The Los Angeles Times from Los Angeles, California • 70

USINESS COS Andee MMCS Saturday November 19 1983 watPart o) el Selected Interest Rates Averages of daily rates ended Friday in percent Warner Debt Soars After Atari Losses Talks on Purchase of Tymshare Confirmed by McDonnell Douglas 13 li Federal Funds Rate ACArrTondltate0Ali40044 oubt0 errn By PAUL RICHTER Times Staff Writer kft Diocount 12 11 10 8 July Aug Sept Oct Nov average Thursday data Los Angeles Ttmes r- a ve146 la 3-month Treasury BM Yield May June July Aug Sept Source: Federal Rosorve Bank Si Louis Money Supply Spurts $22 Billion in circulation plus demand checkable deposits at banks and It includes Super NOW accounts in billions of dollars Confirming two days of speculation McDonnell Douglas Corp said Friday that it is holding "preliminary discussions" with Cupertino Calif-based Tymshare Inc about a possible purchase of the computer-services firm for McDonnell Douglas stock valued at about $400 million In a statement the St Louis-based aerospace company said that no assurance can be made that the transaction will be completed It also said that there can be no assurances about the price that might be paid or the form of payment In a separate statement however Tymshare said that it "may have discussions with other potential purchasers" if the takeover bid is not completed Stock Closes Higher McDonnell Douglas said that negotiations have centered on a purchase price ranging between $30 and 835 for each of Tymshare's 122 million outstanding shares The acquisition thus would be worth a total of $366 million to $427 million Tymshare stock closed on the New York Stock Exchange at $2775 up $1375 from its 826375 price when trading in the stock was halted at 2:30 pm Thursday Tymshare asked for a trading halt after reports of an imminent takeover added $325 to the stock's price Thursday morning McDonnell Douglas stock meanwhile fell $2875 on Friday to $5550 A Tymshare spokesman said that no other companies are currently involved in talks with the concern but added that he believed several others might step in Analysts said that Tymshare's mention of possible other bidders may have been an effort to draw other companies into competing for the firm although they said that several computer-services companies have considered purchasing Tymshare in the past few months Analysts Comment Meanwhile an official of Automatic Data Processing Inc of Clifton NJ denied speculation that his company is among the suitors for Tymshare A spokesman for New York-based RCA Corp the subject of similar speculation said that RCA "never comments on such rumors" McDonnell Douglas has a computer-services subsidiary MCAUTO and the company has said for several years that it intends to expand into computer-related businesses a McDonnell Douglas spokesman noted Analysts say a number of companies have expressed interest in Tymshare's Tymnet Inc subsidiary which can link many different kinds of computers in many far-flung offices The subsidiary accounted for about one-fourth of 'rymshare's $297 million in revenues in 1982 analysts say and is second-ranked after GTE Corp among companies in the data-networking business Analysts said that McDonnell Douglas might be able to increase Tymshare's profitability by linking it to the aerospace firm's massive data-processing unit one of the world's largest 10 8 7 Oct NOV May June Municipal Bond Buyer's Feb Municipal Scrods 110-cley CO's Bank Primo Rano Currency deposits and other thrift institutions Weekly averages Key Money Fed '5 9 540 supply me 530 targetc--0- 520 00' 00 510 500 490 480 NEW YORK nation's basic money supply took its biggest jump in a month spurting up $22 billion in early November the Federal Reserve Board reported Friday But the rise in Ml representing funds readily available for spending had been widely anticipated and still left money-supply growth well within the range desired by the Fed to stimulate economic growth without rekindling inflation Short-term interest rates were virtually unchanged following the release of the figures but long-term interest rates fell slightly Analysts said bond market traders were cheered by a separate Fed report that confirmed speculation that central bank policy-makers had moved to accommodate lower interest rates earlier this fall But analysts were split on whether those same policy-makers kept to that