Spearfish Daily Queen City Mail from Spearfish, South Dakota • Page 2

2, December 1, 1988. Thursday, County Newspapers Lawrence RJR Nabisco taken with blockbuster buyout bid of $24.53 billion NEW YORK (AP) A top buyout firm won the tumultuous war for RJR Nabisco with the biggest takeover on record, a $24.53 billion offer that derailed a rival bid by Nabisco executives who triggered the bidding frenzy. RJR Nabisco Inc. directors approved the $109-a-share offer by Kohlberg Kravis Roberts Co. Inc.

late Wednesday, capping a day of frantic, confusing maneuvering in the auction of the cigarette-andfood giant. A member of the competing investment group led by RJR chief executive officer F. Ross Johnson said their last-minute offer $25.42 billion or $112 per share had been higher, but suggested the group had been cheated by an unfair bidding process. The value of Kohlberg's offer for America's 19th largest industrial company was nearly double the old takeover record, $13.4 billion for Gulf Corp. in 1984.

Although the Johnson group's offer appeared to be higher, RJR said its board of directors concluded Kohlberg's offer was substantially equal. Kohlberg's offer per share broke down to $81 in cash, $18 in stock and additional securities worth $10, RJR said. "The Board of Directors of RJR Nabisco, by unanimous vote of all directors present, adopted the KKR offer as being in the best interest of the company and its shareholders," the company said. RJR did not say exactly why Kohlberg's offer prevailed. The breakdown of the Johnson group's bid was not disclosed, but Shearson Lehman Hutton, the Wall Street firm that was one of its key financial partners, said, "From what we know, our bid was the best." "We are mystified about the process and the standards that the board used to reach its decision," it said in a statement.

"We are going to continue to keep our options open. We believe the RJR share- Mother of Nimitz victim informed of son's fate SIOUX FALLS, S.D. (AP) Her son, Douglas Dimberg, 23, starting a fire that burned six planes the ship," When Thordys Blume saw Navy officers waiting for her when she returned to her family's farm near Redfield carly Wednesday afternoon, she knew her son had died. was killed Wednesday when a cannon on a jet fighter was fired accidentally aboard the aircraft carrier USS Nimitz in the Arabian Sea. A shell exploded against a plane, on Nimitz's deck.

Blume said she heard about the accident on the way to work Wednesday morning but thought nothing of it. "There's 7,000 guys on Pressler says he won't sign veto letter SIOUX FALLS, S.D. (AP) Republican Sen. Larry Pressler said he won't join other Republican senators in signing a letter supporting a presidential veto of any and all tax increases. Pressler said he opposes any increase in personal income tax, but said he opposes some corporate tax benefits.

"I favor removing the tax advantages on big leveraged buyouts that large corporations are doing," he told the Sioux Falls Argus Leader. "That, theoretically, would be a tax increase. And that's the reason I haven't joined the others in the letter. But I'm against any increase in the personal income tax rate. By not signing the letter, it didn't mean I'm for an increase in that." Twenty-four Republican senators signed a letter to President-elect George Bush saying they will support his veto of any tax increase.

Democratic Sen. Tom Daschle said he applauds those who didn't sign the pledge. "While I oppose new taxes, too, I think if we're serious about reducing this deficit, the question is how Weathervane South Dakota Forecast Decreasing clouds extreme east today. Otherwise mostly sunny and warmer over the state. Highs in the 30s east to near 60 west.

