The Gazette from Montreal, Quebec, Canada • 21

C.3 THE GAZETTE, MONTREAL, THURSDAY, AUGUST 13, 1992 Reichmann, Wall St. players expected to make bid on Canary Wharf Ranieri's brother Sal confirmed in a reported Ranieri and Tisch have CP Forest -sells 2 plants to Cascades! the massive office project in East ASSOCIATED PRESS NEW YORK Major Wall St. investors, including CBS Inc. chairman Laurence Tisch, are expected in mnVi a hiH pxrppA'tne 51675 mil- RONALD LEBEL THE GAZETTE iiiunv i.m I lion Canadian for Olympia 1 telephone interview. But Sal Ranieri indicated reports about an imminent offer were premature.

"We are looking at it," Sal Ranieri said of a possible investment in Canary Wharf. "We look at a lot of things in the course of the year." The Wall Street Journal, the New York-based financial daily, reported that Ranieri, Sanford Weill, chairman of Primerica and Tisch, chairman of Loews Corp. and CBS, are potential investors with Reichmann in the Canary Wharf project. Tisch's possible involvement in a Canary Wharf rescue was reported last month. The Financial Times of London emerged as partners for a Canary Wharf bid and their offer will be discussed at today's London meeting.

Sal Ranieri said he couldn't confirm reports of a London meeting concerning Canary Wharf. A telephone message seeking comment from Weill wasn't returned. declined comment. Olympia York was considered the world's largest property developer when it sought protection from creditors for 28 Canadian affiliates in Toronto. Soon afterwards it sought protection for its Canary Wharf project.

So far, has managed to put off a bankruptcy filing for its extensive U.S. properties, which include numerous Manhattan skyscrapers. London. Uxr would continue 10 manage Canary Wharf under the agreement, but the source declined to describe other terms of the deal, like who would hold a controlling financial interest. Toronto-based Olympia York lost control of the Canary Wharf project in May when it placed the project under Brjtish insolvency protection.

was unable to reach agreement with bankers on a restructuring of the project's billions of dollars in debt. Since then, Reichmann reportedly has been seeking investment partners to regain control of the project, on which has spent some $3.8 billion. Reichmann has approached Ranieri to invest in the project, York Canary wnan project in London, a source close to the deal said yesterday. A group of 1 1 bankers is scheduled to gather in London today to hear details of the bid by Tisch and Lewis Ranieri, a former Salomon Brothers vice-chairman, said the source, who didn't want to be named. The deal was engineered by Paul Reichmann, one of Olympia York's owners, the source said.

The source would say only that the bid is "in excess of 300 million pounds," or about $678 million, for Paul Reichmann Hopes to rescue London project. Sears opens 109th Canadian store in Fairview Centre the Sears outlet. CRAIG T00MEY THE GAZETTE Canadian Pacific Forest Products Ltd. retreated further from the hotly competitive packaging market yesterday, selling off two plants in the Montreal area and closing, a third in Ontario. Reeling from a record six-month loss of $153 million, the company announced the sale of corrugated-container plants in Vaudreuil and Pointe aux Trembles to fast-expanding Cascades Inc.

The two plants generate annual revenues of about $60 million and employ 400 people. Terms of the deal were not disclosed because it is subject to approval by the federal competition bureau and other regulatory agencies. "Cascades has agreed to maintain the jobs at both locations," said Emmanuellc Collin, communications director for CP Forest. A CP factory in London Oui, that employs 150 people will shut down gradually over the next few weeks and production of corrugated containers will be consolidated at newer plants in Burlington and Markham, Ont. The company, which wrote down its packaging assets last year and called for bids, said it is "no longer seeking buyers" for the two Ontario plants, which will supply customers in central Canada.

Two weeks ago, CP sold milk-carton plants in St. Leonard and Calgary with sales of $50 million to Tetra Pak Alfa-Laval Inc. Collin said these moves are part of CP's new strategy to focus on pulp and paper. The company plans to sell its Matane paperboard mill and has warned that the similar but aging mill in La Tuque may close unless productivity improves. Cascades, whose first-half profit tripled to 1 2.3 million, said the acquisitions fit in with its expansion in packaging.

Last month, it took over Paper-board Industries a top Canadian cardboard producer with $530 million in sales and 16 plants, including one in Montreal. 1 -'ii i il CP Fairview also houses an Eaton's department store and about 200 speciality stores. Sears, Canada's largest retailer, needs a winner. Last year, it reported a first-ever loss of nearly $29 million on sales of $4.09 billion. And Reddington said that another loss is likely in 1992 even though Sears is enjoying small sales gains over last year.

He said a full retail recovery isn't likely until 1993 thanks to poor consumer confidence, the constitutional crisis and continued job losses in the Canadian economy. He said that in response, the company has reduced staff, kept inventory below last year's levels, and is reviewing a handful of marginal stores. Only one vacant store James Bullock, president of Fairview Centre owner Cadillac Fairview Corp. maintained that the opening of the sprawling Sears outlet has been well received by most of the mall's other tenants. "It'll bring people to the mall, there's nothing but a positive feeling coming in," he said, noting that Fairview has only one vacant store.

