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The daily Tar Heel. (Chapel Hill, N.C.) 1946-current, December 02, 1988, Page 2, Image 2

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2The Daily Tar HeelFriday, December 2, 1988 World and : Nation 4 i -I i t uSd vows to reduce federal deficit From Associated Press reports WASHINGTON President- . elect George Bush told the new Democratic leader of the Senate . ' Thursday that he will take the lead in proposing ways to pare the huge 7 federal budget deficit. Faced with calls from Senate ! Majority Leader George Mitchell and ,v" . other top Democrats to make the first move on deficit reduction, Bush said, "That is exactly what I intend to do" once he becomes president. "I am confident that we can work ,.. together," Bush said as he and Mitchell faced reporters on the White ' House driveway after breakfast together, the latest in a series of Y-culinary goodwill gestures toward congressional leaders. Tm not naive about it, nor is he, and there will be different approaches ; 'on some of these major problems facing this country," said the vice -Koh berg From Associated Press reports !, NEW YORK One of history's . .biggest corporate breakups loomed 3 over RJR Nabisco Inc. on Thursday ' after Kohlberg Kravis Roberts & Co. ...seemingly bagged the cigarette-and- .food company for a record $24.53 j billion, but the buyout specialist said it saw no urgent need to sell anything. Meanwhile, a rival bidding group ., .hinted it might reopen the struggle, RJR's debt ratings sank, and one disgruntled big RJR bondholder that already had sued RJR said it might ; sue Kohlberg too. ; After an exhaustive bidding free ; for-all overseen by a special RJR directors committee, Kohlberg tri umphed over an RJR management group led by chief executive F. Ross ; Johnson late Wednesday. Kohlberg's ; package of cash and securities was valued at $109 a share for each of bLIPS, etc. have University Squar Chapal Hill 967-8935 Yp? . a Oil. ' ' ' v . Grilled Beef and Shrimp Kabobs m n . -- j 8 L III You've Been Hungry Too Long Rich. Succulent. With a spritz of lemon, or a dollop of butter. Dripping with cheese, or laced thick with cream. Grilled, broiled, sauteed, or stir fried. Go ahead, give in to temptation. s V I 2 I! ii II ii ! v. Df fc. DCClAliOAkJT South Square Mall president. He said he will take the lead on the deficit "and then there will be, I'm sure, active discussion and negotiation with whoever he desig nates to try to solve these problems." Bush also said he won't be rushed into making Cabinet appointments despite persistent news media spec ulation that may be troubling to prospects such as John Tower, the former Texas senator keeping a long vigil for the Pentagon opening. "We're trying to be prudent and do the proper work required to back up appointments at all levels," Bush said. Asked about reports of internal strife within his camp over whether to give the Pentagon post to Tower, a former Senate Armed Services Committee chairman and now a paid consultant to several major defense contractors, Bush said, "Any time there seems to be stories that may apparent winner in RJR buyout RJR's 225 million shares, the biggest takeover agreement in history. RJR's directors accepted the bid over an apparently higher offer from Johnson's group valued at $112 a share or $25.2 billion. They said both offers were nearly the same but Kohlberg's offer would give share holders a 25 percent stake in the acquired company, compared with a 15 percent stake offered by Johnson. Securities analysts surveying the aftermath of the chaotic takeover auction for the Atlanta-based RJR said they were awaiting more details of the securities portion of Kohlberg's bid to emerge before making any conclusions. Nevertheless, many said it was certain Kohlberg would have to sell at least part of RJR's wide-ranging somethino to show your hair. Beef and Broccoli Stir Fry vi'i CtillBAUT 1 be hurtful to somebody, it concerns me no matter who it is. Senator Tower's a friend of mine, but he knows that the process takes a while to go forward." Mitchell said he and Bush did not discuss taxes or any budget-cutting specifics, but he called the vice president "keenly aware of the seriousness of the (deficit) situation." The senator called the discussion "cordial and productive. He under stands that it is his responsibility to proceed first and he will do