The Times-Tribune from Scranton, Pennsylvania • 43

B-ll- TIMES, JUNE 17, 1990 SCRANTON, PA. Business USAir Begins Pittsburgh to Frankfurt Non-stop Service nounced its first code sharing agreement with another airline. Later this year it will join with Alitalia to provide direct service between Washington National Airport and Philadelphia to Rome via Alitalia over the Boston gateway. foreign flag carriers, Colodny said. USAir recently received authority to fly non-stop between Philadelphia and Paris beginning April 1, 1991, and also has signaled its interest in Pittsburgh-London service.

The company also recently an promote the Tri-State region as a good place to do business. Greater Pittsburgh International Airport is one of the nations largest airline hubs with 416 daily USAir and affiliated USAir Express departures. With more than 20 million passengers handled annually, Frankfurt is the busiest airport on the continent and offers numerous connections to cities in Germany, Europe, the Far East and Africa. The flights will be operated with new Boeing 767-200ER aircraft, the first wide-body aircraft operated by USAir service at Pittsburgh. The cabin has 25 business class seats and 185 seats in coach.

Container cargo service also is available. Th vill PITTSBURGH USAir Friday introduced daily non-stop service between Pittsburgh and Frankfurt, Germany, the airlines first service to continental Europe This is an exciting development, both for USAir and travelers from the 90 cities on our system with connecting service through Pittsburgh, said Edwin I. Colodny, USAir chairman and president. The new Frankfurt service will help establish the Greater Pittsburgh International Airports reputation abroad. One of the fondest hopes of local economic planners is expansion of international air service as a magnet for new companies and the jobs they bring.

This flight is an important tool for those trying to at 6:50 p.m. daily, arriving in Frankfurt at 8:45 a.m. the following day. The return flight leaves Germany at 11:50 a.m. and arrives in Pittsburgh at 3:14 p.m.

On the westbound trips, travelers can expect to move quickly through customs, immigration and baggage claim since the flight avoids the crowded international gateways on the East Coast. Special roundtrip fares as low as $498 are available to introduce the new service. Be, "inning June 15, all beverages and headsets will be complimentary on the Frankfurt flight and USAirs other trans-Atlantic service from Charlotte, N.C., to London. With nearly 3,000 scheduled daily CLASSIFIED departures, USAir is Americas most frequent flyer. Adding selective destinations abroad is part of our strategy for -measured growth internationally and is compatible with the marketing agreements we have with many She In todays Sunday Times-Scrantoiiian, youll find the largest classified section of the summer.

BEACH BALLS ARE COUNT THE BALLS INSIDE THIS SPECIAL CLASSIFIED SECTION AND WIN Richard R. Beasley, left, Scranton area manager of Pennsylvania Power and Light Company, presents a $10,000 contribution to Scranton Plan members lames A. Cummings, industrial marketing L. manager, and Austin Burke, president, Greater Scranton Chamber of Commerce. The Scranton Plan is the chamber's industrial marketing division and works to bring new businesses" into Lackawanna Lionel Besieged by Stockholders; SEC Investigating Failed Takeover Stmes tries the Connecticut toy company that enjoyed raging success in the mid-1980s with its Cabbage Patch dolls.

The creditors accused Perlmutter and Marden of bilking Coleco of more than $70 million through barter transactions for inventory and television time. That suit has been settled, and Coleco was acquired by Hasbro last year. However, MCA Inc. and Universal Studios which had invested $20 million in Coleco stock, are pursuing the allegations in a federal suit in California. Leading Edge Summer Savings! 8088 (7.16 MHz) 7 Processor size hard disks available.

With VGA color Unprecedented 8086 (10 MHz) 640 RAM Dual 3.5 (720K) disk drives Enhanced keyboard VGA mono- chrome monitor DOS 3.3 tintn Mill Leading Edge w.d Dual 5.25" (360K) drives 512 RAM Hercules and color graphics video 12 high resolution monochrome monitor DOS 3.3 Leading Edge Word Processor 80286 1 MB RAM floppy disk drive 44 MB) 40 Megabyte hard disk VGA 14" Mono-chrome monitor DOS 3.3 Leading Edge Word Processor monitor $1995 $1695 20 Month Warranty The partnership, headed by Robert I. Toussie, a New York investor, had offered to pay $8 a share, and willing shareholders had tendered a total of 76 percent of the outstanding stock. But Lionel management fought the takeover and on Jan. 22 gave to Toussie as part of a settlement ending the takeover fight. Lionel stock plummeted about 38 percent by $2,125 a share to $3.50 that week alone, embittering shareholders.

