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Reno Gazette-Journal from Reno, Nevada • Page 18

Location:
Reno, Nevada
Issue Date:
Page:
18
Extracted Article Text (OCR)

Reno Gazette-Journal BUSINESS WEDNESDAY JUNE 5, 1991 BUSINESS EDITOR: STEVE FALCONE, 788-6322 Stocks June 4, 1991 Dow Jones Ind Close: 3027.95 Heard on the street: "There's now talk that The National Enquirer and The Star may go public and sell stock. That would certainly change the way they do business on Wall Street. Imagine guys going through their portfolio saying IBM is diversifying; Xerox is solidifying their capital gains; and Cher's dating Bigfoot get my broker on the phone." Jay Lenoon "The Tonight Show" 1 I Vi Bonds firm: Treasury bond prices nudged higher as traders expressed wariness over the impending release of an important unemployment report. The Treasury's bellwether 30-year bond rose 1-16 point, or 63 cents per 1 ,000 in face amount. Its yield held at 8.34 percent.

Gas prices rising: Retail gasoline prices posted an increase for the week ending Tuesday, the American Automobile Association said. The average nationwide price for a gallon of self-serve regular unleaded was 1 1 72, up .9 cent from a week earlier as the pump price of gasoline showed its 1 2th increase out of the past 1 3 weeks, the auto club said. Gasoline is now 9.2 cents a gallon higher on average than it was on March 5. Bally Manufacturing 45s -Vs Caesars World 247s Circus Circus 76Vs Va Hilton Hotels 4958 Int'l Game Technology 47Vs Jackpot Enterprises 712 Promus Companies 19 Sands Regent 13 United Gaming 2 1A AltaGold 1516 -Vs Amserv Inc. 3Vs Vs R.R.

Donnelley 47 -7s Echo Bay Mines 8 -Vs Elect. Data Tech. 3Va -Vz FirstMiss Gold 3V4 FMC Gold 7Vs Vs Gannett 43Vi Sierra Pacific 22 Southwest Gas 11 Valley Capital Corp. 21 V2 1 993 Grand Cherokee Getting bigger: Jeep Grand Wagonccr is on its way out. and the Cherokee there are just so many of them in the Truckee Meadows.

What's a weekend off-roader to do? Try being patient. Jeep will introduce its new Grand Cherokee next spring (as a 1 993 model). It'll be slightly larger, more luxurious and more expensive than its popular forerunner, but it also will feature four-wheel anti-lock brakes and the first driver' s-side airbag in a sport utility vehicle. Jeep, a Chrysler Motors company, will continue to sell the Cherokee. Air fares are negotiated: Big companies used negotiated air fares more than ever in the first quarter, reports auditing firm Topaz Enterprises of Portland.

Ore. Topaz says negotiated fares accounted for 20 percent of all flight segments booked by its clients in the first quarter. OPEC MEETING Oil cartel tries to raise prices Marking time: Producers agree to keep exports at current levels as demand increases for summer. By Sally Jacobsen ASSOCIATED PRESS VIENNA, Austria OPEC ministers agreed Tuesday to hold oil production steady in the coming months, a move aimed at raising prices, but they were unwilling to help Iraq seek the removal of a U.N. boycott of its crude exports.

Iran's oil minister, Gholamreza Aqazadch, told reporters all 13 ministers of the Organization of Petroleum Exporting Countries agreed to maintain a production ceiling at 22.3 million barrels a day in the July-September period. The ministerial meeting of the cartel, which supplies a critical portion of the industrialized world's oil, is the first full OPEC gathering since oil markets were jolted by the Persian Gulf crisis, which ended with Iraq's expulsion from Kuwait three months ago. Still, the cartel sidestepped the question of how to reincorporate the oil production of members Kuwait and Iraq when they finally get their crude back into the supply streem. Both produced about 4.6 million barrels a day before the crisis began last August and are expected to become big exporters again as the effects of the war fade and the U.N. boycott of Iraqi crude is removed.

OPEC Secretary-General Su-broto said Iraq asked the others to back its bid to have the sanctions lifted. "Nobody supported it." Su-brotosaid. OPEC's agreement marks an extension of the cartel's production cap in the April-June quarter. It is intended to bump crude prices up a bit. because it will restrain the supply of oil as demand for fuel grows.

But the oil futures market did not go up. It drifted slightly lower Tuesday as traders learned OPEC would not be surprising them with any cuts in production. Earlier in the day, the ministers opened their summer conference hearing a pitch from outgoing President Sadek Boussena for measures to boost crude prices up to the cartel's target of $21 a barrel. Associated, Press of Tuesday's meeting as Algerian Mines Minister Sadek Boussena looks on. PITCH FOR HIGHER PRICES: OPEC Secretary-General Subroto, right, addresses the opening VDlume: 1 80.46 million 3050 May 8th WTFMT Stocks, pages 6-7B Benchmark crude $21.02 $362.50 Silver (N.Y.) $4,141 BRIEFING Dow falls 7 points on profit-taking NEW YORK The stock market settled at mostly mixed levels Tuesday after successfully absorbing a bout of profit-taking.

