Paramount to prepare for auctionParamount Communications...

BUSINESS DIGEST

December 11, 1993

Paramount to prepare for auction

Paramount Communications Inc., mindful of a tough Delaware Supreme Court ruling that requires the company to consider all acquisition bids, has scheduled a board meeting Monday afternoon to begin setting up procedures for an auction.

The Delaware Supreme Court said Thursday that Paramount's board could not favor a lower bid from its hand-picked partner, Viacom Inc., over a higher offer from QVC Network Inc.

Nynex may cut 22,000 jobs

Nynex Corp. may cut one-third of its telephone jobs, published reports said, becoming the latest regional phone company to recognize it must change slothful ways as challenges loom from wireless companies.

The company declined to discuss what was described as an internal memo, obtained by the New York Post and Boston Herald, that suggested one-third of the 66,000 jobs in its telephone operations would be eliminated by 1996.

Prudential put under review

The fallout from the Prudential Securities Inc. limited partnership fraud widened as a insurance rating firm placed the brokerage's parent, Prudential Insurance Co. of America, under review.

The move by A.M. Best Co. puts Prudential on warning that its current rating of superior financial strength could be lowered.

T-bond probe widens

Former Salomon Bros. bond dealer Paul Mozer provided the government with details about the seamy side of the Treasury bond market, leading to investigations of other Wall Street firms and Japanese investors, court papers say.

As a result, the Securities and Exchange Commission brought charges against Salomon and Daiwa, according to the papers that Mr. Mozer's attorneys filed this week.

U.S. may act in airport dispute

Federal officials will step in promptly if a dispute between airlines and airports over landing fees threatens to disrupt U.S. aviation, Transportation Secretary Federico Pena said.

The Transportation Department could audit an airport's books and withhold federal aid if rate increases are unreasonable, he said yesterday. The statement was prompted by a dispute between Los Angeles International Airport and the airline industry that Mr. Pena helped settle.

Oil prices top $15 per barrel

Oil prices rose above $15 per barrel yesterday as buying tied to the expiration of oil options helped strengthen the market. Light sweet crude oil for delivery in January settled at $15.07 per barrel, up 44 cents, on the New York Mercantile Exchange.

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