The Miami Herald from Miami, Florida • 18

NYSE6B Amext1B NASDAQOTC8B NYSE6B 0 Amext1B NASDAQOTC8B DIaloil oo 0 4viso 4B Tuesday July31 1984 The Miami Herald Businss Viorld II Murdoch to go to St egis holders Construction contracts decline 10 in June mart to expand insurance sales From Herald Staff and Wire Reports TROY Mich mart Corp will expand the sale of automobile and homeowners insurance at its stores in Florida under an agreement with St Regis Corp beginning in August the company announced Monday Insurance will be offered by mart Insurance Services Inc a mart subsidiary under an agreement with the St Regis Insurance Group St Regis Insurance Group is owned by St Regis Corp the paper packaging and forest- products firm It will do business with Dependable Insurance Co of Jacksonville Fla and Central National Insurance Co of Omaha Neb Mart stores already offer insurance in a number of its stores including those in Sunrise Margate Pompano Beach Davie Hollywood Deerfield Beach Lauderhill Oakland Park St Petersburg Jacksonville Daytona Beach and Fern Park The agreement with St Regis will help Mart expand its present services and provide more types of coverage turing in the Panhandle concrete and corrugated steel manufacturing in Fort Pierce and elsewhere and the Dependable Insurance Co a Jacksonville-based provider of home health and auto insurance The per-share value of Murdoch's bid would be determined by whether St Regis completed its previously announced plan of purchasing Colonial Penn Group Inc an insurance company in a $585 million News International said it would offer $55 a share in cash for each St Regis share if the Colonial Penn acquisition were not completed Otherwise the offer would be $47 a share in cash The bid for each St Regis share would be less if the company went through with its purchase of Colonial Penn because part of the purchase price would be met by issuing more St Regis stock NEW YORK (AP) Publisher Rupert Murdoch his bid for control of St Regis Corp rejected by the paper company's management said Monday he intends to take the offer directly to St Regis' shareholders Murdoch's News International PLC said it plans to make an offer to shareholders for 501 percent of St Regis' stock within five business days but it also stressed that legal obstacles may prevent the bid from being launched A St Regis spokeswoman Carol Olwert said her company had no comment on Murdoch's latest plans Meanwhile the price of St Regis' common stock jumped $375 a share to $4950 in afternoon trading on the New York Stock Exchange The stock's opening was delayed for 4 lh hours pending St Regis' announcement on an insurance marketing deal involving Florida mart stores a development From Herald Staff and Wire reports Contracting for new construction fell 10 percent from May to June but the value of contracts awarded in the first half of 1984 rose 12 percent from the first six months of 1983 the FW Dodge division of McGrawHill Information Systems Co said Monday The value of construction contracts signed in June fell to $20 billion from about $22 billion in May and $203 billion in June 1983 the construction industry analysis unit of McGraw-Hill Inc said in its monthly report But it said construction contracts worth $1055 billion were signed in the year to June up from $946 billion a year earlier to Murdoch's that was unrelated proposal St Regis employs Florida 1800 in its Pensacola division The company's operations in the state include wood pulp and paper manufac arkets 3200 people in WKID-TIT is sold for S17 million New owner to convert it to Spanish language THE STOCK MARKET retreated in moderately active trading Monday The Dow Jones industrial average fell 464 points to 110998 Analysts said stocks were trading in a narrow range Lew Smith an analyst at Bear Stearns said price changes are "relatively minor" He added "There are not many stocks that are up or down a point" YIELDS on three-month Treasury bills rose to their highest level in two years Monday The government sold $132 billion in new securities half in three-month bills at an average discount rate of 1040 percent up from last week's 1030 percent and half in six-month bills at an average discount rate of 1064 percent the same as last week The three-month bill yield was the highest since 1056 percent on July 26 1982 while the 1064 percent yield for six-month bills was the highest since 1066 percent on June 11 The new discount rates understate the actual return to