Daily News from New York, New York on November 14, 1989 · 571
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Daily News from New York, New York · 571

New York, New York
Issue Date:
Tuesday, November 14, 1989
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jTUESDAYDUCir: , Tuesday, November 14. 1989 By RICKI FULMAN mm DGu (Ml 1c Mary Kay exec's group buys stake 1 By RICHARD SHERWIN Daily News Business Writer ' For the third time in six " months, Avon Products Inc. ; appears to be the target of l' an unwanted suitor. ;V The potential bidder is d Chartwell Associates LP, led by oil heir Gordon Get-''ty, Mary Kay Corp. Vice 'Chairman John Rochon and the Fisher real estate . family of New York. The group has disclosed that it owns 6.9 of Avon's com- ' mon . stock and intends to purchase additional shares. An Avon spokesman, how-"fever, said that the New :.$SdDE3 boil: 'Da ISesdDirfts By ANDREW M. GLUCK Daily News Business Writer Entertainer Merv Griffin yesterday agreed to pour $30 million into Resorts International Inc. and give up his controlling stake in a bid to bail out the losing casino. Griffin struck the compromise with bondholders in an effort to prevent Resorts, which he bought a year ago tomorrow , from falling under control of a bankruptcy judge. The deal still must be approved by Resorts bondholders, which is not assured. Griffin agreed to invest $15 million now and $15 million a year from now adding to the $50 million to $60 million he has already invested. Griffin also agreed to fork over 78 of the equity in the company to bondholders. He retains a 22 equity stake in Resorts and can still control its board. Bondholders would also split any winnings from a suit against developer Donald Trump who, after a fight, sold his Resorts stake to Griffin. Yesterday's agreement also set aside a $5 million war chest to pursue By ROXANNE DONOVAN Daily News Business Writer What a bargain! The 66-story 40 Wall St was sold at auction yesterday for $77,000,100 -$31 million less than the price the tower, built in 1929, fetched just three months ago. Burton Resnick, president of Jack Resnick & Sons Inc., one of Manhattan's biggest landlords, was unopposed when he offered just $100 more than a Citibank bid of $77 million, to cover the bank's first and second mortgages, ex- York-based company is not for sale. Analysts have said in the past that Rochon, who runs Mary Kay the Dallas-based door-to-door marketer of beauty products may want to merge the two cosmetics giants. However, in a filing with the Securities and Exchange Commission, Chartwell said Avon would not be merged with Mary Kay in the eventuality of a takeover. The group's Filing also says that the sales forces of Avon and Mary Kay would not be merged. iinmriikiik'LniiiKimii;4 " ' ' ' '; I- ' St & ' ' - i s f , -,' '"-1 J ' , i 1 O L Merv Griffin that litigation against Trump. "I would urge Mr. Griffin to accept full responsibility for Resorts' current financial problems and turn his attention to the revitalization of Resorts instead of pursuing wholly baseless and ultimately wasteful claims against me," said Trump in a statement penses and interest on the foreclosed tower. Resnick, chairman of the Real Estate Board of New York, bid $108.5 million for the tower on Aug. 11, when a minimum bid of $100 million was set at the court-ordered auction. But Resnick, along with two other interested groups, was outbid by New York Land Co.'s Joe Bernstein, who offered $108.6 million to win that bidding for the building. Bernstein, who put a $1.5 million down payment on the tower, could not ,. come up withthe restof the money at the closing last The Chartwell group hasn't mentioned a price it would bid if it decides to pursue Avon. Earlier this year, Avon turned down takeover offers from Amway Corp., and from investor Irwin Jacobs. Amway made a bid of $2.1 billion and Jacobs' offer was worth $2.85 billion. Together, Amway and Jacobs own about 10 of Avon's stock. Avon also has shunned takeover feelers from Rochon. "The best interests of the shareholders would be served by Avon remaining By FRANKLIN FISHER month, .so the tower had to be reauctioned yesterday. To avoid a repeat of Bernstein's default, the auction's special master, Stephen Estroff, demanded each bidder present a $5 million check or letter of credit, and proof of ability to close on the purchase. But unlike the first auction, no minimum bid was set The $77 million from the purchase will go to Citibank, and the remaining $100 plus any other revenue