The Bay and Eaton's in Fairview appeared less enthusiastic about the new competition. Both greeted the opening yesterday with sales of their own but drew little response. Cadillac-Fairview also owns Carrefour Laval, Galerics d'Anjou and Galeries St. Bruno, all of which will now feature the three major department stores. "We've completed something we've tried to do for 15 years," Bullock said.

In a scene reminiscent of a pre-recession-ary Christmas season, shoppers flooded into the new Sears department store that opened yesterday in the Fairview Centre Pointe Claire shopping mall. there's a bargain, we'll find it," boasted shopper Helen Hall, who drove from east-end Anjou with her sister, Margaret Young, to check out Sears's opening-day specials. Davis, laden down with shopping bags, had a bemused look on his face as he trailed behind his wife in a mobbed women's clothing section. am I here? Because I'm married," he quipped. "I'm just hoping I can get out of here in one piece." frying to get in for 20 years The Sears store in fairview is the Toronto-based company's 109th retail store in Canada and 25th in Quebec! It is opening during one of the country's worst retail slumps, one that shows no sign of improving.

This week, Statistics Canada reported that department-store sales in June fell 2 per cent in Canada and 3.3 per cent in Quebec from the same month a year earlier. But after a ribbon-cutting ceremony in the new store, Scars president G. Joseph Red-dington insisted he has no regrets. "We've trying to get into this mall for 20 years." hetoeamed, claiming that Fairview is one of Canada's best-performing malls. Sears Canada president Joseph Reddington at the entrance to the Sears store in Fairview.

Rcddington declined to say how much Sears Fairview for many years because it was joint invested in the store, which employs about 250 owner of the defunct Simpson's chain which people. But he said the company is currently had an outlet at the mall. The takeover of considering two other store locations in Que- Simpson's by the Hudson's Bay Co. and the bee and another two in the rest of Canada. subsequent conversion of the Fairview Simp-Sears had been prevented from opening at son's store to a Bay store cleared the way for Gil expected to lose $70 million MARYLAMEY He warned the company will THE GAZETTE have to "more closely reflect the i fX I ii- I Tr yV 1 ii I 1 1 fki.tt.it.

iMiXtf.iiiiiwKiiii-tiilll rtJUbi. mrtrrf---- COMPANY PERIOD NET EARNINGS REVENUE 000 per share 000 Latest Year ago Latest Year ago Latest Year ago Anderson Exploration 9 months 487 6,627 0.02 0.32 67,981 78,417 Bovar 6 months 756 3,515 0.02 0.08 24,994 25,107 Canadian Manoir 6 months (1,236) (4,341) 14,491 11,283 Central Capital 6 months (79,805) (47,162) 3,036 13,611 Federal Industries 6 months (12,999) (95,700) 618,139 696,309 Gelex Industries Year (8,500) (7,700) 4,500 5,200 Granges 6 months 905 (3,871) 0.03 32,241 28,204 ISM Information Systems 6 months 2,257 (25,472) 0.12 188,353 49,667 LGS Group 3 months 180 (176) 0.02 14,408 11,543 Laurentlan Group 6 months 14,300 17,800 0.23 0.31 na na Leon's Furntiure 6 months 3.262 4,016 0.66 0.81 116,439 114,216 Morgan Hydrocarbons 6 months 641 (695) 0.02 22,912 19,185 Samuel Manu-tech 6 months 97 2,883 0.01 0.33 92,607 89,936 Sceptre Resources 6 months (23,771) (103,636) 88,235 99,079 Synergistics Industries 6 months (526) (756) 81,600 82,500 Brackets indicate loss. Nationair employees protest in Ottawa CANADIAN PRESS OTTAWA About 100 Nation-air -employees held rallies and blocked traffic yesterday to protest federal dealings with the airline during a long-running labor dispute. Ottawa is setting a bad example by chartering Nationair flights to carry military personnel overseas while more than 400 flight attendants remain locked out, union officials said. Montreal-based Nationair, which employs about 1.200 people, has recruited some 350 workers to replace members of the Canadian Union of Public Employees who have been locked out since Nov.

1 9. They have been without a contract since December 1990. Labor Minister Marcel Danis has appointed a mediator to settle the dispute. In February, CUPE and the Canadian Labor Congress called for an International boycott of Nationair. Yesterday, congress president Bob White pledged the support of his two-million-membcr organization in a speech on Parliament Hill.

