The Vancouver Sun from Vancouver, British Columbia, Canada • 25

830.82 BEST COPY vi VSE 28.13 4,586.92 TSE300 1.91 277.62 TSE 100 2.20 239.93 TSE 35 ki tquvtuqc 17.31 2,223.57 MONTREAL vLI fit r-ty 'x 8.10 4,700.37 DOW 318.96 16,358.57 NIKKEI i 13.4 LONDON FT100 3,449.9 SECTION GERALD PROSALENDIS BUSINESS EDITOR 732-2520 WEDNESDAY, AUGUST 2, 1 995 HANG SENG 13.4 9,385.27 CANADIANS $.0024 $.7310 US TECHNOLOGYCOMMUNICATIONS US $(Cdn consumer rate) $2.1983 Cdn CANADIAN IN 64.41 MDA deal prime vintage, analysts say UK POUND $.0187 $11983 GOLD (N.Y.) $.45 $383.25 SILVER (N.Y.) $.13 $5.18 OIL (W.Tex. Int.) .15 $17.73 SHARE PRICE Cdn BANK RATE .15 7.02 Business Editor Gerald Prosalendis' electronic-mail address is prosalendisppress.wimsey.com It has been emerging from relative obscurity and been noticed by big-market players. Stock analysts, first in Vancouver, then Toronto, touted it as an undervalued company and a potential takeover target; then the Financial Post news Sourvo BioomOorg million takeover deal for DA. Analyst Jason Zandberg of Pacific International Securities in Vancouver said his only surprise was that an American company stepped forward rather than a Canadian hightech player such as Ontario's Spar Aerospace, which still holds about 12 per cent of MDA's shares from a previous takeover 'attempt. Spar wasn't saying Tuesday whether it is among the owners of more than 50 per cent of MDA shares that have indicated they will sell to Orbital Sciences, or whether it may join the bidding.

Spar's management is studying the Orbital proposal, said public affairs Please see MDA, C2 WILLIAM BOEI Sun Business Reporter Like fruit on a high-tech vine, MacDonald Dettwiler and Associates was ripe for the picking. Analysts pieced together a picture Tuesday that reveals the Richmond company as a tasty takeover target Its technology has matured in several specialized areas especially satellite data-handling to the point where larger companies were being drawn to it It has been transforming itself from a research-and-development contractor for government agencies to a more product-focused company. VOLUME 300.000 tiJ I00000 COLUMN 7 21 JULY 3 17 31 MARCH 14 28 APRIL 12 26 9 23 MAY JUNE would buy, and when. It turned out to be Virginia space hardware company Orbital Sciences which on Monday revealed it had negotiated an $86- paper featured it as a hot stock. Some of MacDonald Dettwiler's largest shareholders signalled they were ready to sell.

After that, it was just a question of who COMMUNICATIONS ETHNIC AIR WAVES Bang for buck spurs TV takeover mania I I interim president of the AFL-CIO I I Tuesday, setting the stage for a LJ power struggle for control of the largest U.S. labor group. The 66-year-old secretary-treasurer of the federation was chosen on a 20-12 vote by the Bid in works to bring multicultural music to FM Reuter organization executive council after an emotional Lane Kirkland, president of the group for the past 16 years, formally stepped down under fire NEW YORK The profit power of entertainment will spur even more mergers and alliances, industry analysts said Tuesday, citing the multibillion-dollar deals sealed for two TV networks in just two days. KJ- 1'i ''jt 1 cmics- 1 Donahue was allied WILLIAM BOEI "Entertainment wnn wrwana ana races a challenge from within at the union's convention Oct. 26.

Donahue's slate is KIRKLAND opposed by one headed by his long-time friend John Sweeney, 61, president of the million-member Service Employees International Union. Sweeney lost to Donahue in Tuesday's vote. The AFL-CIO represents 26 unions with 7.4 million members. Reuter Sun Business Reporter Vancouver and Calgary will get new FM radio stations aimed at ethnic communities, if a joint application from groups in the two cities is approved. The stations will carry more music and less talk than existing AM stations that broadcast in different languages.

The applicants are Thomas Fung of the Fairchild Holdings group and AM ethnic radio station CJVB in Vancouver, and Roger Charest of AM ethnic station CKER in Edmonton. "We've tried to join the strongest western Canadian ethnic broadcasters and make something even stronger," said CJVB vice-president Edward Ylanen. The fast-growing, Chinese-language market will be "the prime revenue generator" in both cities, Ylanen said, but it won't be the only target market CJVB aims its AM programming at 23 different ethno-cultural groups, and the new FM stations will also take a broad approach. Ylanen wouldn't detail the two stations' programming plans, say U.S. managers' index purchasing The purchasing managers' index tracks overall business activity of more than 300 industrial companies.

