Austin American-Statesman from Austin, Texas • 29

PAGE C7 INSIDE Stock listings: C10-12 Tuesday, June 9, 1992 Austin American-Statesman i3 Texas delegation woos Intel plant $1 billion microchip facility sought 1 ft 'it ready has manufacturing operations. Austin currently is home to three chip-making operations. Advanced Micro Devices, which designs and makes chips similar to Intel's 386 microprocessor, employs about 2,300 here. Motorola, the nation's second-largest chip-maker, has 6,500 employees manufacturing the 6800 family of chips used in Apple Computer products. Cypress Semiconductor, whose microprocessors are used in Sun-compatible workstations, employs about 200 workers in its Round Rock manufacturing facility.

Sematech, the chip-making research consortium of which Intel is a founding member, also is based in Austin. By Michael Totty American-Statesman Staff Gov. Ann Richards, with a delegation that includes Austin Mayor Bruce Todd, flew to California Monday in an effort to persuade officials at Intel Corp. to build a proposed $1 billion microchip plant in Texas. Intel, the largest manufacturer of the electronic brains inside personal computers, is considering Austin and other Texas cities for its plant, which could add about 1,350 jobs to the area.

The state's delegation, which also includes Department of Commerce director Cathy Bonner, Mayor Kay Granger of Fort Worth and Mayor Nelson Wolff of San Antonio, will meet with Intel Chairman Gordon Wood today. Bonner "prefers to go out there in a unified approach and have everyone work together in a single said Commerce spokeswoman Kathy Schwartz. In the last year, Richards has demonstrated a taste for calling on corporate executives either looking to expand in Texas or to thank those who already have done so. "It helps a great deal for the CEOs of these companies to know that the governor of the state is engaged and interested in their prob lems," said Bill Cryer, a spokesman for Richards. "They see the governor as the best sales person for the state of Texas." Intel developed the popular 386 and 486 chips used to power IBM-compatible personal computers.

The chips now are made at plants in California, Oregon, Arizona, New Mexico and Israel. The company is also building a plant in Ireland. Intel said earlier this year that Austin and the other Texas cities were being added to the competition for the chip plant along with the states where the company al Gov. Ann Richards is leading a delegation to bring an Intel plant to Texas Today's digest Gulf State to merge Gulf State Utilities, which has been searching for a suitor in recent months, said Monday it would merge with Entergy Corp. in a deal valued at $2.3 billion.

Under the agreement, GSU shareholders will receive $20 a share in cash or stock. Entergy, based in New Orleans, is the utility for most of Louisiana, Arkansas and Mississippi. GSU serves nearly 600,000 customers in South Louisiana and Southeast Texas. Two Texas-based companies Central and South West Corp. and Houston Industries Inc.

had explored a merger with Beaumont-based GSU. Free trade program The University of Texas Bureau of Business Research is sponsoring a program Thursday on the implications of freer trade with Mexico. The seminar will be 5:45 p.m. to 7:45 p.m. at the Thompson Conference Center at 26th and Red River streets.

For more information, call 471-1616. Back from classes Motorola is acting as host to 250 professors from the United States and six foreign countries in its Motorola University Symposium Monday and today. The two days of talks from top Motorola managers and technical experts is designed to familiarize college engineering teachers with leading semiconductor technology issues. Banks will merge Victoria Bankshares Inc. has agreed to merge with First National Bank in Rockport.

The merger calls for the exchange of 600,000 shares of Victoria Bankshares common stock for all the outstanding shares of First National common stock. Victoria Bankshares is a $1.4 billion bank holding company whose primary subsidiary, Victoria Bank Trust, operates in 26 communities in South Central Texas. First National is a $130 million bank. Bank fraud charged An asset manager for the Resolution Trust Southwest Federal Savings Association receivership in Dallas has been charged with bank fraud and faces up to 30 years in prison and $1 million in fines. Stephen Renshaw, a former Southwest employee, allegedly was involved in a scheme to forge checks over $500,000 to be issued to the RTC but deposited in a private account, according to the U.S.

attorney's office. Renshaw and George Dillon, an attorney who served as legal counsel for Southwest and who was similarly charged May 6, allegedly forged and deposited into the account nine checks. The funds allegedly were used to pay personal credit card debts and to attempt to purchase gold coins valued at $341,000, federal attorneys said. The market day a7 177 Air fare wars spread across the Atlantic Delta cuts Europe prices, and Continental matches By Dirk Beveridge Associated Press NEW YORK Before the nation's airlines had time to catch their breath after the big fare war for domestic tickets, Delta Air Lines said Monday evening it was cutting prices on summer fares to Europe by up to 45 percent. The sale, while not as sweeping as the fare war that ended Friday, will allow Delta's highest-paying customers, business travelers who fly on little notice, to save money.

