
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, July 24, 1993                   TAG: 9307240205
SECTION: VIRGINIA                    PAGE: C-3   EDITION: METRO 
SOURCE: 
DATELINE: RICHMOND                                LENGTH: Short

RF&P COSTLY TO SELL, COMMISSION SAYS

A General Assembly panel said Friday it might be too expensive for the Virginia Retirement System to sell RF&P Corp., the pension fund's largest and most controversial acquisition.

The Joint Legislative Audit and Review Commission said RF&P would face a $445 million tax bill if forced to sell its holdings, nearly twice JLARC's previous estimate.

Rory Riggs, acting president of RF&P, did not dispute the latest numbers. He said VRS trustees knew if the company's assets were sold, "they would only get 62 percent" - the balance after paying a 38 percent federal tax bill.

Many legislators said Friday they were surprised by the findings, which they said confirmed their fears that the acquisition was a bad deal for the $15.2 billion retirement system. Most lawmakers had opposed the 1991 purchase of RF&P. - Associated Press

by CNB