Chicago Tribune from Chicago, Illinois • 24

Section 21 Page 6 (fhicaso (Tribune Saturday, November 2, 1985 Dow surges to another record rl Louis RuUoyscr Ticker News on oil, Analysts discount the death of OPEC Pantry Pride 'near victory rates lifts mart Stock Market Nov. 1,1985 Composite labia Volume 154,000,580 liauat traded 2,003 I Pantry Pride Inc. was close to victory Friday in its hostile battle to take over From Chicago Tribune wkw Unchanged The stock market surged in late 433 Kevlon Inc. for $1.65 billion, and Revlon said it was preparing for "an orderly transition" to Pantry Pride ownership. Pantry Pride emerged the apparent winner after the Delaware Supreme Court effectively blocked trading Friday, sending the Dow Jones industrial average to anoth Dow Jonei Induttriala 1390.25 ..15.94 500 1.71 er peak.

Brokers said the advance was based on continuing hopes for Kevlon plans to be acquired by Forstmann Little an investment firm. deposit flow negative lower interest rates, a bullish unemployment report and a state E. Index 110.55 090 Chicago Tribune Chan: Bated on trades ment by a Middle Eastern ou minister that the Organization of Petroleum Exporting Countries' days I Savers withdrew $4.2 billion more than they deposited in savings and loan institu may be numbered. tions in September, the government reported. The Federal Home Loan Bank Board The 30-stocK Dow Jones industri said the decline in deposits in September al average ended 15.94 points higher at 1390.25, surpassing its previ was the largest this year.

It followed a $1.6 From Cttcaeo Tribune VWea BRUSSELS Reports that OPEC has scrapped its pricing rules do not mean the end of high oil prices or the death of the cartel, analysts said Friday. The oil minister of the United Arab Emirates, Mana Saeed Oteiba, told Abu Dhabi state television late Thursday that members of the Organization of Petroleum Exporting Countries are free to set their own prices and to disregard official production limits. OPEC headquarters in Vienna was closed for a holiday Friday, but industry experts said they strongly doubted that Oteiba's remarks meant the organization was officially abandoning its pricing system. "Oh, come on," said Alfred Munk, manager of foreign affairs for Chicago-based Amoco Corp. "It sounds like an odd outburst at a time when netback prices are considerably higher than actual prices." Saudi Arabia, OPEC's most powerful member, several weeks ago began selling oil to multinationals according to a "netback" scheme that was supposed to result in lower prices, but instead is being undercut in spot markets.

Munk and other analysts said Oteiba was simply confirming what oil buyers have known for weeks: Virtually all 13 member countries are selling oil at prices below official OPEC Continued on page 7 Diuion gain in net deposits in August ous record high of 1375.57, set Wednesday. For the week, the blue-chip index jumped nearly 34 Jacobs sells his ITT stock points. Gaming issues outpaced losers (Minneapolis inves by a 9-to-5 ratio on the New York Stock Exchange. failed to deter the new-found optimism about the interest-rate outlook. "Volcker started the ball rolling," one Wall Street analyst said.

"I think there's a perception in the market that a discount-rate cut might happen again this year like it did on the eve of Thanksgiving a year ago," he added. Among the most active NYSE issues Friday, ITT fell 62 cents, to $32.87, as several large block trades crossed the tape. Investor Irwin Jacobs later said he sold his ITT holdings. Beatrice, weighing a takeover bid, fell 25 cents, to $43.75. Pantry Pride rose 75 cents, to $8.25, and Continued on page 7 Stock prices were bolstered all tor Irwin Jacobs said he has sold all of his shares of ITT Corp.

common stock, which was less than 5 percent of the total out week by Federal Reserve. Chairman Paul Volcker's state Martin shares inflation fear Preston Martin says we have him all wrong. When I chatted the other day with the notoriously outspoken vice chairman of the federal Reserve Board, his chief aim seemed to be to counter the impression that the effect of his succeeding Paul Volcker would be to unleash a torrent of inflation upon the land. 'I'' In measured words whose impact may surprise his friends at least as much as his foes, Martin told me flatly that "disinflation is the No. 1 goal of every central bank in every country all over the world." himself unmistakably from those who maintain that inflation is yester- -f day's news, Martin made it clear that he is himself concerned that the nemesis is merely lying low.

"We all can remember so well the damage inflation did to us all in the 7 1970s," he said, "and so attention to oncoming inflation is always the No. 1 job no matter who the central banker is." -The conventional, wisdom in the world's financial markets is that the substitution of I Martin for Volcker as chairman of the Fed, i while it might please the Reagan adminis- tration, would replace the principal bulwark i against inflation with a softie who would i respond to predictable cries for "stimula- tion" and "accommodation." Translation: much easier money, and pleasure now fol-i lowed by pain later. Not only does Martin seem anxious to convince his foes that he is more responsi- i ble, and downright cautious, than they be-3 lieve, but he was at pains in his conversation with me to distance himself from some of his more euphoric supporters as well. A leader in that category would appear to be Jack Kemp, the New York congressman and Republican presidential aspirant, who already has announced without qualification that the President's latest two appointments the seven-member Federal Reserve Board create an anti-Volcker majority, i headed by the vice chairman, that will bring interest rates consistently lower. Not necessarily, Martin told me.

