The Miami Herald from Miami, Florida • 128

Eftera NYSE5B Amex6B NASDAQ0TC7B Saturday January 21 1984 The Miami Herald 4B 3TS Business Uoirid Citicorp gets Biscay ne with limits Biscayne alone Citicorp said late Friday that day-to-day business will be uninterrupted as it initiates revitalization It tapped Peter A Lefferts who has been chief consumer operations officer for the 10-state southeastern region for national home-loan subsidiary to head Biscayne New Biscayne has $19 billion in assets in 34 offices in Florida It was declared insolvent and seized by federal authorities last April A court fight by its largest shareholder delayed New sale to a new owner Adding New Biscayne and First Federal to existing savings and loan in California will make the New York giant the sixth largest savings and loan company in the United States in addition to being the largest banking By ROBERT STICKLER Herald Business Writer New Biscayne Federal Savings and Loan Association officially became a subsidiary of Citicorp Friday after a controversial decision by the Federal Reserve Board By a 5-2 vote the Fed Friday approved the sale of the insolvent Miami savings and loan to the parent of giant Citibank in New York Despite protests from Illinois bankers that it was promoting interstate banking the Fed Friday also approved the sale of the insolvent First Federal Savings and Loan Association of Chicago to Citicorp Two Federal Reserve governors Emmett Rice and Nancy Teeters voted against the sales They cited adverse effects of piercing prohibitions against interstate banking of mixing the ownership of a commercial bank and a savings and loan and of the potential of A Fed spokesman said the decisions were reached lengthy discussions over several and after assurances by the Federal Home Loan Bank Board that other bids for Biscayne were substantially lower than The Federal Reserve did put severe restrictions on operation of Biscayne and First Federal Both must be run strictly as savings and loans New Biscayne must maintain its mortgage lending in Florida at current levels The board said the two institutions cannot be converted to banks The two thrifts are placed under the branching laws for commercial banks which are more restrictive than for savings and loans New Biscayne is given two years to divest its real estate investment arm Most importantly for competing bankers Citicorp is prohibited from mixing any of its other businesses with these savings and loans That means New Biscayne cannot be used to solicit deposits or any other kind of business for Citibank or other Citicorp subsidiaries Florida bankers who had anticipated the approval said they were relieved to see the restrictions feel the Fed has done what they should as long as they keep those restrictions on for an extended period of said John Milstead executive vice president of the Florida Bankers Association these restrictions are maintained Citicorp does not have an interstate banking The FBA and trade associations representing savings and loans argued at a public hearing two weeks ago that Citicorp should not be allowed to buy New Biscayne because it needed to conserve capital to take care of possible problems in its ample foreign-loan portfolio Citicorp will have to produce more than $120 million to recapitalize New The Ins and the Outs Stock prices decline money supply zooms From Herald Staff and Wire Reports The stock market wound up its second straight declining week with another loss Friday Computer and other technology issues bore the brunt of the selling in a generally sluggish session The Dow Jones average of 30 industrials dropped 691 to 1259 extending its loss for the week to 1099 points Since taking a 28-point jump in the first week of 1983 the average has fallen back 2753 points Friday's volume on the New York Stock Exchange totaled 9336 million shares down from 9834 million Thursday Meanwhile the Federal Reserve Board reported the basic supply of money Ml jumped $38 billion to $5261 billion in the week ended Jan 11 Companios ANHEUSER-BUSCH is introducing from a new beer The "light beer with half the alcholic content of regular beer will be introduced April 1 into selected test markets throughout the country Busch Chairman August A Busch III said The markets have not yet been chosen he said SOO LINE RAILROAD Co will submit a $290-mllllon bid for the bankrupt Milwaukee Road Soo Line will be the fourth bidder for the 3100-mile core rail system Grand Trunk Corp Chicago North Western Transportation Co and Chicago Milwaukee Corp parent of Milwaukee Road already havefiled bids Labor THE ILA PLANS to resume national contract talks with steamship carriers The International Longshoremen's Association has set a strike deadline for Jan 31 ILA spokesman James McNamara said representatives of the 36 Gulf and Atlantic ports that would be affected by a strike may send observers to the negotiations next Tuesday in Miami Beach McDonnell Douglas corps told striking workers to return or face loss of their jobs Members of United Auto Workers Local 148 who have been on strike for three months were sent notices informing them of the decision to hire new employes to fill positions still vacant at the Long Beach Calif aircraft assembly plant They were given until Jan 27 to return to work Publisher quit on Warner Murdoch firm