The Seguin Gazette-Enterprise from Seguin, Texas • Page 9

Page 10A Wednesday. January 9,1985 The Seguin Gazette-Enterprise Business Beat By PHILIP RIDDLEBARGER KWED-FM sale pending with FCC Shelters provide benefits An application to sell KWEO-FM to a northeastern company i.s pending with the Federal Communications Commission, according to Stan president and general manager of Seguin Broadcasting Inc. McKenzie said the application was submitted Oct. 15 and that he had been informed it had been approved by FCC staff. He said the only requirement left, is final approval of the sale by the FCC commissioners.

American Media which owns stations in Ixing Island, N.Y. and Baltimore, will be the new owner of which has been in operation since Sept. 9,1970. McKenzie said a recent rule made by the FCC would have forced the "station to increase its power to 100,000 watts. He said this would have required the station to change nature and become a large metropolitan station, which the company did not desire.

McKenzie said he expects official approval by early February. McKenzie also said that an application has been prepared requesting that KWED-AM be allowed to operate at night. He said the station operates on a Canadian clear-channel frequency, which means KWED-AM cannot operate at night because of a U.S.- Canada agreement. McKenzie said, however, that the United States and Canada are working on an agreement to allow U.S. stations operating on Canadian clear-channel frequencies to operate at night and vice-versa.

He said applications are on hold at present because of insufficient staffing at the FCC and because of attempts to work out a similar agreement with the Mexican government. said the station hopes to be operating at night by Sept. 1. Restaurant holds ceremony The Golden Corral, KI32 K. Court will have a ribbon-cutting ceremony at 10:30 a.m.

Thursday Jan. 10. Manager Samir Raramki said the restaurant, which opened Dec. 28, serves steak, chicken-fried steak, filets and salads. "We have the best salad bar in town," Haramki said.

He also said the restaurant uses fresh food daily and provides a senior citizen menu for older patrons. The restaurant employs approximately 45 people, Raramki said. Bookstore opens The Paperback Ranch, 757 N. 123 Bypass, opened Thursday. A ribbon-cutting ceremony will be held at 10a.m.

Friday, owner Rosalie Roberts said. Roberts said the store i.s a secondhand and half-price book store that sells all types of books. She said the store also provides photocopy service and accepts books on trade-in. Toy firm moves The Rlue Sky Toy Company has moved to a new location. Employee Flainc Hook said the store opened Saturday at its new location of 1105 N.

King, in the old J.C. Penney automotive facility. The store was previously located on Kingsbury Street. Kveryone wants to save on taxes, and the purpose of legitimate fax shelters is to provide a reasonably sound investment as well as tax benefits acceptable to the IMS. Their purpose is not, as some people would have you believe, "to enable you to write off $4 for every $1 you invest or triple your investment in a few years." Obviously, these are exaggerated claims, and, with so many individuals and institutions now offering tax-advantaged investments, it's wise to know what to look for when considering this investment alternative.

First of all, you should read the prospectus. public offering must be accompanied by a prospectus, and a copy of this prospectus must be given to you. If the tax-advantaged investment you choose i.s, for example, a limited partnership, the prospectus tells what, the partnership hopes to accomplish and how. It also provides Financial Focus by Warren Nossaman Edward D. Jonns and Co.

informal ion about I he general partner! s) who will manage the limited partnership his or her financial condition, experience and record of success or failure plus a host of additional facts. It may not he interesting reading, hut il could prove to he some of the most profitahle reading you do. And, what you don't understand, investigate. Secondly, you should know your investment representative. Who docs he or she represent, and what is that firm's reputation nationally? Although even an outstanding financial adviser cannot guarantee you investment success, you can he assured one who is reputable has performed the due tiis or her integrity and reputation are at stake, a good financial adviser carefully examines the general partner(s) and the particular product being offered.

You also should know if the offering is registered with the Securities and Kxchange Commission. An offering registered with the SMC is available nationwide as long as it is "blue skied" or approved for sale in the states which it's offered. Likewise, the representative and the firm offering the partnership must be registered in all states where they sell it. Although an registration doesn't guarantee anything about the offering--this is stated in the does give you some assurance the facts presented in the prospectus are true and the offering has been scrutinized bytheSKC. Finally, you should know if you fit the suitability requirements.