so." He said Bush deserves time to get his economic team in place and settle upon a deficit-reduction strategy. The vice president had lunch with President Reagan and joined him at a meeting with Trade Representative Clayton Yeutter to discuss next week's General Agreement on Tariffs and Trade talks in Montreal. Bush and Reagan were both speak food operations to service the enor mous debt acquired to engineer the deal. "I'd be totally amazed if there wasn't some stuff sold off," said Neal Kaplan, who follows RJR for Interstate-Johnson Lane Securities in Charlotte, N.C. "I can't conceive of them keeping it intact." But Kohlberg principal Henry Kravis told a few selected financial journalists in New York he foresaw no urgent reason to sell any of RJR's operations, people familiar with his remarks aid. Kohlbetg is the undisputed leader in leveraged buyouts, in which it puts up a small amount of money and borrows the rest, repaying the debt with the acquired company's earn- ings, assets or both. Fost-buyout companies often have debt-to-equity i j -ji r : ' Supreme Soviet approves Gorbachev plain From Associated Press reports MOSCOW President Mikhail Gorbachev won nearly unanimous approval Thursday of a more dynamic political structure from a parliament that voted its traditionally docile form out of existence. In a speech to the 1,500-member Supreme Soviet, Gorbachev also accepted blame for the lack of explanations that led to a remarkable , Tine Off-Campus.lDoirm. v '-Wrf W-.v. i, ' -if w---rtiraiiiiinMiifiiiSlr i"-".-T-v-VJg':- inrffli' t n "'p'-- Live Free 'til next Semester KENSINGTON WCt Weaver Dairy Road 967-0044 t 7 S non-stop air, H transfers 3 ha Show, $5 gaming chip, fv Q3VUJ FRITKEIJOUINC? H V M rORVIMMtWOnlYI See our brochure for contract terms and effective dates. Subject to change and availability. Affiliated with Princess Hotels International. Inc ing Thursday night at a testimonial dinner for retiring Rep. Jack Kemp of New York, one of the foes Bush vanquished for the GOP nomination. Bush brushed aside a question about whether he would give Kemp the appointment Kemp wants to the National Economic Commission to fight any proposals to raise taxes. Kemp had said before the election the panel's work should be "routinely passed into the dustbin of history." On Friday, Bush will meet with another former GOP presidential candidate, Pat Robertson, in the morning before putting out the welcome mat at his home for Mas sachusetts Gov. Michael Dukakis, the defeated Democratic presidential nominee, in the afternoon. Later Friday, he will receive Argen tine President Raul Alfonsin, whose inauguration he attended five years ago. ratios of 10-to-l and sometimes more. The RJR acquisition will more than quadruple the company's exist ing debt of $5 billion to $22.3 billion. But the amount of equity in the acquired company is estimated at about $7.4 billion, for a debt-to-equity ratio of 3-to-l. In terms of leveraged buyouts, that is considered low. . Although Kravis said he consi dered the fight for RJR over, Johnson and his chief financial backer, Shear son Lehman Hutton Inc., hinted Thursday that they were not finished. Shearson said in a statement: "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. We are going to continue to keep our options open. u public debate over the reform he considers crucial to his restructuring effort. Despite criticism from some of the 15 Soviet republics that the reforms make Moscow too powerful, only five deputies voted against it. Still, the negative votes were a rarity in the parliament that for years has unani mously approved Kremlin directives. The first "no" votes came just more . ii 4 ..... ... Includes non-stop air, accommodations. and much more... VALUE BONUS COUPONS H Includes admission to Casino discounts and more... I I V n J Election victory still unclear in race for Israeli leadership From Associated Press reports JERUSALEM The left-of-center Labor Party on Thursday secured the backing of half the Israeli Parliament, enough to prevent a right-wing Likud government from coming to power but not enough to seat a government of its own. With the 120-member Knesset split between the left and right blocs, it remained unclear a full month after the elections who will govern for the next four years. . In the Nov. 1 balloting, Likud had a small edge over Labor, with 40 seats to Labor's 39. Each must woo smaller