Business Briefs

Reported by Star-Bulletin staff & wire

Tuesday, July 1, 1997

Major airlines extend
isle-mainland fare sale

All major airlines connecting the mainland and Hawaii kicked off a new summer sale today. The new sale launched by United Airlines and followed by the other carriers essentially is an extension of an earlier sale.

The tickets in the new program may be purchased now through July 11 and are good for travel between July 15 and Nov. 19. The most recent sale had an earlier expiration date.

The airlines say the sale cuts 45 percent off year-round 21-day advance purchase prices. Other sales still in place reduce the extent of the saving and there is little or no change to Hawaii-West Coast fares where there is always strong price competition.

First Hawaiian raises
$100 mil in offering

Using a new investment vehicle known as trust capital securities, First Hawaiian Inc. has raised $100 million to be used for general corporate purposes.

The parent of First Hawaiian Bank yesterday concluded a private offering of the securities, a type of debenture. They will earn the purchasers 8.34 percent a year, payable half-yearly in cash starting Jan. 1.

The parent of Bank of Hawaii used the same system to raise $100 million this year.

Microsoft, CBS deny
report of takeover bid

NEW YORK -- Microsoft Corp. and CBS firmly denied a news report today that the software company was considering a takeover bid for CBS.

The New York Post reported that Microsoft and Montreal-based Seagram Co. both have made preliminary expressions of interest in purchasing CBS. Seagram declined to comment.

"There is no truth" to the report, said Pam Edstrom, a spokeswoman for the Redmond, Wash.-based software company. Edstrom said Microsoft has no interest in buying CBS, which would jeopardize its successful partnership with CBS rival NBC. Microsoft has invested $220 million in its MSNBC partnership with General Electric's NBC.

Westinghouse Electric Corp., which owns CBS, said: "There is no truth to the unattributed rumor reported in today's New York Post story speculating on a possible sale of CBS; nor is any party examining our financial books as reported by the Post."

Lehman lists stocks
to outrun S&P 500

NEW YORK - Lehman Brothers today issued its annual list of 10 "uncommon value" stocks, a portfolio it says will outperform the Standard & Poor's 500 stock index over the next year.

Last year's portfolio gained 36.5 percent from July 1 through June 30, compared with a 32 percent gain by the S&P 500 over the same period, Lehman said.

The 10 stocks in this year's portfolio are Adaptec Inc., America Online Inc., Boeing Co., PeopleSoft Inc., Quintiles Transnational Corp., Safeway Inc., Sonoco Products Co., Southwest Airlines Co., Thomas & Betts Corp. and Washington Mutual Inc.

The first list appeared in 1949. Over that time, 35 of the portfolios have outperformed the market and 13 have underperformed, Lehman said.

Boeing-McDonnell deal
gets federal OK

WASHINGTON -- The Federal Trade Commission cleared the way today for the merger of Boeing Co. and rival McDonnell Douglas Corp., which would spawn the world's largest aerospace company.

McDonnell's faltering commercial airline sales and weakness in competing for military contracts led the commission to permit the deal -- a $14 billion buyout of McDonnell by Boeing. Shareholder approval from both firms is needed before the merger can take effect.

Shareholder meetings are scheduled July 25.