buys one million shares NEW YORK (AP) Publisher Rupert Murdoch apparently undeterred by Warner Communications effort to block a takeover said Friday he bought another 102 million shares of common stock News International PLC one of companies said it bought 561400 Warner shares on Wednesday and another 461000 on Thursday giving it a total of 557 million shares But the subsidiary did not disclose what it paid for the Warner stock But based on the average closing price for Wednesday and Thursday of $2919 a share the 102 million shares were valued at about $298 million News International claims that stake equals 85 per cent of total voting securities outstanding despite recently completed swap of assets with Chris-Craft Industries Inc that increased the number of voting stock Under that agreement which Murdoch is contesting Warner received a 425-per cent stake in television unit BHC Inc while Chris-Craft received 152 million shares of a new issue of Warner preferred stock each with one vote Though Pantry Pride closed some of its stores in South Florida last October buy five Grand Union stores which are among the 49 in Florida shutting down Legal Grand Union workers may be left out when 5 stores are sold to Pantry Pride CORP must pay $53 million In damages to an ice cream company A jury found that McDonald's broke a handshake agreement with Central Ice Cream Co of Chicago to exclusively distribute an ice cream cone called in its restaurants for 20 years The chocolate vanilla and strawberry ice cream in a sugar cone appeared in outlets in the early 1970s but disappeared after three years Publishing BY DAVID LYONS Herald Business Writer Pantry Pride Inc of Fort Lauderdale announced Friday that it purchased five Grand Union stores in Dade and Palm Beach counties But the workers at those stores still may not have jobs for long Pantry Pride spokeswoman Judith Napier said the jobs would first be offered to some of the 700 persons who were laid off last year in a cost-cutting move would have first she said Pantry Pride announced last fall that it would take care of its laid-off workers first if the chain entered into any expansion program Napier refused to say how many jobs are involved at the five stores A Grand Union spokesman also declined to disclose figures The stores are part of the group of 49 that Grand Union wanted to sell so it can shut down its Florida operation Grand Union announced its impending departure from Florida last Monday saying it wants to concentrate on areas of the country where it has a better chance to compete Approximately 3000 Grand Union employes are facing layoffs or the prospect of working for a new store owner Any Grand Union employe who does not gain employment with a new store owner will lose his or her job and be given severance pay accordance with longevity and company Grand Union spokesman Gary Perino said Friday One of the stores acquired by Pantry Pride is a Basics Food Warehouse located at 8601 SW Bird Road in Miami The other Dade store is located at 107th Ave and SW 72nd St in Miami Two of the Palm Beach stores are in Boca Raton at 1339 West Palmetto Park Road and at 4141 North Federal Highway The third is in Greenacres City at 4515 Lake Worth Road Napier said Pantry Pride intends to take control of the stores on Feb 11 The acquisitions she said are part of a $50-million development program that calls for the construction of new stores with higher quality items and more competitive pricing Pantry Pride bought the Grand Union stores because of their location size and modern look Napier said Most of Pantry stores are 15000 to 20000 square feet she said The Grand Union stores cover 30000 square feet Earlier this week Hash Karry a division of the California-based Lucky Store chain said it purchased nine of the Grand Union stores in the Gulf Coast region Super Drugs a unit of the Ohio-based Kroger chain bought one in Naples USA TODAY announced its circulation grew to over 13 million in December That put the national daily newspaper more than 15 per cent ahead of its projected growth for 1983 Allen Neuharth chairman and president of Gannett Co which publishes the newspaper said internal figures showed the paper had an average daily net paid circulation of 1328781 in December The company had expected a circulation of 1-150000 by the end of 1983 MIAMI JOCKEY CLUB APTS LUXURIOUS BAY VIEW APT ON 6th floor of Tower where club restaurant marina etc are located Hotel type services available 3 BDRM 3 BATH 1895 sq ft Asking $295000 1st MORTGAGE Assumable at fixed 95 $130000 2nd MORTGAGE AVAILABLE UNION MANAGEMENT REALTY INC GUTIERREZ (305) 444-2427 In Florida IBM cuts order and stock slides COUNTRY CLUB DELUXE LIVING Only $89990 with low down payment 2 bedroom 2 bath condo homes custom designed interior clubhouse security pool tennis golf Great location near International Mall and Doral With low fixed rate financing For a personal inspection contact: 592-2699 BrokerOwner NEW YORK (AP) The stock of MiniScribe Corp a maker of computer memory components plunged 42 per cent in price Friday after MiniScribe said smaller orders from IBM its largest customer would reduce production MiniScribe based in Longmont Colo said IBM reduced its orders for personal-computer disc drives the component used to store data in a computer Neither company would