S Financial 1 Markets B6 HH . , : The Daily Herald DOW (Industrials) UiTA NASDAQ StockCUPERTINO, Calif. holders at Apple Computer Inc.'s annual meeting blasted top executives for not doing enough to solve longstanding problems that have resulted in red ink, shrinking market share and a possible takeover. NYSE Diary Advances: 1,318 New highs Declines: Several investors 106 1,201 756 Unchanged: Total issues: 3,095 1995 avg. comp. vol.: 422,909,640 New lows 15 Volume: 510,071,340 investment manager from New York who owns 0,000 Apple 1 shares. PITTSBURGH (AP) Jim the buying spree that boosted Manzi, the chairman of Lotus spending 0.9 percent that month. Development Corp. when it was NEW YORK (AP) acquired by IBM, has ended a 3 Merck & stint of unemployment Co. posted increased quarterly y becoming president and chief profits while xecutive of a company that develCo.'s bottom line fell and Bristol-Myeops marketing for busiSquibb Co. suffered a loss nesses. due to breast implant claims and i .Manzi said Tuesday he decided restructuring costs. to drop plans for a longer sabbati-ca- h Despite that mixed picture, anaand join Pittsburgh-base- d lysts said Tuesday that the drug Industry.Net Corp. after considerindustry remains strong thanks to ing several career possibilities. higher demand from an aging population, innovative new products The and more aggressive price increasWASHINGTON (AP) es. Republicans say Treasury Secretary Robert Rubin is crying wolf in warning of an unprecedented WASHINGTON (AP) The government default on March 1, 1995 Chrysler Cirrus and Dodge and financial markets appear to be Stratus cars fail to meet federal for now at standards for rear seat belt siding with the GOP least strength, the government's highi ' Private economists argued that way safety agency said Tuesday. the1 chances of an actual default The National Highway Traffic were' still extremely low, despite Safety Administration called for Rubin's latest warning, because public comment before deciding Such an event would be so catawhether to recall the cars for strophic, i, replacement or repair of any faulty Both stocks and bond prices fell part of the rear seat belt assembly. r .. More than 91,000 of the cars Tuesday, the day after Rubin's but announcement, analysts are on the road. blamed most of the decline on g Stocks NEW YORK (AP) three following bonds with as sessions. retreated Tuesday rlong trading investors braced for market reac' ConWASHINGTON (AP) tion to the State of the Union sumer spending shot ahead at the Address, which was expected to fa'stdst clip in nearly two years in prompt more posturing in the fedNovember, but analysts contend eral budget deadlock. The Dow industrial average consumption will slow this year because of weak income growth lost 27.09 to finish at 5,192.27. The dollar moved slightly highand large debt accumulations. er against most major currencies. LOn Tuesday, the Commerce Department reported personal Gold edged slightly higher. Bond incomes grew just 0.2 percent in prices were lower. Wheat, copper, lumber and natNovember, meaning Americans had ,to dip into savings to finance ural gas futures surged. i said chief executive officer Michael Spindler should resign including one who said so to his face Tuesday. "You have mismanaged assets and damaged a franchise and brought a great company to its knees, and, Mr. Spindler, it is time to go," said Orin McCluskey, an National Highligh Warner-Lambe- rt rs on-li- ne . profit-takin- - aria said nothing in and called on another Spindler response speaker. But several hundred shareholders who jammed the auditorium applauded. "What we need more than anything is more specifics and more honesty," said Patrick Martin, a San Diego investment manager. "Somebody's got to step up and own up ... so they can move on." Spindler and Apple chairman Mike Markkula faced off with investors a week after the second-largecomputer company reported a $69 million loss in the quarter, usually its best. Apple also announced the first phase of a restructuring, st October-De- cember By STEVEN P. ROSENFELD AP Business Writer NEW YORK Wells Fargo & hosCo. today won a three-mont- h tile bid to acquire First Interstate Bancorp, for $11.6 billion in a merger that could eliminate 7,000 jobs. Half of the jobs expected to be cut are in the Los Angeles area, and hundreds of California branches face closure. The deal, which creates the nation's eighth-large- st bank, ends a rival bid by First Bank System Inc. of Minneapolis, which also wanted to acquire Los Angeles-base- d First Interstate. First Bank Capacity utilization Performance of key stock markets ' LONDON (AP) Granada Group PLC clinched a hostile takeover of Forte PLC for $5.7 billion, with nearly 70 percent of shareholders in the hotel and restaurant company accepting the bid. "The deal, announced Tuesday, was a huge win for Granada chief executive Gerry Robinson, who said his group can better manage Forte's businesses and promised "this is not a breakup." 