Honolulu Star-Bulletin from Honolulu, Hawaii • 29

i i i 1 1 1 rr ww Money rates Today's market E. Up: 736 stocks Dow Jones tV IAWA II INC Percentages are effective annual yields. The rate? for money market funds, which have varying minimum, rates, assume an investment of $2,500. Some 6-month CD yields assume reinvestment after 6 months. Down: 732 stocks At! 2,773.56 Volume: 177,890,000 2.47 356.96 0.02 Section Thursday, October 6, 1 989 Star-Bulletin 17 Money 6-Month 12-Month Market CDs CDs Bank of Hawaii 6.00 7.75 B.00 First Hawaiian 6.49 7.90 8.06 First Interstate 6.50 7.90 8.00 American Savings 5.64' 7.B0 8.00 First Federal 5.25 7.75 8.00 First Nationwide 5.80' 8.20 8.40 Honfed Bank 5.75 7.80 8.00 Mi for Mm 'Higher yields are oflered tor larger deposit.

7 iff Tramp He is bidding $120 a share for the parent of American Airlines V9 Tak'sdeal to sell KITV is canceled An L.A. group had planned to buy 60 of the station for $45 million By Russ Lynch Star-Bulletin The sale of KITV Channel 4 to a California partnership has been canceled, Richard Schaller, general manager of the Hawaii ABC affiliate, said today. But it is "business as usual" at the station, which remains under the ownership of Virginia-based Tak Communications, Schaller said. Sharad Tak, owner of the business, agreed in late June to accept $45 million for a 60 percent controlling share of KITV-4. The new owner was to be a partnership headed by Anthony Cassara, a airline stocks also jumped in related speculation.

AMR also said its board would consider the proposal "in due course," but Indicated probable rejection. "There has been no change in (AMR's) policy and belief that AMR and its shareholders will be best served by AMR remaining an independent company and continuing the strong partnership among American Airlines, its employees, the communities it serves and the public," the company stated. In the letter, released by Trump's office in New York, Trump said he had made a "substantial investment" in AMR and was prepared to commit at least $1 billion of equity to the transaction. The letter did not disclose the size of Trump's stake, although Trump officials noted he has filed no documents with the federal Securities and Exchange sion, indicating his holdings are below 5 percent of AMR's shares outstanding. See TRUMP, Page D-3 Associated Press DALLAS Developer Donald Trump stunned the airline world today by offering a record $7 billion for the parent of American Airlines, capping weeks of takeover speculation about the nation's biggest carrier and a wave of buyouts in the industry.

Stock in AMR Corp. shot higher after the company disclosed a letter from the flashy tycoon to Chairman Robert L. Crandall, offering $120 cash for each of AMR's 58.9 million shares outstanding. It would be the biggest airline buyout ever if completed. Trump said his offer expires Oct.

20. AMR rose $17 to $100 in heavy trading on the the New York Stock Exchange. Other Richard Schaller: It's 'business as usual" at the television station. Beverly Hills businessman with a history of success in television deals. Tak was to keep 40 percent, but have no say in the running of the station.

Cassara said today that he and his partners "continue to be interested in Hawaii" and will keep looking for opportunities to in- See KITV, Page D-3 Star-Bulletin pacific BUSINESS Taiwan to sell some government business i The immense business empire of Taiwan's Nationalist government, long a key element in the "control of the country, is under attack and plans are being made to begin its sale. Now that the people of Taiwan have won some say in this island's political process, they are. demanding a larger share of the economic pie. The government has reacted by promising to sell off some of its numerous companies. But critics say the government and party aren't going far enough and that Taiwan's rulers will maintain control of the financial empire through joint ventures, stock schemes and other roundabout ways.

About half of all the total assets of Taiwan's companies are controlled directly or indirectly by the ruling Nationalist Party or the government. The net worth of these assets is more than $380 billion, according to Kang Ning-hsiang, a legislator of the fledgling opposition Democratic Progressive 'Party who has researched the holdings. I Together the party and government dominate Taiwan's petroleum industry; its telecommunica-f tion systems: its railways; steel, cement, and ship- building plants; and parts of the mass media, i government also owns 70 percent of Taiwan's 9 million acres of land and maintains a firm I grip on the economy through its control of foreign exchange and the banking system. "From gasoline for cars to raw materials for the lit Ifi -'i I fl 3 clothes we wear, everything is more or less under the Nationalist control," said Kang. Inhabitants on this island of 20 million, already among the most densely populated in the world, have to fight "the most severe battle" for the limited resources open to the public, said Kang.