course at a private meeting earlier this week Minutes of that meeting will not be released for at least another month "As long as the economy continues to chug along at its recent pace there's not going to be much change in interest rates" said Maury Harris senior financial economist at Paine Webber Jackson tzCurtis Inc The Fed said MI rose to a seasonally adjusted $5178 billion in the seven days ended Nov 9 from $5156 billion the previous week MI includes cash in circulation deposits in checking-type accounts at banking institutions and non-bank travelers checks It was the biggest weekly increase since the SU-billion leap in the week ended Oct 12 but some forecasts had predicted a rise of more than 84 billion Earlier this week the White House voiced concern that slow money growth might reflect a shift by the Fed to a more restrictive policy something that could keep interest rates high and choke off the recovery Please see FED Page 2 SEC Filing Discloses Talks to Increase Bank Credit Line By ICATHRYN HARRIS Times Staff Writer Warner Communications Inc wracked by losses of $536 million in its Atari electronics business has borrowed $6705 million in the first nine months this year and is holding discussions with a group of banks to increase its $250-million revolving credit agreement by a "substantial" amount according to documents filed this week with the Securities and Exchange Commission In addition the company said it borrowed another $445 million from its banks during October some of which was to repay a "substantial portion" of the commercial-paper debt it took on earlier in the year "We have sufficient bank lines to take us through our seasonal peak which is right now" said Judy Thompson in charge of the New York-based company's investor relations Record Year for Film Unit "We're not in a cash bind It's not even a question with anybody" said Geoffrey Holmes a Warner vice president noting that the company's balance sheet does not reflect contracts representing about $800 million in business over the next two years Holmes said the contracts are about evenly divided between the company's Franklin Mint and Burbank-based Warner Bros units Sunnyvale Calif-based Atari has suffered huge losses as a result of fierce price-cutting in both video-games and home computers The Warner Bros filmed entertainment division however has had a record year The parent company said its shareholder equity has decreased by 32 to $9536 million at the end of September from 814 billion at the end of as result of its after-tax losses of $4247 million for the first nine months this year and its investment in a pay-television venture The company had total assets of $333 billion at the end of September up slightly from $319 billion at the beginning of the year No Decision on Tax Credits Among its current liabilities Warner listed $3444 million in commercial paper as of Sept 30 compared to $561 million in commercial paper at the end of 1982 Commercial paper is a form of short-term corporate IOU Holmes in response to a question said Warner has not yet decided how it will utilize the tax credits to which it is entitled because of its heavy losses this year Federal tax rules allow a company to apply its losses against profits reported in the three preceding years thus reducing its tax burden The rules also permit in some instances applying the losses against income in future years One way Warner could use tax credits this year according to an entertainment industry accountant would be to sell some future rights to its entertainment programming Warner could offer the buyer a price discounted for the amount of interest Warner could earn by investing the money immediately instead of receiving it months or years down the road Pet Sells Last 24 of Its Vendome Liquor Markets to Rider Stores By CARL CANNON Times Staff Writer Source: Federal Reserve Board Ahmanson Agrees to Acquire in Tulsa Pet Inc said Friday that it has sold the last 24 units in the Vendome liquor and party supply store chain of Southern California to Rider Stores Inc a private corporation Terms of the sale were not disclosed Pet said the divestiture of Woodland Hills-based Vendome is part of its program of asset redeployment to concentrate on its core business of package specialty foods Those products include Pet dairy items Old El Paso Mexican foods Underwood meat products and Whitman's candies