Annapolis company settles U.S. suit for $67.5 million

December 20, 1991|By Ted Shelsby

UNC Inc. anticipates a nearly 60 percent boost in 1992 profits as a result of the settlement yesterday of a 13-year-old legal action against the federal government that blocked the mining of uranium from land UNC controlled.

The Annapolis company, which is no longer in the uranium mining business, took action against the Interior Department in 1978 because of its refusal to allow UNC to develop its uranium property in New Mexico. UNC wanted to supply uranium to electric utilities across the country.

The settlement with the Justice Department amounted to $67.5 million, Dan A. Colussy, chairman and chief executive officer of UNC, said yesterday.

After taxes and legal fees, UNC will net about $50 million.

Mr. Colussy said the money will be used primarily to reduce the company's 11.5 percent debenture debt. The resulting savings on interest payments will amount to about 23 cents a share, he said.

UNC stock closed yesterday at 5 3/8 , up 1 1/4 .

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