Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law,americast.usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Wed, Nov 4 1992 Date: Wed, 4 Nov 92 05:08:35 EST Message-ID: 11-04 0000 DECISIONLINE: Business Law USA TODAY Update Nov. 4, 1992 Source: USA TODAY:Gannett National Information Network EX-BROKER AGREES TO TESTIFY: A former broker accused of being involved in a stock manipulation and securities fraud scheme has agreed to cooperate with the Securities and Exchange Commission. Richard Puccio once was employed by Stratton Oakmont Inc., the firm the SEC is investigating. Puccio settled the SEC complaint against him without admitting or denying guilt. FIRM CALLED `BOILER ROOM': The Securities and Exchange Commission said Tuesday that former broker Charles Puccio would testify in its case against Stratton Oakmont Inc. Stratton and some of its executives and employees were the target of an SEC complaint that claimed the firm was a boiler room operation that violated securities fraud laws by misrepresentation, illegal sales and manipulation of common stock. DATA RACE SAID IT DIDN'T KNOW: Data Race Inc. said Tuesday it was unaware until after its initial public offering last month that the cellular-ready modems it produces relied on patents held by Spectrum Information Technologies Inc., Bloomberg Business News reported. In a suit filed Oct. 23, Spectrum alleged that Data Race is improperly using Spectrum's Axsys cellular cable technology in the modems. CEREAL DEAL CRUMBLES: General Mills and RJR Nabisco said Tuesday they've called off a deal for General Mills to buy Nabisco's U.S. and Canadian ready-to-eat cold cereal business. The $450 million deal, announced Sept. 1, would have boosted General Mills' share to 32.5% from 29.3% of the ready-to-eat cereal market. No. 1 Kellogg has a 36.8% share of the market. REVIEW CITED AS REASON: General Mills and RJR Nabisco said Tuesday they called off a deal for General Mills to buy Nabisco's U.S. and Canadian cold cereal business because they expected a lengthy review by U.S. and Canadian regulators. Such a deal could have prevented a quick closing of the $450 million deal. Nabisco cereals include Nabisco's Shredded Wheat, Frosted Wheat Squares and Team Flakes. MCSHARRY SAYS AGREEMENT NEAR: A second day of negotiations on the General Agreements on Tariffs and Trade recessed late Tuesday morning and resumed Tuesday afternoon. The break in talks over a possible trade agreement between the USA and Europe was recessed for Agriculture Secretary Edward Madigan to vote. His European counterpart, Ray McSharry, said he was confident an agreement was imminent. GROUP BLASTS FDIC AUDIT RULE: The Independent Bankers Association Tuesday said the Federal Deposit Insurance Corp.'s proposed audit rule for banks with more than $150 million assets was burdensome and costly. The association urged the FDIC to re-draft the rule that it said had gone beyond "the requirements of the statute." An earlier act required the FDIC to adopt an audit rule, but allowed asset-size flexibility. ATTORNEY DENOUNCES MAXUS SUIT: An attorney for Ivan Boesky Tuesday said an insider trading suit was an attempt by Maxus Energy Corp. to recoup losses. Boesky attorney James Truitt said that Maxus Energy got what it paid for in its 1983 merger with California oil concern Natomas Corp. Maxus said Boesky used insider information to drive up the cost of the purchase by buying Natomas stock ahead of the merger. SUIT MAY BE REFILED: A federal lawsuit may be refiled after a review of a $28 million cleanup plan by the Environmental Protection Agency. The suit had asked that residents of the lead-contaminated Washington Park housing complex in Portsmouth, Va., be relocated. A lawyer says the plan includes temporary relocations. But some residents still want permanent moves. THUNDER BASIN SETTLES: Thunder Basin Coal Co. in Gillette, Wyo., has settled out of court with union organizers. The settlement avoids a hearing scheduled for this week and a subsequent trial. The Campbell County mine has agreed to stop meddling with union organization attempts, according to officials. The firm had been charged with harassing workers trying to start a union. LOCAL APPROVES CONTRACT: Local 345 of the paperworkers' union at the Fonda Group Inc. plant in St. Albans, Vt., has approved a three-year contract. The contract includes what Local 345 President Evelyn Hawkins characterizes as a "very small" salary increase for the plant's 140 employees, retroactive to April 1. Business Law Editor: Beth Mann. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM