Richmond Times-Dispatch from Richmond, Virginia • 18

BUSINESS LINES Piedmont to consolidate Dow Jones before mdre expansion average sets record TAKEOVERS PROPOSALS By Ken Otterbourg i Jamal NEW YORK Binwifks Corp said yesterday it will try to eater into new five-year employment contracts with 36 key Sperry Corf employees before the merger of the two companies is completed in about two months The proposed contracts were disclosed to a filing with the Securities ui Exchange Commission one day after Sperry a New York-based computer concern agreed to merge with Detroit-based Burroughs in a deal worth about 48 billion DETROIT Chrysler Corp announced plana aimed at eventually taking over Maserati the Italian luxury automaker now IS percent owned by Chrysler It was Detroit's second major move in a week Involving an Italian carmaker Ford Motor Co disclosed last week that it has entered take- over talks with Alfa Romeo a maker of sports cars and small sedans NEW YORK Ogilvy A Mather Worldwide uid it plans to ac- quire the Adams A Rinehart lac public relations company for $6J million cash Ogilvy Group stock and future cash payments baaed on revenues Keueth Romaa president of Ogilvy and Mather Worldwide said Ad- ams A Rinehart will continue to operate as a free-standing unit under the umbrella of a newly organized Ogilvy and Mather Public Relations Group The group also will include the Dudley-Aaderson-Yutsy public relations firm and Ogilvy aad Mather Washington 8189 Piedmont lost 81 million in the first quarter of 1986 because of losses at Empire and discounted fares Howard said Piedmont was selling more seats but getting less money per seat Howard said Piedmont had begun a program of to ensure that the carrier didn't discount ticket prices unnecessarily All airlines had suffered from a drop in yield said Howard "And if at the end of 1986 we report some very good numbers to you it will be because our yield deteriorated less than anybody Although the Syracuse hub is well-positioned in the populous Northeast Howard said Piedmont has no intention of building that base to the size of the other three hubs But Howard gave few dues on where Piedmont would look for expansion of service For many months Wichita KaiL has been wooing Piedmont to fly there and shareholders asked Howard if Piedmont was considering flying to the Seattle area or joining efforts with a carrier that serves the West Coast a region Piedmont has just begun entering with flights to San Francisco and Los Angeles cant help but be looking out to the said Howard adding that the airline never makes public Us expansion plans until ready to sell Howard said management is of and open to the right for merging with another carrier if the move would strengthen the company and its shareholders not that easy to see opportunities out there where the combined company could be acquired at a right From wire dispatches NEW YORK The Dow Jones industrial average dosed at a record high yesterday as the stock market posted its fourth advance in as many days The Dow average boasted by are- surgent IBM climbed 355 points to 187838 surpassing the previous record of 1S55J set April 3L In four sessions the blue-chip barometer has Jumped 103 points Broader market indexes also set 1 records: The New York Stock Ex- change composite index 181 to 14173 passing its previous record of 14107 set April 31 (the price of an average share Jumped 30 cents) Stan- dard A 500-stock index 1JS to I 24663 toppling the record it set Toes- day) the American Stock Exchange index 017 to 38015 passing the high set Tuesday (the price of an average share gained 5 cent composite volume edged up to 15J3 million shares from 1546 million Tuesday) and the National Association of Securities Dealers Index of over-the-counter -Stocks 317 to 39716 Volume on the New York Stock Continued on page 8 eoL 3 WINSTON-SALEM Piedmont Aviation Inc will strengthen its existing operations before pursuing any significant expansions William Howard the airline's president and chief executive officer said yesterday Speaking at annual shareholder meeting in Winston-Salem Howard said Piedmont Airlines would work on building the Syracuse NY bub it gained through buying Empire Airlines and on maintaining a high revenue per passenger mile Sown We are quite some months away from a decision on additional said Howard Betides Syracuse Piedmont operates hubs at airports in Charlotte Dayton Ohio and Baltimore-Washington At the meeting shareholders approved the issuance of 40 million additional shares of stock a clause staggering the terms of the directors and a fair-price amendment that makes Piedmont lea susceptible to a hostile takeover The Empire purchase which began in October 1985 and was completed in May capped a year of expansion for Piedmont In a year marked by fare wars among airlines Piedmont started an intrastate air shuttle in Florida and added two smaller carriers Britt Airways and Jetstream International Airlines to its stable of Piedmont commuter airlines In March bockway Air became the fifth commuter airline flying under colors In 1985 net income rose 147 percent to 8667 million on revenues of L57 billion an increase of 19 percent Primary earnings per share fell percent to AIRLINES PLANES WASHINGTON The Department of Transportation's public counsel's office has recommended that Northwest Airlines he allowed to buy Republic Airlines contending that the fM4 million acquisition will not cause higher fares or reduced services A final decision on whether to approve the merger of the two Minneapolis-based airlines rests with Transportation Secretary Elisabeth Dole