0.7 508.41 i mmm Brussels n5 Milan :j j A, 9717 0.5 Paris 1657.7TI Frankfurt 0.3 Previous close "P" Amsterdam 1,0 1954.42 Sydney Li390Mj global market, Morton L. Mandel, the' company's chairman, said Tuesday. ' The merged company would be the world's third largest electronics distributor with annual sales of about $1.6 billion. Hong Kong 85.1 Tokyo 10955.33 0.6 20196.53 y - .' , st : ef j 83.0 now stands to receive $200 million in fees for the termination of its friendly takeover agreement. Wells Fargo, based in San Francisco, will pay First Interstate shareholders two-thirof a share of its stock for each First Interstate share, a deal valued at $152.33 a share or $1 1.6 billion overall. First Bank's offer, at $130.65 a share, was worth about $1.6 billion less than Wells Fargo's. The deal's price tag dwarfs the $10 billion Chemical Banking Corp. is paying for Chase Manhattan Corp. to create the nation's largest bank with assets of almost $315 billion. Dec. "95 1 82.8 AP Source: Federal Reserve Board WASHINGTON (AP) trial production edged up 0.1 per- cent in December, the second straight advance, due in part to increased output of automobiles and light trucks and the end of the Boeing aircraft strike. The Federal Reserve said today that output by the nation's factories, utilities and mines slowed from the revised 0.3 percent gain in November, but that was a bit stronger than a 0.2 percent earlier estimate. Many analysts had expected production to increase about 0.3 percent last month. Industrial production had fallen 0.4 percent in October. The Fed said excluding autos and trucks, production was flat as the year ended. And it said the end of the Boeing strike boosted total output by a bit less than 0.1 percent. 0.5 3754.2 1.0 Interstate A Wells Fargo-Firmerger would create a bank with combined assets of $108.4 billion. st Banks have been rushing to combine in a belief that greater efficiency will make it easier to compete against rivals both within and outside the industry. Brokerages and insurers have launched e services and commany panies such as General Motors Corp. and AT&T Corp. have credit card businesses. Also, many manufacturers and retailers offer loans to consumers. The combined bank will be called Wells Fargo & Co., and Wells Fargo's chairman, Paul bank-styl- Hazen, will be chairman. ; Wells Fargo's successful hostile-takeove- r is a rarity in the clubby, banking industry, where the last, unfriendly major deal was thet 1988 acquisition of Irving Bank Corp. by Bank of New York Coip. Wells Fargo has 983 banking offices throughout California, and First Interstate has 406 offices 'uv the state and a total of 1,140 in l"3 western states. Because of the expected job' losses, many local leaders in Los' Angeles, including the mayor, the City Council and the county Board of Supervisors, have opposed the' Wells Fargo takeover. ; But there have been some signs The central bank also vported that the nation's industries were manufacturing is rebounding;. The latest survey by the National Assooperating at 82.8 percent of capacciation of Purchasing Management in 83 from ity, down percent November and suggesting a lack of showed manufacturing continued any production bottlenecks that to weaken in December, but the decline was at a slightly slower could boost inflation. rate than in November. Although the Fed was not forced to close in the partial govAnd the Labor Department ernment shutdown earlier this year, reported 52,000 manufacturing its industrial production report was jobs were created in December, the delayed because of missing data first increase in four monflis and from government agencies affect- ed by furloughs. The report originally was scheduled for Jan. 17. For the fourth quarter, production grew at an 0.8 percent annual rate, down from 3.2 percent in the third quarter. The performance reflected sluggishness in manufacturing, which has experienced weak orders for many factory goods and, until recently, falling employment. fourth-quart- er the biggest in six years. Still, the number was inflated by the return of Boeing workers and raid-off f auto workers. Factory output rose 0.1 percent in December, down from a 6.2 percent gain a month earlier.. It had dropped 0.4 percent in October.