1st Chicago sale to GE CapitalFirst Chicago Corp. agreed...

BUSINESS DIGEST

February 26, 1993

1st Chicago sale to GE Capital

First Chicago Corp. agreed yesterday to sell a large chunk of its troubled commercial real estate portfolio to GE Capital Corp. Under a definitive agreement, the Chicago banking company will sell distressed real estate with a contractual value of $1 billion to GE Capital for $500 million, or 50 cents on the dollar.

The price, while steeply discounted, is slightly higher than the 46 cents on the dollar First Chicago put on its entire disposition portfolio of almost $2 billion at the end of 1992.

4 U.S. subsidiaries charged

The U.S. subsidiaries of four of Japan's largest brokerage houses were charged yesterday with violating securities laws. The companies are Daiwa Securities America, a unit of Japan's Daiwa Securities Co. Ltd.; Nomura Securities International Inc., a unit of Nomura Securities Co. Ltd.; Yamaichi International (America) Inc., a unit of Yamaichi Securities Co.; and Nikko Securities Co. International Inc., the U.S. subsidiary of Japan's Nikko Securities Co. Ltd.

NAFTA legislation gains in Canada

Canada moved to tear down the walls that bar trade in North America yesterday, becoming the first of three nations to introduce legislation to create the world's largest free-trade zone. The Canadian government sent Parliament several thousand pages of legislation to make the North American Free Trade Agreement with the United States and Mexico into law.

Potomac Edison gains rate rise

The Maryland Public Service Commission has granted a $9.3 million rate increase to the Potomac Edison Co., the utility that provides electricity to Western Maryland. The commission also allowed the company to increase its base rate by $2 million to pay for expenses associated with the Clean Air Air of 1990. The company had asked for a $22.96 million rate increase.

Delay asked on natural gas costs

Maryland's two senators and eight representatives sent a letter yesterday to the head of the Federal Energy Regulatory Commission asking to defer implementing an order that has the potential of adding $9.42 to monthly gas bills in Maryland.

The lawmakers are asking to defer the order, which would allow Columbia Gas Transmission Co. to pass on costs involved in terminating natural gas contracts, until after the gas pipeline company emerges from Chapter 11 bankruptcy.

GM to halt plants in Mich., Del.

General Motors Corp. said it will suspend production at its car assembly plants in Ypsilanti, Mich., and Wilmington, Del., for one week starting Monday because of slow sales.

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