Oil firm adds cash to Circle K planCommonwealth Oil...

BUSINESS DIGEST

December 09, 1992

Oil firm adds cash to Circle K plan

Commonwealth Oil Refining Co. Inc. yesterday revised its reorganization plan for Circle K Corp. to include $390 million in cash to creditors, most of it supplied by a Saudi prince. Under the amended plan to be filed later this week, one of three competing for the convenience store chain, the Saudi prince would acquire a minority interest in Irving, Texas-based Commonwealth.

IBM expected to take charge

IBM will soon announce a charge against earnings of more than $1 billion to dispose of assets and cut its work force further, two Wall Street analysts predicted yesterday.

The analysts, John Jones of Salomon Bros. and Dan Mandresh of Merrill Lynch & Co., expect that the new charges could be well above $1 billion, perhaps as high as $3 billion, and that 20,000 to 30,000 jobs could be cut. An IBM spokesman, Rob Wilson, said the company would not respond to the analysts' comments.

Bethlehem forms subsidiary

Bethlehem Steel Corp. said yesterday it formed a subsidiary, Pennsylvania Steel Technologies Inc., for its Steelton-based operations and reached a new labor contract for the unit with the United Steelworkers of America. Bethlehem announced in January it was examining its options for the plant in Steelton, located in central Pennsylvania.

The company said it would modernize the operation only if it could cut costs. Bethlehem said the new labor contract, signed yesterday, allows the new subsidiary "to be fully competitive from an employment cost standpoint." The new subsidiary has about 1,600 employees, most represented by the Steelworkers union.

Chrysler to sell in Russia

Chrysler Corp. will begin selling Jeeps, minivans and commercial vans in Russia this month, its first venture in the former Soviet Union, the No. 3 U.S. automaker said yesterday. The two dealers, Intourtrans and LogoVAZ, have been trained in servicing the vehicles and will begin selling them immediately.

Chrysler, which said it expects to sell 2,000 to 3,000 units in the first year, has no direct investment in the deal.

Manville credit rating lowered

Standard & Poor's Corp. lowered its credit rating for Manville Corp., saying a court ruling last week could force the company to pay more to an asbestos victims trust fund. Yesterday's action came despite statements by Manville that the ruling by the 2nd U.S. Circuit Court of Appeals blocking a restructuring of the Manville trust would not affect the company.

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