North American industry norm and reduce its costs during the next few years so that they more closely match its workload and revenues'' if it is to remain iable. The $70-million loss predicted by Sturgess is $30 million less than the loss predicted by his predecessor Ron Lawless, now head of Via In June, Lawless sent a memo to top CN managers warning that the company was being hurt by. free trade and deregulation and changes in the North American and global economics. I le advocated the slashing of expenses by S300 million a year and dropping 2.000 workers from the payroll. The memo was made public last week by railway union officials and New Democratic Party MP Bill Blaikie.

On a happier note. CN Real Estate had second-quarter net income' of $9.6 million, compared with profits of $4.8 million a year earlier. Higher land sales profits, increased income from properly operations and higher interest were among the factors which led to the improvement, the company said. Canadian National will likely lose $70 million in 1992, the company's acting president said yesterday. John Sturgess blamed the projected losses on declining use of rail transport, particularly in the transportation of western Canadian coal, sulphur and potash.

In all. the company expects to post loss for its railway operations, which will be offset by a $30-mil-lion profit on its other businesses. CN yesterday posted second-quarter losses of $15.3 million, iping out profit recorded in the first quarter. The company has a net loss of $8.6 million for the first six months of this year. More than 95 per cent of the company's revenues come from CN North America, its transportation arm.

It lost $33.5 million during the second quarter, compared with income of $21 million a year earlier. "The losses continue into the third quarter and reflect long-term changes to the rail industry throughout the continent," Sturgess said in a written statement. If You Ordered a Luxury CarThis Week, Alberta not prepared to go it alone as only government financing PWA nnn Uuu JL Illy 1 "But the thought of us just going in some type of a bailing-out situation 1 couldn't find acceptable." Getty suggested political differences among the various Canadian governments could influence the outcome of the proposed merger. "There might be some philosophical positions of governments who don't like to sec American corporations coming to Canada but that's not one that we have any problem with." Mulroney said his government only got involved at the request of the troubled airline. "We involved ourselves at the specific request of PWA.

who indicated to us the extraordinary damage that would be done to the airlines if it went under ith a million tickets having been sold and $200 million worth of bookings in the middle of the summer sitting in a computer." I le said he objected to "being painted in some quarters as having acted for the exact opposite motives." The whole issue is symptomatic of Canada's troubles. Mulroney added. "That should explain some of the difficulties we have, In a country like Canada, things sometimes get confused. The federal government is doing its best to be fair to everybody, and in the process of that often gel accused of unfairness." Getty said his government would continue to monitor the I'WA merger situation to ensure "fairness" was extended to the airline employees. He also said the Alberta Heritage Fund sometimes has had as much as $1 billion available to invest in good business deals and would be prepared to look again at any new I'WA proposals.

PATRICK NAGLE SOUTHAM NEWS Jt fT)MONTON Alberta refused to give cash help tuTllie troubled parent company of Canadian Airlines bCtausc no other government was interested in joining ajipancing deal, Premier Don Getty said yesterday. -The premier confirmed earlier statements by Prime Minuter Brian Mulroney that PWA Corp. had shopped itsell'around to Alberta. British Columbia. Ontario and Ottawa in an attempt to avoid the current merger talks with Air Canada.

I The PWA executives were seeking a cash transfusion to sweeten the deal the company was trying to conclude with American Airlines, he said. I Mulroney said PWA executives met with him July 21 iiH Ottawa and "expressed their interest to discuss including a merger with Air Canada. At no time did the federal government insist on one option over another. Mulroney said. "Let me be clear," Mulroney told reporters al a news conference in Ottawa.

"Despite media reports to the contrary, the government has not endorsed any specific outcome. Our bottom line is a private-sector solution." (ielty. however, said he would have been interested in helping if there was support from other government. "We siid il there were a variety of governments lor instance there are more people working lor Canadian (Airlines) in British Columbia and Ontario than in Alberta if there was a combination of gov. cfnmcnts and the federal government was involved as Well, we would look at it." See Why At a Special Previewing Of The Newest Infiniti.

J30. 199. GM may announce another plant closing by year's end 599. lllillllll lril-l'. rU'lliluHM ur MT ll llilr ill.

Nllijiil In I'lTiIlt month ii''imI, Tdm'-iaim, pl.inl or say whether an announcement would come this quarter or next. Steinpel said pl.mt-by-plant studies are continuing, and the llniled Auto Workers and employee will he notified first of any closings. GM has identified 14 of 2 1 plants it plans to close by I as part ol'a program locul production capacity hy 20 per cent. Still to he named are at least lour assembly plants. ASSOCIATED PRtSS J)l tKOir General Molor Corp.

ihdirmaii Robert Stenipcl said yesterday that GM ni.iy m.ike un-othcr pl.inl-ilosiug aiiouiKeniciil bduie year's end. l.ilkmg (o reporters alter a icrentmiv Icting the one-millionth Coru-tte. Mempel s.nd GM is pushing ih phut-closing prxgrarti, Nl lie refused to name tiny Mcndicn Infiniti 400Q Joan Tulon Went Montmil 731-797 Infiniti Laval 305 Doul. Si. Mcirtin Qi-J.

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