The Pantagraph from Bloomington, Illinois • Page 27

Tuesday, May 24, 1994 The Pantagraph HIGHLIG Dow Jones 3742.41 1 N. ft ft Km i Uyj III'!) A I 500 p3.94 til uta 1 I I 453.20 gilffii iNais'ciaqlS Bill 724-95 I More stock report Inside Th PirtogmpftLORI ANN COOK Chris Jameson, 6, son of Doug and Gloria Jameson of Bloomington, enjoyed the new playland at McDonald's at 2507 E. Oakland Bloomington, Monday. McDonald's adds fun, new site By KATHY McKINNEY Pantagraph business writer Remodeling of McDonald's restaurants at 2507 E. Oakland Bloomington, and at 1507 E.

College Normal, is complete while construction of a new restaurant at McLean is under way. The work at the Bloomington-Normal restaurants included adding playgrounds at both locations, with the playground at the Oakland Avenue store inside the building, said Julie Dobski, who co-owns the restaurants with her husband, Bob. The interior at the College Avenue restaurant has a sports theme, while the Oakland Avenue restaurant has a 1960searly 1970s theme. The Dobskis also are converting a former Dairy Queen restaurant in McLean, which closed late last year. The McDonald's restaurant, which will seat about 100 people, is set to open June 9, said Mrs.

Dobski. It will be a typical McDonald's, she said, although it will be connected by a corridor to a gasoline stationconvenience store as was the Dairy Queen. "We felt it was a good location," she said of the restaurant which is at the U.S. 136 exit off Interstate 55. It will be the seventh McDonald's owned by the Dobskis.

Economists predict robust growth in '94 By Scripps Howard News Service The economy is on a roll and could have its best year since 1988, business economists said Monday. 1 Growth in 1994 will be a robust 3.6,-percent, according to 3,400 economists who work for banks, businesses, trade' associations and government agencies. The forecast by the National Associa-" tion of Business Economists shows that rising interest rates will have little impact on the economic growth rate year. "We'll have very strong growth, lots of job creation," said NABE president 1 William Dunkelberg. "This is a very' positive forecast" 1 Higher rates won't hurt Dunkelberg, chief economist for the National Association of Independent-'.

Business, said there is "no evidence" that higher interest rates will slow down the economy in 1994. He said the economy is so healthy that business and consumer borrowers simply will pay the higher rates rather than put off purchases and wait for rates to come down. The pinch will come next year when the economy slows down to a 2.8 percent growth rate and borrowers become more cautious, he said. Could fall by year's end His report, based on projections by 35 business forecasters, shows that long- term interest rates could fall slightly by1 the end of the year, holding" 30-year mortgages below 8.5 percent The Federal Reserve Board has been raising short-term rates to assure long- term investors that is serious about con- trolling inflation. Dunkelberg said he expects no more rate increases unless the demand for -credit accelerates and interest rates rise -without any prompting from Federal Reserve Chairman Alan Greenspan.

"I don't see any need for the Fed to be pro-active," he said. The inflation rate will be only 2.8 -percent this year, even lower than last year's 3 percent, but inflation will rise to 3.4 percent in 1995, the forecasters pre-, met Strong second quarter Dunkelberg said the disappointing 2.6 percent growth rate in the first quarter reflected disruptions caused by the Ca-' lifornia earthquake and heavy snow-' storms in the cold-weather states. The second quarter has been much stronger, he said, and the second half of the year should continue the trend. The forecast for the year is decidedly upbeat with consumer spending up 3.6 percent residential and business investment rising at a rate of 10 percent to 11 percent and housing starts and car sales running well ahead of last year's pace. Unemployment is expected to fall -from 6.8 percent last year to 6.4 percent in 1994 and 6.1 percent in 1995.

CUB, ComEd at odds over bill CHICAGO (AP) A consumer watchdog group took aim Monday at legisla-, tion that would allow Commonwealth, Edison Co. to more easily pass on to customers the multi-billion dollar cost of decommissioning its aging nuclear power plants. 4 The Citizens Utility Board contends, the bill takes away some overview power of the Illinois Commerce Commission! ComEd says other utilities have the power the legislation would give it "The impact and the intent of this bill go far beyond decommissioning," said Martin Cohen, CUB's executive director. "If it passes, we'll soon see all kinds of special charges added to our electric bills." The bill, an amendment to a Senate bill, was introduced last week. It would -authorize the ICC to automatically hike See COMED, page D4 Baby food maker turns Swiss Sandoz a large Swiss-based pharmaceutical company, is buying Gerber Products the No.

