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 Thu, Nov 5 1992 Date: Thu, 5 Nov 92 05:22:46 EST Message-ID: 11-05 0000 DECISIONLINE: Business Law USA TODAY Update Nov. 5, 1992 Source: USA TODAY:Gannett National Information Network SIEGEL SUPPLIED INSIDER INFO: Former Wall Street merger expert Martin Siegel Wednesday told a Dallas jury that he supplied both sides with inside information during the 1983 merger of Natomas Co. and Diamond Shamrock Co., the latter now Maxus Energy Corp. Maxus is suing Ivan Boesky for buying Natomas shares and driving up the merger cost. Siegel testified in exchange for release from all claims. CLAIMS AGAINST SIEGEL DROPPED: Former Wall Street guru Martin Siegel exchanged his testimony for release from all claims during the suit Maxus Energy Corp. has lodged against Ivan Boesky. Siegel had been a defendant. His former employer, Kidder, Peabody, settled with Maxus in October for $165 million. Kidder is a unit of General Electric Corp. Siegel says he passed on inside information the day before the merger closed. TRADE WAR LOOMS: The possibility of a trade war between the USA and the European Community continues to loom following the breakdown of talks over European oilseed subsidies. Officials say the dispute could destroy six years of talks. Wednesday, deputy U.S. trade ambassador Rufus Yerxa asked the ruling council of the General Agreement for Tarriffs and Trade to ratify $1 billion in tariffs on food imports. DECISION IS POSTPONED: The ruling council of the European Community Wednesday postponed until a later date a decision to ratify $1 billion in tariffs on food imports. Officials say the dispute could crumble negotiations aimed at liberalizing world trade under the General Agreement on Tariffs and Trade. U.S. Agriculture Secretary Edward Madigan says the USA is still willing to continue talks. KLM DENIES INVESTMENT TALK: KLM Royal Dutch Airways Wednesday denied a report that it plans to invest up to $500 million in Northwest Airlines' parent NWA. The Commercial Aviation Report said the investment would be a $250 million secured loan and $250 million in equity. To do that, KLM would have to get a waiver on a federal law limiting foreign ownership of U.S. airlines to 49% of total equity. COURT TO GET ANOTHER JUDGE: The government Wednesday said it would hire another judge for the federal bankruptcy court in Wilmington, Del., which has a heavy caseload. Judge Helen Balick handles all bankruptcy cases in the state, a disproportionate number because it is the state of incorporation for many companies based elsewhere. Cases include Continental and Trans World airlines and Columbia Gas Systems Inc. CREDIT FRAUD COSTS BANKS: Banks that issue credit cards lose an average $255,200 per year through credit-card fraud, according to the American Bankers Association. Half that loss comes from cards lost by or stolen from cardholders. After that, it's cards stolen from the mail, 22%; fraudulent applictions, 13%; telemarketing scams, 5%; counterfeit cards, 4%; and other causes, 6%. MARS UPSET ABOUT GREEN ONES: Wendy Jaffe, who was once a contestant on the television show "Studs," has gotten Mars Inc. in an uproar. Her product, The Green Ones, is a titillating novelty candy selling in adult stores. The former lawyer is the only full-time employee of Cool Chocolate. Mars is suing for trademark infringement and a permanent injunction that look like green M&Ms, long rumored to be an aphrodisiac. WESTINGHOUSE GETS CONTRACT: Westinghouse Electric Corp. Wednesday announced it has been awarded a $94 million contract to supply a combined-cycle cogeneration power plant in central Florida. The contract from the Auburndale Power Partners LP calls for Westinghouse to supply the 150-megawatt power plant on a turnkey basis. The plant's power island will be based on a Westinghouse 501D5 combustion turbine. MIDCON REORGANIZES: MidCon Corp. Wednesday announced a major reorganization of its operations into two business decisions, effective by the end of this year. MidCon is the natural gas transmission subsidiary of Occidental Petroleum Corp. One division will handle regulated business; the other, nonregulated. MidCon's operations have been handled through three subsidiaries. BANK PAYS GOVERNMENT GROUP: Australia & New Zealand Banking Group said Wednesday it has paid an Indian government agency $172.5 million pending the outcome of arbitration over allegations arising from the Bombay stock market scandal. The group paid the money to the National Housing bank over allegations involving the bank's ANZ Grindlays Bank unit's role in the housing market's diversion of funds into the Bombay market. SWEET 'N LOW GOES TO ITALY: Sweet 'N Low said Wednesday it will sign a $600 million distribution and licensing agreement with the Ferruzzi group of Italy. Sweet 'N Low manufactures artificial sweetener. The company expects negotiations to be completed by the end of the year. The agreement is predicted to produce gross sales of $600 million a year. Ferruzzi will sell the product in Italy. 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