The Miami Herald from Miami, Florida • 168

NYSE5B AMEXNASDAQ7B 0PTI0NS8B 0 Wednesday March 11 1987 The Miami Herald 4B Business I'Jorld States promise trust-busting campaign SEC chief: More Boeskys ahead Dow jumps 1997 as IBM leads surge From Herald Staff and Wire Reports Prices were sharply higher at the close of the New York Stock Exchange Tuesday in active trading bolstered by takeover activity and a surge in IBM and other blue chip stocks The Dow Jones industrial average which fell 2011 Monday rose 1997 to 228009 Big Board volume rose to about 17478 million shares from 16543 million Monday Among the most actively traded issues on the NYSE IBM was up $4 to $14288 and American Express rose $212 to $79 Both stocks were bolstered by investment recommendations that he used confidential information to make $50 million in illegal stock trading profits having its own momentum one case leading to another" Shad said think eradicated insider trading yet by any means" But Shad also said he believes the recent actions have begun to have an impact think scared the hell out of a lot of people There used to be trading based on dinner-table speculation You see much of that Herald Washington Bureau WASHINGTON US Securities and Exchange Commission Chairman John Shad said Tuesday his agency will "dramatically escalate" its war against insider trading and other securities fraud this spring and will bring federal charges against "many top Wall Street professionals will be more shoes to and Boeskys" Shad said referring to Wall former star stock speculator Ivan Boes-ky who paid the government $100 million in November to settle charges eral drew an unsolicited offer from Dart Group and Harper Row Publishers got a buyout proposal from Theodore Cross who founded and later sold a New Jersey book publishing company These proposals came after an investor offer Friday to buy Taft Broadcasting of Cincinnati for $135 billion Financier Carl Lindner said Monday in a filing with the Securities and Exchange Commission he too may attempt to acquire Taft which owns WCIX-Channel 6 of Miami John Van de Kamp attorney general said that because the federal government will not enforce antitrust laws the states must "Anyone who hopes to parlay a pile of money and a period of lax enforcement into an escape from the discipline of the marketplace should take Van de Kamp said states will forcefully defend a free The guidelines are to serve as a consistent uniform standard to be followed by the 55 state and territorial attorneys general in deciding whether to challenge proposed mergers WASHINGTON (UPI) Criticizing the administration for an attitude toward mergers and takeovers state attorneys general announced Tuesday a uniform policy to fight corporate acquisitions that cut competition and boost consumer prices The new policy which calls for stricter enforcement of federal and state antitrust laws was approved unanimously at the annual spring meeting of the National Association of Attorneys General New York State Attorney General Robert Abrams noted at a news conference that the 18 largest mergers in history involving oil steel airlines and other industries have occurred in the last five years anything-goes enforcement policy on mergers and acquisitions contributes to an environment in which some Wall Street professionals have seen fit to break the rules in pursuit of the tremendous amounts of money that can be made promoting these Abrams said Under tougher antitrust enforcement incentive for engaging in insider trading would be greatly reduced" he said referring to the Ivan Boesky case and other incidents of Internationa! Piedmont Aviation Allegheny International agreed to a buyout by the investment firm First Boston and New York developer Donald Trump agreed to purchase control of Resorts International In addition Caesars World received a takeover bid from money manager Martin Sosnoff Supermarkets Gen illegal use of secret corporate information on Wall Street Merger-and-acquisition activity sizzled anew this week with the announcement of seven major takeover proposals with a combined value of $54 billion Chrysler agreed to buy American Motors USAir Group agreed to acquire VOLKSWAGEN says it may have lost up to 480 million marks in currency dealing The West German automaker said the equivalent of $266 million could have been lost through possibly illegal foreign exchange dealings Volkswagen has asked the nearby Braun schweig district office to investigate possible fraud misrepresentation and forgery charges in connection with the transactions National mum American Motors Corp never could -duplicate the success of its Rambler the first best-selling compact car in the United States The Jeep has been one of the few big sellers for AMC The Pacer would-be entry in the fuel-efficient compact market was a failure RETIRED LTV steelworkers demonstrated for benefits in Washington LTV filed for bankruptcy protection last July 16 and curtailed medical benefits for 78000 retirees although Congress restored benefits through this May 15 Some retirees lost a $400-a-month supplemental payment when the government took over three LTV pension funds covering 60000 retirees on Jan 13 Companies AMERICAN MEDICAL International rejected a takeover proposal from Dr LeRoy Pesch It was the second time in a month the fourth-largest hospital operator turned down a bid from the Chicago physician The Chicago company termed sweetened $22-per-share or $191 billion offer of cash and securities In Florida owner seeks to block sale of WTVJ By JOAN CHRISSOS Herald Business Writer The owner of NBC affiliate WSVN Channel 