The Dow Jones average of 30 industrials slipped 7.38 to 3.027.95. But advancing issues evenly matched declining ones in nationwide trading of New York Stock Exchange-listed stocks, with 789 up, 789 down and 507 unchanged. Stocks headed sharply lower on the opening bell, with the Dow losing about 25 points in a decline exacerbated by program trading. Prices stalled at depressed levels for most of the session until a late round of buying lifted the market from its worst levels. Bally sells fitness equipment maker CHICAGO Bally Manufacturing Corp.

announced Tuesday that it has entered into an agreement to sell its Life Fitness computerized fitness equipment business to a partnership formed by Mancuso a New York-based private merchant banking firm, and existing management of Life Fitness. Total price was reported to be approximately $62. 5 million, subject to certain adjustments, of which a maximum of $28.85 million will be paid in cash. "The sale of Life Fitness is another of several planned asset sales in connection with our on-going financial restructuring," Bally's chairman and chief executive officer, Arthur M. Goldberg, said.

Life Fitness, purchased by Bally 1983, is the largest producer of computerized fitness equipment in the world, designing, manufacturing and distributing computerized aerobic and strength-training fitness equipment including the Lifecyclc stationary exercise bicycle. Report: Hilton deal possible for Dunes LAS VEGAS There are new reports that Japanese businessman Masao Nangaku is looking for a buyer or joint venture partner for his financially troubled Dunes Hotel on the Las Vegas Strip. The latest report, in the Wall Street Journal, indicates Hilton Nevada Corp. may be interested in striking a deal. Nangaku has been actively seeking someone to become involved with him in the Dunes, possibly running the gaming end of the property.

Nangaku told gaming officials in April that the hotel was losing about $500,000 a month. Disney says new resort will create 28,000 jobs ANAHEIM. Calif. Walt Disney proposed $3 billion theme park and resort next to Disneyland would generate $56 million a year in local taxes and fees and create 27,990 new jobs, according to a report released Tuesday. The report, funded by Disney, said the development would'produce 1 .2 billion in new economic activity each year in Anaheim and $2.3 billion in the five-county greater Los Angeles region.

The economic analysis, prepared for Disney by the real estate consulting firm Kotin. Regan Moughly was presented to the city of Anaheim, the site of the proposed Disneyland Resort. Wire service reports II j1 2950 jssssw assawss 2900 I8m wv oonn (SS giKiSS COW WIVtaigiMfla 0 Industry official: Drilling in Arctic will only slow foreign oil dependence BUSINESSLAND Computer retailer gets help from N.Y. By Laura Myers ASSOCIATED PRESS SAN JOSE, Calif. The fast-growing technical services company JWP Inc.

rescued top computer retailer Businessland Inc. from financial ruin in agreeing to buy the struggling chain for $22.1 million, analysts said Tuesday. "It had been' obvious for some time that Businessland would not be able to make it on its own," said Susan Scott, a computer retail analyst with Merrin Information Services. Inc. of Palo Alto.

"They were losing money fast, just bleeding profusely." JWP of Purchase, N.Y., announced Tuesday that it agreed to buy San Jose-based Businessland. On Monday, Business-land's board approved the merger and recommended acceptance of JWP's offer by its stockholders and bondholders. Under the agreement, JWP will begin a tender offer this week for up to 17 million Businessland shares at 1 .30 each, and for all of Businessland's 5.5 percent notes. After completion of the offer this month. JWP will issue JWP common stock for the 49 percent of Businessland shares not purchased in the offer.

Businessland. a pioneer in the computer retailing field since 1982. became the largest chain worldwide, reporting 1 .35 billion in sales last year. But Businessland suffered six straight losing quarters, taking a $90.5 million negative earnings hit since fiscal year 1990 began. Analysts blamed the profit decline partly on too rapid expansion and on a poor economic climate.

RSCVA Miller gets bill to add casino seat By Wayne Melton GAZETTE-JOURNAL A bill that would add a 12th seat to the Reno-Sparks area's tourism board has been passed by the Legislature, and it awaits Gov. Bob Miller's signature. Miller has not indicated whether he'll sign the bill into law, said Mike Campbell, his spokesman. But a number of gaming industry lobbyists and executives say they're optimistic because the legislation passed with no major opposition. AB583 would add a third gaming industry seat to the Reno-Sparks Convention Visitors Authority board, which now has two seats for casino representatives.