SUNNY Mostly clear tonight. Lows in upper teens cast to low 30s west. Sunny and warmer Friday. Highs in 40s east to 60s west. Market Report NY Stock Exchange NEW YORK (AP) Prenoon stocks: AetnLf IBM 118 AldSgnl 33 IntPap 44 vjAllisC JohnJn 86 Alcoa 52 Josten 17 AmHes 29 mart 35 AmBrnd 56 Kellogg 61 ACyan 45 KnghtR 46 30 Kroger 17 Amoco 73 vjLTV 2 ArchDn 20 Loews 77 Armco 9 MDU 19 AshOil McDnl 46 BethSu 20 McDnD 76 Boeing 61 Merck 56 BoiseC 40 MMM 60 Bmwk 17 MinnPL 24 BriNth 75 Mobil 44 CamSp 31 Monsan 80 Caterp 63 MonPw Chrysir 26 NWA 54 Citicorp 25 NiSemi 9 CocaCl 43 Navistr 4 ColgP 44 NoStPw 32 CmwE Norwst Comsat Penney 53 ConsEd 45 PepsiCo 40 CntICp 34 PhelpD 48 Ct Data 17 PhilMr 97 CrayRs 55 PhilPet 19 CwnCk 43 Pilsbry 58 DaytHd Polaroid 35 Deere ProctG 81 Digital 93 RJR Nb Downs 31 RalsPur duPont 81 Rockwl 20 EKodak 45 SchrPlg 56 Enron 37 Sears 39 Exxon 43 ShellT FtBkSy 21 SonyCp 53 FordM 52 Squibb 68 GTE 44 Tennco 49 Gannett $33 Texaco 47 GenEl 45 TexInst 35 GnMills 52 USX 27 GMot 84 UCarb 25 Gillete s33 UnPac 61 Gdrich 49 Unisys 27 Goodyr 47 USWest 57 Greyh 28 Unocal 36 8 WstgE Hmstke 13 Weyer 24 Honwell 60 William 30 IdahoP 22 WinDix 44 InidStl 38 Wolwth 51 Xerox 54 vj indicates companies that are in bankruptcy or receivership or being reorganized under the bankruptcy act, or securities assumed by such companies.

split stock or dividend of 25 percent or more in the past 52 weeks. High-low range adjusted from the old stock. Dividend begins holders will have a lot of questions as well." Kohlberg, the undisputed leader in buying companies with borrowed money in deals known as leveraged buyouts, said it was happy with the outcome. "We are also pleased that this process has come to an end so that the employees of RJR, its consumers and suppliers and the communities it serves, can be assured that business will now return to normal and stability will be restored," Kohlberg's two principals, Henry R. Kravis and George Roberts, said in a statement.

However, the deal raised the prospect that some businesses in one of America's biggest consumer product companies might be sold to help Kohlberg pay for its prize. Kohlberg gave no indication which of RJR's worldwide operations might be discarded. There was speculation that candidates could include some or all of RJR's food businesses. RJR's tobacco business roots still account for about 40 percent of its sales. Atlanta-based RJR is one of the largest consumer products companies, with more than 120,000 cmployees worldwide.

Its brands include such wellknown products as Camel ciga- Obituaries James Lewin Funeral services for James E. Lewin, 64, of Spearfish will be held Friday at 10 a.m. at the Calvary Baptist Church in Rapid City. The Rev. Gordon Dean and the Rev.

David Iverson will officiate. Burial will be in the Black Hills National Cemetery near Sturgis. Memorials have been established to the Calvary Baptist Church in Rapid City and Calvary Temple Church in Spearfish. Lewin died Tuesday evening at Rapid City Regional Hospital. Visitation will be Thursday from 2 to 8 p.m.

at Osheim Catron Funeral Home in Rapid City. was born March 1, 1924, at Wall to Doran and Emma Lewin. He attended schools in Rapid City and Hot Springs. He lived at Igloo prior to his marriage to Shirley R. Hill Jan.

29, 1945. Lewin went to work at the Black Hills Army Depot in 1945. He was activated with the South Dakota National Guard in 1950 during the Korean War. After his military service he returned to Igloo and worked as a security policeman at the Army Depot there. The family moved to City in 1966.

He worked at Ellsworth Air Force Base as a firefighter. He was promoted to chief of technical services for the fire department in 1967 and later became fire chief: at rettes, Shredded Wheat and Life Savers. The deal also signaled a spectacular defeat for Johnson, whose group began the struggle to take the company private with a $75-a-share offer on Oct. 20.. raised five times.

"I am proud that we put the best bid on the table the first time and this time," Johnson said in a statement following Kohlberg's victory. Earlier Wednesday, Johnson's group tried to raise its bid after a company-decreed deadline for all offers expired. The move temporarily upended a $106-a-share, $23.8 billion Kohlberg Kravis offer the RJR board was about to approve. In heavy New York Stock Exchange trading Wednesday, RJR stock shot up $2.25 to $93 a share on the possibility the auction would be prolonged. Sources familiar with the bidding who spoke on condition of anonymity said the offer of a third contender, First Boston Corp.

was rejected as too tentative, although the bidder valued it as high as $115 a share or $25.87 billion. When the battle began in October, RJR stock was trading at less than $56 a share. For RJR shareholders who held on for the last five wild weeks, their pretax gain totals nearly 95 percent. do we get the job done and why would we want to avoid looking at all the options before the debate began? Somebody's going to have to pay more taxes, it's either going to be us or our children. For any senator to take such a strident position against it is wholly premature," Daschle said.