"It's very hard to say what any Federal Reserve ment that the Fed was taking a "relatively accommodative" stance regarding its credit policies, traders said. standing. Jacobs said he "found no cooperation" among other stockholders in considering a bid to gain control of ITT. -Jay Prit7lrAr urVin alert Even the Fed's report Thursday that the Ml money supply jumped an unexpectedly large $8.5 billion Euromart agrees to curb steel Board could do to bring down interest rates," he confessed, adding that it was important to remember that the monetary authorities don't operate in a vacuum: "We're living beyond our means as a country. We're running a government deficit that is unheard-of in its magnitude and in its rollover.

And we must continue to attract By Robert Kearns The United States and the European Community, concluding a heated round of negotiations in Brussels and Washington, said Friday they reached an agreement to limit Common Market steel exports to 5.5 percent of the U.S. market. The agreement, which extends through September, 1989, comes only a day after steel import figures released by the American Iron and Steel Institute AISI in Washington showed steel imports from the Common Market had surged nearly 50 percent in September from August levels. Common Market countries took a 6.6 percent share of the U.S. market during the first nine months of 1985.

Amid angry protests from Congress over the most recent steel import figures, U.S. Special Trade Continued on page 7 the foreign investor." -Moreover, while he acknowledged that "there were times when I would have been a little more accommodative in the markets," holds a large number Jac0DS of ITT shares, declined to comment. Big computer for hospital The University of Chicago Medical Center has ordered a $4 million A-15 mainframe computer from Burroughs the company said. The powerful computer will replace two older models and will handle all the hospital's billing, patient records and medical tests. FCC approves Grant plans The Federal Communications Commission has approved Florida-based Grant Broadcasting's plans to acquire a controlling interest in financially troubled WFBN-TV Channel 66 in Joliet.

Metrowest which operates WPWR-TV Channel 60 in Aurora, had petitioned the FCC to deny Grant's application for WFBN's license. It couldn't be immediately determined if Metrowest would appeal the FCC's decision. Paper tobiryVTOB- Freedom Newspapers has agreed to acquire the nation's first television station, WRGB-TV in Schenectady, N.Y., for $57 million. The station, a CBS affiliate, was owned by General Electric Co. until Sept.

1, 1983, when it was purchased by Universal Communications Corp. for $35 million. California-based Freedom Newspapers is the object of a takeover battle being waged by members of its controlling family. Rymer buys Murrys Steaks Rymer Co. said it completed the acquisition of Murrys Steaks a specialty foods retailer based in Forestville, for about $60 million.

Murrys' sales in the fiscal year, ended March 30, were $146 million. Anadite gets loan deal Anadite Inc. said it entered into a $5 million unsecured revolving term loan agreement with Continental Illinois Bank and Trust Co. of Chicago. Anadite said terms permit it to use the available credit at the prime rate until April 30, 1988.

The company said that at any time before that date it can convert the agreement to a term credit for up to three years at a rate of one-fourth percentage point above prime. Anadite said the agreement replaces a five-year credit agreement with two other banks. Asset sales over, CBS says Martin said pointedly that the overall thrust of Fed policy would have been "generally UPt photo Ithe same" had he been chairman instead of Chase Manhattan takes over Maryland thrifts Volcker. "I think the Fed has accommodated a vastly changing need out there by consumers and by business firms by gov ernment, tor tnat matter." 2 1 Maryland Gov. Harry Hughes (center talks with Loretta Long and Peter Grandelli of Chase Bank of Maryland, formerly known as Menitt Commercial Savings and Loan, on the first day of Chase ownership Friday in Baltimore.

Chase Manhattan which bought three ailing savings and loans that had been under withdrawal restrictions, opened the new Institution with little fanfare and no long lines of depositors. i What does all this mean to the average It means that those who dream of 5 percent mortgages while the eovern- 'ment is running $200 billion deficits are just fantasizing no matter who heads the Fed. means that Reagan's two new appointees, 'who have previously been critical of even the minor anti-inflationary restraint shown fry the Fed to date, will soon be confronting 'tastes of unsavory reality. It means Dissident seeks Unibancorp board seat possibly; revolution, no. Just as Martin wants to end the image of himself as the easygoing "team player" who lis always willing to inflate, so Volcker has scarcely been the unbending saint of his own that several other stockholders might take the same action, but refused to identify them.

"I'm speaking only for myself," Berc said. "We're not a group." But he added that the dissatisfied stockholders tfans' current legend. This is the same Volck- been communicative with the desires of the stockholders." Donald Thornburg, president of Uni- bancorp, refused to comment. Unibancorp is the parent of UnibancTrust formerly known as Sears Trust and Savings Bank, and also of Hawthorne Bank of Wheaton. Berc said he was filing a statement with the Securities and Exchange Commission stating his wish for representation on the 10-member board.