parties to form a majority, and Likud's Prime Min ister Yitzhak Shamir planned to do so with the backing of right wing and Orthodox religious parties. But the defection of an ultra Orthodox Likud ally to Labor's ranks has thrown a monkey wrench into the works. Now Labor leader Shimon Peres has the backing of 60 members, lim iting the Likud bloc to 58. The two-man Torah Flag Party is undecided, possibly holding the key to forming the next govern , ment in its hands. If Torah Flag throws its support behind Labor, the bloc would have a majority for a government, albeit a narrow one. Mexican president inaugurated MEXICO CITY President Carlos Salinas de Gortari took office Friday as opponents pro tested in congress and in the streets, and he promised to push for political and economic modernization. Salinas, a 40-year-old econo mist, succeeds President Miguel de la Madrid for a six-year term. He than a month ago. Gorbachev told deputies that except for an emergency, "this line up of the U.S.S.R. Supreme Soviet is having its final session Elections will be held March 26 for a new 2,250-member Congress of People's Deputies that will choose from among its members a smaller, more active Supreme Soviet. ' "We are creating a new, very authoritative representative body of power that will reflect all national, territorial and social interests of society," Gorbachev said. The reform also creates a strong presidency in place of the largely ceremonial post Gorbachev assumed Oct. 1. Earlier in the week, he said that without the political reform, "The drive for perestroika inevitably will begin to skid." He said in a speech Thursday concluding an extraordinary three day session on his proposals to restructure the government that the 6& 30P TIL Every Caiwrday at WFZJN! it UPooro dPpaia 'ill .m. $1.75 Long Island Ice Teas .18 or older admitted wcollege ID enoncnena Xv. .. . . . nnnrnrn VVFUN Kroger Plaza Were flaot jest natural home 1 316 West Franklin St.. . Chapel Hill, NC 27514 933-2222 Mon. 10-5, Tua-Sat. 10-6, Thurs. 10-8 News in Brief inherits an economy threatened by both recession and inflation, growth squeezed by a $102 billion foreign debt and a population impatient after six years of aus terity that reduced earnings about 50 percent. He said efforts to reduce Mex ico's foreign debt would begin immediately. About 140 delegates from the National Democratic Frorit walked out of the Legislative Palace just before Salinas was inaugurated, and members of the National Action Party held up signs declaring "Fraud." ; Soviets clear their airwaves BONN, West Germany -Radio Liberty officials on Thurs day rejoiced over an end to 35 years of Kremlin-ordered broad cast jamming as they examined how to take advantage of the newly cleared airwaves to the Soviet Union. Robert Redlich, spokesman for Radio Liberty and its sister station Radio Free Europe, which beamjs its signal to Eastern European countries, said news that thp jamming stopped was broadcast'tp listeners in the Soviet Union. The end of Soviet jamming against Radio Liberty appears to be part of the glasnost, or wopeV ness," policy of President Mikhail Gorbachev. The Soviets ceased jamming of the U.S.-operated Voice of America service mote than a year ago, and some East European countries dropped efforts to block Radio Free Europe broadcasts. -r revised constitution was temporary, and further changes would respond to demands for expanded power !for republic and local governments. ' But he emphasized the rest of ; his reforms will be considered by the new lawmakers. Gorbachev also told the deputies that a storm of controversy over the reform package including 250,000 letters to the' Kremlin could have been reduced, and he took the blame. "We did not care about explaining the essence, the meaning" of -the changes, Gorbachev said. "The center was just following the old practice, thinking, 'well, they would get used toil.' "That is why I reiterate all of us are now learning our lessons. All of us are in a school of democracy, and we should be good pupils in that school," Gorbachev said. "V ' Newspapers first published the draft language of the complex revi sions in 1 17 articles of the constitution and election law only five weeks ago. VQU DROP VP Private Xmas Parties tooli; Chapol HIII'929-WFUNV Terra cotta confiture jars (set of four) Terra cotta baskets

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