Daily Press from Newport News, Virginia • Page 19

05 Tuesday April 4, 1989 Ticker Employee plans to buy Channel 33 "I go by tha old saying, 'If It ain't busted, don't fix Charles McFadden, Buying th station works for as general manager incurred when TVX purchased a group of ether televisions stations, At the time of the refinancing, TVX had said it would be forced to sell several stations, including WTVZ. The Virginia Beach station, which carries programming from Fox Network Television, was the first owned by TVX when it was bought in September 1979. Since the debt refinancing. TVX has sold its Miami station for $59 million to the CBS network and is close to selling its Memphis station for $7 million, Loving said. "We should pay off our $90 million debt early," said Lov ing, who added that McFadden's offer was formally presented to the TVX board last week.

McFadden. 53. is a 35-year broadcasting industry veteran who has been general manager of WTVZ since January 1987. Before his present position, he was vice president of station operations for all of TVZ's stations. He said he expected to make no changes in programming or in personnel.

"I go by the old saying, if it ain't busted, don't fix said McFadden, a Denver native. "We're the No. 1 independent Please see WTVZ, B6 general manager of Virginia Beach-based WTVZ, agreed to buy the independent station for $10.75 million. Loving said. The sale is contingent upon approval by the Federal Communications Commission, which must decide within 90 days whether to agree to the sale, and the transaction's closing.

McFadden said he entered the picture after TVX Broad-cast Group was forced to recapitalize its debt load last year. In November, the TVX Broadcast Group, which owns six other television stations, refinanced $00 million In debt owed to Salomon Brothers, a New York investment banking company. Under the recapitalization plan, the company has two years to pay off the debt. By JOSEPH NtYWELlFR Stiff Writer VIRGINIA BEACH TVX Broadcast Group Inc. has agreed in prinnple to sell its flagship independent television station, WTVZ.

Channel 33. to the station's general manager, a TVX official said Monday. "We'll be cheering him on," said Eugene living, chairman of Virginia Beach-based TVX Broadcast Group. "Emotionally, it was difficult selling our flagship station, hut as a public company, we were forced to listen to offers." Charles McFadden, who currently is vice president and i A SI yff-j From 6taff and wire reports Dow: Up 11.18 1350 2,3:3 7.771 2.223 7JIM 2.175 2,1 2,100 70 at 32 23 37 28 29 30 31 3 NYSE: 852 advances. 622 declines Volume: 164.66 million Amex: 293 advances, 323 declines Volume: 10.16 million 500: 296.39, up 1.52 Gold: New York Comex, $386.20, up $1.10 Silver: $5,788, up 1 cent Oil: West Texas Intermediate, $19.95, down 62 cents Dollar: 131.775 yen, down from 132.80 Takeover news sends market up NEW YORK Stock prices staged a moderate advance Monday as the second quarter of the year opened to a barrage of takeover news and rumors.

Analysts said the market benefited from a drop in open-market interest rates on fresh signs of a slowing economy. The pace of business activity dropped off significantly in March, according to the results of a monthly survey of corporate purchasing executives. That was taken as supporting evidence for the widely held belief on Wall Street that the economy has been slowing since February, responding to credit-tightening over the past year by the Federal Reserve. Treasury-bill rates fall WASHINGTON Interest rates on short-term Treasury securities fell in Monday's auction to the lowest level in three weeks. The Treasury Department sold $7.2 billion in three-month bills at an average discount rate of 8.87 percent, down from 9.10 percent last week.

Another $7.2 billion was sold in six-month bills at an average discount rate of 8.84 percent, down from 9.12 percent last week. The rates were the lowest since March 13, when three-month bills sold for 8.69 percent and six-month bills averaged 8.76 percent. The new discount rates understate the actual return to investors 9.20 percent for three-month bills with a $10,000 bill selling for $9,775.80 and and 9.38 percent for six-month bills selling for $9,553.10. Sovran merger done NORFOLK Sovran Financial Corp. completed its acquisition of First Bank of Marion on Friday with the Marion County institi-tion merging into Sovran Bank Chattanooga, a subsidiary of Sovran Financial CorporationCentral South.

Under terms of the acquisition, shareholders of First Bank of Marion County received 6.0824 shares of Sovran Financial Corp. common stock for each of their shares. Sovran Financial Corporation common stock closed Friday at $34 58. First Bank of Marion County operates six offices in the Chattanooga area. Homes less affordable WASHINGTON An index measuring the ability of the typical American family to buy a home made its sharpest drop in 15 years last month, as rising mortgage rates and home prices resulted in a loss of purchasing power, a real estate trade group said Monday.

The National Association of Realtors said its affordability index was at 105 in February, down 5.1 index points from a revised 1101 in January. February's index level meant that a family earning the medial income of $32 314 annually had 5 percent more income than needed to qualify for a mortgage covering 80 percent of the purchase true of a median-priced home. The median price for an eiKting hom in February was $33,100. up $3,400 from January. Burger King lays tiff MtAUI ire'f Kmt mrp mill lay eft a thiri tt cm 1 6n-rta-j- rarJ etrj: es a g-art a rstnt3r- ITg t.4t il tfClM'tf) iftlT tt.it fit ly Rnuh fl ar.

I I. v- ef.gkrat. ts tserfasy K-t Frank Swain, the Small Business Administration's chief counsel, defends the plan ot-for-profit groups Chrysler offers 0 loans Action follows Ford's 2.9 notes By FREDERICK STANDISH The Associated Press HIGHLAND PARK, Mich. Chrysler Corp. on Monday began offering interest-free, two-year loans on all -of its cars and some light trucks, in an escalation of the latest round of buyer incentives from the automakers.