7 said Tuesday night he will ask federal regulators to block proposed purchase of rival station WTVJ-Channel 4 going to petition the Federal Communications Commission to deny the application of NBC to buy Channel Edmond Ansin said Tuesday night on news broadcast It was first public comment since parent company General Electric Co announced in January that it planned to buy WTVJ for $270 million WTVJ is Miami affiliate In addition to petitioning the FCC Ansin said he also has asked congressmen to help stop the sale which if approved by the FCC would force Ansin to relinquish his NBC affiliation when his contract expires in January 1989 WSVN has been an NBC affiliate since its inception in 1956 One analyst contacted late Tuesday said Ansin is unlikely to persuade the FCC to block the WTVJ sale stand a said Dennis McAlpine a media analyst with the Wall Street firm of Oppenheimer Co Since the NBC announcement there has been much speculation about where CBS would wind up on the television dial Ansin acknowledged Tuesday night that CBS has approached him about buying WSVN but added have told them the station is not for CBS officials could not be reached for comment But CBS officials visited WCIX-Channel 6 last month and reportedly have expressed interest in purchasing the station currently owned by Taft Broadcasting Co Ansin said a CBS affiliation with WCIX would be detrimental to residents of northern Broward County because signal is weak there transmitter is located in Homestead Channel 6 becomes a CBS station talking about a station which basically serve Broward County very Ansin said certainly seems adverse to the public Spokesmen for WCIX and its parent company declined to comment on assertion But McAlpine said Ansin was more concerned about the the millions of dollars he would lose if he fails to strike a deal with a major network just want to be an independent what he is fighting McAlpine said would lose bumpy road to red ink GULL AIR filed for protection and cried foul on Frank Lorenzo The Boston-based regional passenger airline which serves six Florida cities filed for bankruptcy protection and halted its flights Tuesday a day after charging giant Texas Air Corp and its chairman Frank Lorenzo with predatory business practices in an antitrust suit FINANCIAL SECURITY Savings 'will report higher six-month losses Delray Beach-based Financial Security Savings and Loan Association said it found internal accounting errors and must restate its losses in the first and second quarter of fiscal 1987 In the first half of fiscal 1987 ended Dec 31 1986 Financial Security reported losses of $840851 It expects to report an additional $406000 in losses for the period DETROIT (AP) The clunky Pacer the ill-named Gremlin and a disappointing partnership with France have marked the decline of American Motors Corp a two-decade slide blamed on management and design errors and just plain bad luck AMC which lost $8386 million during the last six years stands to disappear into Chrysler Corp in the first major automaker merger since the one in 1954 that created AMC from Nash-Kelvinator Corp and the Hudson Motor Car Co The Chrysler buyout proposal announced Monday for the No 4 automaker was valued at $152 billion pleased that Chrysler is going to acquire AMC because I think that provides a brighter future for the employees of said George Romney AMC chairman from 1954 to 1962 when he left to become governor been what we made it back in the and for some Early in its history AMC cut out the Nash and Hudson cars and focused on the Rambler the first compact economical car on the US market The Rambler forced General Motors Corp Ford Motor Co and Chrysler to build compacts of their own but after Romney left AMC rejoined the big car competition and then added sports cars spreading itself thin Romney said AMC trying to escape the perception that it built boring cars for older motorists dropped the Rambler and replaced it in 1970 with a very different-looking and ultimately unsuccessful line of small cars: the fish bowl-windowed Pacer the triangular Gremlin the square Hornet AMC had planned to put a fuel-efficient GM rotary engine in the Pacer but GM dropped the engine and a six-cylinder was used instead The Pacer lost fuel efficiency as well as its trunk because of changes to incorporate that engine and it ended up several inches higher The Gremlin also had a problem: its name was unfortunate a term once used by mechanics for something wrong with a machine AMC made one move in 1970 that did work out although few seemed to think it would at the time Under Roy Chapin Jr it bought Kaiser Jeep Corp and renamed it Jeep Corp The money-making Jeep line is now considered the jewel in the Chrysler-AMC buyout The Money Line Florida Prime Rate 75 Florida Fixed Mortgage Rate 926 13-week T-bills 563 26-week T-bills 559 Money-Market Fund 7-day Avg 534 Fla Avg Money Market Account 530 The Bottom Line Home Shopping Network reported $93 million in net income for the second quarter up from $42 million the year before Jefferson Bancorp reached a definitive agreement to acquire the holding company that owns Broward Bank GenCorp is selling its RKO Pictures subsidiary to a management-led group Trump bid leaves up in the air TAX LINE Send questions to: Myron Lubell Tax Line The Miami Herald One Herald Plaza Miami Fla 33132 By GREGG FIELDS Herald Business Writer International Airline Inc which shuttles tourists from South Florida to the Bahamas faces an uncertain future in the wake of developer Donald proposed takeover of its corporate parent Resorts International Inc Analysts noting Tuesday that