Chicago Tribune from Chicago, Illinois • 75

Section 7 3 Bond Duyer Index Index of 20 municipal bonds! 20 year maturities, various ratings Dow Jones average 30 Industrials Commodity futures index V. vm lift Index of weekly closing prices of 27 In billions of dollars RRevised key commodities; 1967100 Percent, weekly average interest rate n.oi 11.5 1220 $545 jf RJl Chicago Tribune, Sunday, June 17, 1984 I 290 -4 iL -J i -I HI I I.I 11.0 j. 1180 i 285 10.5 540 1 4 10.0 535 i 10.0 i i 9.5 i i 2027 5111825 1 8 152229 6 April klay June July Chicago Tribune Charts by Terry Volpp 1060 11 18 25 1. 8 15 22 29 6 May June July WO 2 9 16 2330 6 13 2027 4 May June July 9.0 4 11 18 25 1 8 15 22 29 6 May June July Source: Commodity Research Bureau I 1140 I 280 IV 275 I I 270 265 i I I I I I I I I I If i I lJ 1100 1 1 i III I I I i i iZ The Purcell touch at SFN Cos. Week in Review WashingtonNational THE SHARPEST decline In food prices In almost two years held wholesale prices flat in May for the second straight month, the government said.

Paced by lower prices for meat, vegetables and eggs, May's food costs dropped 1.2 percent, the most since July, 1982. So far this year, wholesale prices are rising at an annual rate of 3.5 percent, PRODUCTION IN the nation's factories and mines rose just 0.4 percent in May, the smallest gain since November, the Federal Reserve Board reported. The increase was the 18th in a row, but its modest size appeared to be in line with government and private economists' contentions that the national economy is slowing. IN A MAJOR victory for the steel industry, the U.S. International Trade Commission voted 3-2 to recommend import protection for about 70 percent of the steel I manufactured bv U.S.

Droducers. In a seDarate ruling. 5" i Ef -mas'- i i Nov. 1, 1982: John R. Purcell Joins SFN as chairman, president and chief executive Acquisitions April 13, 1983: 67.8 percent of ABC Industries publisher of New York Law Journal newspaper and other legal publications, acquired for $11.2 million cash June 29, 1983: Remaining 32.2 percent of ABC Industries acquired for $5.3 million cash June 30, 1983: Broadcasting Advertisers Reports database publisher of advertising-media measurement research, acquired for $24 million cash July 29, 1983: InstructoMcGraw Hill supplementary educational supplies acquired; terms not disclosed Sept.

25 percent of American Training International, designer of personal computer-based Interactive training products, acquired for $4.2 million and future considerations Nov. 1, 1983: 90 percent of Data Acquisition Services telecommuni cations-oriented audio Information systems firm, acquired for $13 million cash and notes Nov. 14, 1983: Biomedical Information medical publisher, acquired for $30 million cash and notes Jan. 12, 1984 pending: Western Broadcasting television and radio broadcaster and Spanish-language program producer, to be acquired for $116 million cash Feb. 22, 1984 pending: WFTV, TV station in Orlando, to be acquired for $125 million cash Divestitures Feb.

1, 1983: Educational testing business sold for $550,000 in cash and notes Sept. 1, 1983: Fleming H. Reveli evangelical religious publisher, sold for $10 million cash and notes. June, 1984 proposed: Two product lines of University Park Press publisher of medical books and Instructional materials, to be sold for estimated price of more than $500,000 Source: Company reports the commission found that U.S. copper producers are being seriously injured by a surge of imports and should receive protection.

BUSINESS executives plan to push spending for expansion and modernization to a record $309 billion this year, a 14.8 percent yearly gain that would be the biggest in nearly two decades, the government reported. THE SPRING shopping binge at retail stores slowed sharply in Mav. with sales edeine fust 0.2 oercent By Charles, Storch WHEN JOHN R. Purcell Joined SFN Cos. Nov.

1, 1982, he arrived at the educational publishing firm's Glenview headquarters with a reputation of an acquisitions man. After 20 months and eight acquisitions closed or pending, PurceU's reputation as a dealmaker can only be enhanced. Purcell, SFN's chairman, president and chief executive officer, may have been at his best in February. That's when he heard from a source that an attractive Sun Belt broadcasting firm might be put up for sale, and it already was being eyed by some large media companies. After checking, Purcell identified the property as WFTV, an Orlando television station.

