The stock market showed mixed results Wednesday. The Dow Jones average of 30 industrials, down 21.24 points on Tuesday, recovered 5.59 points to 3,230.32.
T-BILL RATES CLIMB. Interest rates on short-term Treasury securities rose this week as the government auctioned $10.8-billion of three-month Treasury bills and $10.8-billion of six-month bills. The average discount rate for the three-month bill was 3.83 percent, up from 3.72 percent last week, while the average discount rate for the six-month bill was 3.93 percent, up from 3.80 percent. The discount rate understates the return to investors _ a yield of 3.93 percent on three-month bills and 4.08 percent on six-month bills. In a separate report, the Federal Reserve said that the average yield for one-year Treasury bills was unchanged last week from 4.19 percent the previous week.
trying to raise cash
American Ship Building Co. of Tampa has hired an investment firm to help it raise cash to stay in business, said Paul Butcher, chairman and chief executive officer of the company.
American Ship on Wednesday posted a loss for the first quarter ended Dec. 31 of $338,000, compared to a net loss of $2.4-million for the same period a year earlier. Revenue for the three months was $26.3-million, compared to $16.6-million for the same period in 1991.
American Ship, which is in violation on terms of millions of dollars in bank loans, is continuing negotiations with its lenders, Butcher said. Meanwhile, he said, the company is seeking equity investors to provide money for steel and other supplies.
He declined to give other details, including the name of the company's new investment firm, but said American Ship's increased work has contributed to the shortage of funds. "We need working capital to pay our vendors," Butcher said.
BARNETT PLANS OFFERING. Barnett Banks Inc. on Wednesday said it plans to raise funds by selling up to 3.8-million shares of common stock. Florida's largest banking company, based in Jacksonville, said the proceeds would be used for corporate services and a portion of the sale would be sold internationally. Barnett announced its plan in a registration statement filed with the Securities and Exchange Commission.
CARNIVAL EXPANDS. Carnival Cruise Lines announced Wednesday it has reached an agreement to acquire up to a 50 percent interest in San Francisco-based Seabourn Cruise Line. Seabourn currently operates two ultra-luxury vessels. The ships carry 200 guests in all-suite accommodations and operate on worldwide itineraries. Miami-based Carnival bills itself as the world's largest cruise line based on number of passengers carried. Together with Holland America Line and Windstar Cruises, Carnival currently operates 16 ships.
TRUMP PLAN PROCEEDS. Donald Trump is close to getting the required two-thirds approval from bondholders for his Trump Castle casino's bankruptcy plan. State gambling regulators had planned a vote Wednesday on the casino's financial stability, but canceled it after the Castle said it had approval of 65.2 percent of bondholders. The commission can seize an operator's license if it finds a casino financially unstable. The casino plans to file what is known as a prepackaged Chapter 11 bankruptcy plan on March 9. The proposed restructuring would give bondholders half the casino's equity in exchange for lower interest rates on their bonds.
TIME WARNER BUYS PUBLISHER. The book-publishing arm of media giant Time Warner Inc. has agreed to buy the British publishing business of Macdonald and Co. Ltd. for an undisclosed price. The court-appointed administrators for Maxwell Communication Corp. PLC, Macdonald's parent company, said the deal should be completed within three weeks, ending a period of uncertainty for Macdonald staff and authors, who include Stephen King, Janet Dailey, Clive Cussler, Danielle Steele and Ellis Peters. Administrators have been seeking to sell the non-core assets of Maxwell Communication to help pay its debts since the company filed for bankruptcy court protection in mid-December.
DOW DOLLAR YIELD
30 INDUSTRIALS VS. JAPANESE YEN 30-YEAR U.S. BOND
3230.32 128.20 7.91
+5.59 +0.20 -0.07