Hawaii Insurance

Nine people were in the past, auto insurance because of fraud by public insurance division since the beginning of the year, “said Insurance Commissioner Wayne Metcalf.

“If people recognize that the effects on the rights of insurance fraud, then hope that they will be deterred,” Metcalf said yesterday.

According to a 1997 report by the Coalition Against Insurance Fraud, a national anti-fraud watchdog, the family of Hawaii pay an average of almost $ 200 per additional year of auto insurance because of fraud. But Hawaii’s Metcalf said the fraud rate is mild in comparison with other countries.

“We are doing very well,” he said. Fraud is not a serious problem. ”

Metcalf head of the Insurance Division of the Department of Commerce and Consumer Affairs, discusses the particulars of fraud insurance companies and monitoring of cases of fraud. These are, so far this year are as follows:

Charles and Jessica L. Fisher, have been designated to pay nearly $ 11000 return demonstration and 200 hours of work, after being staged theft of his vehicle, get rid of employees had mistakenly reported and then it is stolen .

Joelyn Piilani Victor was the transfer of $ 7271.14 for the repair and burn out of their car and then reports of theft.

John B. Limon, was $ 100 fine and ordered a contribution of $ 5000 for the State to finance general and complete 250 hours of work without profit for reporting falsely his car stolen.

Lori Nobu, has been designated to pay a fine of $ 2500 to the General Fund of the State for making a false statement of cars evil.

Damon L. Thomas was ordered to send an apology to the president of the First Insurance Co. of Hawaii and $ 100 on the general state fund in support of someone of fraud.

Metcalf said cases of fraud are very difficult to detect. But he said: “If the law still catch up with the penalties can be quite difficult.

Seven of the state’s largest auto insurer pay fines of $ 115500 for using criteria such as trafficking in credit history, age and length of driving experience in of fixing the rate of self-political.

The seven companies are: AIG Hawaii Insurance Co., Allstate group, RLI Insurance Co., Maryland Casualty Co. (Zurich), Hartford Underwriters, State Farm Group and USAA Group, the Insurance Division of State said. Between them, the companies represent nearly 60 percent of Hawaii’s market for auto insurance.

Hawaii’s auto insurance laws, adopted in 1987 prohibit insurers to using criteria such as age, sex, sex, credit or family history when setting rates.

“The island has a clear idea of law, which prohibits the insurer Auto discriminatory criteria in setting premiums for motorists pay,” Insurance Wayne Metcalf said the Commissioner.

State Farm Director of Public Affairs Director, said Carolyn Fujioka, even if their company pays the fine and accepted the suspension on the underwriting practices questioned by the Division of Insurance, not with the division of the interpretation of the law.

“We are always our position that we do not agree with the Division of Insurance on the interpretation of statutes,” said Fujioka. “Even if we have to pay the fine, it certainly was not The admission that we feel that we voted against the statute. ”

The fines for the four other auto insurers in the framework of the rating process are pending resolution, Metcalf said. These insurers are: TIG, HIG, DTRIC and progressive. Together, they cover another 10 percent of Hawaii’s market for auto insurance.

Approximately 175 companies are licensed to write auto insurance policies in Hawaii, although only a small percentage.

The investigation into auto insurance offices to determine the procedure began in August 2001.

If the insurance division has measurements of the licence to auto insurance companies offer most said they did not have use of discriminatory practices. But audits find insurance policies, covering more than half of motorists and the state have been banned criteria Metcalf said.

The State has made the strong reaction of people. A number of class actions filed several complaints against the insurer.

Given that public insurance Division examined, investigators from several local insurance companies, last month, companies officials have heard nothing of the division. However, they read the newspaper stories about how their companies have violated the rule of law.

The national commissioner of insurance Wayne Metcalf in a press release September 8 announced that after three weeks of its investigation division found a number of laws establishing insurers injured. However, the Division has yet officially to announce that the companies.

Other than testing their recordings made on the spot by industry investigators, insurers say, they have yet to a communication on what they can or can not be wrong.

“It is difficult for me to react, because we still have something to see. I still have not received all the police instead,” said Robin Campaniano, president of AIG Hawaii.