He wrote to its owners relating SFN's interest. Within the week, he and two top lieutenants were in Florida to inspect the station. About 26 hours later, they made a preliminary offer of $125 million cash for WFTV, and it was accepted. The deal was approved a few days later by SFN's board and announced Feb. 22.

"It was absolutely critical we acted that quickly," Purcell recalled last week in his office. "Within minutes after our offer was accepted, the station's owners received an offer for $135 million from a company twice our size." SFN'S HUSTLE hasn't been entirely appreciated on Wall Street. Critics that the WFTV deal capped a heady year of SFN purchases of professional publishing and information companies. And it came only six weeks after SFN agreed to buy its first communications firm, Western Broadcasting for $116 million cash. It was argued that the broadcasting acquisitions would sharply increase SFN's debt and dilute earnings, which totaled $26.5 million, or $2.51 a share, on revenues of $273.4 million in the fiscal year ended April 30, 1983.

Some said broadcasting might divert SFN's attention from educational publishing, where the firm is No. 1 in elementary and high school textbooks; and No. 3 in college texts. Since the WFTV deal, the SFN stock price has fallen more than $8 a share and closed Friday at $23.87 on the New York Stock Exchange. Last month, Standard higher, the government reported.

Moderate increases for auto dealers and department stores pushed overall sales to a record $107.3 billion. AMERICANS TOOK on $6.41 billion more in installment debt than they paid off in April, the second-biggest increase on record, the Federal Reserve Board said. Surging auto loans made the biggest contribution. THE JUSTICE Department revised its merger guide-' lines to give greater consideration to efficiency claims, imports limited by quotas and other factors. The department may be more receptive to mergers in industries facing foreign competition, in declining industries and in industries that could improve efficiency through mergers.

Tribune pfioto by Chuck Berran John R. Purcell is SFN's chairman, resident and chief executive officer, nder Purcell, SFN has acquired interests in, or all the stock of, 'six companies in the professional publishing, computer-based publishing and media services fields. Poor's Corp. cut its ratings- on SFN's commercial paper to A3 from Al. -That downgrading may have more sym- bolic than practical significance, as SFN hasn't issued commercial paper since 1980.

"We're planning to withdraw that commercial-paper rating becauseTwe're not going to use it," Purcell said. BECAUSE OF THE broadcasting acquisitions, Purcell said, "we knew the stock market was going to going to kick us in the teeth; the stock market doesn't like dilution." With the broadcasting SFN will have added cash flow. It also will acquire a large amount of what accountants term "good will" and other intangible assets, whose amortization will dilute SFN's net. income. An additional $270 million in debt will be taken on because of their acquisitions, and higher interest expense will hurt net income.

The acquisitions 'ore estimated to increase SFN's debt as a percentage of capitalization to about 60 percent from 9 1 International percent as of last Jan, 31. SFN expects to complete the Western Broadcasting acquisition June 27 and the WFTV deal in mid-July in time for SFN to benefit from the broadcasts of the Summer Olympics by three ABC-affiliated TV stations being acquired. THE IMPACT OF the. purchases won't be reflected in fiscal 1984 results, scheduled for release this week. Asked about analysts' estimates of $2.50 to $2.80 per -share for fiscal 1984, Purcell pointed to "the tipper end of that range." For fiscal 1985, "we expect dilution in earnings in the 20 percent range as a result of the acquisitions," he said.

sacrificing about a year td 18 months in reportable earnings growth to reposition the company," Purcell said. "That's a pretty cheap price to pay to make this a stronger company for the long term, with greater asset values and much greater cash-flow." PURCELL already has made SFN a more interesting company. The firm had become staid and sleepy, preferring to remain nearly debt-free and to sit on the cash generated by its hign-profit-margin educational publishing. In fiscal 1982, the firm's investment income accounted for about 21 percent of pretax earnings. Purcell was expected to provide a Continued on page) 5 ARGENTINA APPEALED to the International Mone- tary Fund for lower interest rates and extended terms to 1 help repay a $43.6 billion foreign debt, but it said it must reject IMF demands to avoid raising workers' wages.

FEDERAL RESERVE Board Paul Volcker downplayed fears that Argentina would renege on long-overdue interest payments by the end of June, thereby forcing U.S. banks to report losses. The Fed chief also" said that, if the debt-ridden nation failed to I Cincinnati, Cleveland, Detroit and Miami, that would be excellent markets," Bujr said. In addition, the carrier is rumored, to be eyeing Oakland, as its nekt West Coast stop. AS PEOPLE Express enters new territory, first-time passengers are likely to find the carrier's low-cost service different.