from the tower now held by EstrofT will be put in escrow until the long-stand ing ownership dispute over' an independent company," Avon spokesman John Cox said yesterday. Some Wall Street analysts said shareholders might be more receptive to a bid from Chartwell. "Shareholders could be starting to question Avon because of its lower-than-expected earnings report," said Diane Mustain with Duff & Phelps. "The new group could trigger a proxy or restructuring battle," she added. Avon's stock dropped $1.50 to $35 a share yesterday, erasing a portion of Friday's $5.50 gain. Picky, picky is how city biz wants workers Daily News Business Writer New York City may be dirty, but a group of New York businesses think "New York is picking up." Some New York companies already ask employes to pledge to pick up one piece of litter every day and now they want others to join the anti-litter campaign. Lewis Rudin, president of the Association for a Better New York, was to make the appeal this morning at a breakfast of business executives at the Waldorf Astoria. Who's doing what Emory Jackson, president of We Care About New York Inc., a private, non-profit organization that has a key role in promoting the campaign, said corporations already taking part include First Investors Corporation, whose president, David Grayson, conceived the idea; Con Ed, Chase Manhattan, Chemical Bank, and Merrill Lynch, among others. The Daily News will be adding its support Under the program, employes promise on the "honor system" to pick up litter, Jackson said. 40 Wall is settled. The mostly vacant Wall St tower is one of four Manhattan buildings, along with Herald Center at 34th St, 200 Madison and the Crown Building at 57th St, once owned by Ferdinand Marcos, the deceased ex-president of the Philippines. Since his ouster three years ago, a number of parties, including the new Philippine government, ex-Marcos partner Joe Bernstein, and Saudi arms dealer Adnan Khashoggi, have been trying to appropriate the buildings or any profit Trbtfr their sale at auction Boeing cries uncle Boeing Co. pleaded guilty to charges that it illegally obtained secret Pentagon budget documents and agreed to pay more than $5.2 million in fines. The company pleaded guilty to felony counts of unauthorized conveyance of government documents. It carries a maximum fine of $10,000. An individual convicted of the crime could be sentenced to up to 10 years. Ford recalls Ford Motor Co. is recalling 1.5 million Ford Escort and Mercury Lynx subcompact cars, from 1985 to 1987, because of defective drivers seats. In addition, 343,000 1986 to '88 Ford Aerostar vans, which may have an engine crankshaft pulley problem, will get extended warranty coverage for affected parts. Only at Bloomie's , Potential bidders for Bloomingdale's last week were surprised when their long-awaited prospectus arrived with a companion videotape, which includes an interview with CEO Marvin Traub. All the news that fax The New York Times and the Journal of Commerce are both offering faxed synopses of their newspapers. While the Journal's goal is to help subscribers cut information overload, the Times' service at first will be just for travelers and the business communities in the Far East Rising resales Resales of single-family houses rose 2.7 in the third quarter, thanks to lower interest rates. Goln' for the gold Manufacturers Hanover has completed its acquisition of 1 1 metropolitan area Goldome branches, including $1.2 billion in deposits, the largest acquisition of deposits in U.S. banking history. Oil settlement Ashland Oil has agreed to pay $4 million to cover alleged violations of state environmental law, resulting from a massive fuel spill into Pittsburgh's two rivers last year. Rocky Mountain hype floors said its holiday beer, brewed especially for Christmas, is now available in limited quantities. Stay tuned LJ. Hooker plans to liquidate its seven-store B. Altman chain, with the exception of the Forest Fair Mall in Cincinnati, if the division isn't sold by Friday. Hooker said it has reduced the book value of its Altman division by $52.6 million and of its Bonwit Teller division by $29.7 million. Price cut To boost sales on the Amiga 2000 computer line, Commodore Business Machines is slashing prices by 10 to 15, betting higher volume will compensate for lower profits. Billy up The Treasury Dept sold three- month bills at 7.68, up from 7.67 last week, and six-month bills at 7.51, up from 7.49."-- J"v

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