say how many drives MiniScribe was supplying IBM or what the new amount would be But a MiniScribe spokeswoman Susan Bailey said the company reported last fall that IBM accounted for 59 per cent of its business in the quarter ended Nov 2 disclosure Friday unleashed a wave of selling in its stock which tumbled to $7 a share bid from $12 on the over-the-counter market Based on 175 million shares outstanding the total market value plummeted 417 per cent to $1225 million from $210 million at the close of trading Thursday WILLIAM GOLDRICH was named chairman of Financial Federal Savings and Loan Association He replaces the late Mitchell Wolfson Goldrich is a certified public accountant and former managing partner of the Touche Ross office in Miami AL Brown Jr was elected Financial Federal vice chairman ATLANTIC FEDERAL SAVINGS postponed its first annual meeting to Feb 17 The Fort Lauderdale said the original Jan 27 date was pushed back because IRE Financial its largest shareholder is waging a proxy fight against proposed anti-takeover amendments to charter Atlantic also said it may file a counter suit against IRE charging violations of the securities laws IRE filed a similar suit on Thursday charging among other things that shareholders were not properly notified of the annual meeting A GIFT of $3 MILLION has been donated for a new business school at Jacksonville University The gift from the family that founded Winn-Dixie Stores Inc was the largest ever received by the university JE Davis former Winn-Dixie board chairman said the Davis family is interested in building a business school at JU because there were reservations about other institutions which teach you to pay bills out of the receipts and have something left TtStovtowstowstovT STOW on the WOLD CORAL GABLES VIRO BEACH Coca-Cola sells building in Coral Gables will transfer 25 employes to Hollywood Coca-Cola Bottling Co of Miami has sold its administrative office in Coral Gables and will move about 25 employes who work there to Hollywood by the end of the month Larry Smith president of Coca-Cola of Miami said the move from the offices at 4401 Ponce de Leon Blvd has been planned for a number of years main reason for leaving is to be near our bottling plant on Pembroke in Hollywood Smith said still operate our Homestead office and of course our dis tribution center in at 301 NW 29th St Smith said Coca-Cola of administrative offices will be moved into leased space in a new office building at Park Avenue and Hollywood Boulevard The Coral Gables office which once was a bottling plant but has been used for administrative offices for more than a decade was sold for $32 million or $4063 per square foot to a group of investors from Madrid Smith said WE MUST SELL 8 EIGHT (ocho) 1984 0LDSM0BILES Everyday (At Least Until February 15th) One Way To Achieve This Goal is by Selling our many CUTLASSES for less than you can find them anywhere else It is that simple just come to PEXI and see the facts (We mean compare our prices choice of colors options) 3755 NW 78 AVE MIAMI 33166 Phone 592-9260 Taka 36 Str to 79 A Turn Lett and iirt haft Again Entar 38 Str OPEN SATURDAYS 10AM to 1PM Tax Lino 1 5 The Honey Line Florida mortgage rate 10-134 Florida prime rate 11 13-week T-bills 882 26-week T-bills 892 The Dottom Line Assets of money-market mutual funds rose $133 million to $1647 billion in the week ended Jan 18 Alamo Rent A Car of Fort Lauderdale cut the cost of renting an automatic-drive economy two-door car In Florida to $3995 including unlimited mileage American Medical International Inc announced signing of a definitive agreement to acquire Lifemark Corp a Houston-based healthcare company for about $1 billion Royal Crown Companies Inc In Atlanta said it completed the sale of its soft-drink six remaining bottling plants to RC Cola Bottling Co Inc for $30 million The Sentinel Communications Co of Orlando agreed to sell two shopping guides and three weekly newspaper published in Oceola to settle a Justice Department anti-trust suit By MYRON LUBELL QI work for a supermaket and every Thanksgiving and Christmas the company gives all employes a free turkey been told that this gift is tax-free because of the and Ham This sounds like a special Santa Claus provision and I am not a believer in Santa Claus or the Easter Bunny I have been arguing with my coworkers that a so-called gift from your employer Is really additional compensation and is taxable Please settle this dispute NOW TO RECOVER 3 Rule Revenue Ruling 59-58 issued in 1959 excludes the value of "turkey hams or other merchandise items of small or nominal value distributed to employes on holidays to promote But the exclusion only applies to minor items Distributions of cash gift certificates or other items readily convertible into cash even if extremely small In amount must be included In the income' Dr Myron Lubell coordinator of tax studies at Florida International University will answer tax questions Monday through Saturday in the Herald until April 15 Mail your questions to the Business Desk The Miami Herald 1 Herald Plaza Miami 33101 OFFICE FOR LEASE KENDALL Approximately 4400 sqft of 2nd floor offices separate AC entrance plus elevator in a financial institution building Call Bud Schroeder 883-7179 A Virginia there is a Santa And there really is a Turkey and Ham i.