Chicago Tribune from Chicago, Illinois • 25

Ems Section 2 Page 7 (fhic ago (Tribune Saturday, February 23, 1985 move by Mobil -hints Wards sale Eestractuim do to get your stock up, too," one arbitrager said. There's some speculation that Pickens would actually like to buy something bigger, such as Mobil, which could be sold in pieces. Some takeover experts believe that Mobil has a liquidation value of $88 a share. "There are some comments floating around that Boone Pickens maybe doesn't really want Unocal, but that he maybe wants to use Unocal as a stepping stone to buy a company like Mobil" which has undervalued assets, a low rate of return and a sluggish growth rate, Tom Lewis, an energy analyst at Duff Phelps said. "We are doing better with Montgomery Ward, but we are not doing adequately with Montgomery Ward," he said.

Warier said no specific plans had xn made and that spinoffs are only under study. He added that the company did not intend to "rush into" any investments "just for the sake of doing it." A Mobil spokesman said that this isn't the first time Warner has. discussed a possible spinoff. "Mobil's studying all aspects of its business to be sure they're in the company's long-term interest," he said. Mobil's stock reacted positively to Warner's latest comments, rising $1.87 to close at $29 on volume of more than 2.5 million shares, making it the day's most active stock.

Observers suspect Mobil's decision to consider selling units stems from its fear that it might be the next oil company to become the target of a corporate raider. It's stock is considered deeply discounted relative to other oil com; panies. "If you were Mobil's management, and you saw what was happening to Phillips Petroleum which is being sought by raider Carl Icahn and Unocal whose stock is being bought by T. Boone Pickens, you'd see what you could oil company would sell Container Corp. of America, which is also based in Chicago.

Mobil Chairman Rawleigh Warner Jr. said Goldman would study company operations and would consider spinning off several units. "We are not at all adverse to moving those parts of the business that are not earning adequate rates of return," he said. Despite its vastly improved performanceWard posted a $69 million profit, its second in five years, on sales of $6.5 billion in 1984 it generally is considered a millstone to the parent company, which Warner seemed to acknowledge at the meeting. put something like a leveraged buyout together with Riklis," said an investment banker.

Meshulam Riklis is chairmen of Rapid-American which Pistner joined in January to head its McCrory variety stores subsidiary. Pistner was in Chicago Friday and rumored to be talking to Goldman Sachs' Chicago office. However, neither Pistner nor executives at Goldman Sachs here could be reached for comment Friday afternoon. Mobil's action, discussed at a special shareholders meeting in Fairfax, for the purpose of adopting antitakeover provisions, also sparked speculation that the By Herb Greenberg andJanet Key Mobil Corp. said Friday it has hired the investment banking firm of Goldman, Sachs Co.

to help in a possible restructuring of the giant company. A reliable source said Montgom-; -ery Ward Co. the nation's sixth-largest retailer and a Mobil subsidiary, already has been put up for sale as part of the restruc-- hiring. One possible buyer asked to look at the retailer is reportedly iStephen L. Pistner, Ward's former president and chief executive offi- cer.

"He's the logical candidate to Recess called, Phillips shakes bushes for votes FJM- iff I IP tal Guardian Trust Co. of Los Angeles to switch its vote against management. Officials at Capital Guardian, which holds more than 4 million shares, or about 3 percent of the company's common stock outstanding, couldn't be reached for comment. It was understood, however, that Robert Kirby, who heads the fund, had wanted to vote with Phillips management but succumbed to opposition from his portfolio managers. It came as no surprise that Douce's action in keeping the polls open was challenged in court by dissident shareholders, including Carl C.

Icahn, the New York financier who is threatening a hostile takeover of Phillips. It was also learned late Friday that Icahn had filed a motion in U.S. District Court in Tulsa requesting that all new ballots submitted after the shareholders meeting be impounded. "Why are the polls being kept open?" Icahn asked in a statement issued in New York. "Why not let the process end? I believe shareholders want more value for their shares, not to have their money spent on high-priced investment bankers, lawyers and advertising." At the shareholders meeting here, management supporters clearly predominated among the 4,500 people who packed into a gymnasium and adjoining hall in Phillips' corporate offices.

A brass band marched and schoolchildren chanted their opposition to Icahn outside the building as the meeting began. Despite such manifestations of support, shareholders subjected Douce to surprisingly sharp questioning. The intensity of the interrogation was made more striking by the failure of the leading dissident shareholders to appear. Indeed, there was only one comment at the meeting by a supporter of the dissidents, a brief statement by Icahn representative Alfred D. Kingsley, who reiterated the financier's assertion that Phillips employees and Bartlesville residents have nothing to fear from him.

