Marriott director resigns in protest
Thomas Piper, a 10-year member of Marriott Corp.'s board of directors, resigned last month in protest over a restructuring lTC plan that has prompted an outcry from the company's bondholders. Earlier this month, the hotel chain said it would split in two, leaving Marriott International Inc. with a pristine balance sheet and Host Marriott Corp. saddled with all of Marriott's real estate and $2.9 billion debt.
In a Sept. 29 letter to Marriott Chairman J. W. Marriott Jr., Mr. Piper said he "expressed concerns" about the transaction. "I do not wish to be a barrier to the legitimate goals and aspirations of the corporation," he said. "Accordingly, I believe that the best course is for me to resign from the board, effective immediately."
3rd-quarter charge at Kirschner
Kirschner Medical Corp. in Timonium said yesterday that it expects to take a third-quarter charge of $300,000 as a result of several actions.
The company said it had reached a settlement in principle of a class action against Kirschner and certain of its current and former officers and directors. Final settlement of the suit is contingent upon negotiation of a definitive agreement and court approval.
Kirschner said a similar action brought by a single shareholder, Quest Medical Inc., which had previously opted out of the class action, is not a part of this settlement. It said the $300,000 charge includes related reserves previously recorded.
'Phantom' write-offs questioned
The Internal Revenue Service is challenging what it calls "phantom" tax write-offs of as much as $500 million claimed by some of the nation's biggest banks as lenders to Brazil. In a case involving Riggs National Bank of Washington, the IRS is seeking to disallow $1 million of foreign tax credits Riggs claimed from 1983 to 1987.
But in documents on file with the U.S. Tax Court in Washington, the tax agency said the outcome of the "test case . . . will affect hundreds of millions of dollars of Brazilian tax credits claimed by U.S. banks during the mid-1980s."
MCI earnings up 14%
MCI Communications, the nation's second largest long-distance telephone company, reported yesterday third-quarter earnings of $154 million, a gain of 14 percent from the $133 million posted a year ago. The Washington-based company said revenues for the quarter were almost $2.7 billion, 11 percent more than in the same period a year ago.