October 29, 1986

The First Interstate Bancorp increased its bid today to buy the troubled BankAmerica Corporation and asked the bank's board to respond to the offer shortly after its meeting next Monday. The new bid is a package of securities that First Interstate valued at $22 a share, or $3.4 billion. The previous bid was valued by First Interstate at $18 a share, or $2.8 billion, although independent analysts had valued it as low as $14 a share. The new offer, using First Interstate's evaluation, exceeds BankAmerica's book value of $21.06 a share and will increase the pressure on BankAmerica's board to accept the bid. The new price is about the level analysts had said was needed for a credible proposal.

The USX Corporation, which has been battered by both a three-month work stoppage at its steel plants and declining oil prices, reported a third-quarter loss yesterday of $183 million. In contrast, the company earned $144 million, or 46 cents a share, a year ago. USX, the nation's largest steelmaker as well as a big energy concern, also reported a sharp drop in sales for the quarter. Revenues fell about 38 percent, to $3.3 billion, in the quarter, from $5.3 billion in the same period last year.

The University of Rochester, in a show of entrepreneurial spirit, has lined up a new name, a new benefactor and a new game plan. The university said yesterday that it would rename its graduate business school after William E. Simon, the private investor and former Treasury Secretary. Rochester decided to honor Mr. Simon after he raised $15 million for the business school from his own donation and grants from major corporations and foundations. The university agreed to match the gift and so far has raised $6 million toward that goal. The school will be called the William E. Simon Graduate School of Business Administration, effective Nov. 6.

The Government, moving to end a windfall enjoyed by millions of small investors, is expected to announce a substantial cut Wednesday in the guaranteed 7 1/2 percent interest rate on United States savings bonds. The decision to reduce the minimum yield on bonds held at least five years comes as sales have boomed to more than $1 billion a month, a pace not seen since World War II. Although the new rate is not known, Government and private analysts suggested that it would drop at least a full percentage point, perhaps as much as two points. The cut, if it occurs, would be effective Nov. 1, leaving savers three days to take advantage of the present 7 1/2 percent guarantee.

The president of the private foundation in charge of rebuilding the Statue of Liberty and part of Ellis Island said yesterday that tickets to the Liberty Weekend celebration last July were overpriced and poorly marketed. As a result, said William F. May, president of the Statue of Liberty-Ellis Island Foundation, the weekend will probably show a deficit that will have to be made up from funds raised by his organization, which has raised $295 million so far. The marketing for the roughly $30 million event, as well as the overall planning and staging, were handled by David Wolper, the Hollywood producer, who Mr. May said relied heavily on advertising and newspaper publicity to attract buyers for tickets that cost as much as $5,000.