The Sacramento Bee from Sacramento, California • 29

PERSONAL FINANCE The Sacramento Bee Thursday February 6 1 986 ment is the small number of shares in public hands Times-Mirror Co owner of the Los Angeles Times holds 381000 shares or 30 percent of those outstanding Another 20 percent is held by institutional investors leaving only 630000 shares for the public Effective March 10 the 10-for-l split will put 63 million shares in public hands $50 rise put Tejon shares at an astronomical 5000 times reported earnings in the last four quarters After registering a substantial loss in the fourth quarter of 1984 Tejon has had rising profits In the first nine months of 1985 the company posted net income of $914000 72 cents a share on revenue of $179 million compared with year-earlier earnings of $2 million $162 a share on revenues of $193 million has no present plans for any substantial commercial development of its the company said Tuesday 1980 Tejon submitted to a county agency plans which contemplate development of portions of its property but those plans were prepared in connection with the county-wide general plan for the period through the year 2000 and should not be taken as an indication that any substantial development is contemplated in the near One broker was asked Wednesday if he thought the stock was being manipulated would be a fool if I said he replied man Don Weber Wednesday pointed to recent bullish articles that apparently fueled the recent stock run-up The Dec 23 issue of Barrons financial weekly said could soon be at the seams" and spilling out into "the Similarly greater Los Angeles and the ranch practically be one of these days and a long-discussed but nonexistent international airport 50 miles east at Palmdale prove the biggest boost of all to property values on the Barrons said reason for the stock split was to make more shares available for public said Tejon and analysts agreed Wednesday that the key to the move The unusual market conditions prompted the Amex to halt trading in the stock Monday and Tuesday Despite Wall bullishness the company said there were significant developments" in its business and it had present plans for any substantial commercial development of its Headquartered in Lebec Tejon Ranch comprises 270000 acres of remote southwestern Kern County Bakersfield is 40 miles north and the first signs of Los Angeles are over the Tehachapi Mountains 70 miles south Wall Street has its own perspective on California real estate however and so do Wall Street financial journalists Tejon spokes By John Cox Bee Staff Writer Publicly held Tejon Ranch Co finds itself in the eye of a speculative hurricane that has seen its stock price quadruple in a year in the face of falling earnings On volume of only 5000 shares stock skyrocketed Wednesday jumping $50 a share just a day after the company announced a 10-for-l stock split It repeated a statement that it knew of no logical reason for the wild rise Trading on the American Stock Exchange Tejon shares climbed in 1985 from $10188 to $28338 and since the beginning of 1986 have shot up to close Wednesday at $450 Money Matters By Jack Sirard OO IIS' Bee staff and wire reports Aerojet Techsystems Co stands a good chance to share in the $212 million the Pentagon and NASA announced Wednesday they plan to spend next year on the development of a hypersonic plane that can fly up to 25 times the speed of sound Aerojet which has major manufacturing facilities in Rancho Cordova is one of the leading candidates to develop the propulsion system that would permit the aircraft to travel from Los Angeles to New York in 12 minutes or from San Francisco to Tokyo in just a little more than an hour The joint announcement of the planned expenditure comes on the heels of the first public endorsement of the project by President Reagan in his State of the Union address Tuesday are going forward with research on a new that would by the end of the next decade take off from Dulles airport (outside Washington) and accelerate up to 25 times the speed of sound attaining low Earth orbit or flying to Tokyo within two Reagan said The project has been dubbed the after the European train of the same name famous for its run between Istanbul Turkey and Paris encouraged by the presidential endorsement of this new technology" said Dan Brown spokesman for Aerojet we have the technology that can make us part of that exciting program" The Rancho Cordova company has teamed with General Electric Co to submit a bid for the development and testing of an engine to power the hypersonic transport It 1 currently is awaiting a decision on that contract expected to be made early this year engine called the air turboramjet or ATR combines air-breathing engine technology with rocket-engine combustion This union permits the engine to efficiently power an aircraft at both subsonic and superson- See AEROJET page C7 Special to The Bee The hypersonic plane as conceived by Aerojet and Boeing could fly from Los Angeles to New York in 12 minutes Insurance man raps his industry Bob MacDonald believes people make a lot of mistakes when it comes to buying life insurance Either they buy insurance that they need or they buy the wrong kind and end up paying too much As a result they get little value for their money Instead of blaming the consumer MacDonald points an accusing finger at the life insurance industry It has not kept pace with the rapidly changing financial services industry he says and has been more concerned with profits than performance for its clients stinging criticism of the industry is not that unusual but it is rare from someone in his position president of ITT Life Insurance Corp a company with 400000 policyholders and $8 billion in insurance nationwide MacDonald says been branded the Benedict Arnold of his industry but notes that it take much to be called a maverick when proposing changing the profit structure 100 years most of the industry sold what we wanted whole life insurance policies It was the most profitable and generated the most commissions and there was little to challenge MacDonald says Whole life supporters defend their product on the ground that it combines death benefits and tax-sheltered savings and pays a lump sum at death or if the policy is cashed in Whole life has level premiums with the policyholder paying the same amount regardless of age Proponents also say it forces a consumer to save MacDonald says his attack on whole life insurance is supported by findings of the Federal Trade Commission which discovered that such policies on average paid a return of 2 percent and were very costly instance a person under 30 pays on average about 1 for every thousand dollars of coverage with a term insurance policy For whole life you would pay about $12 a thousand" he says MacDonald