The airline isn't included in the computer reservation systems used by travel agents, so the passenger or travel agent must call the airline directly. Its telephone lines are often busy, and' callers are put on hold, sometimes for several minutes, although the airline claims it's constantly beefing up its reservations staff. "The waiting time is getting shorter," one People Express spokesman insisted. The airline has no reciproal agreements with other carriers for forwarding luggage or exchanging tickets. Travelers connecting to People Express from another airline must carry their bags between flights.

In addition, People Express has no airport ticket counters, so passengers are ticketed on board. Passengers are encouraged to carry on payments by then, "it wouldn't be terribly significant." AMERICAN MOTORS Corp. said it will build a $587 million plant in Brampton, Canada, to produce a new line of intermediate-size passenger cars for the U.S. and Canada. Construction will begin in the next few months -on the Ontario facility, which will have the capacity to -build 150,000 units a year starting in mid-1987.

r. ChicagoMidwest 1 JEWEL COMPANIES which owns Jewel Food Stores and Osco Drug Inc. in the Chicago area, agreed to a sweetened cash-stock takeover offer of about $1.1 billion from American Stores a Salt Lake City-based operator of supermarkets and drugstores, WASTE MANAGEMENT the largest company In the solid- and hazardous-waste disposal business, made a tender offer worth up to $300 million for SCA Services No. 3 in the waste business. CBI INDUSTRIES Inc.

said it signed a definitive agreement to purchase Chicago-based Liquid Carbonic. Corp. from Houston Natural Gas Corp. for $407 million. Liquid Carbonic is a major supplier of carbon dioxide for the food and beverage Industries.

BALCORAMERICAN Express one of the nation's leading real estate syndication firms, is going Hollywood, million in motion-picture financing for New World Pictures. SEARS, ROEBUCK and Co. closed what was its first U.S. retail store, located on Homan Avenue at Arthington Street in Chicago's West Side neighborhood of Lawndale. The store, which opened in 1925, sold hard goods as well as surplus merchandise at discounts.

ST. PAUL FEDERAL Bank for Savings said it agreed to buy a small Florida discount brokerage firm called StockService Corp. for an undisclosed sum. SUNDSTRAND CORP. of Rockford said It plans to buy Sullair a Michigan City, manufacturer of rotary screw compressors and systems, for $74 million, or $8.50 a share.

Airline from 1st Business Page operating at least 10 daily flights and possibly 12, said Stephen Schlachter, 'a People Express general manager. Its Chicago-Newark fares haven't been announced, but sources say the tickets will be priced at about $59 and $79, for weekends and weekdays, respectively. By comparison, Umted's regular oneway coach fare on the route is $258, while Midway Airlines charges $200. Both offer a $268 round-trip fare on weekends. For $99 one-way, Ozark offers a flight that connects in St.

Louis. FARE CUTS between Chicago and New York appear inevitable, though most observers don't expect a bloodbath unless airline ridership drops off. "We're not going to make it easy for People Express," said John Zeeman, United'8 senior vice president of marketing, though he declined to say what action the carrier would take. expect United and American to match fares on a limited basis," said Arthur Bass, Midway Airlines' chairman, "and the planes will be jammed." People Express' Burr says he isn't worried. f'So far," he said, "we've proved the pessimists wrong.

"We'll do well, and the competition will do well. Our Los Angeles flights are sold out already through the end of June. -That's a thousand seats to the West Coast and back every day." MOST OF THE intense fare wars in the East precipitated by People Express have Peach uVto or n.i?ri nwy ofto; i s-w. i thmp hncra Tnlnnoa am annlnruwl Roqulfirtg no fciv.v-a? pur apply only on vvfMems, Now. Peopia's How'Son-Df Ozark's Minnea, Chteaqo Tfiburte Graphic; Source: Ofiwal extra-large overhead bins since the carrier charges $3 a bag for checking luggage.

Beverages are served in flight, but there's a charge for them, too 50 cents for coffee or soft drinks. I One sign of a seasoned People Express passenger is a brown bag he's carryiag his lunch. There are no free meals, aid travelers are welcome to bring their own, although cake and cheese-and-crackets "snack packs" are sold on board. subsided. USAir, Piedmont and other air- used-aircraft market looking for deals, lines co-exist peacefully with the cut-rate Burr said.

It expects to add a second carrier by charging fares somewhat high- European destination to its map, possibly er than People Express but considerably Brussels, Luxembourg or Amsterdam, lower than their previous prices. sometime next year, Burr said. People Express continues to shop the "There are plenty more cities, such as Corporate Money market funds Money funds with assets of $100 million or more that are available to Individual Investors. For periods ended June 13. at 1-41 May Avfl.