after she receives recommendations from a department admlnis- trative law Judge next month NEW YORK Paa American World Airways seeking to bolster domestic business because of a travel slump to Europe mwmfi a heavily restricted $99 one-way coasMo-coast fare good through Sept 14' The announcement by the New York-baaed carrier matched a reduction announced a week earlier by competitor Trans World Airlines which also is suffering from depressed trans-Atlantic business OIL INDUSTRY NEW YORK Mexico which has been supplanted by Saudi Arabia the largest US foreign crude oil supplier has raised its oil exports to 14 million barrels a day in the past two months Mexican oil sources uid LONDON Worldwide production of crude oil and natural gas liquids fell 16 percent to 578 million barrels a day in 1989 from 1984 levels and 13 percent from the peak of 66 million barrels a day In 1979 the Royal Dutch-Shell Group reported In the Middle East where production is dominated by the Organisation of Petroleum Exporting Countries overall production dropped by almost 10 percent below the 1984 rate (Ml prices slipped 27 cents a barrel to 14J3 for each 42-gallon barrel on the New York Mercantile Exchange as traders anticipated an oO industry report that showed US gasoline stocks are becoming more plentiful Oil traded on world markets fell by as much as 49 cents a barrel After the Merc closed the American Petroleum Institute reported gasoline stocks increased for the third week In a row after declining steadily for more than two months ELSEWHERE BETHLEHEM Pa Whiter Williams was named chairman of Bethlehem Steel Cospi to replace DonaM Thautlda signaling a change in direction for the struggling steelmaker away from diversification and to basics" MARYSVILLE Ohio Honda International Tradlag Corp announced a new program by which Ohio grain is being shipped to Japan in bulk containers used to transport parts to Honda assembly plants In Ohioi The first shipment this week will load A000 bushels of corn: 1500 from the Ohio Grain Co in Marysville and 1500 from Premium Ag Commodities in Circleville 1 USl and Japanese negotiators held day-long discussions aimed at resolving a dispute over trade in computer memory chips a Mialstry of International Trade and Industry official said But the official said no details woe available about the contents of the talks between Trade Representative Clayton Yeatter and MITI Minister Michio Wataaabe from wire dispatches unraa niN mumanonai Protest at Coleco Anti-war protesters picketed the annual shareholder meeting of Coleco Industries Inc in Farmington Conn yesterday They demanded that the company halt sales of its Rambo toys scoffed at the argument that the toy figure is a patriotic role model and urged pass-ersby to boycott violent toys Company spokesmen said the protesters are entitled to express their views but added that the company does not consider thisir activities meaningful Sun papers being sold so is WRLH Fran AP staff dispatches BALTIMORE The Times Mirror Co has agreed in principle to buy the Baltimore Sun Evening Sun and two television stations in a $600 million cash deal announced yesterday Times Mirror is buying the AT Abell Co owners of the Baltimore newspapers and of TV stations in Baltimore and Richmond Va The sale came one day after other newspaper the Hearst- owned News American ceased publication after 313 years leaving the Sun papers as the only other general-circulation daily publications in that city Sun papers Publisher Reg Murphy said that Times Mirror first approached the company at the American Society of Newspaper Editors meeting in April but that the first offer was not made until May 11 fair and appropriate from Times Mirror that guaranteed future quality of the caused the turnaround he said Murphy will continue to serve as publisher and chief executive officer of the Baltimore Sun Robert Erburu Times Mirror chairman said in Los Angeles Times Mirror which owns the Los Angeles limes would be a good par-ent company said Shephardson Abell the only Abell family member on the board of directors rep- utation has proven to 'be letting a successful local operation continue with a great deal iff The sale is subject to approval of the Abell shareholders and government approvaL The Baltimore Sun has a daily dr- culation of 304774 while the evening paper has a circulation of 153153 -according to the latest audit The Sunday Sun has a circulation of 437785 The papers have won a total of 13 Pulitzers Prizes The purchase also gives Times Mirror WMARrTV an NBC affiliate in Baltimore and WRLH-TV an independent stalon in Richmond However Federal Communications Commission rules prohibit the acquisition by one party of a newspaper and a television station serving -the same market Therefore the companies said it is expected that WMAR-TV will be sold to a third Prty- Besides its flagship paper Times Mirror owns Newsday the Dallas limes Herald the Hartford Courant the Denver Post the Morning Call in Allentown Pa the Advocate in Stamford Conn and the Greenwich Time In Greenwich Conn Times Mirror also has broadcast and cable television book and maga-' sine publishing ventures In Richmond WRLH General Manager Steven Engles who was promoted to the position earlier this month said the announcement of the sale was a sudden one and plans for WRLH have not been announced year ago we were sold from the TVX Corporation and now -stronger than we were when we were owned by Engles said he told his staff yesterday (Abell Communications paid 8144 million for WRLH) this sale will make us even stronger and more in Fuji plans to market a throwaway