Emanuel Rider president of Rider Stores also based in Woodland Hills previously served as the president of the former Pet Inc division and was one of its original founders According to Rider the name of Rider Stores will be changed immediately to Vendome Stores Inc and operations will continue in the traditional Vendome manner of the last two decades Until 1981 when it was passed by Safeway Inc's giant Liquor Barn operation 42 retail the largest chain of its kind in California and one of the four largest in the country Pet Inc a St Louis-based subsidiary of IC Industries Inc Chicago purchased the chain in 1970 Six months ago Pet sold a similar chain of 52 St Louis-based liquor and wine stores That chain 905 Stores Inc was also purchased by the chain's former president Pet earlier had sold off its other Vendome units on a piecemeal basis to various purchasers Three were bought by Liquor Barn which now has nearly 100 units Steve Boone Liquor Barn's president said he had negotiated to buy all of the Vendome operations "but we could not reach a satisfactory figure" Key Rates quoted by leading California financial institutions In percent as of Nov 18 1983 Apr June Aug Oct Business and People Robert Haas to Become Head of Levi on April 4 Levi Strauss 8g Co said Friday that Robert HMIS will become its president and chief executive next April 4 the date of the San Francisco-based company's annual meeting He will succeed Robert Groh-man who announced his resignation effective that same date Haas 41 is the company's chief operating officer Grolunan who is 59 and has held the top job since 1981 said in a statement that he decided several years ago to give up daily corporate responsibilities by age 60 in order to devote more time to personal interests "I now feel the timing is right both for my family and for Levi Straus" he said He will remain a Levi director Mission Insurance Group Inc said Louis Marion' has been elected president and chief executive of the Los Angeles-based firm succeeding Richard De Rosa who previously announced his intention to retire early on the naming of a successor De Rosa will continue to serve as a director and chairman of the board's executive committee the company said Marion' 55 has been with Mission for 22 last 10 as executive vice president and chief operating officer A native of San Francisco he joined Mission in 1961 Bank of America named Robert Sherrett to head its non-traditional retail product delivery administration nationwide The newly created department will market products new to banks such as insurance The bank also named Jerry Bowman vice president and head of corporate banking in the Northwest Los Angeles-lien tura-Santa Barbara region as regional vice president succeeding Sherrett The bark also named James 'recta presently group vice president and regional corporate banking head for the San Francisco-Oakland Bay area as senior vice president and area manager of the San Diego main office He succeeds Larry Hartwig who was named head of the bank's San Diego-Eastern California section a post from which William Baughn will retire on Dec By BILL SING Times Staff Writer Los Angeles-based Ahmanson Co moving to expand its interstate network of savings and loan branches said Friday that it agreed to acquire Tulsa Okla- based Sooner Federal Savings Loan Assn for about $816 million in Ahmanson stock The deal subject to regulatory and other approvals may be the first instance under current regulations in which a California-based holding company has tried to acquire a financially healthy out-of-state without federal "supervision" Ahmanson parent of Los Angeles-based Home Savings of America has been one of several firms that have acquired ailing out-of-state in recent years through so-called supervisory mergers aided by the Federal Home Loan Bank Board or the Federal Savings and Loan Insurance Corp Such acquisitions in some cases designed as last-ditch measures to save the ailing institutions usually involved the healthy acquiring all the 15 million shares a day Analysts said traders have responded cautiously so far to the financial projections for 1984 that the new companies issued Wednesday which included a slight aggregate dividend increase Stock of the "old" which will continue to trade through mid-February was off V4 at 63 on turnover of more than 38 million shares Friday Elsewhere Dr Pepper climbed 