"We love Phillips Petroleum, we love the employees, we love Bartlesville," Kingsley said, drawing snickers from the crowd. "We simply want to get fair value for our shares." "I am voting for this but I have been somewhat disappointed in management," said Lee Hill Boyer, a retired Phillips employee who said he depends on the income from his 4,500 shares. By Daniel Rosenheim Chicago Tribune ARTLES VILLE Okla. The results of a vote on Phillips Petroleum contentious recapitaUzaton plan won't be known at least until Wednesday, as a shareholders meeting was adjourned Friday amid new litigation and countercharges by the opposing sides. In initially adjourning the meeting Friday morning, Phillips' Chairman William C.

Douce said it would reconvene Saturday. Late Friday night, however, after a disgruntled Phillips shareholder filed suit seeking an injunction against the postponement, Phillips said the meeting would be further postponed until Wednesday to allow a judge to carefully weigh the injunction request. The initial postponement was announced to give Phillips management time to count the ballots on the recapitalization plan and to give shareholders additional time to vote. Analysts said the postponement was a clear attempt on the part of management to shake the bushes for additional votes. Douce declared that balloting could continue while the votes are being counted.

The new suit was filed by Albert Edelman, who already had filed a class action suit challenging the reorganization. The continuation of the balloting clearly indicated that Phillips' recapitalization proposal had yet to receive the 77.4 million votes it needs to obtain a simple majority of shareholders. At the same time, it seemed to reflect management's belief that getting those votes was within reach. At a press conference after the 90-minute shareholders meeting, Douce said he was optimistic about management's prospects. Most observers believed the tally would be extremely close, with several Wall Street sources estimating that Phillips went into Friday's meeting about 6 million votes short of a majority.

Although Douce denied any intention to twist shareholders' arms in the recess, sources close to Phillips said late Friday that the company would use the delay to try to persuade several institutional shareholders to change their votes. In particular, Phillips was reportedly stunned by an abrupt decision by Capi fc.m in .11 .11 ffilllSfti ReuterUPIPhoto Mid-day trading at the currency exchange in Frankfurt, West Germany, finds the dollar surging to 3.38 marks, its highest rate since 1971. Stocks off again as Dow dips dollar surges Stock Market 22, 1965 Composite table Volume 111,373,820 Issues traded 2,017 Up: -587: Unchanged -tun- Business ticker Peoples Energy cuts gas costs Peoples Energy Corp. said it has taken two steps to reduce the cost of the natural gas it buys for its Peoples Light Gas Coke Co. subsidiary.

Chairman Eugene A. Tracy told the company's annual meeting that Peoples Gas has signed a transportation agree- ment with a pipeline owned by American Natural Resources Co. providing access to new supply areas In Texas, Oklahoma and Kansas. Hadson Gas Systems Inc. of Oklahoma will sell Peoples Gas 12 million cubic feet of gas a day.

The direct purchase should save the company nearly $1 million a year, Tracy said. Tracy said he expects Peoples Energy earnings to climb by 10 to IS percent in the 1985 fiscal year from the $55.4 million, or $2.07 a share, in fiscal 1984. Tracy also said, "We presently do not foresee a need for either Peoples Gas or North Shore Gas to file requests for any new rate increases within the next year," he said. Ford raises prices on '85 cars Ford Motor Co. said it will boost prices on all but its smallest 1985 model cars an average of 1.7 percent, or $200, effective Monday, to help it meet federal fuel economy standards.

It has failed to reach those standards the last two years and expects to miss this year. To encourage sales of small cars that contribute more to meeting those fuel economy laws, Ford held the line on most of its subcompact model prices and announced a low-cost 8.8 percent new car loan program on its compact Ford Tempo and Mercury Topaz effective immediately and running through April 22. As examples of the increases, Ford said, the full-size Ford Crown Victoria goes up by $285, to $11,912, the full-size Mercury Grand Marquis by $356, to $12,661, and the luxury Continental by $538, to $26,321. Ford said cars already ordered but not delivered until after Monday will remain at the price before the increase. IH profits on remaining operations International Harvester Co.

reported a profit from continuing operations of $22 million, or 14 cents a share, for the fiscal first quarter ended Jan. 31. That contrasted with a $5 million loss from continuing operations a year, earlier. The Chicago-based company's net loss, however, climbed to $534 million in the latest period, including' a $479 million writeoff in connection with the recent sale of most of its farm-equipment assets to Tenneco Inc. The net also included $97 million in presale operating losses for the farm-equipment division and $20 million in tax credits.