investors 1083 percent for three-month bills and 1140 percent for six-month bills 'V 04 11 gji140k 10-114I00k 'E: 4L 41411046 1' -1twoff SiviimP4s1ssss40 i a ii- foois-4:" i 1 4 0- A'1 aiii 0 74 ot p- i ct41K 00 i 4t 4 I Nt '1 4i 1: 4It i I 0 i t' 1 4'' -it '1 4 1 tilt' I -1A 111c 0: orlelt yr ri 1: 1:::: 0 i 4) 00 41 4 mg 4 4 1 i ''7 Ii i i1 4 I --f 1 40k- i i i f2'' 4 --3: I a mt 4:1 ea004(00-140040000-001C g' 4': :) 44-0 of 1--(1 1: '''4 tt' 'Amtm P11 ae'' ik 1tw000lgook lomt164101r Aigitc A' 4 iki' it IP- ''k t-: -i o- iit i 4P 4 7''''-4- X- I(' '-A i I' yfroilt IroyfA: Ixe 4 4 140- 4 1 sci ity t-: -i 1 -1 t1-5 ii 15 leigOi'' s0-- i lik 44AWA4 ::4 12 :4 I zi i 777 A 6 4 I w''''' '1? liti'' -i40es4-i0! ut -J fr- kiki-4' -440-0 i -NI) 0A 1-f4 1 4 5 ::5 4::: :5:::: glpt ii00 0:" i i -4' 4 i 00' 1 I) A 1: i 17 -A i 1" i i 1 7 '11 1 is 1 ---s04w4- i ik ir0 1 i Companies Theodore Gould looks north on Biscayne Boulevard from his office in the Edward Ball Building By TIM SMART Herald Business Writer WKID-TV a Fort Lauderdale independent television station that operates as Channel 51 is being sold for $1775 million to a New York-based communications company The buyer John Blair Co said there is a "high probability" the station which is also the local carrier for the pay television service ON-TV will be converted to a Spanish language station Blair said it has signed an agreement to buy the station from Oak Industries owner of the station since April 1980 "It is probable but not definite that it will become a Spanish-language station" said James Jurist Blair's vice president and treasurer "The history of the station is irrelevant to us' The UHF station went on the air as WSMS-TV in 1968 and Oak Industries bought it in April 1980 Two months prior to that it became a pay television station The station leases time to ON-TV which broadcasts specialty shows sports events and adult movies between 4 pm and 2 am Jim Septer general manager for ON-TV in South Florida said he did not know what would happen to the service after Channel 51 changes hands later this year ON-TV now has about 30000 subscribers in South Florida he said Subscribers who pay $1995 monthly for the service receive a scrambled signal that is decoded by a device attached to their television sets Gould threatens bankruptcy BELLSOUTH was barred from bidding on a contract by a federal judge US District Judge Harold Greene said BellSouth could not bid on a contract to supply the National Aeronautics St Space Administration with a $45 million phone system saying it would mean an unauthorized entry of the regional phone into long-distance phone service The phone network would have linked NASA's Huntsville Ala headquarters with 14 other locations including Cape Canaveral BOEING CO reported marginally increased second-quarter profit The Seattle-based aerospace giant said it was able to report an increase in profit because of improved efficiency in producing its two new jet airliners Sales for the second quarter were $27 billion with earnings of $102 million or $105 per share compared with 1983 second quarter sales of $31 billion with earnings of $92 million or 95 cents per share TELEFONICA said it has signed an agreement with for the production of Integrated circuits in Spain Telefonica Spain's telephone monopoly said the initial investment in the new integrated circuit company would be $200 million American Telephone Telegraph is to provide 80 percent of the $65 million capital stock and Telefonica will furnish the rest from the sale of three office buildings in Washington and Virginia Harvey Ziegler Miami attorney for the Bank of New York said the bank anticipated that Gould may seek protection under the bankruptcy laws "But we're prepared to deal with that" said Ziegler "All that he Gould will be doing is buying time" Ziegler said however that it was not the intention of the banks to take over Miami Center and run it "All we're trying to do is get paid off" Ziegler said Gould said he was prepared to lend his profits from the sale of the Please turn to GOULD5B payrolls then I'll just go about my business" Gould declared "But if they withold the funds then I'll file a federal bankruptcyj chapter proceeding" said Gould indicating there was nearly enough rent money generated by the office building to operate the property successfully The Bank of New York lead lender on the Miami Center project filed a $107 million foreclosure suit Friday against Gould and his project at