I MINUTES OF THE EXECUTIVE SESSION j of - Michigan State ...

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