The company's net loss in the year-earlier quarter was $55 million. Sales rose 25 percent, to $840 million from $674 million, because of continued strong demand in the company's surviving truck-manufacturing business. Harvester also said it received $58 million more in cash and stock from the sale to Tenneco than previously announced, to cover an increase in certain assets such as product inventory. Harvester said it got $301 million in cash and $187 million in preference stock from Tenneco instead of the proposed $260 million in cash and $170 million in stock. Staley moving offices to area Staley Continental Inc.

will move its corporate offices from Decatur, 111., to suburban Chicago, Staley said. Earlier this month, Staley Continental was formed as a result of a reorganization of A.E. Staley Manufacturing Co. The reorganization was prompted by the Staley acquisition of CFS Continental last November and the divestiture by Staley of its soybean-milling business last month. He said a specific location hasn't been selected.

National Can begins tender offer National Can Corp. and its new employee stock ownership plan and trust ESOP have begun the $40-a-share joint tender offer for the company's stock that was announced earlier this week. The offer is part of the company's apparent plan to prevent financier Victor Posner from buying the company for $40 a share or less. A condition of the offer is that 5.4 million shares, or about 52.7 percent of the common stock on a fully diluted basis, be tendered. The tender offer is scheduled to expire March 21, and withdrawal rights are scheduled to expire March 14, the company said.

Midway Air posts bigger losses Midway Airlines posted net losses of $14.4 million (or the fourth quarter and $22 million for 1984. These are increases from 1983 losses of $6.5 million in the fourth quarter and $15 million for the year. Midway's latest quarterly deficit included writeoffs totaling $6.6 million from operating losses and expenses on its Midway Express operation and $1.7 million from an unsuccessful try to start a helicopter service. The results also include a $1.2 million special credit resulting from the gain incurred on the retirement of long-term debentures. The airline lost $5.9 million on operations in the quarter, about the same as a year earlier.

For the year, its operating loss totaled $12.2 million, up 4 percent from $11.7 million. Home buyer inducements OKd Illinois Supreme Court has ruled that real estate companies are not prevented from offering prizes, money and gifts as inducements to consumers Buying homes. Striking down a state statute as unconstitutional, the high court upheld the right of Coldwell Banker Residential Real Estate Services of Illinois a subsidiary of Sears, Roebuck and to offer homebuyers discounted prices on Sears merchandise. It also gave approval for Sears to give employees commission discounts when the firm is involved in buying or selling their homes. Dow Jones Industrials 1275.64....

S00 179.36 N.Y.S.E. Index 104.01. Chicago Tribune Chart; Based on N.Y.S.E. trades Owners of Channel 44 in danger of losing license NEW YORK AP-Stock prices declined again Friday, closing out a sluggish week marked by concern over the recent upswing in interest rates, while the dollar capped its historic week with a seemingly effortless surge again. The Dow Jones industrial average, up about 2 points shortly before noon, closed with a 3.20 loss at 1275.84.

For the holiday-shortened week, the average showed a loss of 6.18. Friday's volume on the New York Stock Exchange came to 93.68 million shares, down from 104.02 million Thursday. Nationwide turnover totaled 111.37 million shares. Open-market interest rates have been rising since Paul Volcker, chairman of the Federal Reserve Board, reported earlier this week that the Fed was no longer easing credit conditions. "We had kind of a draggy day, and Volcker's statement hasn't helped the stock market much," said Eldon A.

Grimm, senior vice president of Birr, Wilson Co. "Then we've had this soaring dollar gain, anfl those things have caused people to wonder what will happen to interest rates." Peter Treadway, senior vice president and chief economist with Cralin said: "Actually, I think the market did extremely well when you consider that we're in a correctional phase." In the credit markets Friday, prices of long-term government bonds, which move in the opposite direction from interest rates, dropped $5 to $10 for every $1,000 in face value. Mobil Corp. led the active list, up $1.87 at $29 on turnover of nearly 2.6 million shares. The company said it has retained Goldman, Sachs Co.

to study the possibility of spinning off some of its operations. In the daily tally on the Big Board, about five issues declined in price for every three that rose. The NYSE composite index lost 0.50 to 104.01. In London, the British pound slumped to a record low $1.0730 from $1.0830 late Thursday, and for the week sterling lost nearly 3 cents. In U.S.

trading, the pound fell Friday to $1.0725 from $1.0845. In U.S. dealings, the West German mark was a notable casualty against the dollar, which rose to 3.3960 marks from 3.3560 late Thursday. Gold, meanwhile, edged up 25 cents in London, to $299.25 a troy ounce. On the Commodity Exchange in New York, gold for current delivery fell $4.40 to $294.30 an ounce.

