New rail network to be created
Illinois Central Corp. said yesterday that it agreed to buy Kansas City Southern Industries Inc. in a $700 million stock deal, creating a rail network that will serve 14 Southern and Midwestern states.
Under the Illinois Central deal, Kansas City Southern shareholders will receive, on a tax-free basis, approximately 21.2 million shares of Illinois Central common stock and stock of C company that will hold shares of Kansas City Southern's non-rail operations.
Rohr declines purchase offer
Rohr Inc. has turned down a Florida businessman's proposal to buy the company's aircraft parts plant in Hagerstown, company officials said.
The plant initially was scheduled to close in May, but Chula Vista, Calif.-based Rohr now has enough work to keep its 200 employees busy until October, and is looking for more work to extend the life of the factory, manager Jay Howe said.
Arriba Aviation and Aerospace Inc. signed a letter of intent last October to take over operations at the plant, but Jorge Morales, the lead investor in Arriba's proposal, had problems pulling together financial backers.
Honda expands U.S. operations
Honda said yesterday that it is expanding its North American business by adding 1,100 jobs, increasing production and introducing new models.
Honda's $310 million investment in North America to expand plants and research facilities will bring its commitment in the region to more than $3.8 billion, the company said.
About 60 percent to 65 percent of Honda vehicles now sold in North America are made here. Under the new strategy, that number should increase to 75 percent or 80 percent by the year 2000, Honda officials said.
Travelers income rises 72%
Travelers Inc. said second-quarter net income rose 72 percent after the company's acquisitions of the Shearson brokerage business and its Travelers insurance operation.
The insurance, brokerage and finance company, formerly called Primerica Corp., said earnings for the three months that ended June 30 rose to $320.5 million, or 93 cents a share, from $186.4 million, or 76 cents, a year ago. Travelers' stock price closed unchanged yesterday, at $31.125.
TLC Beatrice sells Dutch unit
TLC Beatrice International Holdings said it sold its Danish ice cream company, Premier Is A/S, to a Danish group, Albani Bryggerierne A/S, for a combination of cash and the assumption of debt.
TLC Beatrice, a distributor of groceries to supermarkets in the Paris area, said the sale would reduce the company's overall debt and is in line with its strategy of focusing on core businesses.