Chalk's has been losing money for years suggested that Trump could try to sell the well-known operator of seaplanes that swoop into Biscayne Bay near Dodge Island "I think probably look hard at any assets like that that are costing the company said Edward Tavlin an analyst in the Hallandale office of Josephthal Co "I'd have to say that certainly could be one of the casualties of the new But Steven Norton Resorts executive vice president said Chalk's has been considered a valuable asset despite its losses feel it is an integral support for our operation at Paradise Island (where Resorts runs a he said is a plus to have your own direct service to Paradise Island" Norton said parts of operations are profitable to Bimini has been a good Trump be reached for comment On Monday his organization announced that Trump is purchasing controlling interest of Resorts a casino and real estate company Resorts is technically based in North Miami where it has 190 corporate and casino support employees but most of its operations and top executives are in Atlantic City Chalk employs 150 people most of whom are in Dade and Broward counties In 1986 Resorts lost $306 million on revenues of $4491 million According to financial filings the company lost $341 million on its airlines operations in the first three quarters of 1986 The results include Resorts International Airways a helicopter service that flies between New York City and Atlantic City Genmar clips with faster boat sales US slashes duty on Brazilian juice By AVIE SCHNEIDER Herald Business Writer The Commerce Department slashed its preliminary duty on Brazilian orange juice 77 percent Tuesday The decision could undermine Florida citrus contention that cheaper Brazilian orange juice prices damage the domestic industry In a final ruling on a complaint by Florida growers the agency found that Brazil is dumping frozen concentrated orange juice in this country at below-market prices but at a much smaller discount than first estimated The agency cut the preliminary duty on most Brazilian processors to 196 percent from the 854 percent established in an earlier finding in October The duty is the estimated percentage below fair market value for which most Brazilian processors sold the juice Brazil supplies about 50 percent of the frozen concentrated orange juice in the United States The US International Trade Commission must decide if that duty will be final It is scheduled to hold a hearing on the case Thursday and will have 45 days to determine whether domestic growers were injured by the dumping The Commerce Department said it reduced its estimate after verifying US prices and further calculating fair value Prices for frozen concentrated orange juice are expected to climb despite sharp reduction in import duties traders told Reuters Bobby McKown executive vice president of Florida Citrus Mutual a 12000-member group that filed the petition last May said he was disappointed that the margin was reduced this is a positive ruling that the Brazilians were dumping product during the timel frame under McKown said Dick Davis For blind exemption get note By MYRON LUBELL Herald Columnist QIn recent years my eyesight has been steadily getting worse Although I am not completely blind I only have limited vision Is is necessary to be totally blind to claim an additional tax exemption or is there some provision for people like myself who are blind? A An additional $1080 exemption is provided for individuals who are totally blind or blind You are considered legally blind if your central visual acuity does not exceed 20200 in the better eye with corrective lenses or if your field of vision is so limited that the widest diameter of the visual field extends to an angle less than 20 degrees However in order to claim this exemption you must attach a certificate to your tax return signed by a qualified physician or optometrist NOTE: Starting in 1987 the extra exemption for blindness will be replaced by an increased standard deduction Single individuals will be allowed to increase their standard deduction by $750 while married taxpayers will only be allowed to add aq- extra $600 INDUSTRIES GNMR OTC 11 12-month range 8-12 is benefiting from a resurgence of consumer interest in boating" notes- The RHM Convertible Survey from Glen Cove NY firm makes a complete line of powerboats including Hatteras luxury yachts Wellcraft high performance boats Larson sportboats and Lund aluminum fishing boats The financial condition is strong and its earnings growth prospects are excellent Management is growth oriented and we look for the stock to do very well over the next few years The Genmar 7 percent convertible bonds of 2006 are an excellent holding" WASTE MAN- another excellent year Technically the stock recently made an upside breakout This is a good growth stock to buy on HOMES (OH NYSE 16 12-month range 1 1 -1 7 is perhaps the best managed company in the manufactured housing says Investment Values from Mt Kisco NY firm has shown persistent and predictable earnings growth The firm managed to eke out record earnings in fiscal 1986 for the 11th consecutive year and the current year should extend that record The technical picture is solidly bullish The stock offers a probable move into the low 20s over the next six months or AGEMENT CHW NYSE 31 12-month range 18-31) specializes in hazardous waste disposal it went public last October as a spinoff from Waste notes Gil Haller's The Strongest Stocks from Stateline Nev firm recently reported that annual earnings rose 70 percent and net inconje increased 104 percent In addition 1987 is expected to be.