He said By William Gruber A Miami investor claiming to own 19 percent of the common stock of Uni-" bancorp Inc. said Friday that he will seek to gain a seat on the bank holding company's board of directors in protest of the firm's management policies. "I'm not attacking the main body of the organization," said Charles S. Berc. "They're mostly a fine group of people.

I just feel the leadership hasn't controlled more than the 33 percent of who dutifully told our allies we weren going to keep our gold-redemption promises, Richard Nixon wanted him to, and instituted disastrous credit controls, when Jimmy Carter wanted him to. His the outstanding shares needed to call a special shareholder meeting. Unibancorp is the 10th largest bank holding company in Chicago, with of about $600 million. actual monetary policies have swung erra A) tically between too tight and too loose par tor tne tea course. Beatification might well wait tor a wtule.

wnat next tor tne Fed? insiders now believe that Martin may have talked himself out of the chairman's job, and that the more likely successor to Volcker will be someone Construction spending In billions of dollars; seasonally adjusted rates Car-rental unit puts a dent in Household net else, perhaps Alan Greenspan or Walter Wriston. Both are bright and capable, but neither they nor any others are miracle workers who can substitute for a general reduction in federal spending. And the interest rate there is the nnlv one in Washington $3601 i CBS Chairman Thomas H. Wyman said the company has disclosed nearly all the assets it plans to sell and that there won't be any more layoffs. In a published interview, Wyman said he is confident that Loews which plans to increase its stake in CRS tft 25 nercent.

mat mucn too low. McNaught Syndcaflt Household International Inc. said weakness in the car-rental business helped drive down its net profits in the third quarter and threaten an Business facts 1 operating earnings decline for the full year. The diversified Prospects Heights company said third-period net earnings fell 17 percent, to $50.7 million, or 87 cents a share, from $61.3 350 -j 340 ft 330 1 320 1 310 1984 1985 anr' million, or $1.10 a share, in the year-earlier period. Tne 1984 third-quarter results were Food prices In percent Increase from previous year boosted by a one-time gain from the reversal of Construction spending up 1.9 in month WASHINGTON (API-Spending on new construction rose 1.9 percent in September, the biggest' gain in six months, the govern-' ment reported Friday.

The September gain put construction spending at a seasonally adjusted annual rate of $350.4 billion, 9 percent higher than a year earlier. Private construction rose 2 percent in the month, to an annual rate of $286.4 billion. Government construction remained essentially unchanged at a rate of $64 billion. In private building, residential construction gained 2 percent to a rate of $149.9 billion. While construction of single-family residen-ces remained essentially unchanged, apartment construction rose 2 percent.

Nonresidential construction posted an even larger gain, up 5 percent to an annual rate of $92.4 billion. Construction of office buildings and factories each rose 6 percent while construction of shopping centers and other commercial buildings was up 4 percent. The rise in spending for office buildings put category up a giant 22 percek from a year earli- previously deferred taxes for an insurance sub sidiary. 15 Revenues rose 4 percent, to $2.06 billion from $1.99 billion. Quarterly net earnings for the National car rental unit dropped 41 percent, to $8.3 million.

OND FMA MJ AS Household said car-rental activity was up, but Chicago Tribune Graphic; Source: U.S. Department of Commerce won't be a takeover Wyman threat to CBS. However, speculation continues to surround the company, amid reports that Fisher Brothers, a New York real estate firm, has been buying CBS stock. Ceco buys some assets Ceco Industries Inc. said it acquired certain assets of Pascoe Building Systems and York Manufacturing both units of Dallas-based Gif ford-Hill Co.

Terms were withheld. Pasco, headquartered in Pomona, makes pre-engineered metal buildings for commercial and industrial use. York Manufacturing, based in York, makes metal agricultural grain storage structures. MCI unit's sale cleared MCI Communications Corp. said an Atlanta federal judge has cleared the sale of MCI Airsignal, a paging and cellular subsidiary, to McCaw Personal Communications Inc.

Bell South had tried to block the sale after MCI pulled out of an earlier agreement with Bell, profits were down on the sale of its used cars. Donald C. Clark, chairman and chief execu Wm At home tive officer, said that because of continued weakness in the car-rental industry, Household expected that its 198S earnings before any divestiture gain would be "modestly below" the record 1984 net income of $234.1 million, or $3.95 a share. By year-end, Household plans to sell its merchandising business in a leveraged buyout er. However, analysts said these increases could not continue given the large amount of vacant office space around the country.

"Some people are saying that we will have a 45 percent drop in office building in the next year," said Michael Sumichrast, -chief" economist for the National Association of Honae Builders. valued at more than $700 million. 1 974 75 76 77 78 79 80 81 In the third period, net income of the mer- Chicago Trtbuns Graphic by KavM Boyd; Source; U.S. Bureau of Labor Statist Continued on page 7.