1 maker of baby foods. T-blll rates mixed WASHINGTON, D.C. Interest rates on short-term Treasury securities were mixed in Monday's auction with three-month bills edging up to their highest level in two weeks. The Treasury Department sold $12.8 billion in three-month bills at an average discount rate of 4.23 percent, up from 4.22 percent last week. Another $12.6 billion was sold in six-month bills at an average discount rate of 4.63 percent, down from 4.69 percent The new discount rates understate the actual return to investors 4.33 percent for three-month bills with a $10,000 bill selling for $9,893.10 and 481 percent for a six-month bill selling for $9,764.60.

Columbia to buy Medical Care DALLAS Columbia-HCA Healthcare the nation's largest for-profit hospital chain, has agreed to buy Medical Care America a big outpatient surgery company. The $870 million deal, announced Monday, is the latest addition for Columbia, which has grown rapidly in the past year. The exact terms depend on the average price of Columbia stock in the days leading up to its closing. The total won't go over $900 million, said Medical Care senior vice president Jonathan Bond. Limited mulls men's catalog COLUMBUS, Ohio Limited Inc.

chairman Les Wexner told shareholders Monday the company hopes to open about 400 new stores, test a new men's fashion catalog and delve into international retailing during 1994. Wexner fielded questions about company operations at a news conference that followed its largest annual meeting. Wexner said the company would test this fall a catalog in Structure, a men's fashion division with 325 stores, including one in Bloomington's Eastland Mall. New ethanol lobbying push planned DES MOINES, Iowa Gov. Terry Branstad on Monday called for a new lobbying push to implement new clean air rules to Increase the use of ethanol in cities.

"It's time for us to renew that effort," Branstad said. "We think now is the critical time." Branstad said he planned to enlist the aid of Nebraska Gov. Ben Nelson in lining up Democratic governors to help. Branstad said he would lobby other Republican governors. Plastic recycling symbol changing NEW YORK A coalition of environmental and plastic industry groups voted this past weekend to change a controversial recycling symbol on plastic containers, handing a victory to environmentalists.

But the win may be short-lived, since the plastic industry could vote to reject the recommendation this Thursday. Directors of the National Recycling Coalition voted to replace the recycling symbol, a circle of three "chasing arrows," with a square. They said a square would be less confusing to consumers. State sues tobacco Industry JACKSON, Miss. Mississippi sued the tobacco industry Monday, claiming the state's taxpayers should not bear the burden of costly tobacco-related illnesses.

Officials say the lawsuit, filed in state court in Jackson County, is the first of its kind. It comes amid mounting pressure against tobacco companies over the health effects of cigarette smoking. U.S., Japan close to trade deal WASHINGTON, D.C. The United States and Japan are close to a deal to resolve a three-month trade dispute. Under the deal under discussion, the U.S.

would pledge not to seek specific numerical targets for foreign imports into Japan and in return the Japanese would drop their opposition to using various criteria to measure progress in opening markets. Gerber Headquarters: Fremont Mich. Businesses: No. 1 baby food maker with 70 percent market share; infant apparel, life insurance. 88 History: Founded in 1901 as a canning company; introduced first strained baby foods in 1928.

Expanded to other baby products, life insurance in 1960s. In 1990s, cut back clothing and cloth diaper business; sold Buster Brown apparel in 1993. 5 Recent news: Revenues down due to declining births; price competition. Expanding overseas to stem the loss. Also has been seeking alliance and-or buyout Employees: 12,000 Annual sales: $1.17 billion for fiscal year ended March 21, 1994, down 8 percent from previous year, which included Buster Brown.

Annual profits: $113.63 million, up 167 percent from previous year profits reduced by A SAHSOZ Headquarters: Basel, Switzerland Businesses: Drugs, nutritional foods, industrial and agricultural chemicals, seeds. Makes Ovaltine, Wasa crackers, Isotar sports drink (dominant in Europe.) Big selling drug Sandimmum, introduced in 1982, prevents body from rejecting organ transplants. S3 History: Founded in 1886 as a dyemaker. Diversified into drugs after World War II; dietetic products in 1967; seeds into 1976; biotechnology in 1991. Recent news: In March, introduced Lescol, an anti-cholesterol drug that sells for half the price of competitors.

