Austin American-Statesman from Austin, Texas • 27

Market review Composite index Dow industrials 8,627.93 Down 207.01 Bonds 20 Bonds 10 Public utilities 10 Industrials Oose 104.85 102.83 106:87 Change .06 9.050 9,000 Inside NYSE D4 Nasdaq D5 Mutual funds D6 Commodities D7 8,950 8,900 8.850 8.800 8,750 8,700 1 8,650 fcri Tinrif 8t60o TWUlFM TWThFM NYSE AM EX Nasdaq 554.89 -1L78 683.88 1715.75-29.30 i (Light sweet crude, July del.) $11.56 per barrel, Natural gas (Per 1,000 cubic feet) $2,100, 6.5 cents Tuesday, June 16, 1998 UJ Botsa index 4,048.99 Down 166.69 Mexican stocks D7 Sngpgf SSSSHtV Mmm odd Msdsi seoidls wmv MwMMg MUM, Ul I Dow Jones gyrations Closings of the Dow Jones industrial average since it topped 9,000 on April 6. industrial average had tumbled 207.01 points, to 8,627.93. It was the fifth-worst point lpss ever in a single day, though the 2.3 percent drop did not come close to breaking into the top 10 percentage declines. The slide came just one month after the Dow hit an all-time high of 9,211.84, slashing the market's gain for all of 1998 from 16.5 percent on May 13 to 9 percent. "We're seeing one-third of the world's economy in a depression, and that has to have a major impact on the rest of the world," Larry Horwitz, managing director at Primark Decision Economics in Boston.

Following the Dow, the technology heavy Nasdaq fell 29.3 points, or 1.68 percent Monday, closing at 1715.75. The Standard Poor's Index was down 21.83 points, or 1.99 percent, closing at 1077.01. The gloom on Wall Street prompted some analysts to speculate Monday that stocks could fall another 3 to 5 percent before investors are reassured that corporate profits are rebounding and that Asia's economic difficulties have hit bottom. "There is probably a few more percent left on the downside before people say there is enough value in the market to step back in," said Arun Kumar, senior stock startegist at Lehman Brothers in New York. The Asian financial crisis also continued to affect markets around the world.

Key stock indexes in Hong Kong and Bangkok tumbled nearly 6 percent. In Tokyo, the Nikkei stock average fell 1.3 percent. Despite months of turmoil in Asia, the U.S. market has continued to benefit See Dow, Back page Dow drops 207.01 as profits concerns re-emerge on Wall Street By Kjmberly Blanton The Boston Globe Monday, investors finally got the message. For months, Wall Street has all but ignored warnings that the Asian financial crisis could end the longest-running bull market in U.S.

history. But panic selling of the Japanese yen and reports of lower profits by companies that export to the region hammered home the message that the U.S. economy is increasingly vulnerable to the economic disas-' ter that has spread throughout Asia. By the market's close, the Dow Jones if II IjTi i 9000 I VI 1- 8,900 8.800 J8600 4698 61598 AA-S Fired up again Michael S. GreenAP All is quiet at Buick world headquarters in Flint, as work stoppages continue at two major GM parts plants in Flint Gltl at virtual standstill as UAW strike continues DETROIT General Motors' North American operations moved closer to being shut down completely Monday, as strikes at two Michigan parts factories forced the company to idle 13,000 more workers and partly close a host of other parts and assembly The combined work stoppages, one at a sheet-metal stamping plant that began 11 days ago and the other at a spark plug and speedometer plant that began on Thursday, have now sent 63,100 workers home and closed more than 40 assembly and parts factories in the United States, Mexico and Canada.

Nearly all GM cars and trucks require parts built at one of the two plants in Flint, where 9,000 workers are walking picket lines. GM's only Texas plant, in Arlington, is expected to close today because of the strikes, idling 2,000 workers at Arlington's fifth-biggest employer. buyout offer goes over big NEW YORK early retirement offer really has proven far more tempting to its 52,200 managers than the company expected. The nation's largest telecommunications company on Monday said that 15,300 employees about 40 percent more than initially projected agreed to retire early with up to 20 percent more of their pensions than they'd normally be entitled to. The company is paring its vast management staff by one-quarter as part of a cost-cutting unveiled early this year to save it $1.6 billion in 1998 alone.

Including management buyouts, is r--Ti I' i J5 I 1 ii yfrr v' staff. Capstar forming alliance to invest Sister companies, Connecticut firm seeking stations aimed at minorities By Earl Golz American-Statesman Staff Austin-based Capstar Broadcasting Corp. and two sister companies, already some of the biggest broadcasting companies in the nation, are looking to a fast-growing and largely untapped marketforfuture growth: Stations that cater to minorities. The three broadcasters have formed an alliance with a Connecticut firm to invest in broadcasting companies that operate in minority markets. All three broadcasting partners of the alliance Chancellor Media Corpl, LIN Television Corp.

and Capstar are owned by the Dallas private investment firm of Hicks, Muse, Tate and Furst. The fourth partner is TSG Capital Group, a private equity investment firm based in Stamford, Conn. TSG specializes in investing in business opportunities in minority markets and will be the lead investor in each transaction made by the alliance members. It is the majority shareholder in Spanish Media the subject of the alliance's first investment. Chancellor, based in Irving, will invest $25 million for a 20 percent See Capstar, Back page Dell talks to Microsoft about custom computers If.