The Nationalists and as many as 2 million followers fled to Taiwan in 1949 following their loss in a civil war to the Communist forces in China. Since then the party and the state have been inseparable. The Democratic Progressive Party, a legal entity since 1987, has yet to come close to challenging Nationalist supremacy. In Taiwan, economic interests have been the By Susan Wctnili, Special to trie Star-Bulletin Nissan's Infinity above, and Dwane Brenneman, head of Nissan Motor Corp. in Hawaii, stands in front of the future home of the Infiniti.

By Craig T. Kajlma, Star-Bulletin Warren Sato, Lexus group vice president, shows the new model while Bryant Lum, a sign company employee, finishes work on the Lexus logo. iETf IT- fhe Future Home of ri ftMi The Infiniti Company: Nissan Local dealer: Nissan Motor Corp. in Hawaii Price: $38,000 for Q45; $23,500 for M30 Debut: Nov, 8 Showroom: Nimitz at Puuloa" Under construction The Lexus Company: Toyota Local dealer Servco Price: $35,000 for LS400; $21,500 for ES250 Debut: March 1990 Showroom: 744 Ala Moana" Now on display Under construction I If I I foundation of Nationalist rule. Through them the party dispenses favors to loyalists and privileges to cooperative private businesses.

In the beginning, the favors went mostly to the mainlanders who fled with the Nationalists. But as Taiwanese slowly began to assert themselves I'both economically and politically, the Nationalists attempted to attract them with favors, too. Pressure on the party and government to turn tate- and party-run companies private increased, lifter Taiwan lifted martial law in the' way for the current political liberalization, A prosperous economy added more creating an abundance of idle cash looking for fin vestment opportunities. In August, the government announced that 19 of Taiwan's 59 state-run companies will either go public or be sold to private enterprises under a program that may take many years to complete. Among the companies to be made private are several banks, insurance companies, chemical nfirms, steel mills and a shipbuilder.

Many of the concerns have lost money and drained govern-jment finances despite their total or near monopolies. I But the government will retain the bulk of its fholdings, such as the lucrative Chinese Petroleum which monopolizes oil imports, exploration, refinery, gasoline stations and several petrochemical products. "The Nationalists will see to it that they will not Jose much of their economic or political hvith the conversion to private companies, said Chu 'tyun-han, professor of political science at the Na sifinitiln ready for isle MM However, Servco independent distributor for Toyota and now Lexus, is setting up a temporary showroom at its Mapunapuna service center on Pukoloa Street, and will display the Lexus LS400 and ES250, according to Warren Sato, Lexus group vice president. The company has acquired 744 Ala Moana site of the old Shelly Mazda dealership, and will be renovating it in time for the March startup, he said, hinting that there may be some cars available before then. Meanwhile, construction of the Infiniti Motors showroom is well under way at Nimitz and Puuloa and "we'll have a grand opening on or around Nov.

8," said Dwane Brenneman, head of Nissan Motor Corp. in Hawaii as well as the separate Infiniti division. Nissan and Toyota prepare to roii out their luxury lines By James Sylvester I StgrBufltrrn'j; Nissan and Toyota are getting ready to roll out their new luxury automobile lines in Hawaii, while other island dealers are standing by, perhaps a bit nervous, to see what buyers' reactions will be. Infiniti, Nissan's entry into the country club set, makes its island debut Nov. 8, along with the rest of the nation.

Toyota's Lexus won't officially be introduced here until March in a second introductory wave, even though mainland sales started this month. Rod Morrison has been named general manager for Infiniti Motor Sales which is a subsidiary of Nissan Motor Corp. There already have been some presales, with about a dozen of the top-end Q45s and three of M30s spoken for, he said. During Servco's recent 70th anniversary celebration, where Lexus models were displayed, fwe had about 145 people that expressed an interest" in the car, Sato said. Infiniti and Lexus will operate as independent companies, just as Acura, Japan's first car introduced to the luxury market a few years ago, is run separately from Honda.

Luxury car sales in Hawaii "probably amount to between 300 and 400 units a month, and we hope to See CARS, Page 0-1 tional Taiwan university. i Thp onvppnmpnt is exnpctf'd to hold minoritv (Shares in the companies it sells, thereby allowing hhe Nationalist Party continued influence, Chu EXECUTIVE PROFILE NEWSWATCH said. The party will continue to appoint retired officials as key executives at the companies and fsecure the "iron ballots" of employees in elections, he said. fj Despite the government's program to sell public companies, Nationalist Party officials said they had no similar plans to reduce the giant party-downed business empire. Pacific Business, which this week was written by the Associated Press, appears Thursdays in Hawaii Inc.

