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Show Salt iakr Sribtinr 'Business The nationwide trend toward financial centers expanded Thursday with the completion of Prudential Insurance Co. of Americas $385 million acquisition of Bache Group Inc., parent company of one of the nation's largest brokerage houses. Bache shareholders voted by a margin at a special meeting to approve the merger, which alrady This makes it had cleared regulatory hurdles. final, said Bache spokesman Peter Costiglio. Jon Bache's Board While keeping its name, Bache now will be a wholly owned subsidiary of Prudential, the nations largest insurance concern. Prudential President David J. SHerwood and Garnett L. Keith, senior vice president of the mutual insurance companys corporate finance department, will join Bache's board. As of Friday, Baches common stock will no longer be traded, the companies said. In midday trading Thursday on the New York Stock Exchange, Baches common stock was unchanged from Wednesday at $31.75 a share. Prudential, which provides insurance coverage for 50 million Americans, is owned by its policyholders and based in Newark, N.J. Prudential entered into a definitive agreement for the acquisition of Bache in March. It then made a cash tender offer of $32 a share for all of Baches 11 million common shares outstanding, of which about 70 percent were tendered. With Bache shareholders approving the transaction, Prudential will acquire the remaining shares at the same price, without interest, through a cash merger. NEW YORK (AP) one-sto- Salt Lake City, Utah Friday Morning June 12, 1981 p 2 Srrlioo I'iijic 12 I' White House Backs Bill T o Deregulate Phones By Norman Black Associated Press Writer finally gained the WASHINGTON Con- gress support of the Reagan administration Thursday for its goal of legislating the deregulation of the industry telephone rather than relying on the Justice Department's antitrust efforts. The administration's decision, outlined by Commerce Secretary Malcolm Baldridge as he testified on a deregulation bill now pending before the Senate Commerce Committee, was not presented without qualification. Baldrige said the D- efense Department wanted the bill to require all phone companies to help plan and fashion the emergency communications network. And he refused to discuss whether there was any chance the Justice Department would drop its landmark antitrust suit against American Telephone & Telegraph Co. if Congress approves the bill. Airs Disputes The committee also was confronted with the arguments economists of several who sug gested the Senates deregulation bill didn't go far enough in some areas in freeing AT&T of restrictive regulation; complaints by consumer groups and large telephone users that it went too far and would not provide safeguards to ensure reasonable prices; and debate AT&T antitrust completed. The suit, which seeks to break up AT&T and its Bell System, is being tried in U.S. District Court in Washington. Government prosecutors have argued a judge would be unlikely to break up the Bell System even if they prove their case if Congress has just established a new regulatory framework for the industry. Faced with the Justice Departments concerns, Baldrige was named late last month to head an administration task force charged with developing a unified position. According to Packwood, the about whether AT&T should be allowed to offer its own electronic advertising and information services. But it was Baldriges announcement that the administration wished "to express its strong support for the thrust of the Senate proposal and thought legislation should be enacted this year that most clearly caught the committees attention. administrations stance was finally hammered out Wednesday night. Develop Bill Packwood has consistently rejected the Jus- The panel, chaired by Robert Packwood, had angrily denounced the administrations failure to take a position on its bill last week when hearings began. Packwood, who is sponsoring the Senate version of the telephone Sen. tice Department's re- commendation, saying Congress cannot wait the four or five years that court appeals likely will take before updating and modernizing the 1934 law that governs telephone regulation. Congress, however, already has spent six years trying to develop an ac- deregulation bill, revealed then that the Justice Department was urging the administration not to support any legislation trial was ceptable until the bill. deregulation Merger Gets OK Bache-Prudenti- al Warrant-Shar- e Price Holders of warrants, or the right to buy shares of stock at a given price within a specified time period, will receive $13.50 cash per warrant-share- , without interest. $100 Million Plant Special to The Tribune DENVER Chevron Research Co. and Chevron Shale Oil Co. will spent $100 million in construction of a facility in Davis County to instill their staged turbulent bed retorting process that officials estimate could produce 100,000 barrels of oil a day by the mid-1990- The construction will begin this summer next to in North Salt Lake and proceed for 18 to 24 months, officials said. The STB process, designed by Chevron Research, entails novel retorting and combustion technology. The Davis County plant will serve as prototype to larger-scal- e commercial facilities slated to be built on Chevron Shale Oils Colorado properties, including on its Clear Creek holdings. The construction cost includes development of mining operations in Garfield County, Colo., scheduled to feed some 350 tons of oil shale a day to the new Utah plant. Chevrons oil refinery The merger is seen as part of growing trend in which various financial concerns are joining forces to offer a variety of services under one roof. Two months ago, Bache and Prudential said they already had started planning insurance and they could market jointly. American Express Co., a diversified financial services company and the nations leading credit card company, and the brokerage house of Shearson Loeg Rhoades Inc. also have agreed to merge in a transaction value at $864 million. Shareholders of both companies are to vote on the merger at special meetings scheduled for June 29. Analysts say such mergers could result in companies being able to serve the banking, insurneeds of consumers ance, investment and credit-car- d all at once. Large Securities Firm Before its acquisition, Bache was the nation's publicly held securities firm. Shearson ranks fourth. Other major securities firms such as Merrill Lynch sixth-large- st the nations largest, and Dean Witter Reynodls Inc., have said they arent looking to merge but have indicated continued plans to expand their