The Akron Beacon Journal from Akron, Ohio on December 18, 1990 · Page 29
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The Akron Beacon Journal from Akron, Ohio · Page 29

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Akron, Ohio
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Tuesday, December 18, 1990
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Page 29
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Nestle plans to buy Drumstick maker By Mary Vanac Beacon Journal bu'nw vwttar Nestle Enterprise Inc. in Solon said Monday it will buy the foreign and domestic operations of the company that makes Drumstick ice cream products. The announcement was made jointly by Nestle and Drumstick Co. parent Alco Standard Corp. in Valley Forge, Pa. The Drumstick Co. employs 398 at its main plant in Columbus and has operations in California and abroad, said Marty Buckley, spokeswoman for Alco. The terms of the deal, which is expected to close in January, were not disclosed. Alco, a manufacturer and distributor of paper products and office equipment, previously had announced plans to sell its food operations. "This acquisition makes Nestle a U.S. leader in frozen ice cream novelties," said James M. Big-gar, Nestle chairman and chief TWA route sale may weaken Continued from page C5 dominated overseas travel. But as other airlines got into that market, TWA and Pan Am found themselves at a disadvantage because they lacked strong domestic systems. The key to the success or failure of TWA's latest move will likely hinge on what Icahn does with the cash, analysts said. Browns sportswear a loser Continued from page CS Browns. The station, which is forking out $135,000 in rights fees this year, uses the games as the radio equivalent of the grocery store "loss leader," an item that draws people in and exposes them to other, regular price things. WAKR, WHBC and Wooster's WQKT (104.5-FM) are among 35 affiliates in the Browns network. Government probes tax in gasoline distribution Continued from page CI margins, officials said. There have been 25 convictions since 1987, Peterson said. But the Nov. 16 guilty verdict against Getty Terminals Corp., a Getty executive and two independent gasoline wholesalers for scheming to evade $1 million in excise taxes was one of the first convictions of a legitimate business, she said. The company could be fined $2 million, and individual defendants could be sentenced to 20 years in prison. "If you consider the number of gallons of gasoline sold, you be The Partners of KPMG Peat Marwick Welcome Edward M. Rose Managing Partner of Our Akron Office Peat Marwick's commitment to quality service is recognized by a growing list of local clients. This attention is why Ed Rose and other experienced audit and tax professionals are joining our Akron practice. Ed Rose has provided leadership for both our firm, profession, and his community over a number of years. He serves on the Governing Council of the American Institute of Certified Public Accountants, is a past president of the Ohio Society of Certified Public Accountants, and has been active in many civic and cultural organizations. We are pleased to add someone of Ed's professional standing to the commitment of Scott Lyons and our other local partners and professionals. Scott continues to expand his client and community service as the partner in charge of our growing audit practice. Peat Marwick is proud to be a part of Akron. Our dedication to community, clients, and the accounting profession is the foundation of our commitment and capability to serve Greater Akron. Peat executive officer, in a statement. "The high-quality Drumstick products match well with the Nestle ice cream products such as Crunch, Baby Ruth, 100 Grand and Butterfinger ice cream bars and BonBons brand ice cream nuggets." Separately, Nestle said it will discontinue its FreshNes food operation in Solon on Jan. 1, affecting 70 employees. Milton C. Miles, president of FreshNes Foods Corp., told employees Friday that the two-year-old company would close, said Loretta Ivany, Nestle spokeswoman. FreshNes was set up in 1988 to test market fresh prepared meals in the Cleveland and Columbus areas. "The employees and customers have known from start that it was a test-market situation," Ivany said. Most of the company's employees will be absorbed by other "They probably figured now was the time to get out, because they couldn't really compete with United, once United gets Pan Am's routes," said Raymond E. Neidl, an airline analyst at Dillon Read & Co. Inc. "It does really gut their international operations. From an operating viewpoint, it leaves them in a weak position." Icahn acknowledged he was The flagship stations, Cleveland's WWWE (1100-AM) and sister