Pressler said the federal government now subsidizes leveraged buyouts with a tax system that, for example, allows corporations to deduct expenses during takeovers. Removing those advantages could help reduce the deficit, he said. "People seem worried about takeovers all the time. It gets to be a matter of shuffling people, changing owners, but that doesn't improve productivity at all," he said. "Some takeovers are necessary where there has been grossly inefficient management, or companies are underfunded.

But for the large part, I think there are too many takeovers and too many tax advantages there, and there's no point in having taxpayers pay the bill on some of those Counties: Early primary cost too much, hurt voter turnout PIERRE, S.D. (AP) The state's Feb. 23 presidential primary cost too much money and hurt voter turnout for the state primary in June, according to the South Dakota County Commissioners Association. In a survey this fall, county commissioners ranked a return to a single primary as one of their top priorities for the 1989 Legislature. "'We will support legislation that would require one primary," said Neal Strand, executive director of the association.

"I'm glad somebody is looking into it," Secretary of State Joyce Hazeltine said. "I guess I'm not totally surprised." The new presidential primary was an attempt to grab national headlines for South Dakota by holding balloting early in the presidential nomination process. County officials said the effect on the June state primary was substantial. Four counties held no elections because there were no primary contests, several more counties had races in only one party or one district, and voter turnout was considered light in some areas. Darleen Gage, election supervisor in Hazeltine's office, said statewide turnout for the June primary was hard to gauge because of the unusual circumstances.

"Just from looking at a few counties, it looked to be down." The Feb. 23 election attracted 93,805 Republicans and 71,606 Democrats, or a turnout of 42.8 percent. South Dakota's 66 counties spent $355,700 for the February presidential primary, or an average of $2.15 per vote cast, according to state records. The state has given the counties $250,000 to cover election costs, and the remaining $105,700 will be requested from the 1989 Legislature. According to candidate spending reports, Republicans and Democrats spent a total of about $1 million in their presidential primary campaigns.

Hazeltine said there is no accurate way to estimate additional spending by reporters and others who were not directly part of the campaigns. with the date of split or stock dividend. World Gold Prices By The Associated Press Selected world gold prices Thursday: Hong Kong late: $424.55, up $3.30. London morning fixing: $425.50, up $2.90. London afternoon fixing: $424.75, up $2.15.

London late: $423.25, unchanged. Paris afternoon fixing: $427.32, up $5.00. Frankfurt fixing: $425.38, up $3.73. Zurich late afternoon: $424.90 bid up $2.60, $425.40 asked. NY Handy Harman: $424.75, up $2.15.

NY Engelhard: $426.12, up $2.15. NY Engelhard fabricated: $447.43, up $2.26. NY Comex gold spot month close Wed. $424.80, up $2.90. NY Republic National Bank 4 p.m.

Wed. $424.10, up $2.60. Precious Metals NEW YORK (AP) Spot nonferrous metal prices Thursday. Aluminum $1.0100 per pound, NY Comex spot month closed Wed. Copper $1.6550 a pound, U.S.

destinations. Copper 153.20 cents per pound, NY Comex spot month Wed. Lead 39 cents a pound. Zinc 72 cents a pound. FOR SALE: APPLES 40 Lb.

Box Delicious $875 VALLEY CORNER 396 Evans Lane, Spearfish, 642-4271 she said. "You think about it, but it's not, 'is it Navy sent two officers from Sioux Falls to her farm to tell her of her son's death. "When I saw the two guys from the Navy, I knew right away that it was Doug that had been killed on the ship," she said. Dimberg, a 1983 graduate of Tulare High School, attended the University of Minnesota-Morris for a year, worked on the family farm for about six months and enlisted in the Navy in May 1985, Blume said. He was based at Oak Harbor, and was on his second major cruise when the accident OCcurred.

He last saw his family in August. rank was aviation structural mechanic 2nd class. He had been on the carrier for more than two years. Blume said she thought the Nimwas safe, considering all the turmoil in the Middle East. "Because if anyone went after the Nimitz, it would be World War III.