Continental Airlines immediately matched the sale in most markets. Other rivals, including American Airlines, United Airlines, Northwest Airlines and Trans World Airlines, said they were studying the move. USAir had no comment. Delta said the new fares, which require government approval, were intended to lure more business travelers and to promote itself as the U.S. carrier with the most trans-Atlantic destinations.

Last year, Delta purchased most of the assets of now-defunct Pan American World Airways. As a sample of the savings offered by Delta's new sale, first-class fares from Dallas to Frankfurt are falling from $5,664 round trip to business class fares are falling from $3,472 to and full coach tickets are falling from $2,760 to $2,100. Delta, which had been critical of the just-ended domestic fare sale, said the trans-Atlantic sale was different. "These are designed, obviously, targeted at the business travelers, the last minute walk-up type traffic," Delta spokesman Neil Monroe said. The domestic fare sale offered bargains on advance-purchase tickets most commonly used by leisure travelers.

Delta's sale begins today and has no minimum stay requirements and no advance time for purchase of the tickets, though there is a maximum stay of 14 days. Delta will block out travel between the United States and Spain from July 19 to Aug. 9 because of the summer Olympic games. The sale is good only on fares that originate in the continental United States. Delta's move came as the airlines were working to ticket millions of passengers who booked flights last week on domestic fares that were 50 percent off the regular lowest fare.

Staff photo by Marc Fort New owners of The Magic Time Machine, and antics of Its staff at 600 E. Riverside open in August as a Landry's Seafood a restaurant famous for the costumes Drive, are remodeling and hope to re- House. Seafood replaces shenanigans Magic Time Machine restaurant sold, to reopen as a Landry's Time Machine for several months. Looking out the window of the restaurant, Jaksa can describe the view customers will see. "YouH be sitting out here looking straight down the lake," he said.

"The whole back of the building will be nothing but glass," In addition to fresh seafood, steak and Cajun seafood, the restaurant also will have an oyster bar, Jaksa said. Jaksa said the new restaurant will employ "several hundred" local workers for remodeling and the permanent restaurant staff. He already has hired some of the Magic Time Machine staffers who lost their jobs about a week ago and now are taking part in the renovation. But this week, not even Superman will be around to stop the demolition. Jaksa said he aims to reopen the restaurant Aug.

1, offering moderately priced seafood and steak. It will be the company's seventh Landry's Seafood House in Texas, Jaksa said. In addition to a menu vastly different from the Magic Time Machine, the building also is undergoing a major renovation to include outdoor seating and a view of Town Lake, Jaksa said. Details of the furnishings have not been determined yet, but Jaksa said the setting will be casual. Jaksa did not disclose the terms of the sale, but said The Landry Group had wanted a location in Austin on the water for a couple of years.

Jaksa said he had been negotiating with the Magic By Sarah Barnes American-Statesman Staff Amid sawdust, a few sledgehammers and a lot of noise, the Magic Time Machine is being dismantled at warp speed. The longtime restaurant has been bought by The Landry Group of Houston and will reopen in August as Landry's Seafood House, said E.A. Jaksa executive vice president of The Landry Group. Officials with the Magic Time Machine could not be reached for comment. Opened in 1973, the restaurant at 600 E.