Due to the degree of risk in any tax shelter, suitability requirements are established and printed in the prospectus. These requirements vary, but generally a gross annual income limit or minimum net worth is specified. Usually the higher the risk, the stricter the suitability requirements. There are, of course, other questions you should ask before you invest. Hut, close and careful examination of these considerations should, at least, put, you on the right track and save you much of the disappointment of and hastily-entered investing.

Firm seniors sell majority interest HOUSTON (AP) Three se.iior members of Underwood, Neuhaiis a private investment banking firm, have sold the majority of their interest to a group of investors as a step in reducing their role in the firm. Joseph H. Neuhaus, 08, Phillip R. Neuhaus, senior chairmen of the board, who co-founded the company in 1948 with the merger of their company with Milton R. Underwood were joined in their action Monday by H.

L. Simpson, 64, senior vice president. Jack Scott, a spokesman for the company, said the three sold "almost all of their holdings" to an investment group headed by J. William Sorensen, the former managing partner and chief executive officer of Boettcher Co. of Denver.

However, all three will continue in an active role in the company and as stockholders, Scott said. Scott said they sold all but about 10 percent of their holdings in the Chairman denies opening DALLAS (AP) Diamond Shamrock Chairman William Brickcr rejected the idea that his company's merger flirtation with Occidental Petroleum Corp. has left Shamrock vulnerable to a hostile takeover. "We didn't miss a lick in terms of further developing our prospects," he told the Dallas Times Herald Tuesday night. Bricker said his board rejected a merger with Occidental because of unhappiness about the fate of Shamrock managers in the new company and the margin of profit for Shamrock shareholders.

The merger, which would have created the nation's seventh-largest oil company, suddenly fell apart Monday afternoon, just hours after the heads of both companies announced a tentative agreement. Some analysts said risk arbitrageurs, who had bought about 9 million Shamrock shares, faced hundreds of millions of dollars in losses. Analysts said Shamrock i.s now open to a hostile takeover attempt because arbitrageurs and others with big holdings would be eager to recoup their losses and might sell their stock to the first suitor that came along. "Once exposed, vulnerable, and Diamond Shamrock better watch out," said Alan Edgar of the securities firm Schneider Bcrnet Hickman in Dallas. Bricker said the merger intially seemed to offer great benefits for Diamond Shamrock shareholders.

He said the proposed merger also had the blessing of top executives with both companies. But Bricker said he changed his mind about the deal during discussions with his board Monday. Bricker said the billion stock- swap plan was conceived last Wednesday, when he was talking to Occidental Chairman Armand Hammer about another matter. The proposed merger had called for the shareholders of. the two companies to exchange their stock for stock in a new company on a one- for-one basis.

That could have given Diamond Shamrock shareholders a substantial premium, since Occidental's stock was trading at about at about $25 per share when the tentative agreement was reached, while Diamond Shamrock's was at about $17. But word of the negotiations quickly spread among Wall Street, Bricker said. The rumors put the participants under "tremendous and unnecessary pressure" to go public while the merger discussions were still in the early stages, he said. After both companies announced Friday that they were discussing a possible merger, Diamond Shamrock's stock rose sharply in trading on the New York Stock Exchange while Occidental's fell, narrowing the difference in value. By the time the board met Monday, trading in the stock of the two marriage partners had nearly halved the premium he first thought Diamond Shamrock shareholders would get, Bricker said.

He said it appeared last week that shareholders of the Dallas company stood to receive a $6 or $7 premium for their stock and an increase in dividend from $1.76 to $2.50. Bricker told the Dallas Times Herald that the Diamond Shamrock board got its first look at the plan when they met Monday, and by then the premium for Diamond Shamrock stock was reduced to a range of $2 to $3 as Occidental's stock price dropped. "The board had nothing other than a small batch (of documents) to brief them prior to Monday," Bricker said. The Diamond Shamrock board was also concerned about the small role its managers would play in the merged company, Bricker said. Hammer, the 86-year-old Occidental chairman has in recent years ousted half a top Occidental officers with whom he did not agree and was considered unlikely to relinquish his iron grip on Occidental.

The deal was appealing to Occidental, Bricker said, because the company would receive "top-flight" Diamond Shamrock management, financial flexibility and high-quality coal and petroleum assets." Bricker had labeled Occidental managers "a bunch of clerks holding professional positions." He added, however, that his criticism of Occidental management did not include Hammer or Ray Irani, Occidental's president and a former research director at Diamond Shamrock under Bricker. Bricker said there were never plans for him to take a role in the new company "in any shape or form." He said had agreed to leave the company for $5 million. In Los Angeles, Occidental denied rumors it is trying to salvage the deal. "This matter i.s dead," said Frank Ashley, a spokesman for Occidental. "This i.s incredible, Diamond Shamrock walking away from this," said Bruce E.