Metcalf said the sharing of knowledge acquired during the tests are only the first step. A press release was issued, he said, so the public know the status of the investigation, and it will be followed with business, once more information.

The next step is to examine the materials insurance. Some of these get the more time than others, he said. The material in some states insurance auto insurers are required by their parents Corporate ashore.

“Regarding the transport of these companies can not purchase materials here, we look textbooks,” he said.

Metcalf said to obtain textbooks is an important element of the investigation.

“The insurance manuals to a large extent are the basis on which human beings. Many companies have several subsidiaries. They are good risks with a subsidiary of the company, higher risks in another, and so Subsequently, “he said.

Metcalf said it was too early to say what sanctions may be imposed on insurers violate the law.

“We will continue, no doubt the implementation of the statute, against all air carriers that are not in harmony,” he said.

“Regarding the sanctions, they will be any on the basis of corrective measures it intends to take, where continued violations and similar offences,” he said.

At the same time, Honolulu law firms have combined the two files lawsuits in state Circuit Court on behalf of policyholders against Progressive Insurance Co. and State Farm.

A complaint filed by lawyer Bruce Wakuzawa last week asserts that Hawaii gradually the insurance industry and related companies excessive consumer Hawaii, premium, or reports of credit or other criteria which are prohibited by state law .

A second class action against the use State Farm Insurance Co. Friday was in the same court of Great lawyers Thomas, Margery Bronster and Jim Bickerton.

Action claims that the State Farm Insurance illegal surcharges on the basis of information from credit reports. The suit also asks that the state closes a written notification to each of its customers to explain how and why the Credit Evaluation Office was used to determine the award.

The suit will ultimately repay policyholders, was overloaded by the public authorities Farm, “said Grande.

“State Farm and fed their pockets at the expense of states people living in poverty, and he needs to repay the premiums collected illegally,” said Grande.

State Farm said spokeswoman Carolyn Fujioka, she had not heard about the suit and could not comment.

Hawaii’s anti-discrimination law adopted in 1987. Prohibits the insurer to specifically examining things like race, age, ethnicity, family situation or solvency or physical disabilities. But Hawaii’s Auto insurers have been some disputes with the Insurance Commissioner on the interpretation of statutes and how they are tax rates.

AIG’s Campaniano said he was not quite sure what his company has done wrong, but it may, in the context of the young insurance company.

In a press release, the insurance division, said the company uses age as a factor in determining premiums.

“We believe that they accuse us of making only an impact on young drivers who move several violations,” said Campaniano.

“Again, it is too speculate,” he said. “Investigators have spoken with our insurers, pointed out that”.

“But what we are trying to do with this policy, to ensure that young drivers, like those who are or have races Duis not achieved the same rate as other drivers more accountable,” he said.

It is unfair to conduct an honorarium, the same sentences as those with bad driving records, Campaniano said.

Campaniano said he also wants to know if the company is considered a technical violation or injury is really useful.

“The question is how this knowledge is important?” he said.

For DTRIC, another insurer Hawaii, Division of Insurance, the company said the pilot used illegal “marriage to the state rate.

The publicly held insurance commissioner Hawaii’s Auto insurer to Friday to say whether consumer credit histories when setting auto insurance rates.

The practice is prohibited Hawaii law. In addition, auto insurers should be aware that since Hawaii’s legislature, the law passed in 1987, insurance, “said Commissioner Wayne Metcalf.

“There is no reason, each type of insurance institution should not be familiar with all aspects of the law,” said Metcalf. “You can not be a credit report in any manner whatsoever, directly or indirectly to determine rates. It can not clearer than that.”

The order comes in the framework of self-insurance State Farm’s admission that he uses certain credit characteristics “in their underwriting policy model rates.

The state is studying State Farm Insurance Division’s rate setting practices and with letters, then followed the request of Hawaii’s other auto insurance companies.

State Farm agreed to the suspension of the practice.

But it does not correspond to the division of insurance-Last day in question, “said spokeswoman Carolyn Fujioka company.