M. M. www wwo urNy bx(.) T-Oay Mvf Si J3 Mr KV4-, At, m. tM IftVt WpW rwrl (pel. Iptf.) SvMil 10.0 00 -Oaytua M.

Inatrumanli Qovi 57 0.0 0.3 EDJonaaDaHyPaaapon 30 0.0 0.0 Ealon vanoa Caah Mot Fund 30 10.0 0.0 Eojltal)la MorKry MM Aooount 34 0.0 0.7 Fahnaatook Dt Inooma 30 0.0 0.0 12 0.0 30 0.0 40 104 S3 00 32 0.0 21 10.2 0.0 0.3 0. 0 oo 01, 9 10.0 Lutheran OttrPieTfiood I4.M.F. Mariner -Manner Caah Mgt Fund Manner Govt Fund -Mariner U.8. Traaaury Maaa Caah Management Truat McDonald Money Market MauM Lynoh -CMAtSaoiirltN I -CMA Money Fund I -Men Lynoh Govt -Man Lynoh InaMuaonaJ -Menu Lynoh Reedy -Mam" Lynoh Ret. Ree.

M.F. -MemU Lynoh USA Govi Rn. MWwaat Inooma 8T Govl Money Market Inetrumente 34 33 30 31 20 lex 2 riaaaiia Fund Govl Raearva Fund Primary Fnthaohad (L.F.J Eammga Uq. Oouooar -Scuddac Caah kiaatmai Truat -Sojdaer Govl Monay Fund 8noman CM Fund Prima Bhaaraon lanmanAmex -faoFund -Sheereon Day DMdand -Sheemon FMACaah -8haaraon FMA Government -Shaaieon Govt 0 Ananolea -T-Fund -Tarnpfund 6hort Term Inoome Fund Standby Raearva Fund, Ino. eiemftoe Caah naaarvaa Summll Caah Rat.

--ft 10.1 10.0 0.0 10.4 10.1 0.0 i 0.0 So.o 0.7 10 7 0 30 40 40 43 44 34 47 47 43 20 30 30 80 31 33 noanyuraup -FidaMy Caah Raaarvaa -Fidelity Dairy Inooma -Flda U.8. OovlBaa. rinantlBl Dally Inooma Fkat Invasion) Caah Mat Ft VanaUa Rata Franklin Fadatal M.F. FrankHn Monay Fund FundGovi Invaalora General Money Market Fund Government Invaalora Truat Oradleon Caah neaarvee Hmard Lyona Gov't Fund, Ino. 32 37 10 100 10.1 ioio 0.0 10.1 i 0.2 10.4 10.1 0.0 10.2 0.2 0.7 10.1 0.0 10.3 0.0 10.0 10.0 0.7 o.o 0.0 0.0 0.7 0.0 0.4 10.1 10.2 0.4 10.1 0.0 10.0 WALT DISNEY Productions, succumbing to two months of pressure capped by the threat of a tender offer, paid investor Saul Steinberg $325.3 million for his Stake in the entertainment concern.

The action led to several shareholder suits and investigations by various -regulatory agencies concerning the sharp drop in Disney stock that preceded the buy-back." ST. REGIS the nation's second-largest producer of paper, said it agreed to acquire Colonial Penn Group Inc. in a stock and cash transaction valuel at $590 million. Colonial Penn is a Philadelphia-based concern that sells insurance through the mail and television ads. Markets STOCKS: The Dow Jones Industrial average plunged 44.35 points for the week to close at 1086.90.

The New York Stock Exchange index fell 3.18 points to close at 86.17, while the American Stock Exchange index dropped 4.48 to close at 199.18. The Nasdaq index of over-the-counter stocks was down 4.71 points, closing at 235.64. Composite volume of NYSE-listed stocks was 432.3 mil-lion shares, down from 493.5 million the week before. BONDS: The Dow Jones bond Index rose 0.55 to close at 66.01. COMMODITIES: The Dow Jones Index of commodity dropped 2.12 points to close at 136.87, while the spot index closed down 2.88 points at 136.09.