65 50.5. 50 1 45 assets are highly prized because of the almost unlimited future for entertainment products with satellites, telephones, television and computers all these new avenues on a global scale," said Edward Atorino, an analyst at Dillon Read. On Tuesday, West-inghouse Electric announced a widely expected $5.4 billion US deal to buy CBS Inc. Walt Disney Co. stunned Hollywood and Wall Street on Monday with a proposed $19-billion US takeover of Capital Cities ABC, the second biggest deal in corporate history and the largest ever in the media business.

The announcement of the CBS deal may only signal the start of a bidding war, prompting others to pursue entertainment and media assets, analysts said. "It is increasingly someone else will step in with anoth-er bid for CBS1 because of the Disney deal," said another hst who declined to be identified. Rivals could include: Viacom; a newly refo-cused ITT; or, Canada's Seagram which still has media aspirations and cash to spare despite its $5.7 billion US purchase of Hollywood studio MCA in June. "It's quite possible Westinghouse will have a competitor or 1 BILL KEAYVancouver Sun Edward Ylanen will focus on music in application to CRTC TUNING IN: 40 nities, the station here will provide "a much more broad-based service" than the one in Calgary, which may share some programming with CKER in OJ FMAMJJ 1995 A 0 1994 ing he doesn't want to tip potential competitors. The Canadian Radio-television and Telecommunications Commission has given other applicants until Sept MARK CARDWELIReuter TV SMILES: Westinghouse Chair Michael Jordan (left) shakes on deal with CBS chair Laurence Tisch Westinghouse tunes into CBS Reuter NEW YORK Westinghouse Electric said Tuesday that it would acquire CBS for about $5.4 billion US.

In announcing its widely anticipated move.Westinghouse which owns Group broadcasting company said it would pay $81 US a share for the network, although the deal is subject to the completion of financing. Pittsburgh-based Westinghouse, which also manufactures electric generating and refrigeration equipment, said in addition to the cash, it will pay an "additional limited consideration depending on the timing of the deal's closing." "With the addition of CBS, Westinghouse is creating a premier broadcasting powerhouse and taking a leadership position in programming," Westinghouse chair and chief executive Michael Jordan said in a statement "Our television and radio stations will reach more homes than any other broadcaster and provide a unique and powerful platform for our advertisers "We expect to build upon our new, combined strengths and considerable talent to restore CBS television to its historic position as the No. 1 television network." Source: National Association ol Purchasing Managers Chinese market will be prime revenue generator but won't be sole format Edmonton, since those two markets are similar. The two stations will be oper- ated by a new company still to be incorporated, representing the owners of the existing AM radio stations, Ylanen said. 25 to file proposals.

A public hearing will be held later. He confirmed the musical approach, however. "AM radio is best suited to a talk format" he said. "FM is best suited to music, it's a better-qual The CRTC will examine the financial capability of the applicants and the viability of the proposed service. The federal regulatory agency will receive public comments, in writing, until 20 days before a hearing.

ity frequency." The Vancouver and Calgary stations may share some resources and programming, Ylanen said. But each station's content will be designed for its own market Since Vancouver has more ethnic commu- THE ECONOMY Banks hold off on prime hike June July Aug. -F fi i Canadian Press Prime rate 8.25 fj said a boost in the prime rate which banks charge their best customers could be just around the corner. That usually forces other lending rates higher. "We're probably within a couple of weeks of a prime increase," Fairholm said.

The last increase was just last week, when banks raised mortgage and saving rates. The rate on a Please see RATE, C2 two and I would put Viacom on the list," said Atorino. The much-desired synergies talked about in media deals reach far beyond mere good management, which is the most that an outside owner like Seagram, or to a lesser extent Westinghouse, could bring to a network. Ultimately this logic will prompt General Electric, with its keen eye for value, to sell its NBC network to a group that can do more to ere-; ate powerful profits, some merger and acquisition specialists said, Many scenarios are possible, some which duplicate the vision behind Please see MEDIA, C2 TORONTO Borrowers dodged a bullet Tuesday when the Bank of Canada raised a key lending rate but the banks decided not to follow suit. That leaves mortgage and other loan rates unchanged but maybe not for long.