camera Solomon and Salsbury allegedly used informs- tion to make mooey for their employers by baying shares of the target companies which wen expected to rise in -price when the takeovers were announced The indictment did not specify the amount of illegal profits allegedly made and prosecutors did not accuse any of the securities firms of knowingly participating in the scheme In addition the indictments said Silverman Shapiro and David split a $140000 profit from trading in stock and option of an unidentified target firm in mid-March shortly before the scheme was uncovered David and Solomon previously were named in a com- plaint jiled March 26 According to court documents the scheme came to light when a coworker of Solomouk overheard the analyst speaking on the phone to David and secretly taped a conversation in which Solomon admitted getting inside information from David David also aDeg-' edly got some information from contacts in the law copying and word processing departments 1 Arraignment for the defendant all in their 30s is' scheduled for June A NEW YORK (AP) Five people far fading former associate at one of New top law firms were indicted yeeterday ou a variety of fraud perjury and obztruction of justice chargea as federal officials continued a highly publicized drive against Charged with insider information in several takeover battles was Michael David who until March worked at the law firm of Paul Weiss Rifkind Wharton A Garrison The firm's clients include numerous major corporations and it is often involved in high-stakes takeover battles The grand jury indictments charged David with misappropriating information from Paul Weiss in about six takeover attempts including GAF bid for Union Carbide Corp last December and three that have still not been announced The indictments also alleged that David used the information to help himself and his friends make low-risk profits in the stock market Also indicted were two Wall Street securities analysts Andrew Solomon of Marcus Schloss A Col and Robert Salsbury of Drexel Burnham Lambert Inc stockbroker Morton Shapiro of Moseley Hallgarten Estabrook A Wee-den and Daniel Silverman a client of TOKYO (AP) Fuji Photo Film Co4 the top Japanese photo film maker will soon market a throwaway camera a pack of color film with a built-in plastic lens and a shutter company officials said yesterday Fuji officials say the $U0 package to be sold only in Japan will deliver pictures with Fuji Photo state-of-the-art 1 There are some drawbacks Users have to take pictures outdoors under bright light because the shutter speed and aperture are not adjustable Subjects have to be at least I feet away Fuji officials hope however that the throwaway camera will realms of photographic because it is cheap and simple to handle The package of film lens and shutter is about the siae of a pack of cigarettes and gives 34 pictures When the film is developed the rest of the package is thrown away Its name is Utsurun Desu Japanese for will take The company plans to sell ooe million in the domestic market In the first year Bank names ex-Riggs chief Students get $100000 for business GP Clancy Jr former president -of Riggs National Corp in Washington has been elected an executive vice president of Bank of Virginia The bank said Clancy will become senior credit officer for a newly organized operating unit in the metropolitan Washington area The unit will represent a network of 53 branch offices including S3 Bank of Virginia offices in Northern Virginia and 13 offices of Union Trust Bank in Maryland's Montgom- ery and Prince Georges counties When Bank at Virginia acquisition of Security National Rank is completed this summer the seven locations In the District of Columbia will become part at the group A native at Washington the 43-yearold Clancy is a graduate of the University at Maryland and Loyola College He joined Riggs National Bank in 1967 as a management trainee until the time of his recent resignation he had spent his entire banking career with the Washington-based bank He was named a senior vice president of the bank in 1980 and was elected president of the parent holding company a year ago it i I FINDLAY Ohio (AP) A Missouri businessman was so impressed with the ingenuity of Findlay College students who won a national contest that he has offered to stake them 8100000 to start their own business never done anything quite like this I saw an extraordinary group of talented young people Oat had entrepreneurial John Boswell of Lebanon Mo said yesterday feel they are destined to be fni and Td like to share in Boswell 39 is president of International Stave Co which manufactures barrels for the liquor-distilling business He was a judge in a recent Students in Free Enterprise national competition in which the Findlay students won first place for their public awareness campaign on the federal deficit The competition was designed to promote free enterprise Two of the seven seniors on the 19-member team have found jobs and Boswell has high hopes for his new partners the other five The 8100000 will cover the salaries and opep ating expenses for their new business Boswell said After two years the students can buy 60 percent of the stock in the new company Boswell win keep the remaining 40 percent of the stock the first 10 weeks be in Findlay doing their research work and setting the business up Then tbeyTl move to whatever geographic location they choose They are thinking more along the lines of the Sun Boswell said The students are considering a business aimed specifically at college students such as a hamburger stand Boswell said i '1.