“Based on our discussions with the Division of Insurance, we agreed on the suspension of the use of our subscription model that, although we do not share their position,” she said.

Fujioka, “said State Farm has not yet determined if the task of the division of interpreting the law, either before the courts or the legislature.

“We have no plans to make on this point, but we welcome further discussions with the Division of Insurance,” she says.

In recent years, the history of consumer credit was seen as an instrument for determining auto insurance premiums in many countries of the land.

The practice of subscription is increasingly critical consumer associations favourable to believe that the information could wrongly on the poor and minorities. At least 20 countries have the right to prohibit, or at least limit the practice.

As many of Hawaii’s insurance consumer credit, to determine the policy rate will not be known until all enterprises, the license for distributing motor insurance in the state, meet Commissioner in his letter. These companies may number no less than 280 Most of these firms is not actively to sell auto insurance.

At least two of the largest insurer Geico Direct AIG Hawaii and Hawaii, do not use credit data, to bring self-consultation. But the practice has merit, they say.

They believe it is a valuable tool with other predictors, such as driving record helps a person to draw a more accurate picture of their risks as a driver.

“It is a predictor, no question, said President Geico’s Hawaii, Tim Dayton.

Dayton recognizes that the use of credit reports to determine insurance premiums could be a violation of those bad credit.

But very many people with good credit can also improve their automobile insurance rates, if the reports were used, “said Dayton.

AIG President, Robin Campaniano, said his company limited by the credit reports, but only in commercial terms or customers, a request for payment instead of a single plan.

Even so, there is no hard and fast rule, he said.

“We do not have a model that shows that you submit a person to the ultimate control. Like many other things, it is a judgement call, “he said.

At least one self-insurance, other than State Farm, seems ready to consider when setting prices, as indicated on their website.

Progressive Insurance, based on the land, credit report lists information as a factor, it can use to determine, with premiums Hawaii automobiles reports and claims history.

In the capital, packed with high-paid lobbyists, some are respected. Others are feared. Most accounts, insurance intermediaries independent America, with a membership base of over 126000, with a call to the insurance can bring hordes of Washington, belongs to the category of fears.

In the capital, packed with high-paid lobbyists, some are respected. Others are feared. Most accounts, insurance intermediaries independent America, with a membership base of over 126000, with a call to the insurance can bring hordes of Washington, belongs to the category of fears.

”There is more confidence in the State of New Jersey as the only, there are banks across the country,”Senator William Proxmire, chairman of the Senate, the Banking Committee, pointed out in describing the order of their influence. Immunity late hives

A committee staff, given the factor of concern, said:”If we can help, we do not want a hive of results with a baseball bat and send all agents Ausschwärmen Senate.”

Despite his desire to avoid confrontation with the insurance industry, the congress was the sensation of ensuring the full entry into force in recent weeks.

In preparation for a possible vote of the Senate, the emblem of this week, in a controversial bill, which is new banks broad powers to sign the securities and investment funds to sell insurance agents wimmelte here last week to show their strength and efforts against banks, in their affairs.

In a two-day delay, 720 agents, each constituency Congress encamped on Capitol Hill.

According to the group Top-lobbyist, Paul Equale, government officials votes required lunch, many receptions and dinners, and all closed meetings with the senator and representatives of the invitation to be confined to banks in the insurance business. For all the bases

”We all Assembly members and all 100 senators, say that it is not in the best interest of consumers, to give new powers to the banks’ insurance,’’said Equale.

In fact, the driving force behind insurance representatives, Mr. Equale, 37 years old, a former government lawyer, is organizing the collection, last week and is known to be self-confidence, courage and close relations with many Top Democrats in both houses.

After his arrival, Mr. Equale all agents have in common a two-hour briefing last Tuesday, reunion, a video presentation with comments Slick packed with more than a half-dozen members of Congress, including Senator George J. Mitchell, Democrat of Maine, one of the main candidates at the next majority leader of the Senate.

Certains”bancaires in my country asks me why I specialist assistance in accordance banks, insurance,”the senator said in the video. ”I have a brother who is a related insurance agency business and a brother, a banker, and my brother is a business insurance agent called me.”

