Show iprrp-r- 'mynri pT’ Loral Will Buy KKR Hikes Goodyear’s Fitzhenry Associated Press Writer Defense Firm The The Salt Lake Tribune Takeover Bid After By Anne - NEW YORK (AP) Loral Corp agreed to buy Goodyear Tire & Rubg ber Co’s subsidiary Goodyear Aerospace Corp for $640 million in cash the companies announced Monday The deal will double the size of Loral and put a giant load of debt on the books of the New York-base- d company which specializes in radar detection and jamming equipment for mildefense-contractin- itary aircraft It also provides a welcome d of cash for Akron year the world’s largest '- i- iy TOLEDO Ohio — private investment firm Kohlberg Kravis Roberts & Co boosted its takeover offer of Owens-IllinoInc to $36 billion Monday after its previous $334 billion bid was rejected Saying it was disappointed that Owens-Illinohad rejected the first proposal without negotiations or is is meetings with the investment firm KKR said it was offering $60 per share up $5 a share from the first offer The New York-baseKohlberg Kravis which specializes in leveraged buyouts initial’ y offered $4850 in cash and a junior security with a market value of $650 for each of Illinois' 608 million common shares outstanding d Owens-- January Tuesday 13 offer totals $4850 per and a junior security value of $1150 the earlier bid made said it was not Dec 11 Owens-Illinoin the best interests of the company and its stockholders Owens-Illinosaid rejection of the first offer was based on its belief that stockholders could earn greater long-tervalues through the company’s The second share in cash with a market In rejecting newly proposed restructuring steps Owens-Illinois primarily a manufacturer of containers and other packaging goods made of glass plastic paper and other wood products The company also has interests in fi- ucts unit and other assets The board also said it will recommend incentives to increase management's equity in the company had no immediate Owens-Illinoi- s comment on the higher offer board said it The Owens-Illinowould repurchase up to 20 million or 33 percent of its common shares out- In the statement KKR said it had been prepared to discuss all aspects of the earlier proposal including an increase in price is is nancial services is is m standing and divest its forest-pro- d Good- Ohio-base- tire maker which last year began selling assets and cutting costs to increase its stock value as a way of fending off a takeover bid by financier Sir James Goldsmith i The transaction was approved by directors of New York-base- d Loral and Goodyear’s directors approved it Monday in a telephone survey Goodyear spokesman John Perduyn said Loral’s stock climbed 62 cents a on the New York share to $4037 Stock Exchange on Monday Goodyear’s stock rose 50 cents a share to $4475 on the Big Board Bernard Schwartz Loral’s chairman and chief executive had been trying to buy another big defense electronics company but was thwarted in earlier bids for Sanders Associates Inc of Nashua NH which was bought by Lockheed Corp and the Sperry Aerospace Group which was bought by Honeywell Inc “He wanted a big hit This certainly is a big hit” analyst Michael Lauer of Oppenheimer & Co said But Lauer said Loral is taking on too much debt to pay for its acquisition Its books will have $750 million in debt and just $350 million in equity many times the FEES Insured To $100000 IRA's 73® Retirem ent Accounts) AMERICAN INVESTMENT BANK NA Crossroads Tower 50 South Main Suite 460 Salt Lake City Utah 84144 801-322-33- AIB Is a direct subsidiary of Leucadla Inc 800-453-94- 22 with assets of over 1 Accounts: $1000 And Up Money Market YIELD RATE 94 600 Billion dollars 618 Compounded Weekly Listed NYSE Established 1854 industry average “I think Bernie is overly infatuated with size” Lauer said “Loral is becoming a more mundane less focused company and in debt up to its ears” In an interview Schwartz said he disagreed with the analysis and was confident the company would be able to pay off its debt out of the cash flow from operations and would not need to sell any assets “I think we’ll do extremely well toHe said about gether” Schwartz said of Goodyear Aerospace fits closely with Loral’s own business and the rest including a wheel and brake business is a good money-makand involves the same customers two-thir- er NEW HAIR BREAKTHROUGH PERMA-HAI- R We can give you as much hair as you want whether you are bald or just thinning1 363-881- 1 Satisfaction Guaranteed S0UIRE 526 NATURAL 300 So E Salt Lake City UT 84102 RATE ON SECOND MORTGAGES Can Count Your Chickens While They Hatch It used to be that you never BUT LOOK CLOSER q pv ZXJ there’s L3y nor Now sags Cprfifiratp you can get the Ol DepOSit high interest benefits of a traditional CD and get your mow v--to $54)00 $66000 NO WAITING W'tt fund portfolio NO Mo money back in just 28 days You don't have to tie your money up for in few dy foe out own w are not broker CHARGES ‘UP-WO- depoeke or etiorgM prior to 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