They could go after the smaller ships and get away with it." Dimberg's father died when he was 2. Survivors include his mother and stepfather, Gordon Blume of Redfield, two brothers, one sister, a stepbrother and a stepsister. One of Dimberg's brothers is in the Navy, stationed in San Diego. Hospital Report NH GENERAL Admitted: Bonnie Barnhart, Sturgis. Dismissed: Pam Smith and baby girl, Deadwood; Ken Ellis, Deadwood; Deborah Baker and baby girl, Deadwood; Carl Kittelman, Sturgis; John Sack, Lead; June Peterson, Rapid City.

LOOKOUT MEMORIAL Dismissed: Tiffany Young, Spearfish; Agnes Hopstad, Spearfish; Athena Erickson, Lead; Bonnie Carpenter, spearfish; Evelyn Heinbaugh, Spearfish; Susan Schuldies, Nisland. com- Gulf Sts Util Co 8 Homestake 13 NC McDonald's 46 Harman MDU Res Group 19 Mesa Offshore Tr 1 NY Montana Power 34 Pope Talbot 17 NC Harman Sears 39 NC Pepsico Inc 40 Shelby Wims Ind 9 NY Ryder Systems 23 Unicorp Am Corp 6 UpJohn Co 29 per US West Inc 58 WalMart 30 Western Co NAm NC troy Merc Over The Counter Bid Ask Geodome Res. Ltd. 1 1 NW Nat Gas Co 21 21 WD 40 Co 31 32 Wharf Res Ltd 4 4 12.98 Mutual Funds NAV POP ICA 13.51 14.33 Change Washington Mutual 12.40 13.16 American Mutual 18.29 19.41 Colonial Tax Exempt 12.97 13.62 Growth FD Amer. 17.48 18.55 NC Fundamental Inves.

14.16 15.02 MFS Govt GTD 9.20 9.66 Pioneer Il 18.19 19.88 Van Kampen US 14.86 15.63 Kampen Hg. Yid. 13.36 14.05 Van Kamp. Tax Free 16.10 16.93 JOLLEY BROTHERS MEMORIAL CHAPEL Spearfish, S.D, "Serving Every Family As Our Own" 642-4784 MARTY -JOLLEY DIRECTOR Ellsworth. He earned many awards there.

In 1977 he retired. He later managed a campground at Iron Creek Lake near Spearfish. At the time of his death he was managing a ranch at Beulah, Wyo. Survivors include his wife, Shirley of Spearfish; one daughter, Cheryl Snelling of Yuba City, two sons, Michael J. Hawthorne of Minneapolis, and Anthony B.

Hawthorne of Rapid City; one sister, Ann Miller of Barstow, four brothers, Walt Lewin of Thornbay, Alaska, Jake Lewin of Florida, Bill Lewin of Cleveland, Ohio and Joe Lewin of Oak Harbor, six grandchildren and four great grandchildren. V.F.W. Post Deadwood Friday, December 2nd Bar-B-Q Chicken Saturday, December 3rd Steak Supper Dance To Follow Featuring The Music Plain Country 9:00 p.m. 1:00 a.m. Public Welcome! Tin 4.5990 Metals Week posite price per lb.) Gold $424.75 Handy (only daily quote).

Gold $424.80 per troy Comex spot month closed Wed. Silver $6.090 Handy (only daily quote). Silver $6.136 per troy Comex spot month closed Wed. Mercury 76 lb flask, New York. Platinum N.Y.

(contract). Platinum $608.70 N.Y. spot per troy oz. Wed. Local Issues Yesterday's Closing Quotes Courtesy Edward D.

Jones Co. Dow Jones Volume Last Price Abbott Labs 46 29 Bank One Corp 23 BH Corp 25 Burlington Nor 75 Champion Int 31 1 Chrysler 26 Eastman Kodak 45 General Motors 84 While You're Out Slaying Dragons We'll Mind The Castle! Answering Service Temporary Personnel Typing Street Main Secretarial Service 734 Main 642-1744 Spearfish RIB NIGHTS Dec. 2 Dec. 3 4:30 p.m. to 8:00 p.m.

"ALL YOU CAN EAT" BBQ Beef or Pork Ribs Includes: Choice of Potato, Salad Bar, Coffee or Tea $5.95 Plus Tax New Hours: 7 a.m.-8 p.m. Located At Sam's The Quality Spearfish Inn.