Primarily funded by room tax revenue, the authority is a government agency that works to attract tourists to the region. It now has 1 1 seats. The proposal to add a third gaming industry seat came as a compromise, after the casino industry sought to have an airline seat eliminated. The airline seat has been retained, although the new law would allow the local airport board to nominate a candidate not necessarily an airline representative. The current rule mandates that seat must be filled by an airline employee.

ing permitted as part of his national energy strategy, and a bill that would permit it will be coming before the Senate soon, following approval last month by the Senate Energy Committee. DiBona predicts Big Oil will get into the refuge, saying there is no merit to the environmental objections. Environmentalists predict a close fight but think they can prevail. "When you start talking about drilling in the last pristine area on the Arctic coast, I think the public's going to say. 'No said Jim Middaugh, spokesman for the Environmental Defense Fund in Washington.

It remains unclear how much oil, if any, could be recovered from the refuge. Some estimates put the figure as high as 8.8 billion barrels, saying as much as 2 million barrels per day could be pumped, roughly one-eighth of America's daily use of oil. "It is probably the largest re maining oil field in North America, although with the caveat that you could go there and there would be no oil." DiBona said. Still, even getting into the refuge will not stop America from using more foreign oil. he said.

The United States now imports a little more than half of its daily needs, although government projections show that without getting into the refuge, the imports would come to nearly three-fourths of the total early in the next century, DiBona said. The oil industry worries that as the energy legislation moves ahead, lawmakers will try to include measures that would require more use of alternative fuels, which DiBona said make no economic sense. The energy committee rejected such measures. Re-inserting them could even put API against the legislation, if the oil companies did not think getting into the refuge was a good trade-off. DiBona said.

U.S. Trade Representative Carla Hills said the semiconductor agreement, which will replace a pact scheduled to expire July 31, "reaffirms and clarifies Japan's commitments to provide full market access to foreign semiconductor producers and to deter injurious dumping." U.S. negotiators said they expected the various commitments being made by the Japanese would boost the foreign share of the Japanese semiconductor market to at least 20 percent bv the end of 1992. The current U.S. share of the Japanese semiconductor market, the world's largest, is 12.3 percent and the total foreign share is 13.2 percent.

Hiroki Hirabayashi. economics minister for the Japanese embassy in Washington, said the pact recognized the "expectations" of the U.S. semiconductor industry to gain more of the Japanese market. By Dirk Beveridge ASSOCIATED PRESS NEW YORK Oil companies believe they can win an emotional battle to drill in the Arctic National Wildlife Refuge, but a top industry official said Tuesday that probably won't reduce U.S. dependence on foreign crude.

Finding a major pool of oil in the refuge in Alaska would merely slow the growth in the nation's reliance on imported oil, American Petroleum Institute President Charles J. DiBona said. "I think it would make the difference in a situation in which we occasionally have problems to one in which we have a rather steady problem," DiBona told a press briefing. Environmentalists plan a tough fight to deny oil companies access to the refuge, arguing that spoiling the undeveloped wilderness far outweigh the economic benefits. President Bush wants the drill ing in everything from research to direct-mail campaigns.

It's set to open in November or December. A multi-media video company that'll produce everything from employee training films, to advertisements and animation. An early 1 992 opening is planned. "We're trying to use some of the same technology used by Universal Studios." said Dennis Saxon. Impact Media marketing director.

Plans call for Impact Media's nine-person staff to expand to 15 by year-end. and all four companies are eventually set to have a total of about 25 workers. Among initial clients is the University of Nevada. Reno, athletic department. Harrah and his brother Tony hav been involved in a number of local business ventures, including the Wild Waters recreation facility in Sparks.

The new venture is John Harrah's first as a hands-on companv owner-manager. Harrah son opens new Reno advertising design business U.S., Japan resolve dispute over sales of computer chips By Wayne Melton GAZETTE-JOURNAL Reno entrepreneur John Harrah has opened a new advertising design firm, and he plans to start three related businesses in phases through early 1992. The venture ultimately hopes to produce a full-length animated motion picture, said Harrah. 25. whose father was the late casino magnate William Harrah.

The first firm. Impact Media, is in Southwest Professional Center. 433 W. Plumb Lane. It designs everything from outdoor advertising to brochures.

John Harrah's other companies in the same complex will be: Outdoor Images, an aerial photography company, specializing in filming large tracts of land from helicopters. It'll open in November or December. A marketing services firm that's still to be named, specializ WASHINGTON (AP) The United States and Japan reached agreement Tuesday on a pact aimed at boosting Japan's purchase of foreign computer chips, resolving one of the most contentious trade disputes between the two nations. As part of the five-year pact, the United States agreed to end $164 million in penalty tariffs imposed in 1987 on imports of Japanese high-performance computers, including laptops, and certain power tools. The Bush administration hailed the agreement as a victory for U.S.

semiconductor and computer makers as well as American consumers. It marked the second recent effort by the Japanese to lessen trade tensions with the United States, its No. 1 trading partner. Last week, the Japanese agreed to let American construction projects compete for more than $7 billion in additional projects..

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Pages Available:
2,581,109
Years Available:
1876-2024