- Output in both October and November had been held back by the strike by Boeing aircraft workers, which since has ended. .9 oareiv rose in no Bk Zurich London rise for Apple? 1 0.02 3249.9 MARKETS Amsterdam: CBS-neFrankfurt: DAX. Hong Kong: Hang Brussels'. Bel-2CAC-4Tokyo: Nikkei. Seng. London: FT 100. Paris: Sydney: All Ordinaries. Zurich: Credit Suisse. Milan: MIS. na: not available, holiday By JOHN D. McCLAIN Associated Press Writer with the steepest advance in consumer spending in nearly two Personal WASHINGTON incomes edged up just 0.2 percent in November, failing to keep pace years. The Commerce Department said today the income gain was the Personal income In Zurich, the bid price was $403.50, up from $402.90 late late 105.84 Tuesday. In Hong Kong, gold fell than a late, $1.41 to close at $401.39. 106.28 in Silver traded in London at a troy ounce, down from $5.49 Tokyo. Other dollar rates in Europe $5.55 late Tuesday. Nonferrous Metals compared i with late Tuesday included: 1,4845 German marks, NEW YORK (AP) Spot metal prices Tuesday. Aluup from 1.4810; 1.1931 Swiss francs, up from 1.1916; 5.0827 minum - 70.6 cents per lb, London Freneb francs, up from 5.0675; Metal Exch. Tue. Copper -1.6605 Dutch guilders, up from $1.1900 Cathode full plate, U.S. 1.65S3; 1,593.15 Italian lire, down destinations. Copper - $1.1880 per from 1,595.00; 1.3683 Canadian lb, NY Merc spot Tue. Lead - 46 dollars, down from 1.3699. cents per lb. Zinc - .5 154-.53per The British pound was quoted lb, delivered. Tin - $4.1932 Mon. at $1.5101, down from $1.5230 Metals Week composite price per late Tuesday. lb. Gold - $403.65 Handy & Har-ma- n London dealers fixed a recom(only daily quote). Gold -mended gold price of $403.00 per $403.50 Troy oz., NY Merc spot ounce at midmorning, unchanged Tue. month from late Tuesday. LONDON (AP) currency was trading Japanese yen, up from Wednesday and higher afternoon quote of 1995 Nov. '95 Dec. '94 lalSassMelaSsla 4 JFMAMJJASOND 0 0.6 ' 'LONDON Farnell (AP) Electronics PLC said it has agreed to acquire Cleveland-base- d Premier Industrial Corp. for $2.8 billion in cash and stock. ""The deal will enable Premier Industrial to achieve its dream of becoming a bigger player in the Will Sun Industrial production inches up again Seasonally adjusted percent of total capacity .A. including 1,300 layoffs. Tuesday also saw escalating ' speculation about Apple's future. The Wall Street Journal reported that Sun Microsystems Inc. was Sun Microsystems Inc. is reportedly close to acquiring Apple Computer Inc. in about to buy Apple for $4 billion. a $4 billion deal that would reshape the computer industry. A look at the two ' ' Industry analysts said the compa- companies: nies were talking but that no offer Sun had been made. Apple ."V Inc. and Markkula Spindler repeatMicrosystems Inc. Computer edly declined to comment on the Headquarters: Mountain view, ' ' Headquarters: Cupertino, Calif. Calif. it the was Michael Chief saying executive: report, company's Spinder 9 Chief executive: Scott McNealy' Annual revenue: $11 billion, longstanding policy not to respond Annual revenue: $5.9 billion, and rumors to FY ended Sept. 29, 1995 speculation. FY ended June 30, 1995 But Markkula, asked by a Recent performance: $69 Recent performance: $126 ' ' he after the if million Dec. ended 29 meeting loss, quarter reporter million profit, quarter ended Dec. 31 cared to repeat the company's earEmployees: 14,592 Employees: 13,500 ; A 1 lier statements that the company is ' History: Founded in 976 by History: Founded in 1 982 by four' not for sale, said, "Apple is not for computer enthusiasts Steve who saw market a Wozniak and Steve Jobs. Set a sale." among scientists and engineers for with for standard the usability One industry observer didn't powerful workstation computers that 1984 