Mr. Mitchell’s brother Paul, operates his own insurance agency in Waterville, ME. HAS been in the public, there was another brother in the insurance sector, the brother of Senator Daniel K. INOUYE des Etats-democratic, is also a candidate for head of the majority of the Post Office.

In addition, several members of the house are or have been, insurance agents, including Norman Y. Mineta, Democrat of California, and three Republicans, Dan Burton, Indiana, John G. Rowland of Connecticut and Fred Grandy of Iowa.

Perhaps is the main strategic ally of insurance agents litigation course is Senator Christopher J. Dodd, Democrat of Connecticut.

Regarding banks, which the Senate plans to register before the Banking Committee of the month, Mr. Dodd a committee procedure for almost two days to find a compromise, that small banks limited access to certain assurances, and prevents at the same time the largest banks, like Citicorp, insurance in developing countries between networks.

”The effectiveness of an entrance hall depends on a powerful senator for the committee responsible for your water,”observed Kenneth A. Günther, Executive Vice President of the Independent Bankers Association. Chris”Dodd was ready to go to the mat for insurance agents, and we are very jealous.

President Clinton said today he could not accept health-care legislation with less of a guarantee of universal coverage as Senator George J. Mitchell ’s account, to require employers to pay half the cost of health insurance for their workers, if other measures do not reach 95 Percent of Americans in 2000.

Most heads of bill has been criticized by some liberals as being too slow movement towards universal coverage of the current level of 85 per cent. But the president said in a telephone interview that he accepts Targets premise that “if 95 per cent by the year 2000, is proof you can click on universal coverage without a mandate”, by ‘employer to pay.

But he insisted, “you have some kind of safeguard mechanism in case the step.” The question of whether there were any other approach would be to replace, he replied: “Everyone was sitting around here against their heads, what other alternatives were available. No birth before that his bill in I can not imagine - and I simply do not know what other alternatives exist. ”

He and Mr. Mitchell has done a great support, if today the American Association of Retired Persons, the Mitchell plan and the home of more than conduct.

The influential organization, which is in possession back to the approval of a formal proposal so far, said the bill was not perfect, but it was time to take difficult decisions. “He warned:” If the bill is defeated, health reform is dead in the years to come. ” [Page A20. ]

The endorsement is probably a plethora of phone calls and letters to Congress on the 33 million elderly, are members of the group.

On Capitol Hill, the Senate discussed the Mitchell bill for a second day, with Senator John H. Chafee, Republican of Rhode Island, is particularly remarkable versöhnlichen note. “I firmly believe that the Senate has the courage and wisdom, for the bodies later, laws to adopt health reform, with broad support, for the good of our country,” he explained. [Excerpts On page A21.]

Mr. Chafee, the leader of a group bipartie Senate, struggling to find a compromise on health care, welcomed Mr. Mitchell’s relationship with the employer paying a question, but he identified several areas where he felt, Mr Mitchell relocate. When he finished speaking, Senator Edward M. Kennedy of Massachusetts, which is an important ally of Mitchell, went to his office, and they talked seriously for about 15 minutes.

But other Republicans increasingly criticized what it called a public role in Mitchell. And she complains that Mr. Mitchell had today a bill amended, only when she had finished the last page of reading the 1410 version. Grace period for homes

The most important changes was one of considerable importance in New York City - deletion of a provision that would have sharply reduced the number of residences that hospitals should provide medical care for school-leavers. A limit may be later, but not many east of the bill.

In the house where the debate should begin next week, efforts to establish a compensation bipartie rock came to a conclusion. Its sponsors have tried, with a programme of benefits to be reaped enough votes Democratic, but without paying taxes, an idea, the Republicans could not stomach.

At the Bank of the Senate, welcomed the employer mandates Democrats in Hawaii, where she 20 years. Hawaii requires employers to pay 50 percent of workers’ insurance costs as a result, 96 percent of inhabitants have the assurance of state and the state enjoys better health and reduce tariffs d ‘insurance as a continent, despite its greater overall cost of living.

