louisiana coast in 1976. Spectators lined the ship channel at Port Aransas on Friday to see the Bullwinkle off, and police had to direct traffic.

Stock-photo events set A specialist in the business of selling stock photography will reveal tips at two events today. Rohn Engh will lead a workshop 9 a.m. to 4:30 p.m. at the University of Nevada-Reno Business Building, Room 103. At 5:30 p.m., he is scheduled to autograph his how-to book on marketing stock photography at the United Women's Fair, which runs 10 a.m.

to 7 p.m. in the Bijou Complex at Bally's Reno. Engh, in addition to running Sunrize Photos, a stock-photo agency, also publishes the newsletters Photoletter monthly, Photomarket biweekly and Photobulletin weekly. He is author of "Sell and Resell Your Photos," of which more than 38,000 copies have been sold. GM announces recall DETROIT General Motors Corp.

said Friday it is recalling 39,000 1987 model cars to find about 8,700 built with possibly defective throttle cables. The recall includes 1987 Buick Electra, Oldsmobile Delta 88 and Ninety-Eight, and Pontiac Bonneville models, GM said. If the throttle cable binds against its sheath, causing the throttle to stick open, the engine may not return to complete idle after acceleration. GM said its has received no reports of accidents or injuries related to the defect. Dealers will inspect and replace the throttle cable free, GM said.

$43 million land deal LAS VEGAS Circus Circus Enterprises Inc. announced Friday that it will exercise its option to purchase 117 acres on the south end of the Las Vegas Strip for $43,250,000. It is the company's intention to develop a major hotel and casino complex on this site, with an opening date projected for mid-1990. Circus expects to announce more details as to its plans for the new property within the next few weeks. Wire service and staff reports NASDAQ UnvBk s.30 UnvSvg .4) USBPa 88 WMSB .40 13H WihScl .15 6V4 WatrfGI .59 174 Watrhs 6' Watrin 3H Wafrslod .12 23' WausP 52b 31 Waver 1 .36 20 From page 7B Band 10 8' TrnwcK .06 VLSt VM Stt 1 VMS 1 08 Tr.adSy Trimed Trior 12 13 8 Vb 7 V4 Wax mo .14 12 WbstFn 40 10 VMS It 87e TrysJo J.

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We've seen a steady increase in wealth for most Americans." The nation is economically strong, he said, with its gross national product expected to be about 4 percent this year, inflation under 5 percent and unemployment possibly under 5 percent. Also, 600,000 new companies will be created this year, Lesher said. Spoo said that a certain amount of business growth is inevitable each year, but that there are many business failures. "The employment picture is not nearly as bright as he depicts it," Spoo said. "We are at a 14-year low in unemployment, percentagewise, but more people are unemployed than ever." And many U.S.

jobs, he said, have been moved to other nations. "A major tax increase would create a recession," Lesher said. "In our view, the only way to balance the deficit is to reduce spending. Our deficit is a function of runaway spending." But, said Spoo, "The budget deficit is a function of a lot of things. I don't think it's a partisan problem." He added that if congressional Democrats had followed the spending proposals of President See CHAMBER, page 6B board.

By extending the merger offer until the shareholder meeting, which will take place in Tulsa, he is giving the shareholders a tangible reason to vote for his slate. The $60-per-share offer has been considered a reasonable price, if Icahn could deliver. It is about 20 percent above the current price of Texaco shares, which closed down 37.5 cents Friday at $49,625 before Icahn extended his bid. "It is particularly significant that neither the (Texaco) board nor its financial adviser has questioned the adequacy of our $60 price," Icahn said in extending his offer. Los Angeles Times bid on futures subsidiary of the New York Stock Exchange.

"We would strongly disagree with that," said Mike O'Connell, a spokesman for the Chicago Board of Trade, of the SEC vote. "We feel that these markets should be regulated as they are by the CFTC, who during the week of Oct. 19 performed flawlessly in their duties," he said. O'Connell and Yemma contended that all trading in futures contracts whether they be a financial product like stock-indexes or an agricultural product like soybeans should be regulated by the CFTC. for Texaco; shareholders to get say But analysts said Texaco management will have no choice but to counter in some fashion, especially if Icahn unveils a convincing financial plan when he meets with securities analysts Thursday in New York.

"They are on the defensive now. The guy is serious," said Jack V. Aydin, oil analyst at McDonald Co. in New York. "I don't think they want to take a chance on allowing the shareholders to vote on a $60 offer." Icahn, the chairman of Trans World Airlines and Texaco's biggest stockholder, had already launched a proxy fight in which he is asking shareholders to back his slate of five nominees to the The shift in jurisdiction must be approved by Congress.

SEC Chairman David Ruder said studies since the Oct. 19 stock market collapse point to a need for one agency to oversee the trading of stocks and stock-related products. In Chicago, where most stock-index futures are traded, officials at the Merc and the Chicago Board of Trade, which also offers stock-index futures contracts, quickly denounced the move and vowed to fight it. Stock-index futures also are traded by the Kansas City Board of Trade and the New York Futures Exchange, a Chicago exchanges oppose SEC's CHICAGO (AP) Two exchanges that trade stock-index futures said Friday they oppose the Securities and Exchange Commission's bid to take over regulation of trading in the contracts. "It's a grasp for power and it was certainly not a unanimous opinion by the SEC board," said Andy Yemma, a spokesman for the Chicago Mercantile Exchange.

"This is not a new agenda and it predates the stock market crash." In Washington Thursday, the SEC voted 3-2 in favor of taking over the regulation of stock index futures from its sister agency, the Commodity Futures Trading Commission..