Region's service sector growsBusiness in the service...

BUSINESS DIGEST

December 18, 1993

Region's service sector grows

Business in the service industry increased last month in the mid-Atlantic region, the Richmond Federal Reserve Bank said yesterday. But the industry did not produce jobs, as employment was unchanged.

Revenue, wages and capital spending all increased in the regional service industry, according to the survey of 300 companies. The bank said the gains were likely to continue.

GM to raise prices on some '94s

General Motors Corp. said yesterday that it would raise prices on some 1994 models to catch up with competitors whose increases were bigger than GM's when the models were introduced this fall.

GM is the first of the Big Three to impose a midyear price increase. GM said its increases on selected models in its five car and two truck divisions averaged 0.8 percent, or $164, for cars and 0.6 percent, or $131, for light trucks. The increases raise the total 1994 price increase to 2.3 percent for cars and 2.8 percent for light trucks.

IHS to issue convertible bonds

Integrated Health Services Inc. in Owings Mills said yesterday that it would privately issue $125 million worth of 5.75 percent convertible senior subordinated debentures due in 2001.

The debentures, which would not be registered, are convertible into IHS common stock at $32.60 a share. They are expected to be issued Dec. 27, with the proceeds used to repay outstanding debts.

Lorenzo's airline plan faces ruling

An administrative law judge in the Transportation Department is expected to meet a Dec. 28 deadline to rule on Frank Lorenzo's bid to start a low-fare airline, a spokesman for Mr. Lorenzo said yesterday.

Judge Robert Barton recommended Sept. 8 that the Transportation Department reject Mr. Lorenzo's request for a permit to operate ATX Inc., previously called Friendship Airlines Inc. But department officials ordered the judge to reconsider, saying his decision insufficiently considered several issues.

Clinton frees money for S&L cleanup

President Clinton yesterday signed a bill to release $18.3 billion appropriated by Congress to complete the savings-and-loan bailout program. The government has spent more than $100 billion to clean up the troubled savings-and-loan industry, but the politically sensitive program has been on hold since April 1992.

Paramount spurns QVC's request

Paramount Communications Inc. yesterday rejected a request from QVC Network Inc. that Paramount sell itself in an open, rather than a sealed-bid, auction. QVC and Viacom Inc., which are in a bidding war for the entertainment conglomerate, must submit new bids by Monday.

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