ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, January 19, 1996 TAG: 9601190057
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
Fed chief predicts growth in '96
The president of the Federal Reserve Bank of Richmond Thursday predicted ``not sparkling, but reasonable growth'' for the U.S. economy in 1996, spurred in part by strong exports.
In a speech to the local chapter of the National Association of Business Economists, Al Broaddus said he would agree with economic forecasts that called for growth of about 2 percent in 1996.
The economy grew by 4.1 percent in 1994 and slowed to about 3 percent last year. Broaddus' projection for 1996 was on the conservative side of other analysts projecting growth of 2.6 percent this year.
``Clearly, there are some weak spots in the economy,'' he said, but, ``I agree that overall the economy is pretty solid.''
For the moment, recession is not a concern, he said.
- Associated Press
City gets 'good' rate on bonds
The city of Roanoke received a favorable interest rate Thursday on issuance of $31.3 million in general obligation bonds.
Merrill Lynch Co. submitted the winning bid with an interest rate of 4.95439 percent when bids were opened at the offices of Craigie Inc. in Richmond. "That's pretty good," said Damon Wallace, an analyst with Craigie who worked on sale of the bonds.
Roanoke officials had predicted that the city would have to pay between 5.1 percent and 5.35 percent on the municipal bonds. The city earlier had received AA ratings from three bond rating agencies.
The bonds will be paid off between 1997 and 2014. Proceeds from the sale will be used for schools, bridges, streets, storm drains, parks, an Interstate 581 interchange, jail expansion and employee parking.
- Staff report
Polymer workers vote to join union
Employees of Polymer Corp.'s Wytheville plant voted 60-58 to affiliate with the Oil, Chemical and Atomic Workers International Union.
According to Clint Morse, a company attorney, about 118 of the 125 production and maintenance workers eligible to vote cast ballots Tuesday and Wednesday. The company, based in Reading, Pa., manufactures plastic materials in Wytheville for industrial uses.
Company officials opposed the formation of any union, but Morse said Thursday that they accept the employees' decision.
- Staff report
Xerox to sell insurance unit
STAMFORD, Conn. - Xerox Corp. said Thursday it will sell its property-casualty insurance business for $2.7 billion to investor groups led by buyout specialist Kohlberg Kravis Roberts & Co. and the unit's management.
Talegen Holdings Inc.'s sale is the final step in Xerox's plan to dismantle its ill-fated diversification into financial services. In 1993, the Xerox said it would jettison its insurance and financial services businesses.
``These transactions will significantly reduce our debt, strengthen the company's financial position and allow us to focus our resources on our core document processing business,'' chairman Paul Allaire said in a statement.
The purchase price for Talegen Holdings Inc. insurance group includes cash, securities, bonds and the assumption of Talegen debt. The deal needs approval from regulators and is subject to financing arrangements.
The sale will result in a $1.5 billion after-tax charge against the office equipment maker's earnings for the last quarter of 1995 and will result in an undisclosed loss. The earnings report will be posted Jan. 30.
- Associated Press
LENGTH: Medium: 70 linesby CNB