Proxy battle looms at CyanamidSetting the stage for a...

BUSINESS DIGEST

August 11, 1994

Proxy battle looms at Cyanamid

Setting the stage for a proxy battle, American Cyanamid Co. urged shareholders yesterday to ignore a $95-a-share takeover bid from American Home Products Corp. until American Cyanamid's board takes a formal stand on the hostile offer.

Under rules of the Securities and Exchange Commission, the board must respond by Aug. 24, or 10 business days from yesterday, when American Home Products sent the offer to shareholders of American Cyanamid.

If American Cyanamid tells shareholders to reject the offer, a proxy fight could begin. In such a fight, shareholders decide the issue by casting ballots or proxies.

Liberty in talks on Garden bid

Liberty Media Corp. is talking with Nike Inc. and Canadian brewer John Labatt Ltd. about jointly bidding for Viacom Inc.'s Madison Square Garden, a source close to the talks said yesterday.

But the executive stressed that cable programmer Liberty is still talking with other possible partners about submitting an offer for the property on Viacom's self-imposed Aug. 15 bidding deadline.

Analysts believe the property -- which includes a theater, a 20,000-seat arena, a regional cable sports network and the New York Rangers and New York Knickerbockers sports teams -- will fetch at least $750 million.

Federal Realty cash flow up 25%

Federal Realty Investment Trust of Bethesda said yesterday that its cash flow from operations rose 25 percent, to $12.5 million, in the second quarter of the year.

For the first half of the year, the real estate investment trust said its cash flow from operations rose 27 percent, to $23.5 million. The gains came from profits on newly purchased properties and the effect of lower interest expenses.

More mutual fund data proposed

Mutual fund shareholders would be given more information about the effect of broker-paid expenses on their investments under a Securities and Exchange Commission proposal.

Often these services are factored into the price the fund pays for securities, obscuring the real rate of return.

Under the rule, which was opened to public comment yesterday, investment companies would be required to disclose these costs in financial statements as well as in the calculation of yield.

Distribution by Columbia REIT

Columbia Real Estate Investments Inc. of Columbia yesterday announced a liquidating distribution of $10.40 a share to all shareholders who have surrendered their shares to the company's transfer agent, First National Bank of Maryland.

All shareholders who surrender their shares within a three-year statutory period also will be entitled to this distribution.

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