Stock to fund GM pension liability
General Motors Corp. said yesterday that it would use $5.7 billion worth of stock in its Electronic Data Systems Corp. subsidiary to reduce GM's $24 billion unfunded pension liability.
GM said it would transfer 185 million shares of EDS stock, which closed yesterday at $31 a share.
Unions renew Lorenzo fight
Trade unions yesterday reopened their fight against Frank Lorenzo's bid to start up a new airline, saying his record as owner of Continental and Eastern airlines shows him to be unfit.
Former Air Lines Pilots Association President Henry Duffy told a Transportation Department hearing yesterday that Mr. Lorenzo lacked management competence. The pilots and the International Association of Machinists, who have fought many battles with Mr. Lorenzo, oppose approval for him to operate the planned low-cost, short-haul East Coast airline, now being called ATX.
Eastern Stainless sales fall
Eastern Stainless Corp., a division of Armco Inc., announced yesterday that sales fell in its third quarter, and as a result, losses rose at the Baltimore stainless steel plant.
Eastern said it lost $3.99 million on sales of $24.3 in the three
months that ended Sept. 30. The company lost $2.5 million a
year ago on sales of $31.9 million.
AEGON to buy MONY division
AEGON USA Inc., a Baltimore-based insurance company, has agreed to buy the group pension operations of the Mutual Life Insurance Co. of New York (MONY) and establish the division as a separate unit called Diversified Investment Advisors Inc., headquartered in Purchase, N.Y.
GTS Duratek lands subcontract
GTS Duratek Corp. said it received a $13.9 million subcontract from Westinghouse Savannah River Co. to stabilize a byproduct of nuclear weapons production at the Savannah River site.
The company said that over a three-year period it will design, build and operate a commercial-scale low-level radioactive waste Bvitrification, or glass-making, system for environmental cleanup.