Chrysler to boost prices in Calif.Chrysler Corp. plans to...

BUSINESS DIGEST

September 30, 1994

Chrysler to boost prices in Calif.

Chrysler Corp. plans to boost prices of gasoline-powered cars -- perhaps by $2,000 each -- in California and other states that require high-volume sales of zero-emission vehicles, the company's chairman said yesterday.

Because Chrysler's electric minivans, like other electric vehicles, have a limited range and require frequent recharging, Robert Eaton said the company would be forced to sell them at prices less than a typical $18,000 minivan, even though they cost up to $45,000 to produce.

Rather than swallow that loss, Mr. Eaton said, the difference would be made up with a surcharge on all other cars and trucks sold in California.

Westinghouse gets $69 million pact

Westinghouse Electric Corp. has won a $69.8 million contract from the Navy to design and build initial versions of a new vessel to carry Sea-Air-Land (SEAL) special operations forces, and much of the work will be done at the company's Oceanic Division, near the Chesapeake Bay Bridge in Anne Arundel County.

The Oceanic Division will perform work in Anne Arundel County and in Cambridge, Mass.

Macy-Federated projections OK'd

A federal judge yesterday removed one of the last hurdles to R. H. Macy & Co.'s emergence from bankruptcy by approving financial projections for the Macy-Federated Stores Inc. merger.

U.S. Bankruptcy Judge Burton Lifland approved the joint disclosure statement filed by Macy's and Federated in a move that paves the way for a reorganization plan confirmation hearing as soon as Nov. 21.

Cash, stock offered for Kirschner

Biomet Inc. said yesterday that it will pay up to 60 percent cash and the balance in stock for its previously announced $37 million acquisition of Timonium-based Kirschner Medical Corp.

Each Kirschner shareholder will be able to choose between $10.75 a share in cash, the equivalent amount in Biomet stock or a combination of the two. Those who choose stock will get at least 0.9 Biomet shares for each Kirschner share they hold. Biomet said it hopes to close the transaction immediately after a Nov. 4 meeting by Kirschner shareholders to vote on the proposed sale.

Earthquake loss estimates rise

Losses to insurance companies are still rising from last January's earthquake near Los Angeles as repairs to damaged homes prove more costly than expected. Allstate Insurance, the second-largest earthquake insurer in the state, increased its loss estimate yesterday by $350 million, or 37 percent, to $1.3 billion.

Several other companies have increased their loss estimates in recent weeks, as damage once seen as superficial is proving on closer examination to be more extensive.

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