The Los Angeles Times from Los Angeles, California • 46

Wednesday, September 2, 1987Part IV 3 Cos Atiflelca Slimes GM: Separate Pact Sought PEOPLE DOLLARS AND NONSENSE AMI Names CEO Weisman as Chairman Continued from Page 1 UAW-member workers. GM makes about 70 of its own parts, compared to about 50 at Ford and 30 at Chrysler Corp. GM officials have said that about 54,000 of its parts workers make parts that other auto makers buy, often for less, from outside sources. The UAW's contracts with GM and Ford expire Sept. 14.

Chrysler's contract expires next year. GM's first two contract offers called for lower pay for parts workers than for assembly plant workers. The second offer would have allowed the company to negotiate wages with locals at individual plants that the company determined were uncompetitive a major break with a basic union tenet of negotiating wages at the national bargaining table. The UAW rejected both offers. Stempel said outside sales make up 10 of GM's parts business and that those sales were twice as great as all the total 1986 sales of Chrysler's new components subsidiary, Acustar Inc.

I ytf( If I CASH Bl TW If it. AMKof-r View Deal as 'Disinvestment' United Press International Robert C. Stempel the capital base of his company." In the past 18 months, Tri-Star has expanded from its original business of movie making to television production, distribution and movie theater ownership. Kaufman said Tuesday that no decisions have been reached about the structure of the two companies' television operations. Coca-Cola Television was just formed last November to embrace new acquisitions such as Embassy Communications and Merv Griffin Enterprises, along with Columbia Pictures Television.

Coca-Cola ranks as the industry's largest distributor of off -network, or syndicated, television programming. Kaufman said the companies do not anticipate any antitrust challenges as a result of Tri-Star's ownership of movie theaters. Columbia sold its Walter Reade Organization theater chain earlier this year. But one entertainment lawyer predicted privately that the combined company will have "new leverage" with theaters in general, if it supplies 30 to 40 motion pictures each year. Hollywood and Wall Street executives typically voiced just one reservation.

"Off the record, they have to make hit movies, just like everybody else in the business," one analyst said. "But the structure looks good, I think." Tri-Star captured just 7 of the box office rentals last year while Columbia garnered 9, according to figures compiled by Daily Variety analyst A. D. Murphy. Together, the 16 share still trailed industry leader Paramount Pictures, with 22.

Times Staff Writer Debra Whitefield in New York contributed to this story. Efforts to reach Vincent for comment Tuesday were unsuccessful, but he was said to be traveling to Los Angeles to meet with studio executives today. Vincent was not involved in the weekend negotiations that resulted in the proposal because of his dual role as a Columbia executive and Tri-Star director, a Coca-Cola executive explained. But Herbert A. Allen, the investment banker who once held a significant block of Columbia Pictures stock and now serves on Coca-Cola's board, said Tuesday that Vincent "has talked for two years about someday combining the two entities" and must be credited as "one of the key architects of the entire transaction," from Tri-Star's inception to the structure now envisioned.

The investment banker declined to say what role, if any, the Allen Co. firm played in the shaping of the proposal. 'Excellent Deal' On Wall Street, traders responded favorably to the announcement on a day when most stocks took a drubbing. Tri-Star Pictures rose $2.50 in over-the-counter trading to close at $13.50 as 2.6 million shares traded. Coca-Cola shares fell 12.5 cents to close at $50.50 on the New York Stock Exchange.

"I think it's terrific," said Gordon Crawford, a senior vice president at Los Angeles-based Capital Guardian Research which has been a major Tri-Star investor. "I think it is an excellent deal for Tri-Star Pictures shareholders, because basically Victor has been a very creative, a very brilliant guy, with a lot of big ideas and visions of where he wants to go but without the capital to do it. And this transaction substantially changes Factory Orders Decline 0.2 During July From Times Wire Services WASHINGTON Orders to U.S. factories for manufactured goods edged down in July for the first time in six months, due largely to a 6.8 fall in defense orders, the government said Tuesday. The Commerce Department said orders dropped off by 0.2 to $204.9 billion.