Keeping up with HEI changes LOOKING AHEAD Tomorrow: The Labor Department will report tion the nation's jobless rate for GOOD NEWS BAD NEWS By Henry Martin 1 1 Instead of kilowatts, "we're talking about interest rates, tonnage of ships, entirely new terminology," beyond Hawaiian Electric traditional role as a public utility. That's one of the ways Betty Ann Splinter describes her new role as corporate secretary of Hawaiian Electric Industries some 15 years after she joined what was then Hawaiian Electric Co. Now, she works with a structure of HEI as the holding company that owns not only HECO and its neighbor island utility subsidiaries, but also American Savings Nome: Betty Ann Splinter Age: 43 Position: Corporate secretory, Hawaiian Electric Industries Inc. First fob: Secretary Favorite pastime: Reading, 'insane comedies on TV" lays caused by the Boeing crew's walkout plans to pay off subordinated note Issue Castle Cooke Inc. will redeem aU $88 million worth of its 12 percent subordinated notes, due 1991, its Los Angeles headquarters said today.

Holders will be paid in cash the face value of each note plus interest of $20 on each $1,000 accrued for the period Sept 1 through Nov. 1. Castle Cooke said it will use working capital and short-term bank lines to pay off the notes. The Mellon Bank, as trustee, is the redemption agent Hawaii, In brief Flamingo Enterprises which owns six restaurants on Oa-hu, has signed a long-term lease to open a new Flamingo restaurant in the Waipahu Shopping Plaza, according to Hawaiian Asset Management, managing agent for the shopping center. No Ka 01 Termite and Pest Control Inc.

has opened a branch office on Guam, its first outside HawaiL Bank of Hawaii has installed an automated teller machine at Pupukea Foodland. fl Jack in the Box restaurants has opened an outlet on the Big Island at 75-5702 Ka'ukini Highway in Kailua-Kona. From staff and wire reports West Germany leads way in raising interest rates The Bundesbank, West Germa-, ny's central bank, announced today that it has raised its key lending rates by 1 percentage point, and other European central banks quickly followed with similar rate increases. The move appeared to be aimed at curbing inflation and supporting European currencies. The Bundesbank set the new discount rate at 6 percent, with the Lombard rate at 8 percent It was the fourth interest-rate rise this year for the West German central bank.

Meanwhile, central banks in Britain, Austria and the Netherlands raised their rates by 1 percent to 15 percent, 6.5 percent and 7 percent respectively. The Bank of France increased its key rate by 34 percent to 9.5 percent, and the five to lOday repurchase rate by the same amount to 10.25 percent And the Swiss National Bank boosted its discount rate by a half percentage point to 6 percent. Alohi Air best Hawaiian 4th-worstfor complaints Aloha Airlines was the least-complained-about airline in the country during the first nine months of 1989, according to figures released today by the VS. Department of Transportation. The interisland airline's record of 0.24 complaints per 100,000 passengers carried bested 19 other carriers, including Hawaiian Airlines, whose record of 4.18 complaints per 100,000 passengers was the fourth-worst for the period.

Pan American had the highest level of complaints of the 20 airlines tracked by the agency, 6.41 complaints per 100,000 passengers. So far this year, the total number of complaints filed about all carriers is less than half that of the same time last year, according to the department 44 Boeing employees on strike at Barbers Point Forty-four Boeing Co. employees at Barbers Point Naval Air Station today continued a walkout in support of striking workers in Washington state. The workers at Barbers Point went on strike yesterday after receiving word that some 57,000 machinists union members struck Boeing in the Puget Sound area and at smaller plants across the nation. The 44 workers belong to Local 751 of the machinists union in Seattle, and are not affiliated with any of the local machinists.

Boeing, the Seattle-based aerospace giant has a contract with the Navy to service new E6A aircraf ts or 707s at Barbers Point Barbara Conrady, a spokeswoman for the naval air station, said she did not know what effects may be experienced as a result of de- 4" Bank, Hawaiian Tug Barge Corp. Young Brothers the Hawaiian Insurance Group and subsidiaries in real state and other fields. "I sit in on meetings of the board of directors. I hear reports from very different levels," in a range of industries, in an infinitely greater variety of activities than anything HECO had when she Joined, she said. It has been "quite a learning experience," Splinter said.

The role of corporate secretary starts with liaison between the company and the board" of directors and hits its peak at the annual shareholders meeting in April. Splinter sees it as "a fun Job." Rum Lynch, Star-Bulletin "Harry must have gotten the Prestwell account" CLB Mfri.