Riverside Drive was known for the antics of its staff, which included being served by the likes of Batman, Wonder Woman and Tinkerbell. Computer industry watching as Kodak loses antitrust suit round General Dynamics to buy back up to 30 of its common stock Dow industrials 3.404.13 Up 5.44 3,500 ym. 3'300 I It- 3.200 miui 3,100 Computer Service Network International, representing 400 independent service organizations in the high-technology field, warned that if Kodak's argument about how to define the market was accepted, "an entire industry will be destroyed" because the independent companies would be able to exist only at the sufferance of the manufacturers. By contrast, a brief for the Computer and Business Equipment Manufacturers Association, representing 26 computer manufacturers, warned that a ruling against Kodak would lead to a surge in antitrust suits and could also threaten such common marketing practices as authorized dealer networks and packaged arrangements for buying hardware, software and service support. If the court had accepted Kodak's legal theory, which the Bush administration essentially supported, manufacturers in Kodak's position would have been effectively immunized from antitrust liability for driving competitors out of the markets for re? placement parts and service.

Kodak controls nearly the entire market for its replacement parts which are not interchangeable with the parts for other manufacturers' business machines and between 80 and 95 percent of the service' market. But it has only about a 20 percent share of the overall market for the machines at issue in the case: high-volume copiers and equipment used for microfilm and microfiche. Mew York Times News Service WASHINGTON In a case watched closely by the computer industry, the Supreme Court ruled Monday that Eastman Kodak Co. must stand trial in an antitrust suit that has important implications for the ability of manufacturers to control the markets for the parts and servicing of the products they make. By a 6-3 vote, the court rejected Kodak's argument that it was legally entitled to dismissal of the suit, brought in 1987 by 18 companies that sell replacement parts and service for Kodak's line of sophisticated business machines.

These companies, known as independent service organizations, contend that Kodak was trying to force them out of business by restricting their access to replacement parts and by trying to insure that customers for its business machines either service the machines themselves or buy service directly from Kodak. Kodak contended that it could not be found to be exercising monopoly power in the parts and service markets in the absence of market power in sales of the basic equipment. It asked the court to adopt a rule that a parts and service business cannot be considered a monopoly as long as there is competition in the sales and manufacture of the machines. A brief filed by an organization called from about 22 percent. General Dynamics said it would make the repurchases through a Dutch auction tender, in which shareholders offer to sell shares to the company and state the minimum price they will accept.

The company specified a range of $65,375 to $75 a share, and it will accept tenders for 13 million shares, assuming that many are offered, at the lowest price necessary to buy all of the shares. For example, if 10 million shares are tendered at the lowest price, $65,375, and another 3 million at prices ranging up to $71, all 13 million shares will be purchased at the $71 price, even those tendered by holders willing to accept a lower price. But a holder who offered to sell at $71.25 would find that no shares had been accepted. The soaring market price in the shares Monday indicated hope among traders, including some arbitragers, that General Dynamics could be forced to pay a price closer to the upper end of the range. Dutch auctions have become a relatively popular way for companies to buy back stock, especially in cases where large shareholders want to reduce their stake substantially in a company, as appears the case at General Dynamics.

By Floyd Norris New York Times News Service NEW YORK Saying that with the military business shrinking it had no good ways to invest its cash, General Dynamics Corp. said Monday that it would buy back up to 30 percent of its common shares for between $824 million and $975 million. The announcement sent General Dynamics shares soaring on the New York Stock Exchange, rising $5,625 to $71. The company has begun to pare its military businesses but has rejected diversification outside the aerospace business. The company has announced plans this year to lay off up to 1,500 workers at its Fort Worth aircraft assembly plant.

It had $1.2 billion in cash and marketable securities at the end of March, and more cash is expected as businesses are sold. It has announced plans to sell operations that accounted for more than a third of its revenue last year. The buyback will enable members of the Crown family, descendants of the company's founder, to take out as much as $367.5 million from General Dynamics. It will also reduce the family's combined ownership stake to 15 percent, TWThFMTWThFM NYSE 22771 down 0.17 Up: 827 Down: 887 Unchanged: 561 Volume: 161.15 million 500 413.36 down 0.12 Dollar exchange Dollar In foreign currency Mon. Frl.

Britain .5452 .5554 Germany 1.5855 1.5890 Japan 127.11 126.75 Mexico 3.113 3,113 Gold New York Comex $338.20 Rep. Nat'l Bank $337.90 Oil Light sweet crude $22.44 per barrel, down $0.18 (July delivery) Natural gas Price per 1,000 cubic leet $1,625, down 2.8 cents (July delivery).