station WLTF (106.5-FM), obviously would prefer to think of this season as an aberration. "I would hope other people view the Browns as I do that they're an institution in this community," said Roger Turner, general manager of WWWE and WLTF. "They may be down, but not out." gin to understand the magnitude of the potential problem and the temptation to cheat," she said. "There's Just enormous, enormous money to be made by those who are able to find ways to basically defeat the payment of the tax." With low profit margins, legitimate dealers "are driven out of . business unless they get on board the criminal activity." The 100 investigations of gasoline tax-evasion schemes are being conducted in 18 cities, Peterson said. Most have reached the stage of submitting evidence to Marwick s t r V " -. W4 James M. Biggar . . . Nestle chairman Nestle operations. "The actual number is unknown," Ivany said. "We anticipate it will be very few because the plant people will be placed with Stouffer Foods Corp. (in Solon), and we will attempt to place the administrative staff in other areas of the Nestle organization." Nestle is the largest food company in the world, including Carnation Co. in Glendale, Calif., and Alcon Laboratories Inc. in Fort Worth, Texas, in addition to Nestle in Solon. avoiding a trans-Atlantic battle with United, but said in a statement the deal "will generate additional cash liquidity which will enable us to position ourselves for growth despite these extremely difficult times." At the same time TWA announced it was selling the London routes, Icahn wrote to Pan Am Chairman Thomas G. Plaskett and offered to buy Pan Am's 150 million outstanding shares for $1.50 a share in cash and $1 a share in either preferred stock or notes. Pan Am was studying Icahn's letter but had no immediate comment, spokesman Jeff Kriendler said Monday. Analysts had mixed views on the offer from Icahn, who made a similar proposal last month that he said was contingent on a collapse of Pan Am's deal with United. "If you put together a system like that, it might have some cheating channels federal grand juries. The problem is most evident in the New York City area, Florida, Texas, the Midwest and California, officials said. The sale of gasoline supplies at terminals from one registered wholesaler to another is exempt from excise taxes. But businesses use phony corporations, fake invoices and other schemes that "test the perseverance of prosecutors and agents to go through the mountains and mountains of documents," said James A. Bruton, one of Peterson's deputies. Kerkorian files SEC papers on Chrysler stock purchase Continued from page C5 indifference to Kerkorian's stock buy, possibly because of the company's beefed-up takeover defenses. Chrysler stock closed Monday at 12 a share, up from Friday's close. Chrysler Motors Chairman Bennett Bidwell declined Monday to discuss Kerkorian's purchase, and company spokesman Tom Houston said Chrysler would have no comment on the documents filed with the Securities and Exchange Commission in Washington. However, Bidwell, in charge of Chrysler's car and truck operations, acknowledged that the board's action on the poison pill "is more than coincidental" with Kerkorian's action. "We have no knowledge of what is going on," Bidwell said. "All we know is the track record of the guy. We're playing wait-and-see." Kerkorian, a 73-year-old bil airline strength, but it would be a highly leveraged airline," Neidl said. "It's going to be tough for a heavily leveraged airline to survive in this environment." High fuel costs and sluggish demand for air travel have combined to give the industry record losses this year. Mitchell G. 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AKRON SQUARE 1165 E- Waterloo Rd. 773-5179 CHAPEL HILL 1820 Buchholzer Blvd. 633-1667 DOWNTOWN AKRON 326 South Main St. 762-8491 FDIC Insured Tuesday, December 18, 1990 lionaire, last month sold MGM-UA for $1.3 billion to Italian financier Giancarlo Parretti. He is also known for his investments in airlines and Las Vegas hotels and casinos. In the past, he has bought the companies, sold off divisions or subsidiaries, and then sold the organization, making millions of dollars along the way. Kerkorian said in the SEC documents that he has no plans, for now anyway, for "an extraordinary corporate transaction such HOMEOWNERS EQUITY LOANS AS LOW AS 11.25- it Annual Percentage Rate For Qualified Homeowners Second Mortgage Loans 0 NO POINTS SLOAN NO. mONTHLY AMOUNT PYMTS. PYMTS. Ar "- 75,000 180 864.26 11.25 50,000 180 584.09 11.50 40,000 180 480.07 12.00 30,000 180 360.06 12.00 20,000 180 240.04 12.00 Applications taken by phone for your convenience Yegen Equity Loan Corp. 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