introduction of Macintosh, think the statement was anything run Unix software. Shot from $ 1 1 5 incorporating graphical million in sales in 1985 to $1 billion more than routine. second-largecommands. Now the ' in 1 988. Sun's share of the work- "I think he could be technically maker of PCs. Apple finds ' station is now market 40 around it tough to keep up with accurate by saying it's not for sale percent. Company's profile was ; in saying the company has not put competitors' low prices because it raised last year with development of of its development j : all shoulders itself on the market. But that doesthe Java programming language for . costs. Plans to lay off 1,300. software that can interact flexibly on ' n't mean other companies are not '' electronic networks such as the interested in buying it," said Mark ' . Internet. of Mac WEEK Source Company reports, Hoover's Handbook Hall, editor-in-chimagazine. "I think if someone were to trading that pushed their stocks to in engineering and research, would offer Markkula $100 a share, it's the top of the Nasdaq most active gain a complete line of desktop' for sale. At $25 a share, probably list. Apple shares rose $1.12 12 to machines and entry into the desk- -' the company is not for sale," he $31.62 12, up 4 percent, while top publishing market, where' Sun's fell $4.44 to $44.12 12, or 9 Apple has been strong, Hall said: ,: said. Street The Wall Journal percent. Today, Some analysts believe such an said Apple and Sun are still negotiApple, sorely hurt by the high' ating a deal that would be worth alliance makes sense. Sun, the cost of developing both hardware' about $33 per share. leading maker of workstations, and software for the Macintosh The Tuesday report led to heavy powerful desktop computers used gets to share the financial burden. Wells Fargo wins hostile bid for First Interstate 86 Percent change . Wednesday, January 24, 1996 By CATALINA ORTIZ AP Business Writer s&P 500 AMEX ip Shareholders bias! Apple officials over sale January 23, 1996 NYSE 8"" The U.S. at 106.67 I Trillions of dollars, seasonally adjusted annual rate " 6.30 incomes - non-ferro- smallest in three months even as spending surged 0.9 percent, the biggest increase since a 1.5 percent rise in February 1994. Incomes grew $11.5 billion at an annual rate, compared with $45.2 billion in October, when they rose 0.7 percent. The November gain was the smallest since were unchanged last August. At the same time, spending shot up at a $45.7 billion annual rate after falling 0.3 percent the previous month. The report, which combined the us October and November figures, was the latest in a series of economic data that was delayed by the federal government shutdown caused by the budget impasse between Congress and the White House and the subsequent blizzard. The report also showed that incomes rose a revised 0.5 percent in September, or $30.8 billion, while spending inched up 0.1 per- - partial 0 D '94 J F M A M 199S Nov. '94 5l58l jTO Oct. '95 Nov. '95 6.20 6.21 cent, or $2.9 billion. Incomes originally were estimated to have risen 0.4 percent, while consumption was thought to have increased 0.2 percent. After increasing 3.4 percent in the April-Jun- e quarter, consumer spending slowed to a 2.9 percent gain in the next three months, the government has reported. Some analysts predict that the slowdown will extend throughout much of this year because of weak job and income growth and growing debt burdens. Consumer spending represents about of the nation's economic two-thir- ds activity. The report showed that disposincome after taxes able income increased 0.9 percent in November, or $45.7 billion, after falling 0.3 percent, or $13.9 billion, a month earlier. The combination of incomes and spending meant that Americans' savings rate savings as a of disposable income percentage was 4.5 percent in November, compared with 5.2 percent the previous month. It was 4.2 percent in ' ' September. ' Personal spending kU Trillions of dollars, seasonally adjusted annual rate 5.10 5.05 5.00 495 14.90 4.85 4.80 4.75 4.70 4.65 4.60 4.55 0 jijuuujujujulji jfmamjjaso'n D '84 1885 Nov. '94 4-8- Oct. '95 Nov. "SS." 4.96 Source; U.S. Dept. of Commerce . ' AP Private wages and salaries," the most closely watched compontnt of income, decreased $3.8 billion in November after increasing '$30 " billion in October. "!