the mouth of the Miami River Gould who has 20 days in which to respond to the foreclosure suit indicated he had plenty of money for a fight with the banks including $34 million in profits he expects to realize By LARRY BIRGER BusinessMonday Editor Developer Theodore Gould Monday threatened to seek protection under the bankruptcy laws unless his bankers allow him to conduct an "orderly sale" of his Pavilion hotel and office tower in downtown Miami In what could be Gould's final press conference in the $100 million hotel he built the combative developer said it was "up to the banks" to determine how he would operate and sell his Miami Center development at the mouth of the Miami River "If they permit me to use the rent money from the office building to operate the project and meet the Ilk lines Suave Shoe threatens more layoffs PAN AMERICAN WORLD AIRWAYS may acquire new Airbus jetliners The New York-based carrier which wants to replace aging Boeing 727 aircraft would use the European-made planes in the US and Europe a spokesman said But he added that Pan Am is talking with other unnamed manufacturers besides Airbus Industrie about new planes WINTER AIR FARES between Miami and London will faH as low as $319 one-way Nov 1 Citing the strong dollar Pan American World Airways said it is offering "no-strings" fares to London from New York Miami Los Angeles Seattle and Detroit The $319 price from Miami will be good during the week with the price rising to $349 on weekends ON-TV already has severely cut back its local staff following similar cutbacks in Los Angeles and Chicago the only other two cities to have the service The sale of WKID to Blair is subject to the approval of the Federal Communications Commission Blair owns four other television stations in Oklahoma California and Puerto Rico as well as eight radio stations The company posted revenues of $414 million last year Jurist said the purchase of WKID has been under discussion for several months and was not related to last week's FCC ruling that a single company can now own up to 12 television stations instead of the previous limit of seven ers say however that US shoemakers have failed to modernize to keep up with foreign competition and that US consumers benefit from low-priced imports Mirones said the company is about to send 8000 signed letters to the Congress and President Reagan requesting that the United States impose temporary quotas on imports of footwear US shoe manufacturers complain that 70 percent of the estimated 800 million pairs of shoes that will be sold this year in the United States will be imports They are pushing legislation in Congress to limit imports to 400 million pairs of shoes a year The shoe makers say they can't compete with cheaper imports because shoe workers in the United States make an average of $450 an hour whereas their counterparts in Taiwan or South Korea make only $1 an hour The International Trade Commission an independent US government agency that makes recommendations to the President on international trade issues recently voted against the US shoe manufacturers' request for special protection from imports ITC officials said one reason the commission voted that way is because many shoe manufacturers are profitable Mirones said some US shoe makers show profits because they have also turned into importing He said Suave which is one of the firms also involved in importing is considering shifting its stitching operations to low-wage Far Eastern countries "That means a significant amount of layoffs" he said "They are forcing us to shift our operations overseas" By ANDRES OPPENHEIMER Herald Business Writer Miami Lakes-based Suave Shoe Corp one of the largest employers in Dade County said Monday it has laid off 110 employees over the past two weeks The company which normally employs 1900 is engaged in a public campaign to impose quotas on shoe imports It declared it will terminate more jobs over the next few months unless Congress or the White House give special protection to the US shoe industry Sauve produces low-priced sneakers "It will get worse" Pedro Mirones Sauve Shoe vice president said Monday "We may have to lay off as many as 1300 people" US shoe manufacturers say they are being badly hurt by imports from low-wage Far Eastern countries Import In Florida Bob Johnson general manager for WKID said the station covers an area from Homestead to Lake Worth He said he hopes that the station's 20 employees will be allowed to remain