212 to 2012 An investment group agreed to acquire the company for $22 a share in a leveraged buy-out Market Declines Slightly Dow Off 3 assets and liabilities of the ailing However Sooner Federal with shareholders equity of $685 million and assets of 814 billion is considered to be healthy An Ahmanson spokeswoman said the acquisition would be a "natural extension" of its expansion in the Sun Belt Sooner has 28 offices in Oklahoma and seven offices in Texas through a subsidiary Texas Western Federal Savings Loan Assn Ahmanson already owns 83 branches in Texas Missouri Florida and Illinois all acquired in 1981 and 1982 through federally supervised mergers The spokeswoman said Ahmanson would seek to win FHLBB approval of the deal using a rule that allows an firm to acquire other in states in which it already operates Sooner Federal is expected to merge its Oklahoma operations into the Texas subsidiary which Ahmanson then would acquire she said Please see AHMANSON Page 2 a type of transaction in which assets of a company are typically used as collateral to help finance its purchase 'rymshare rose 1 to 27 while McDonnell Douglas fell 27 it to 5512 McDonnell Douglas said it was holding preliminary talks for the acquisition of Tymshare through an exchange of stock Talk of possible new declines in oil prices depressed energy issues and at the same time spurred buying of airline stocks In the energy sector SchlumberPlease see STOCKS Page! 6 Friday Nov 18 1983 "la -7807 I kSDAII WILSHIRE 048 IIIII APAEX NASDAQ 'EU 002 OEIMEIMMIEMM UII Deposit Rates MIA: Money-market deposit accounts requiring a minimum balance of $2500 and allowing six fund transfers per month CD: Certificate of deposit account with 2-year term Loan Rates Mtg: Rate for a 30-year $150000 adjustable mortgage Terms appraisal fees and loan origination charges vary 2not Second trust deed loan of $20000 fully amortized over 15 years adjustable rate (fixed rate denoted by Auto loot Interest rate for an $8000 48-month new car loan Caulk Annual percentage rate charged on credit balance Institutions charge an annual fee of $10 to $18 Deposit Rates Leen Rates Banks MMA CD Mtg 2nd Auto Card Bank of America 835 1115 1200 1175 1450 1990 California First Bank 840 1075 NA 1350 1350 1990 Crocker 840 1025 NA 1175 1400 2100 First Interstate 835 1050 NA 1300 1400 2100 Lloyds California 840 1075 MA NA 1350 20(0 Security Pacific 840 1050 1150 1375 1450 2040 Sumitomo Bank 840 1100 NA NA 1300 1980 Wells Fargo 840 975 1275 1150 1400 2000 Allstate Savings 875 1070 1113 13756 1375 NA American Savings 875 1100 1175 NA NA AA California Federal 860 1050 1050 1325 1350 1700 Central Savings 870 1017 1288 1325 NA 1800 Citicorp Savings 875 1060 1225 1400 NA AA Coast Federal 875 1040 1050 1175 AA 1910 Columbia Savings 900 1090 1175 NA NA 1910 Downey Savings 875 NA 975 1175 1375 NA Far West Savings 905 1075 1025 1375 1375 NA Fidelity Federal 850 1025 1050 1100 NA 2100 First Nationwide 850 1075 1188 1275 NA 1800 Gibrahar Savings 862 1062 1100 13756 1350 2100 Great American 870 1090 1100 1375 1375 2040 Great Western 860 1100 1075 1275 NA 1990 Horne Federal Savings 875 1067 1050 1150 1296 1800 Home Savings of Amer 875 1025 1075 NA NA 1800 Imperial Savings 870 1080 1025 1150 1375 1700 Mercury Savings 876 1076 975 1075 1350 1980 Pacific Federal 843 1000 1088 13876 NA 1980 Valley Federal 880 1000 1075 1275 1275 1800 World Savings 570 1000 1075 1150 NA 1980 From Times Wire Services NEW prices closed out a mixed and sluggish week with a moderate decline Friday as traders looked ahead to next week's start of trading in the successor companies to American Telephone Telegraph The Dow Jones average of 30 industrials dropped 365 points to 125102 trimming its gain for the week to 082 Takeover news and speculation accounted for some of the day's biggest winners and losers Many investors' attention was focused on the scheduled start Monday of trading in the eight stocks that will emerge from the impending breakup of American Telephone Telegraph Co The divestiture doesn't become effective until Jan 1 But the stocks of the seven regional companies that will take over local telephone service and the new smaller will begin trading next week on a "when-issued" basis The Big Board has estimated that their introduction could increase trading volume on the exchange by Markets at a Glance -365 -047 11 DOW 30 OMNI NYSE gUt 'I.