T-bill yields fell. The Treasury sold $9 billion of 13-week bills at an average discount of 7.62 percent, down from 7.81 percent last week, and $9 billion of 26-week bills at an average discount of 7.52 percent, down from 7.75 percent last week. The investment rate was 7.88 percent on the three-month bills and 7.93 percent on the six-month bills. Business sales shot up 0.9 percent in May, the biggest jump in three months, while inventories rose modestly, the government said in a report that indicated continued economic growth.
ogan & Hartson, a Washington law firm, has dropped its plan to enter into a joint venture with two other firms to serve corporate clients abroad. Because of potential client conflicts among the firms, Hogan & Hartson will open its own offices in London and Brussels this fall. Ford Motor said it will invest $80 million to build an auto parts factory in Hungary, joining General Motors in setting up shop there. Bechtel International and partner Transrapid of West Germany made the first formal bid on a $5 billion project to build a high-speed train linking Las Vegas and Southern California. Pathe Communications, trying to keep its shaky $1.3 billion deal for MGM-UA Communications alive, met a key deadline by making a $53 million nonrefundable down payment for the studio. Southland Corp., rushing to restructure $1.8 billion of debt, announced an agreement with its bondholders committee on a revised exchange offer giving its bondholders a higher stake in the company while reducing that of its Japanese partners. GAF Corp. said four banks have agreed to provide the company $800 million in long-term financing primarily to pay off debt incurred when a management group bought out shareholders in March 1989. Southmark's restructuring plan was approved by a federal bankruptcy judge, bringing one of the nation's largest bankruptcy cases near an end. Under the plan, the Dallas-based company will liquidate almost all of its holdings except for San Jacinto Savings Association, a $3 billion thrift based in a Houston suburb. Waste Management and Stone Container signed an agreement expected to result in the world's largest marketing enterprise for recycled paper. Under the agreement, Stone Container will take Waste Management's waste paper and cardboard supply and turn it into corrugated boxes, grocery bags, newsprint and hundreds of other products. Terms were not disclosed. REGULATION The Justice Department said Florida Federal Savings Bank of St. Petersburg agreed to pay more than $18 million to settle charges that it falsely billed the Department of Education for student loans.
Duratek of Columbia, Md., tentatively agreed to sell its domestic commercial low-level radioactive waste-processing business to Chemical Waste Management Inc. for $3.9 million in cash and about $1 million in deferred payments. Duratek said the sale will enable it to focus on the international side of that business. Group 1 Software of Greenbelt purchased the assets of Compass Information Systems. Terms were not disclosed. J2 Communications, a home video producer, agreed to buy National Lampoon Inc., publisher of a bimonthly humor magazine, for about $4.4 million in a stock-swap deal. Pennzoil said it intends to buy additional Chevron shares to increase its 8.8 percent stake to just under 10 percent, which is the limit established by a Chevron poison pill.
Ratners, the British jewelry chain that earlier this month made a friendly $328 million offer to acquire Alexandria-based Kay Jewelers, said it will stop selling jewelry made with South African gold after anti-apartheid groups picketed its stores. Japan, which has moved from the second-largest World Bank loan debtor to the world's largest creditor nation, repaid its last World Bank loan, a $7 million final installment on a 25-year, $75 million loan to the Japan Highway Public Corp. Between 1953 and 1966, Japan borrowed $862.9 million from the World Bank to finance 31 projects.
General Electric reported second-quarter profit rose 12 percent. BF Goodrich said second-quarter earnings rose 5.9 percent from the same period last year. Boise Cascade said profit fell 69.5 percent compared with the same quarter a year ago. Chase Manhattan said net income declined 62 percent from the year-earlier quarter. First Chicago reported second-quarter net income dropped 35 percent from 1989. J.P. Morgan reported earnings unchanged from a year-ago.
MCI received a three-year, $25 million contract to provide long-distance service for pay phones at Texaco service stations.
Eddie Antar, the fugitive founder of the Crazy Eddie discount electronics chain and target of a securities fraud case, now has a $73 million default judgment against him. A U.S. District judge allowed federal authorities to seize Antar's property. The judge accepted the SEC's calculation that Antar owes $52.5 million in illegal profits and $21 million in interest.