Senator Daniel K. Akaka, Democrat of Hawaii, disputed the allegations, an employer that the mandate would cripple small businesses. His condition, he said, is the most attractive in the nation for small businesses.

Hawaii was President Clinton mind, too. In telephone interview, he described a meeting today with Governor of the State, John Waihee 3d, and said it was safer than ever before, that never again on universal coverage, plus reach the other objectives of the health care system, are higher quality and reduce costs.

President Clinton said he thought his speech seemed innocent enough. Speech to the governors of the nation Tuesday, Mr. Clinton said he would be satisfied if the health care reform managed to ensure “the ball anywhere in the park 95 percent” of Americans and would not insist that Congress impose a term of the ‘employer. Not one iota remark to depart from the hotel.

But in order not to stop a torrent of speculation that the President was away from universal coverage Back, and was followed by mandates. Yesterday, the White House rattled rejected one of these signals. And the First Lady, Hillary Rodham Clinton, visited Capitol Hill to calm Democratic guide, that the President was not rocking. Until the end of the day, Hill was to believe, Mr. Clinton, sang the same old tunes - for now.

To judge by the reactions, it seems a serious matter, the State of the art, if President Clinton is sailing to cover 95 per cent or 93 or 98 but to fix the figures to miss is the importance of structural issues in the debate.

Universal coverage is above all a testimony of values on public procurement: the richest country should not terrorize parents with the fear of bankruptcy because their children chronically ill. But for those who need a base Harder, coverage is also necessary, health care markets operate. If the rules allow healthy people “opt-out of insurance, many of them - at least until they fall ill. Then, insurance companies, they are most often on the restoration of the chronically ill to which they have a high cost of premiums unaffordable. The answer is to ask register healthy people, if they are good and pay premiums to cover the cost of care when they are sick. In a game universal.

This means that all living beings are U.S. statistics perfection? Not really. Indeed, the president of the Act does not reach 100% coverage, not the Europeans or Hawaii - which has a mandate for employers and workers, but their coverage. What we need is a law that, as a practical thing, is to cover the rich and poor, sick and healthy, young and old, employed and unemployed, the same way that security social, as a practical thing that provides retirement benefits for all Americans and requires contributions from all workers. If the rules of health insurance for social security, allow odd exceptions - if by 2, 3 or even 5 percent of the population - they amount to no moral or medical catastrophe.

Mr. Clinton’s loose lips not help negotiations. His words encourage recalcitrant on Capitol Hill to spend the time to discover how the president and his Democratic supporters, to withdraw - rather than the goal of universal coverage and find out what the bill may have to win the support bipartie.

Dir P. Lowell Weicker Jr. said today that Connecticut, home to some of the greatest nation insurance companies, would not wait for Congress and President Clinton to revise the health system, but would on its own with a plan of insurance for all of 1997 inhabitants.

“This does not conflict with anything that comes from Washington,” said Weicker in a press conference at the State Capitol. “It is just that I feel very strongly that if we act, as has already been laid before you, we cross the goal, well before the federal government.

A says Weicker, Connecticut, a small prosperous country with the second lowest price is not guaranteed by residents of nation-states, Hawaii, was well placed to become his own way. He cites figures the smallest and existing partnerships and historical relations between the state and insurance companies.

Mr. Weicker, an independent body, no renewal is running, said his final State on Wednesday would only describe a roadmap for achieving its objectives and that the detailed plan, at l ‘drafting of a new state Office of Health Care Access would not be done, by January 1995, when the governor would be his next feature.

He said there were a few basic principles: that strengthening public expenditure on health, education and programs for children withdraw clear over time, for example, and what the state takes Naturally, it must remain flexible enough to the health care debate in Washington.

But many issues are debated in Washington, have remained unanswered, especially if employers would be required to pay coverage for their employees and to ensure the poorest people. Mr. Weicker also said he had not the faintest idea of what the project would cost or where would the money. More than 9.6 per cent of the population of the state has no health insurance, according to estimates of 1993, compared to 17.4 percent of the country.

By indicating that he did a process and not with a detailed plan, Mr. Weicker appeared to be following the same approach to the problem of segregation in public schools in Connecticut. In this case, it has only one goal and a formal agenda to promote public debate.