AARP U.S. Govt M.M.T. Aim. Brown Prim AlHnotOroup -AWtow Cwtm flwuvnt -AManot Owl nwwvw Amnion Capral Bmwv Boaron Company Catn Mot Bun Btm DoMr Rmwvm Capital Cmh Mgt TruH Capnal Pnwaryaton Capital Preaarvmon Fund II Cardinal Oovi 8MMaa Camagm Qovi SaourWaa Th Caah Equlvalanl Fund CaahEqulvalantaovlOivy Cmh Manapamant Truat Camannlal Monay MM Truat Columbia Day inooma CompoaKa Caah Mgt Co. Currant mtaraat M.M.F.

DaMy Caah Aooumulallon Dally Dollar Ratarvaa Dalr Inooma DaanWKiar -Aotlv Aaaala Oavi Sao. -Daan W.ActM Aaaata MT -Oaan W.8aar Uq. Aawt -Saarn O.8. Oovl M.M.T. Datawara Caah Haawva Draxal Bumham Lambart, Ino.

-DHL Caah Fund Govt 8ao. Port. -DBL Caah Fund M.M. Pomolio Dravlua 10.0 30 0.0 10 0.0 40 41 20 32 10 II 87 20 "23 20 26 20 12 41 20 30 30 42 42 43 43 32 41 47 10.4 10.0 0.0 10.1 0.7 0.0 0.0 0.7 10.1 O.i 0.0 0.0 0.4 o.a o.o o.o 10.3 10.1 10.1 10.0 10.1 10.2 0.0 10.0 10.3 10.3 10.0 0.0 10.1 00 O.S. 10.0 A 00 10.3 0.0 10.0 10.3 10.1 10.1 01 04 0.7 00 10.1 00 10.1 10.0 10.0 10.0 0.4 0 0 10.1 10.1 10.4 0.7 Mutual ol Omaha M.

A. i. Howe pnoa 10.0 0.0 0.3 10.3 10.0 0.0 0.0 0.0 0.0 0.7 0.0 0.0 0.4 10.1 10.0 0.0 10.0 0.0 10.3 0.0 10.0 0.0 10.0 0.0 0.0 10.0 0.0 0.0 34 10 13 20 20 32 30 30 20 32 30 30 33 21 20 32 34 00 40 20 37 30 32 30 NEL Caah Manaoarnant Truat fLR Caah FwllaUo NattonwWe M.M.F. Oppanhelmer M.M.F., Ino. 0.1 0.2 0.3 0.0 10.1 0.0 10.0 10.0 10.4 too 10.1 0.4 0.0 10.3 0.0 10.1 "0.0 10.2 10.0 0.0 -T.

Row Prloe U.S. Tree. M.F. Trnvwrnadoa Caah Raearva Trinity uouu Aaeeta Truat irueiAjaenr TuoXer Anthony Caeh Mot nunon, t.r. -Cmh Raaarve Manaoement 32 10.4 -Hunon AMA Caah Fund 31 10.1 -Hutton Govl Fund '37 10.0 IDS Caah Management 42 10.2 John HanoookCetn Mot 20 0.7' Kemper Monay Market 30 10.0 KeyanneUouid Truat 24 0.0 Kidder Paabody Pramkim 37 10.2 leog Maeon Caah Flea.

True! 30 0.7 Lehman Caah Management 27 10.3 Lehman Govt Fund. Ino. 7 10.1 Lexington Money Market 00 10.1 UquW Capital mama 20 10.0 Liquid Green Ttuet 40 10.1 Lord Abbett Caah Reeerva 30 10.0 -Peine Webber CASHFUND -Pama Webber RMA M.F.M.M. Port. -Pa Webber RMA M.F.U.8.

Govl Parkway Caah Fund, kn. Prime Caah Fund FnjrJentlal-Baoha Seourklee -Commanri Money Fund Money Miirt Aaeeta -Pruoartiat-Baolia GoVI See. TniM Putnam DaHy DMdand Truat U8AA Money MarWFutyJ United Caah Management Value Line Cat Fund Vanguard M.M.T. Federal Vanguard M.M.T. Prima VaMage Caah M.M.F.

Wabtter Caeh Raearva Donoghua'a Money Fund Average lAvaragee lor al 2M taxable kmde) 20 07 31 20 30 40 -Orayfua Liquid 10.1 10.0 0J7 0.00 YlekJa raweaent annualrerl total return to eharehoktore tot laat 7- and 3day period. Peat relume are not raweaaarOy MteeJve ol Mure vkrkhj. kweatment qua and malurlN mar mwv trooQ lundt. tttnQt tvrm to ntwl nit aaiualmanl oak); e-ona-tma trom Donoghua'a Money Fund Report ol rtoNeton, Man..