But owners grew irate a few weeks later when they learned of another transaction. On Jan. 22, the same day Toussie settled with Lionel, he sold 4.9 percent of Lionels outstanding stock half of his total holdings to a partnership called Otis Group for $7 a sharei At the time, the stock was trading on the open market at $5,625 a share. Shareholders contend that the Otis Group is controlled by two New York businessmen, Isaac Perlmutter and Bernard Marden, who have made fortunes in the merchandise-closeout business and who have ties to Lionel management. Two Florida stockbrokers, who are leading a committee of disgruntled shareholders that together control 5 percent of Lionels stock, allege that Lionel managers worked with Perlmutter and Marden to buy the stock and get Toussie out of the picture.

James DeBolt, president of Tren-dex Capital Management, of Fort Lauderdale, said Trendex had confirmed, through Citicorp, the New York banking company, that Marden had wired $4.6 million to Toussies account at Bear, Steams Co. Inc. on Jan. 22. The amount was equal to the cost of 666,200 shares or 4.9 percent of the Lionel shares outstanding.

A Citicorp spokeswoman said the companys policy was not to comment on individual transactions. Vastola contends that he is not certain who makes up the Otis Group. He said Lionel management had asked Perlmutter and Marden whether they owned a stake in Otis Group. We were told, No comment, Vastola said. Toussie is barred from commenting on Lionel because of a seven-year standstill agreement he signed in the $600,000 settlement.

Perlmutter and Marden did not return phone calls to their office in New York. Perlmutter and Marden founded Odd Lot Trading a merchandise-closeout company that they sold to Revco for stock in 1984. Soon after the sale, they became embroiled in a bitter fight with Revco management, which bought back the pairs Revco stock for more than $100 million. Revco has been operating under bankruptcy protection since 1988. Later, Perlmutter and Marden were named in a suit filed by unsecured creditors of Coleco Indus Knight-Ridder Newspapers PHILADELPHIA Lionel which aims to turn frowns upside down at its Kiddie City toy stores, has plenty of frowns to work on among its shareholders.

The nations third-largest toy re-'tailer, with operating headquarters Northeast Philadelphia, is under "assault from shareholders who contend that Lionel managers this year cut a deal to stave off a hostile takeover attempt at shareholders expense. Eight shareholders suits have been filed against the company in recent months, and the Securities and Exchange Commission is investigating. Shareholders also are concerned about the alleged sale of a chunk of the company to two New York businessmen who have been involved in bitter corporate wran-glings at Revco D.S. the bankrupt drug chain, and at Coleco-Industries the toy maker that went bankrupt and was acquired last -year by Hasbro Inc. Meanwhile, Lionel is battling fierce competition at its Kiddie City, Toy Warehouse and Playworld stores.

The companys financial results are weak, and its stock price has declined from more than $8 last year to $2.75 a share Thursday, the lowest price in years. Lionel has had more than a decade of troubles. In the late 1970s the company was up against similar tensions from shareholders; in 1982 it filed for bankruptcy protection. It emerged from bankruptcy in 1985 in a scaled-down form and began another expansion, but it has been distracted for much of the last two years by the takeover attempt and the shareholder complaints that arose out of it. It seems Lionel just keeps coming up on the short end no matter what they do, said Larry Carlat, editor of Toy and Hobby World magazine in New York.

Company officials have declined to be interviewed, but at a shareholders meeting last month in Washington, chairman Michael J. Vastola acknowledged the obvious: The companys profits have been sliding. However, he said Lionel recently had launched new strategies to improve performance. Ana, he announced, the company is considering acquiring Child World, the nations second-largest toy retailer. Certainly, fiscal 1990 was a disappointing year, Vastola told the shareholders.

I just want to assure you the management of Lionel is reviewing all aspects of its business. The SEC and angry shareholders are focusing on aspects of Lionels January settlement with the investment group that tried to take it over last jear. With EGA color monitor $1295 $1050 With a VGA color monitor $1395 With a 30MB hard disk, mono monitor $1350 Unprecedented 20 Month Warranty With 30 MB hard disk $779 With color monitor, add $200 Unprecedented 20 Month Warranty $499 80386 SX (16 MHz) 1 MB RAM 3 5" (1.44 meg.) floppy disk drive 40 MB hard disk Backlit screen External VGA port 80386 (16 MHz) 1MB RAM 1.2 MB floppy disk drive 40 MB hard disk VGA compatible video card VGA 14 monochrome monitor ij DOS 3.3 $1795 Color monitors and various 80386 (20 8 MHz) 1 megabyte of memory on motherboard 1.2 megabyte floppy disk drive 65 megabyte hard disk VGA-compatible video card VGA 14" monochrome monitor DOS 3.3 $2795 Unprecedented 20 I 13 022L-IJ fiiv 1 Model with VGA color monitor $2095 Unprecedented 20 Month Warranty A LEADING EDtt $2395 Month Warranty D3, D2LPS Products, Inc. 12 Month Warranty Leading Edge and Leading Edge logo are registered trademark, D86, D3SX and DLT 3S6 SX are trademark of Leading Edge DOS is a registered trademark of Microsoft. oyio AUTHORIZED DEALER Times-Tnbune Classified Ads Bnng Quick Results Phone 348-9157 A.