Has been searching for further expansion. Employees: 54,000 Annual sales: $1 0.6 billion for fiscal year ended March 24, 1994, up 5 percent Annual profits: $1.2 billion, up 14 percent Swiss firm to buy Gerber FREMONT, Mich. (AP) Gerber Products anxious to expand its baby food business globally, said Monday it is being sold for $3.7 billion in cash to Swiss pharmaceuticals and chemicals conglomerate Sandoz Ltd. The announcement of the sale followed months of rumors that Gerber was entertaining offers to sell. The deal will allow Gerber to expand internationally much faster than it could on its own.

It also gives Sandoz a boost for its global nutrition business. Sandoz, based in Basel, said it will offer $53 a share in cash for all Gerber shares. That is 53 percent more than its closing price Friday of a share on the New York Stock Exchange. Gerber stock rose $15.50 Monday to Sandoz said it plans to begin its tender offer for Gerber shares by Friday, and expects to complete the deal in three to six months. "I think the $53 price is flabbergastingly high," said New York analyst Bill Leach, with Donaldson Lufkin Jenrette.

Sandoz has "more money than sense," he said. But analyst David Rabinowitz of Kidder, Pea-body Co. called the deal commendable. "In terms of strategic fit, it will certainly give Gerber a leg up in addressing the international market, which up until now has not been a major area of success for the company," Rabinowitz said. Monday's announcement followed short but intensive negotiations and competition among a number of other companies interested in Gerber, accounting rules cnanges.

The deal at a glance S3 Sandoz to pay $17 billion or $53 per share, a 53 percent premium over Getter's closing price Fnday. Gerber gets international marketing expertise without significant new costs. Sandoz gets significant U.S. expansion and growth of nutrition business. Sandoz paying a high premium over Gerber stock value, potentially diluting Sandoz profits, short term AP See GERBER page D4 SOURCE: Sandoz, Gerber, Hoover's Handbook.

More Americans becoming techno-friendly ST i BWUM OHM mm AP New Microsoft system to hit shelves this year ATLANTA, Ga. (AP) The next version of Microsoft Windows operating system, the so-called "Chicago" product long awaited by the personal computer industry, will be out late this year, chairman Bill Gates said Monday. He said the product will be more powerful and simpler to use than current Windows software, which adds graphical icons and point-and-click commands to the DOS operating software that runs 8 out of 10 PCs. "It will be a lot of fun to challenge that date," said Gates, whose plans for the new product have been closely watched in recent months. By committing to the date in front of a large industry audience at the spring Comdex-Windows World show, Gates positioned the company to quiet its skeptics if it delivers.

See MICROSOFT, page D4 WASHINGTON, D.C. (AP) Nearly one in three American households has a personal computer and almost half of all Americans have an automatic teller machine-card, two signs that Americans in the '90s are increasingly comfortable with technology. A large survey by the Times Mirror Center for The People and The Press found that more and more Americans are using technology bank machines, VCRs, personal computers, cable television and fax machines and that they are generally friendly toward it Consider: About 23 million adults use a home computer nearly every day. At work, 55 percent of the people use a computer. About 47 percent of Americans have an ATM card and at least 13 million pay at least some of their bills electronically.

Fully 85 percent of all households have a VCR. And 64 percent are hooked to a cable TV system. The center, which does public interest research, interviewed 3,667 adults, 18 years or older and 400 children aged 13 to 17. The. survey examines "many vehicles" on the information See TECHNO, page D4 British Airways profits up LONDON Profits are on the rise at British Airways, but so is concern about the financial health of the carrier's American partner, USAir Group Inc.

British Airways Chairman Sir Colin Marshall warned Monday that his company might have to write off all or part of its investment in the troubled carrier, but he said a passenger-sharing partnership should continue even if USAir's finances worsen. 24-hour business information on CITYLINE Cad 829-9OO0, enter 9001 Financial newt headline 9002 Stock market 9500 Stock quotes Microsoft Chairman Bill Gates demonstrated some of the company's newest software as he opened the Comdex-Windows exposition Monday in Atlanta, Ga. 1.