Lazier of the Wall Street investment house Prescott, Ball Turben. "Their shareholders are going to have a tough time matching what they would have gotten out of this." The surprising termination of the deal knocked the wind from Diamond Shamrock's stock. In composite New York Stock Exchange trading Tuesday, Diamond Shamrock fell by a share to It was the Big Board's most active issue for the second straight day, with 3.7 million shares changing hands. Occidental's stock rose by $1 per share to $25, offsetting the $1 loss it posted a day earlier. Metal prices NKW YORK (AIM Snot nonferrous metal prices Tuesday: Aluminum cents ijcr pound, N.Y.

Comex spot month closed Monday. Copper fi-l-'N-liV cents a pound, U.S. destinations. Copper 57.15 cents per pound, N.Y. Comex spot month closed Monday.

Lead 19-23 cents a pound. Xinc cents a pound, delivered. Tin Metals Week composite pound. Gold per ounce Handy iiurman i only daily quote i. (Jold per Iruy ounce, N.Y.

Comex spot month closed Monday per ounce Handy Hai iiiiin. Silver per ounce, N.Y. Comex spot month closed lb. flask, New York. Monday.

Platinum Mercury per 7(i- domestic merchant troy ounce, N.Y. MkaNuwmiW Paradise Pets Offering various kinds of small A animals including: birds, fish, parrots, puppies, kittens and reptiles. Also available are pet supplies. Store hours 9 to 5 Read the G-E Located in Pecan Tree Square (next to coliseum) This Week's Special: Young Pearl Cockatiels $49.99 Reg. $59.99 company, which tins a stockholders' equity of million.

The value of the transaction was not revealed. The Neuhaiises said they were selling their holdings "in a way that will enable Underwood, Neuhaus Co. to continue as an independent entity." Sorensen heads an investment group that also includes Keith K. Trotman, executive vice president of Hanifen, Imhoff, a Denver securities firm; Larry D. Johnson, a Houston real estate developer, and Thomas W.

Masterson, a senior vice president and director of Underwood, Neuhaus. David M. Underwood, hoard chairman and chief executive officer of Underwood, Neuhaus said the transaction "provides for the orderly transition of capital and leadership which ensures that we will remain a major independent force among regional investment hanking firms in the nation. "It our ability to achieve the goal of becoming the dominant, Texas-based regional securities firm offering full financial serice," he said. Underwood, Neuhaus is the oldest investment banking firm headquartered in Texas.

Its origin is traced to the 1907 founding of Neuhaus Co. The firm is a leading underwriter of municipal bonds in the Southwest. It has headquarters in Houston and offices in Dallas, San Antonio, Austin and Tyler in Texas, and in New York, Chicago and Jacksonville, Fla. GAS Appliance Sale FA75321 FA23701 HURRY SALE ENDS JANUARY 22, 1985 Save $200 on this Extra-Capacity Laundry Pair Cut $90 2-speed, 5-cycle Washer 349" Whilo .139.99 3 temperature combinations 3 water levels Dynaguard polyester finish on top Cut $110 Solid State Sensor GAS Dryer 319" was 42999 Heat shuts off at dryness level you set Wrinkle Guard I helps prevent wrinkles Cut $100 Large-capacity 2-speed, 5-cycle Washer 329" While wai 429 99 Priced $70 less Than a comparable model Automatic Fabric Master GAS Dryer 299" 369.99 EI3751 E75701 JA35355 Kenmore GAS Drop-in Range 569" Wai /29.V* Continuous cluaning ovon Pilot free ignition WN72I5I Cut $110 Kenmore 30-in. GAS Range 369" 47999 WW7 Continuous cleaning oven Pilot free ignition 30 gal.

WN33537 Cut $40 Power Miser 8 GAS Water Heater 199" I-inch thick foam insulation Each of these items is readily available for sale as advertised. Prices are catalog; shipping, delivery and installation aro extra. Prices relisted from the "JA" and "FM" media. Sears has a credit plan to soil most every need. Kenrnore dryers and ranges require connectors, extra.

Color is extra. Phone 379-2560 Most merchandise available or pick-up wilhin a few days Oak Park Mall 379-2560 Store Hours Mon-Sat guaranteed or your money back Sears. Roebuck and (984 'MI.