On New York's Comex, silver for spot delivery dropped 14.9 cents, to $5,913 an ounce, after losing 18.8 cents Thursday. Thrifts' insurance premium raised By Sally Saville Hodge The broadcast license of WSNS Channel 44 shouldn't be renewed by the Federal Communications Commission, an administrative law judge has ruled. Instead, he ruled that the license be granted to a group of Chicagoans who have been challenging the station's programming and licensing since late 1982. The recommendation Thursday by Judge Joseph Chachkin which will go to the FCC if Channel 44's present owners appeal it said: "WSNS-TV programming toward the end of its license term rendered a minimal service and is not deserving of a renewal preference." The station is run by a joint venture consisting of Harriscope of Chicago which owns a 50 percent interest; Essaness Theatres with a 25.5 percent stake; and National Subscription Television of Chicago a subsidiary of Oak Industries with a 24.5 percent interest. Channel 44 currently devotes 23 hours of its programming day to ON TV, the Oak-controlled service that is broadcast scrambled to subscribers.

The station's lack of public service and news broadcasting was the basis of the challenge to the station's license by Monroe Communications a group of 12 Chicago-area investors including attorney Howard Gilbert, Wayne Gilbert, vice chairman of Bozell Jacobs advertising agency, and Robert L. Haag, a retired sales executive of Alberto-Culver Co. Recently, Oak sold the subscriber base of its flagship ON TV system in Los Angeles, which left Chicago as its remaining ON TV outpost. Burt Harris, president of Harriscope, has told The Tribune that ON TV would be discontinued before the year was out. Gilbert termed the recommendation to the FCC as a "significant victory.

The group, whose numbers also include well-known Hispanic businessman Arthur Velasquez, president of Azteca Corn Products and former University of Illinois trustee, proposes to introduce "high-quality" Hispanic programming on Channel. 44. However, Alan F. Silverman, president of Essaness, said: "This is only a recommendation for preference; in Chachkin's opinion we shouldn't have preference for license renewal. "There are two more series of hearings to go through," he added, pointing out that the process take vears.

In his comments, Judge Chachkin criticized Channel 44's current programming. "Summarized briefly, WSNS-TV broadcast no news and no regular local programs and effectively shut down its studios, telecast 4 to 5 percent non-entertainment programs and a drastically reduced PSA public service announcement schedule at undesirable time periods none in prime evening time," he wrote. "More important, the records reflect no support for its programming change and extensive criticism of that change by its viewers," he added. bank board outlined eight objectives it would like Congress to consider. For one thing, the bank board wants Congress to give the FSLIC power to assess deposit insurance premiums on the basis of risk.

"Those institutions that chose to engage in excessively risky activities should bear a higher proportion of FSLIC assessments than those institutions not engaging in those activities," the bank board said. In addition, the "FSLIC should not be required to insure all actions of every thrift," the board said. The FSLIC should not have to insure deposits at thrifts that are not primarily engaged in housing finance and housing-related activities, the bank board said. Thrifts should be allowed to consider special premiums not as expenses but as investments in the FSLIC until they are used by the fund to pay depositors of failed thrifts. The Federal Home Loan Bank Board, in an effort to rescue its beleaguered deposit insurance fund, voted for the first time Friday to impose a special deposit insurance premium of one-eighth of 1 percent of deposits at all federally insured thrifts.

The assessment will be paid by thrifts beginning March 31 in quarterly installments of one thirty-second of 1 percent. The assessment, which would total about $250 million, is intended to offset "significant losses" in the Federal Savings and Loan Insurance Corp. fund as well as expected losses in the coming year. The normal insurance premium is one-twelfth of 1 percent of deposits. The bank board said the special assessment would be refunded if Congress enacts by Sept.

1 a long-term program for bolstering the FSLIC insurance fund. While not imposing conditions on refunding the special assessment, the i.