But by stretching the plan in writing by the center selection process for one year, the governor also the possibility that political vicissitudes, a role to play. The new Health Care Access office is the answer to the governor, quit his job late in the year just as the new governor elected, would be drawing up a new administrative building’s Vision, contrary to Mr. Weicker’s. Some immediate action

Mr. Weicker plan, however, call for some immediate measures. The governor was accompanied by two co-chairmen of the legislature’s Public Health Committee, said he wants the legislature to begin as soon as July 1 to deregulate the pricing system for hospitals to try increases prices down through competition. And he said he would like to ask for an immediate extension of the state school-based program health clinic and community health clinics, and more money for efforts to promote a healthy lifestyle.

He said he would also ask for the development of a package of laws on health insurance in recent years for the promotion of small businesses - which with 25 employees or less - for insurance for their employees and, for the most difficult to refuse insurance coverage. The health care bill would also allow a little more companies 75 employees or less, allowing about 97 percent of public enterprises as part of the package.

The Insurance Association of Connecticut, the lobbying group believes that such companies as Aetna Life and Casualty, Cigna, travellers and ITT Hartford, reacted positively but cautiously to the proposal.

“I heard the three men refer to the value of competitive market,” said Robert Kehmna, president of the association, referring to Mr. Weicker and health committee chairmen said they would be the Schäfer bill, representatives of Joe Courtney, a Democrat from Vernon, and Senator Kenneth L. Przybysz, a Democrat Uncasville. “There were many positive things that took the floor.

The Treasury is scheduled to give a number of bills and noted that the auction today was postponed last week, the legislation has been approved for federal debt ceiling.

The Treasury is scheduled to give a number of bills and noted that the auction today was postponed last week, the legislation has been approved for federal debt ceiling.

Saturday, President Reagan said it would sign legislation raising the ceiling of debt, while he was accompanied by a plan to reduce the deficit, which has not given its consent. The $ 23 billion in savings in the budget in early October-1-projects a deficit of approximately $ 144 billion, and could lead, that the increase in taxes or reductions in military spending, if Congress does not find other ways for budget savings.

In addition, today, placing the regular weekly auction of three-month and six-month bills amounting to $ 12.8 billion, the Treasury had already considered the sale of 9.25 $ one billion a year on bills for tomorrow. Questions have been displaced last week of $ 12.8 billion for a three-month and six-month bills, 9.25 billion dollars over two years, 7.25 billion dollars over four years 6.75 and $ billion over seven years .

Late Friday, the remaining three-month and six-month bills were trading on the rate of 6.54 percent and 6.89 percent, with one year of bills by about 7.21 percent. Two off-notes was the year with a yield of 8.39 percent in four years, 8.93 percent and seven-year, 9.33 percent.

In the bond market long-term financing Corporation expects that its market debut a day of the week with an offer of $ 400 million to $ 600 million of non-callable 30-year bonds. It would be the first of about 10.8 billion dollars in obligations the company expects to sell in the next three to five years. Proceeds from new species to the Federal Savings and Loan Insurance Corporation.

The main borrowing is secured by zero-coupon treasury issues are purchased with a capital of the new company, through the 12 regional Federal Home Loan Banks. Interest is calculated by the deposit insurance premium by savings institutions FSLIC

Earlier this month officials of financing the Corporation believes that the return on bonds may 3 / 4 point more than 30-year Treasury issues.

The new debt issues are scheduled for this week: TAX IN ONE DAY OF THE WEEK American Airlines, $ 92.6 million capital password implementation of parts NR/A-1/A +. Morgan Stanley.

Caesars World Inc., $ 300 million of subordinated bonds maturing 1997, NR/B-1/BB-. Drexel Burnham Lambert.

Comcast, $ 125 million face amount zero-coupon convertible subordinated notes, given 1994. Morgan Stanley.

Commodore Environmental Services, $ 50 million bond senior subordinated bonds due in 1999. Drexel Burnham Lambert.

Doskocil Cos, $ 50 million debt to senior subordinated bonds due 1999. Drexel Burnham Lambert.