AP --Af LJ Ted S. WarrenM-S Jose Degollado, a chef at Johnny Carino's restaurant in part of a growing chain that currently operates in Texas, Round Rock, wields a pan in the kitchen. The restaurant is Colorado and Arkansas. Former Brinker leader builds a different restaurant empire 5 i I1 currently has 11 Johnny Carino's and Kona's operating in Texas, Colorado and Arkansas, with revenues of $23 million. Seven more locations are opening within the next two months, including a Kona in Round Rock.

The company also will open a restaurant on the first floor of the historic Brown Building at Colorado and Eighth streets, which is being converted into loft-style apartments. Ford, chairman and chief executive of Fired Up, has been joined in his latest endeavor by Norman Abdallah, former chief executive and president of Red Hot Concepts, a Chili's licensee for the United Kingdom, Australia and New Zealand. Abdallah, president and chief operating officer of Fired Up, worked with Ford at Brinker as vice See Restaurant builder, D3 By Michell Breyer American-Statesman Staff Creed Ford HI knows what it takes to build an empire. At 24, he worked at the first Chili's Grill Bar in Dallas. By the time he left his job last year as chief operating officer for Brinker International the billion-dollar, publicly held restaurant company known for Chili's and such restaurants as Romano's Macaroni Grill, On The Border and Eatzi's the company had over 700 restaurants and 70,000 employees around the world.

From a Bee Cave ranchhouse on a 3-acre hillside near Lake Travis, Ford is building another restaurant company, Fired Up Inc. Fired Up develops and operates Johnny Carino's, a country Italian concept, and Kona Ranch, a Hawaiian-theme steakhouse. The company 7 12 Goldman Sachs Co-Chairmen Henry Paulson, left, and Jon Corzine after Monday's announcement. Goldman Sachs to offer shares NEW YORK Goldman Sachs Group, the biggest and richest investment banking partnership, voted to end 129 years as a private company and sell shares to the public. The company plans to sell a 10 percent to 15 percent stake, giving it a market value of as much as $35 billion, more than Merrill Lynch the nation's biggest broker.

Goldman, the last big investment bank owned by the executives in charge of trading securities and advising companies, wants to sell the shares later this year, giving it stock to pay for acquisitions. The decision came after a vote by Goldman's 190 partners at their annual meeting Saturday and a session yesterday by the firm's six-man executive committee. Partners would be worth $76 million, on average, once the company goes public. Excel acquired by Teleglobe Inc. DALLAS Excel Communications Inc.

agreed to be acquired for $3 billion by Teleglobe Inc. of Montreal in a deal that would create the fourth-largest U.S. long-distance telephone company. Excel, of Dallas, currently ranks fifth among long-distance phone companies in the United States. Teleglobe is a large provider of international phone serVice in Canada.

The new company will keep the Teleglobe name and its Montreal headquarters. Teleglobe chairman and chief executive Charles Sirois will keep those titles at the combined company, which will have 4,000 employees, 6 million home and 65,000 business customers. Airline workers approve pacts FORT WORTH Mechanics, ramp service workers and flight dispatchers have ratified contracts with the regional feeder airline owned by AMR parent company of American Airlines. American Eagle Airlines Inc. and the Transport Workers Union announced Monday that 58 percent of union employees voted in favor of the contracts which help American Eagle combine its four separate regional airlines into one carrier.

V- Si yl'J tt R. Michelle BreyerAA-S Creed Ford III, left, and Norman Abdallah use their years of restaurant experience to run Fired Up Inc. Electrosource tries to keep stock listing Associated Press NEW YORK Dell Computer Corp. says it is talking to Microsoft Corp. about custom-designing the computers it sells, the latest bid by manufacturers to try to gain more control over how PCs look and operate.

The talks by the nation's second-largest maker of personal computers comes after rivals Gateway Inc. and Packard Bell-NEC recently touted more custom-tailored PCs. In an interview Monday in Manhattan, Dell chief executive Michael Dell said his company initiated talks with Microsoft the maker of Windows operating software, because consumers could benefit from machines more closely tailored to their computing needs. Dell, based in Round Rock, has cooperated closely with Microsoft and chip maker Intel Corp. in designing PCs.

While the Justice Department presses its antitrust case against Microsoft, computer makers are seeking on their own to try to See Dell, D3 that have threatened its existence. The electric vehicle market has been slow to develop and Electrosource has lost contracts with key customers such as Chrysler Corp. More recently, SMH Autombobile and Corning once Electrosource's biggest investor, severed ties with the company. Corning had invested $6 million into Electrosource over the years. Two weeks ago, Kamkorp Limited said it would buy common stock at $1 a share, enabling the company to pay debts and maintain its manufacturing operations.

See Electrosource, D3 Electrosource has boosted the company's stock price. The investor is linked with a British maker of electric vehicles, which could use lead-acid batteries made by Electrosource. Shares of Electrosource have traded at up to $3 in the past two weeks after languishing under $1 for several weeks. A requirement for Nasdaq listing is that stocks trade at a price higher than $1 per share. The company's stock closed at down 37Mi cents, in trading on Monday.

In recent months, Electrosource, which makes lead-acid batteries in San Marcos, has faced a series of problems San Marcos battery maker has hearing with Nasdaq regulators today By Omar Gallaga American-Statesman Staff SAN MARCOS Electrosource Inc. will try to maintain its listing on the Nasdaq exchange at a hearing with regulators today. It now has a better chance to stay on Nasdaq after an agreement by a British company to invest up to $6 million in Items are compiled from staff and wire reports. How to contact us: Business Editor Becky Bisbee: 445-3671 Fax: 445-3971 E-mail: Businessstatesman.com P.O. Box 670, Austin, TX 78767.