"Fasten your seatbelts said economist Robert Fairholm of market forecasters DRI-McGraw Hill Fairholm and other economists Bank rata: 7JB Last week: t87 One year ago: 5.70 1995 Source: Bank of CangrJa I AP Stock prices wilted. Tuesday on Wall Street after an unexpectedly robust economic report disappointed investors who were holding out hope for lower interest rates. In losing ground, stocks followed the bond market's lead, which retreated in response to the National Association of Purchasing Management's upbeat report. on conditions in the manufacturing sector. The report left investors feeling a cut in rates is not likely in the near future.

Associated Press ERIN LIFTS LUMBER LUMBER PRICES soared past the daily trading limit on the Chicago Commodities Exchange as Hurricane Erin approached the Florida coast, prompting lumberyards to stockpile building supplies. "Everyone's anticipating some damage, and are preparing accordingly," said Bob Nancar-row, sales manager at the Weyerhaeuser Co. 's building lumber distribution center. "We're watching Erin pretty closely." Reports of increased sales throughout the South sent futures prices soaring. September lumber futures increased the daily exchange-imposed $10 trading limit to $265.70 US per 1 ,000 board feet.

Bloomberg NATURAL GAS FOCUS The JULY sale of oil and gas drilling rights pumped $21.2 million into provincial coffers. These excellent sale results show that the industry is continuing to focus on the natural gas potential of British Columbia," said Energy Minister Anne Edwards. Bids were accepted on 131 parcels, all located in northeast B.C. RodNutt INSIDE RECENT JOINT EFFORT is attempting to make the regulatory process, if not enjoyable, at least more responsive to the concerns of those being regulated. David Bond's Bulletin C2 ELDORADO REJECTS Glamis Gold's increased takeover offer, saying it was inadequate.

C3 B.C.'S NEWEST gold mine propels Prime Resources Group's first-half results sharply higher. C3 STOCK LISTINGS C4-6 Soulham News Graphics Launch your ashes to ashes with great balls of fire with the idea of creating a separate division called Spirit Art to launch the ashes of the deceased. "Society needs something uplifting about death," said Mel. "A lot of religions today enced pyrotechnicians. Everything is legal, insured and safe," she said.

Last week, the Kobayashis started advertising in Xtra West, a Vancouver gay publication. "We just think they gays are a lot Courtney Love, widow of rock start Kurt Cobain, about a possible launching for her husband's ashes. "We heard she was having difficulty finding an appropriate resting place for his ashes, so we sent several faxes to her press agent. We have yet to hear back but we are very hopeful." Mel said she and her husband are not members of any organized religion, but are say there is life after death, but do not celebrate death in a visible way. "We feel this ceremony offers a way to celebrate the life of a person who has passed away, and it is also a beautiful display that can prompt more positive emotions about death." Mel said she and her husband can arrange laser For those who have always wanted to go out with a bang, Mel and Omasu Kobayashi have a proposition for you.

For $2,500 and up the sky is the limit the Vancouver couple will deposit the ashes of the dearly departed into a rocket and launch them into the hereafter in a burst of fire and color. "We realize $2,500 is a bit steep, but we're also able to do group launchings," said Mel "In that case, we would take the ashes of several people and put them into one display, and each family and group of friends would contribute their share of the cost" Mel, 32, and her 37-year-old husband, Omasu, are proprietors of and Earth Goods, a Vancouver clothing design firm. (Their clothes can be identified by a label featuring a bright yellow alien with the phrase, "I will save Several months ago, Omasu came up more receptive to new ideas," said Mel, "but we think it can be appropriate for everyone." So far, she said, they have had two serious inquiries. "The initial response to Spirit Art has been, firstly, one of shock, then very positive. We have family and friends in Japan and they have been very excited about the idea.

One 5 DAVID BAINES very spiritual people. "We're searching for answers. There are a lot of unknowns. They relate to the afterlife, to aliens, to Nirvana and psychic ability. Everything." In the long run, she said, their goal is to turn and Earth Goods into "a total art company." "Spirit Art will be branching put.

We can put ashes in jewelry that we custom design. We have other things that we have planned, but I don't think the public can take everything in one gulp." if light shows with music, fire rockets from heli- person, in particular, has copters or, on rainy days, arrange indoor ashes and they would love to come here to launchings. launch them. "That end is handled by very expert- Mel said they have also approached.