IMF financial, economic-$ 285 million senior debt subordinated bonds maturing 1999. Drexel Burnham Lambert.

GACC Holding Co., $ 385 million face Senior zero-coupon notes, given in 1995, and 1996. Drexel Burnham Lambert.

Leisure Technology, $ 60 million is high, due in 1999, NR/B-2/NYR. Merrill Lynch Capital Markets.

In the last movement’s attractiveness as a Wall Street investment firms, Bear Stearns Companies said yesterday it would be a foreign partner: Jardine Strategic Holdings Ltd in Hong Kong.

In the last movement’s attractiveness as a Wall Street investment firms, Bear Stearns Companies said yesterday it would be a foreign partner: Jardine Strategic Holdings Ltd in Hong Kong.

In a joint statement released after rumours on the next Deal swept Hong Kong and then on Wall Street, Bear Stearns and Jardine Strategic said, they would have Jardines to reach an agreement to buy 20 percent of the investment banking house a share of $ 23, or more than $ 390 million.

Jardine Strategic a large unit of Jardine Matheson Holding AG, has big interests in real estate in Hong Kong, luxury hotels in Asia and supermarkets in Hong Kong, Australia and Great Britain. Cognac and Pizza

Jardines, Anglo-run parent company, was founded in 1832 and is one of the oldest in Asia of the company. Its activities include the sale of cognac in Japan; run more than 100 Pizza Hut restaurants in Hong Kong, Hawaii and Australia, the operating system of more than 300 7-Eleven stores in Hong Kong, Singapore and the United Kingdom And even the manufacture of elevators on the Chinese mainland.

Jardines also important companies in the financial sector, a sector which is reinforced by yesterday Deal. Bear Stearns enterprises belong to a common activity brokerage in Hong Kong with Shun Loong Securities Company and seeking an office in Tokyo.

Simon Keswick, chairman of the Jardines, said the investment was in line with a long-term policy significant shareholdings der”dabei successful companies well managed.”

The Keswick family owns more than 10 percent of Jardines group, which has already expressed an interest, acquisitions in the USA and Great Britain.

The Bear Stearns Jardines-Deal is first of the last transaction, including a Wall Street-to-door allowed a foreigner to meaningful participation. Several other companies have in a partner country by infusions of capital in companies themselves.

A few days ago, Salomon Inc has $ 700 million of capital through the sale of 12 percent participation by Warren Buffett, the billionaire Omaha. Last year, the American Express Company sells 13 percent of Shearson Lehman Brothers to the Nippon Life Insurance Company for $ 538 million and Goldman, Sachs & Company sells 12.5 per cent in the bank Sumitomo for $ 500 million.

In the deal announced yesterday, Bear Stearns is not one of income directly to shareholders of the company. Among them, Bear Stearns leaders, their own set 45 per cent of the company.

Alan C. Greenberg, chairman and CEO of Bear Stearns, however, pointed out that all shareholders would be in equal shares, the percentage of securities to be purchased from any shareholder.

”We believe that shareholders should be able to sell almost $ 23 if they wish,”he said.

Bear Stearns has risen yesterday, the 25 cents, to $ 20, the New York Stock Exchange. Distributors had to respond to the expectations that prices would fall after the offer, shareholders because the situation would be to sell a certain percentage of their stock.

If shareholders do not sell enough to give Jardines 20 percent he wants, Bear Stearns leaders of the difference. Bear Stearns Given that some leaders are far more than other investors storage, they would be able to sell more shares, while the proportion would be the same for all investors.

Given the transaction, Jardines is a public offering within five days to 16.3 million shares at $ 23 per unit and 70000 convertible preferred shares of $ 228.72 per piece.

Given that the company itself, Mr. Greenberg said Bear Stearns”hat lot of money and did not need additional capital.”Bear Stearns has 5900 employees and 1.4 billion dollars of capital, he said.

An agreement Jardines provides that for the first three years, it can not more than 24.9 per cent of the company, and not more than 35 per cent for two years after it. It is not mandatory, if the limits of Bear Stearns is an offer of destination.