services to remain competitive. Banks are watching the mergers as well. Under the Act of 1933, commercial banks in effect are prohibited from underwriting corporate securities. Hence, further consolidation of securities firms and other financial services companies could force banks to put pressure on Congress to ease restrictions. & Co., Glass-Steaga- ll Glass-Steagal- How well Wall Street firms and companies offering other types of financial services will blend together is unproven, and industry observers will be closely watching the marriage. Bache-Prudenti- Prudential has said its already planning to coordinate customers insurance payments with a cash management account planned by Bache. Under the plan, a customers money would be invested in money-markinstruments, and insurance premiums would automatically be withdawn from the account. high-yieldin- g How to Revive Industries Labor, Management Clash By Lee Linder Associated Press Writer Labor and management PHILADELPHIA leaders, anxious to restore America as the leader in world trade, clashed Thursday on how to revive industries struggling with stiff government regulations, poor quality products and low productivity. The only way American industry can compete in the market today is by producing quality products at lower costs, David Roderick, chairman of United States Steel Corp., told more than 350 men and women at a University of Pennsylvania Wharton School conference on the future of employee relations under President Reagan. Collective bargaining must focus on efficiency and productivity if our society and if the American workman and the unions who represent him expeevt to satisfy their aspirations for wages, pensions and other benefits, Roderick said. New Accommodation We need a new accommodation among government, labor and business that recognizes reality and responds to a changed world marketplace . . . The administrations economic recovery program is critical to the needs of American industry if we are to rebound. of the AFL-CIO- s Elmer Chatak, secretary-treasure- r Industrial Union Department, said that while he was concerned with excessive red tape and unnecessary government regulation, we must fear the current attack on the nations regulatory framework which ignores a safe, productive and profitable workplace. If business endorses the gutting of affirmative action programs, fair labor standards, and health, safety and environmental protections, it will undermine the progress being made towards greater productivity, Chatak said. If any major regulatory reform is to succeed, it must be carefully thought out and it must be a cooperative effort of both labor and management. Wage Settlements Labor lawyer Virgil Day of Washington blamed soaring wage settlements and the vast amount of bureaucratic government regulations for declining productivity and stagnant economic growth. "It is a scenario for disaster, Day said. In the foreign competition which seeks to undercut us, it is fatal to fall behind. Howard Kehrl, vice chairman of General Motors face of Corp., said business change and improvement depends on willingness to adopt new ways of looking at the relationship between people and work. He chided both management and labor for Now It Costs to Save At Bank of America SAN FRANCISCO It will cost some (AP) customers money to save at Bank of America, one of the worlds largest commercial banks, effective July 1. Customers will be charged a $3 fee each calendar on regular savings accounts falling below an average daily balance of $200 for the period, the bank announced. The accounts pay 514 percent annual interest. In addition, the bank said it will impose a $1 excess withdrawal fee on each withdrawal beyond three during a calendar quarter if the quarterly balance is less than $400. The withdrawal fee, which also applies to the use of automatic teller machines, represents an increase of 50 cents and a reduction on the quarterly balance limit, which had been $500. The bank said the new charges do not apply to trust accounts, the generally small accounts opened by parents in the name of minor children. Martin Elenbaas, executive vice president, said the fees were imposed because the bank is faced with rising expenses it cannot absorb. quarter SHOP TONIGHT TILL 9 Give Dad something new to brag about. Auto Production on Rise A. Rugby stripe knit shirt. Short sleeved, with blue stripes U.S. DETROIT (AP) auto production is up 29.1 percent this week from year-ag- o levels, while the number of autoworkers on temporary and longterm layoffs fell, according to industry reports Thursday. Reports by the five and heather gray accents. 14.00 Polyestercotton. Men's Sportswear, dept. 50 B. Haggar Expandomatic Jeanslackf A fuller gentleman's major denim jean with an Expandomatic waistband. Polyestercotton. 32 to 40 waists. 29.00 Haggar Separates, dept. 140 C. Arnold Palmer knit shirt by Robert Bruce. Textured short sleeve shirt in ice blue or parchment polyester. 160,775 reported last Car production for the week ending Saturday will be 211,503, up 23.7 percent from last weeks au- 170,913. INVESTORS Are you in a 50 FEDERAL INCOME TAX BRACKET! Interested in a FIRST YEAR RETURN ON YOUR INVESTMENT OF Men's Sportswear, dept. 50 Arnold Palmer cardigan sweater by Robert Bruce. In ivory, barley, light blue, yellow, chocolate, and navy Du Pont Orion acrylic. 31.00 Men's Sportswear, dept. 50 D. 146! gain the full TAX BENEFIT you must ACT before June 30, 1981. A MINIMUM INVESTMENT is To required. Call Warren Fanger full details (801) Haggar" corduroy slacks. Polyestercotton in tan, CPA 572-146- for 4 r' medium brown and gray. 32 to 40 waists. 26.00 Haggar Separates, dept. without a recall compared with week. The number of temporary layoffs dipped to 5,600 from 7,550 a week ago. tomakers showed 157,975 workers on indefinite 26.00 E. domestic layoff date i 140 The All American Dad: He's as comfortable with computers as he Is with 3 a.m. feedings. He's the executive. The chef. His childrens confidant. And wo salute him on his day, June 21 Duchess of Windsor Senora Victoria Hope Gorastecle 1948 Come In and W( I register to win a y weekend trip to San Diego for Dad and the family. nSTOCKS Shop Crossroads Plaza, Monday ilirougli Friday 10 till 9 Saturday 10 till 6 Closed Sundoy 524 2666 All Investments proudly presents a solid 22K Gold Rope necklace given to Senora Gorastocio by the Duchess of Windsor -r- egistered as pad of tho crown towels ol Fngland This & other line investment icwoiry will bo ottered in a private showing Fn June 12. 1981 Plus Exquisite 8 8 KT TW) Diamond bracelol diamond ladios and laiqo ruby ring CALL AU INVESTMENTS Itw Dutails 566-687- 5 |