It was the first monthly decline since January, when the new tax law depressed factory orders by 5.3 Construction spending also dipped 0.2 in July, the second consecutive monthly decline, as weakness in apartment building and many non-residential sectors continued to depress building activity, the government said. Construction spending totaled a seasonally adjusted $391.8 billion in July, down $600 million from the June level, when spending had fallen an even sharper 1.3. Excluding defense, factory orders inched up by 0.1, the sixth consecutive monthly increase, and many economists took the consistent rise in civilian orders as a good sign. We have finally reached the stage where the dollar has fallen enough to make U.S. manufacturing competitive," said David Wyss, chief economist of Data Resources a Lexington, forecasting firm.

Orders for non -durable goods an offer to sell nor a solicitation of an offer The offer is made only by the Prospectus. COKE: Some Continued from Page 1 "Tri-Star is the poor stepsister. Columbia is the king. And the idea of all these people reporting to Victor Kaufman they're all going to go crazy," one independent producer said. In some quarters, the proposal was viewed as an effort by Coca-Cola to distance itself from the entertainment industry that it entered in 1982 with the acquisition of Columbia Pictures and the co-founding of Tri-Star with CBS and Time Inc.

One entertainment industry executive said the reduction of Coca-Cola's holdings to 49 in the combined company can be viewed as "a disinvestment process." Coke executives are "putting themselves in a liquid position," he said. "They now have an investment, as distinguished from being in the business." But at a news conference in New York, Coca-Cola President Donald R. Keough noted that the structure of the proposed company resembles that of its 49 -controlled bottling operations (Coca-Cola Enterprises) and the newly organized Canadian bottling company (T.C.C. Beverages Ltd.) in which Coca-Cola intends to retain 49 Keough, who has been tapped to become chairman of the new entertainment company while Kaufman will serve as president and chief executive, said: "Our aim is to be a major player in motion picture development and distribution. We like this business." Under the proposed change, Columbia Pictures Chairman Francis T.

Vincent Jr. will relinquish his entertainment industry duties to assume responsibility for monitoring Coca-Cola's investments in bottling operations around the world. CLIP. CALL. Walter L.

Weisman, who as president and chief executive of American Medical International shepherded the company through nearly two years of restructuring, was named Tuesday as its next chairman. AMI is a major health services provider with annual revenue of about $4 billion. Weisman will succeed Royce Diener, who will step down after the Beverly Hills company's Jan. 21 annual meeting. Diener, who joined the company in 1969 as an outside director, has been its chairman since 1979.

He Weisman will remain a director and chairman of its executive committee. Weisman was vice president and secretary of Chacno Medical Industries when AMI acquired it in 1972. He rose to become AMI's president in 1979 and chief executive in 1985. Weisman will remain chief executive as well as becoming chairman. AMI'S chief operating officer, Gene Burlson, will take on the post of president.

As part of its restructuring, AMI closed down its national insurance operation, sold 15 acute-care hospitals and eliminated more than Earlier this year, Chicago physician Dr. LeRoy Pesch offered $1.91 billion for AMI, but the company turned it down as "seriously inadequate." Pesch's offer expired in March. -ASSOCIATED PRESS NATION Henry S. Schleiff was named chairman of the broadcast and entertainment groups of Viacom International New York. Previously he was senior vice president-business affairs and administration for Home Box Office Inc.

This announcement is neither MORGAN STANLEY Incorporated Copies of the undersigned Factory Orders for manufactured goods fell 0.2 in July to $204.9 billion. 1986 EH 1987 WkM JFMAMJJASOND Sourer Convmc Dtpt. Los Angeles Times inched up 0.2 to $96.4 billion in July after a 2 increase in June. That was more than offset, however, by orders for durable goods. Big ticket items expected to last three or more years fell 0.6 to $108.5 billion in July.

Durable goods orders were up 2 in June. Meanwhile, back-to-back monthly declines in construction spending provided further evidence that the construction industry is being hurt this year by widespread overbuilding and the adverse effects of the new tax law, which eliminated many real estate tax shelters. to buy any of these Securities. COVINGTON ALEX. BROWN SONS Incorporated DREXEL BURNHAM LAMBERT Incorporated HAMBRECHT QUIST Incorporated LAZARD FRERES CO.

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