The move came, after Ford Motor Co. dropped its interest rate for 24-month loans to 2.9 percent last Wednesday. General Motors Corp. followed that lead a day later. "Let's put an end to one-upmanship right now," said Bennett Bidwell, chairman of Chrysler Motors the company's carmaking arm.

Interest-free automobile financing was last offered in September 1986 by American Motors which Chrysler bought less than a year later. In addition to interest-free financing on two-year notes, Chrysler matched Ford and GM programs offering 5.9 Please see Auto, B6 Tribune stock rises with rumor Bass Group is said to be buying shares By AJ. PLUNKETT Staff Writer Stock prices for Tribune the -parent company of The Daily Press rose Monday amid rumors the Ro- bert M. Bass Group was acquiring a -stake in the company. The stock closed at 48, up 3 during heavy trading.

The stock closed at 444 on Friday and opened on Monday at 4514. Two weeks ago, the stock was selling for $39. Officials at Tribune Co. and Bass Group refused to comment on Bass' rumored stock purchase. "I think he may just be making a long-term investment in good stock at good prices," said Ken Noble, an ana-si Please see Stock, B6 Fund.

Last fall at a meeting in Berlin the Japanese had said they would be making such loans available but they did not announce a figure. Sumita's announcement was made tn the context of proposals by US. Treasury Secretary Nicholas F. Brady on the redjction of the Third World's debt of IU trillion. Sumita made it clear that these loans by Japan would fc granted orJy in the lzXemU7T.i Mo-elary Fur-1 and tit cha-ges ia po-jces it re-qiires frcra dettar tries to Cat ttej ia better tica ta repay.

Staff photo by JOE FUDGE to CW's Charles Longsworth, left. fight bill for the convenience of its students and faculty. Georgetown University Law School established its own bookstore, threatening the economic viability of a long-time private bookstore near the campus. The University of Michigan applied for a liquor license so the food service could cater private gatherings in Ann Arbor. More typically, however, a small hearing-aid dealer might complain if a large not-for-profit hospital sets up a health-service agency to sell hearing aids even if the hospital pays taxes on the agency's profits.

"Small businesses are not happy with the competition," Swain said. "There's also a halo effect: Joe Smith's Audiology Inc. doesn't carry the same panache as Mother of Mercy Hearing Clinic. "Just because your income goes to a good end doesn't mean your income-si Please see Tax, B6 Proposal would change tax rules By DONALD LOEPP Staff Writer WILLIAMSBURG Buy a reproduction of a Colonial silversmith's beer mug on Duke of Gloucester Street, and the Colonial Williamsburg Foundation pays no tax on the profit But under a proposal to reform the nation's not-for-profit corporations, if you bought the same mug through a CW mail order catalog, the foundation would pay income tax on the transaction. Charles R.

Longsworth, president and chief executive officer of CW, doesn't like the proposed legislation. "It's specious. What's important is the article, not where it is sold," Longsworth said at a forum Monday at The College of William and Mary. The legislative proposal is being considered by a subcommittee of the U.S. House Ways and Means Committee.

At Monday's forum, leaders of the not-for-profit industry debated whether the proposal would be the best way to stop abuses of the tax laws by not-for-profit corporations. Frank S. Swain, chief counsel of the U.S. Small Business Administration, argued that the reforms are needed. "Current tax laws have proved inadequate to the task of regulating the activities of not-for-profit corporations," Swain said.

Small business owners frequently complain when not-for-profit businesses expand into unrelated activities, Swain said. He pointed to several examples that he believed were abuses of the law by not-for-profit corporations: Hofstra University in Long Island, N.Y., operates a gasoline station Construction spending flat Japan pledges loans to aid Third World Construction spending By NANCY BE.NAC The Associated Press WASHINGTON Construction spending was nearly flat in February as a small increase in government projects was offset by slower work on housing and other non-government buildings, the Commerce Department reported Monday. Spending for new construction took place at a adjusted annual rate of S423 billion, inching up from $422 8 billion during the previous month. Comtrration spending had risen i percent in January. February's performance was the weakest stm tun-structwm decline) 0 2 lrte.t Ut Ana'jstt mi nne ir.trt rars an I tft'rm aNnsst th vi wf-f hik ti trg Tiut.

struction an indicator of future construction spending fell 7 percent in February. That decline followed a 5 percent drop in January, according to F.W. Dodge Group of McGraw-Hill Information Services Co. "With a few exceptions, the key categories of construction are settling into a pattern suggestive of 'cyclical burnout. George A.

Christie. F.W. Dodge's vice president and chief economist, said in a statement The Federal Reserve Board for a year has been pushing teret rates upward in an effort to slaw economic rrcnth ar.J restrain ir-fli'ioa. Recer.t reports en th rfjftaanc in Ff troary fc.it tfc.it r.ir t-e a the ei 'a ir.la its er-s jef- WASHINGTON (AP) Satoshi Sumita, governor of the Bank of Japan, said Monday the Export-Import Bank of Japan would make $4 5 billion available over the next few years to help Third World countries out of their debt problems. A spokesman for the World Bank said that Japanese authorities have promised its president.

Barber Conatle. that these teasa cct be tieJ to purchases of Japanese goods, as is urjally the case wiih frtn such Su ita r-aie tit rr jt: at a rt.r.g cf Cc, el lh9 I 1 1 1 'i ll it I p. fir? 0.