after the change of ownership JBYRONS Department stores is looking for sites in Central Florida The department store chain opened four stores in the Orlando area in the past year and CA Coe 113yrons' district manager in Orlando said the chain is considering opening stores in New Smyrna Beach Kissimmee Sanford and Titusville JByrons headquartered in Miami grew from 39 stores three years ago to 57 stores today It plans to open a store today in Fort Lauderdale Adios Miami? No it's bouncing back The tioney Line Florida prime rate 11 I3-week T-bills 103 26-week 1-bills 1064 James 1 relt-74e riusseil '4 Financial Editor The Bottom Line MINE1111 You think drugs crime and refugees are the only Miami happenings attracting worldwide attention? Not so The Latin American business connection was on the mind of a Japanese journalist who spent a couple of days in town last week on his way from Venezuela to New York In Caracas Naruhiko Tanaka had seen a movie called Adios Miami which deals partly with the surge of enthusiasm that developed for the Florida metropolis a few years ago before it weakened along with South American economic troubles and the strength of the US dollar Tanaka is the New York bureau chief for the Japan Economic Journal which is roughly equated in importance in its own land to the Wall Street Journal in America What the visiting journalist wondered soured Venezuelans Colombians and other Latins on Miami? How are things now? He asked officials at the Bank of Tokyo's Miami offices to arrange interviews that might provide answers state a circumstance that makes orderly development almost impossible Fast growth creates demand for things such as housing and consumer goods Suppliers rush in to provide them They don't just meet the demand they exceed it It has happened in everything from condominium apartments to discount department stores Inevitably there is a day of reckoning a shakeout The weak fail The strong prevail With South Florida's transformation into an international trade and financial center the boom has been in luxury apartments retail outlets and high-priced office space As depicted in the film Adios Miami people from Florida's No 1 trading partner Venezuela flocked here to spend oil-induced wealth They bought the luxury condos and the expensive consumer items creating an unsustainable retail boom in Miami They funneled liquid assets into Mi ami's expanding array of international banks They established business and social connections Then the oil boom faded the international debt crisis developed the Latin economies weakened the Venezuelan currency was devalued and the US dollar's strength made Miami's bargains evaporate Adios Miami Another bust? End of story? Not quite Every period of ups and downs has left the community with a broader economic foundation and has lessened its reliance on the traditional tourist trade Sturdier financial support underlies the resulting structure The basic elements of a world-class city are in place Miami already is bouncing back the Federal Reserve Bank of Atlanta economic researchers concluded recently "and the current recovery demonstrates that the city has a diversified economic base" Nola Miami! London's Dorchester Hotel home from home for princes and movie stars was sold Monday to Regent International Hotels Co of Hong Kong for about $52 million Barnett Brokerage Service a discount brokerage will become a separately incorporated affiliate of Barnett Banks of Florida Inc on Aug 1 Miami-based Storer Communications Inc declared a dividend of 10 cents a share on its common stock payable Sept 6 to holders of record Aug 20 Solitron Devices Inc of Riveria Beach said it signed a letter of intent to provide $5 million worth of semiconductor equipment and technical assistance to Yugoslavia Coral Gables-based Wackenhut Corpreported a 6 percent gain in net income for the quarter ended July 1 from $1368000 or 35 cents a share to $1425000 or 37 cents a share The explanations Tanaka received from two international bankers and a local editor provide a pretty fair capsule summary of the strength and weaknesses of the Latin connection in mid-1984 What turned the Latin invasion from hot to cool was the latest manifestation of a recurring Florida trait In the 1920s it was called boom and bust In more recent decades the aftermaths of booms have become much less severe Each cycle has left a residue of permanence and strength It is Florida's fortune and misfortune to be a rapid growth 1 I.