who will be in town Friday to speak to the International Association for Financial Planning says the life insurance industry must be restructured to survive A vital part of that process is offering new products for the consumer continuing its shift from whole life to term and universal life a change that he likens to move from the horse-and-buggy days to the automobile life MacDonald says the old theory of buying cheap term insurance and banking the money you save by not buying whole In a single policy universal life brings an average return of 9 percent to 1 1 percent he adds KOVR-TV sold in $625 million package dea what portion of Outlet it would own The Rockefeller Group apparently deciding to cash in some of its holdings last year sold a $13 billion interest in New mid-town Rockefeller Center to the public In addition to KSAT-TV and KOVR of Sacramento and Stockton the Outlet television stations are WATL-TV an independent UHF station in Atlanta WCMH-TV an NBC affiliate in Columbus Ohio WXIN-TV a UHF independent in Indianapolis WCPX-TV a CBS affiliate in Orlando Fla and WJAR-TV an NBC affiliate in Providence Outlet will turn around and sell one of the stations KSAT-TV in San Antonio Texas an ABC affiliate to H-C Communications Inc of Houston for $153 million Outlet spokesman Frederick Griffiths announced separately in Providence Griffiths said the managers who would become part owners of Outlet include Bruce Sun-dlun chairman and chief executive and David Henderson president Wesray an investment firm headed by former Treasury Secretary William Simon declined comment on the deal It was not clear Charles Kennedy general manager said he uad what impact the sale would have on the local operations He said an announcement will be made today KOVR an ABC affiliate that broadcasts Sacramento Kings basketball games was sold to Outlet by McClatchy Newspapers for $65 million in March 1980 Outlet in turn was sold to the Rockefeller Group in December 1983 Outlet based in Providence RI includes five network-affiliated television stations and two independent UHF stations in major markets as well as four radio stations Bee Business Staff Sacramento television station KOVR home of the will be sold by its New York owners as part of a $625 million transaction involving seven television stations and four radio stations Rockefeller Group Inc owner of Channel 13 Wednesday agreed to sell the stations to an investment group formed by managers of a Rockefeller subsidiary called Outlet Communications Inc and another group Wesray Capital Corp Bilzerian readies another takeover attempt speech his first ever because Brodovsky asked him to In the speech Bilzerian recalled his first acquisition: a Tampa-St Petersburg radio station purchased with two partners in 1978 Despite increases in audience share and revenue the station filed under the bankruptcy code in 1980 because of inadequate controls on spending for equipment was the only bankruptcy in Tampa-St Petersburg broadcasting Bilzerian said going to have a hard time taking over CBS as a result of it" has tried to acquire two other companies since the conclusion of the Cluett bid In both cases he said the stock price ran up so much that he abandoned the efforts The increases appeared to result from the stampeding market rather than from public awareness of his plans Bilzerian said adding gone to enormous lengths to ensure that nobody's aware of what Sacramento attorney Bill Brodovsky who had a limited participation in the Cluett deal will again be a partner Bilzerian said he gave the nues of $949 million Bilzerian cleared $75 million in November when he gave up on a bid to acquire Cluett and sold his shares to a higher bidder He earlier sought to acquire two other NYSE companies Syntex Corp and HH Robertson Co In the pending venture Bilzerian said he will complete arrangement-swith investment bankers in New York City on Monday He said it could take 30 to 45 days before he has bought enough stock for federal regulations to require public disclosure of the acquisition plans The 35-year-old investor said he By Ted Reed Bee Staff Writer Sacramento investor Paul Bilzerian said he will begin buying stock on Monday in a multi-billion dollar company that he intends to acquire Bilzerian meeting with reporters late Wednesday after a speech to the Sacramento Valley Venture Capital Forum declined to identify the company But he said it is listed on the New York Stock Exchange and has revenues far in excess of Cluett Shirtmaker Cluett had 1984 reve NY banker awaits CaSifornia entry Chase Manhattan chief sees quick settlement of interstate issue other advantages are that the premium payments can be varied the death benefit can be changed and beneficiaries can be added or deleted with greater ease he notes A universal policy also comes unbundled meaning that the charges for the insurance and savings are separated clearly The invested side is put into the insurance portfolio be it in stocks bonds or real estate and policyholders get that rate of return One problem the insurance industry is trying to overcome with universal life policies is that of giving policyholders a choice of where their investment dollars go Resolution of that problem is still See SIRARD page C4 York banks could begin their entry into the largest state probably by acquiring small or mid-sized California banks with assets below $200 million For Chase Butcher said a target date of 1987 is acceptable while 1990 is unacceptable He declined to comment on whether 1988 or 1989 is acceptable Full interstate banking is now prohibited except on a reciprocal basis between states During his tour Butcher pushed Assembly Bill (AB 1492) in meetings with Gov Deukmejian with key legislators and in a Chase-hosted breakfast meeting at the Sutter Club for about 60 legislators and staff members Butcher dined Tuesday night with Senate President Pro Tern David Roberti D-Holly-wood Senate Majority Leader Barry Keene D-Benicia and Sen Rose Ann Vuich D-Di-nuba Vuich is chairwoman of the Senate Banking and Commerce Committee where AB 1492 now sits after passing the Assembly last year out here to try to explain and yes to Butcher said Nevertheless he strongly opposed portions of the bill that would require incoming See BANKER page C4 By Ted Reed Bee Staff Writer Concluding a 23-hour lobbying tour for interstate banking the chairman of third largest bank said Wednesday that compromise is at hand to end the seven-year battle over the issue has been considerable movement toward interstate banking over the last several months" said Willard Butcher chairman and chief executive officer of New York-based Chase Manhattan Bank In an interview Butcher said the key remaining issue is the date when the New Bee Richard Gsmore Willard Butcher: Target date of 1987.