I MINUTES OF THE EXECUTIVE SESSION j of - Michigan State ...
I MINUTES OF THE EXECUTIVE SESSION j of - Michigan State ...
I MINUTES OF THE EXECUTIVE SESSION j of - Michigan State ...
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t<br />
i<br />
•<br />
•<br />
D. O<strong>THE</strong>R ITEMS FOR ACTION, continued<br />
1. Investment Items, cont.<br />
b. Changes Within the Bond Portfolio, cont,<br />
MSU Income Fund - Account #72356<br />
Recommend selling:<br />
$ 60,000 Federal Home Loan Bank<br />
due 2-26-79<br />
Maturing:<br />
$ 42,000 Commercial Paper<br />
Recommend buying:<br />
$100,000 U.S. Treasury due 5-15-82<br />
RESOLVED that the above investment report be accepted.<br />
September 26, 1975<br />
Approx.<br />
Rate Price Principal Income<br />
26<br />
8.650 101-32 $ 61,088 $ 5,190<br />
6.00 100 $ 42,000 $ 2,520<br />
$ 103,088 $ 7,710<br />
27<br />
8.500 100-64 $ 100,422 $ 8,000<br />
Unanimously approved. Motion by Trustee Carrigan, seconded by Trustee Martin.<br />
c. Sale <strong>of</strong> Securities Received from Estate <strong>of</strong> Samuel C. McClure<br />
The following investment transaction was completed by Scudder, Stevens, ,& Clark<br />
after approval by the Administrative and Trustee Investment Committees. These<br />
securities represented small holdings within the Balanced Fund resulting from<br />
the receipt <strong>of</strong> assets from the Estate <strong>of</strong> Samuel McClure. Since they were<br />
relatively small holdings, it was recommended that these securities be sold<br />
with the net assets being available for reinvestment.<br />
25,000<br />
Recommend selling:<br />
Duquesne Light<br />
1-1-99<br />
25,000 Pennsylvania Power & Light 1-1-99<br />
15,000 Uniroyal cv. debs. 2-15-96<br />
156 sh. Republic Steel<br />
200 NL Industries<br />
200 Goodyear Tire & Rubber<br />
165 General Public Utilities<br />
125 Delmarva Power & Light<br />
129 Chase Manhattan Corp.<br />
150 Ingersoil Rand cv. pfd.<br />
150 Combustion Engineering cv pfd.<br />
54 City Investing cv. pfd.<br />
500 Diamond Shamrock cv. pfd.<br />
300 U.S. Gypsum<br />
Rate<br />
7. 00<br />
7. 00<br />
5. 50<br />
3. 00<br />
1. 00<br />
1. 10<br />
1. 68<br />
.1. 20<br />
2. 20<br />
2. 35<br />
1. 70<br />
2. 00<br />
1. 20<br />
1. 60<br />
RESOLVED that the above investment report be accepted.<br />
Approx.<br />
Price Principal Income<br />
78.50 $<br />
79.375<br />
58<br />
31<br />
17<br />
19<br />
16<br />
11<br />
38<br />
48<br />
45<br />
18<br />
24<br />
18<br />
Unanimously approved. Motion by Trustee Huff, seconded by Trustee Carrigan.<br />
19,625 $<br />
19,844<br />
8,700<br />
4,836<br />
3,400<br />
3,800<br />
2,640<br />
1,375<br />
4,902<br />
7,200<br />
6,750<br />
972<br />
12,000<br />
5,400<br />
1,750<br />
1,750<br />
825<br />
468<br />
200<br />
220<br />
277<br />
150<br />
284<br />
353<br />
255<br />
108<br />
600<br />
480<br />
8621<br />
Investment<br />
Items,; cont.<br />
Changes Within<br />
Bond Portfolio,<br />
cont.<br />
1 Sale <strong>of</strong> Securities<br />
received<br />
[ from Estate <strong>of</strong><br />
j Samuel C.<br />
i McClure<br />
|approved<br />
d. Sale <strong>of</strong> Magnavox Stock<br />
1 Sale <strong>of</strong><br />
jMagnavox stock<br />
In the fall <strong>of</strong> 1974 North American Philips Development Corporation tendered •approved<br />
cash <strong>of</strong>fer at $9.00 per share to holders <strong>of</strong> Magnavox stock. As a result <strong>of</strong><br />
this <strong>of</strong>fer, North American Philips did obtain approximately 85% <strong>of</strong> the outstanding<br />
stock <strong>of</strong> Magnavox. The University, however, did not accept this <strong>of</strong>ferj<br />
and currently holds 11,005 shares <strong>of</strong> this stock in its investment portfolio.<br />
The University was recently informed that on July 24 Magnavox shareholders<br />
would be voting on a merger <strong>of</strong> the company with and into a wholly-owned subsidiary<br />
<strong>of</strong> North American Philips Development Corporation through payment <strong>of</strong><br />
cash in the amount <strong>of</strong> $9.00 per share for Magnavox effective July 24, 1975.<br />
Based on fundamental investment criteria and the fact that the University would!<br />
be a dissenting minority stockholder, the investment counsel recommended that<br />
the University accept this <strong>of</strong>fer <strong>of</strong> $9.00 per share.<br />
This matter was reviewed by both the Administrative Investment Committee and<br />
the Trustee Investment Committee and, after careful deliberation, it was agreed]<br />
to accept the <strong>of</strong>fer <strong>of</strong> $9.00 per share. This transaction has now been executed<br />
on behalf <strong>of</strong> the University.<br />
RESOLVED that the above investment action be approved.<br />
Unanimously approved. Motion by Trustee Huff, seconded by Trustee Carrigan.