Henley Group to Seek
Seats on SFSP BoardThe Henley Group Inc. Tuesday said it would vigorously pursue its proxy contest for seats on the board of the Southern Pacific Transportation Corp.
Henley President Michael D. Dingman said the company has purchased another 1.15 million shares of SFSP since Jan. 19, raising its stake to 24.5 million shares, 15.67 percent of SFSP's outstanding shares.
He attacked SFSP's recently announced deal with another major stockholder, Olympia & York Developments Ltd., saying management has manipulated the company's poison pill to give management an illegal advantage in the proxy fight, and said Henley would seek to overturn it in court.
SFSP has been fighting Henley's advances on the company, and gave O&Y two seats on its board in an obvious move to prevent O&Y from joining Henley's bid against the current management.
M. Shugrue President
HOUSTON - Martin R. Shugrue Jr. was elected president of Continental Airlines. He succeeds Frank Lorenzo, who continues as chairman and chief executive officer. Mr. Lorenzo had served as president since Thomas G. Plaskett was replaced last summer.
Mr. Plaskett was elected president, chairman and chief executive at Pan Am Corp. last month. As part of the management reorganization at Pan Am, Mr. Shugrue resigned as vice chairman.
Carbide Claims India
Induced Bhopal Payment
NEW DELHI, India - An attorney for Union Carbide Corp. on Tuesday accused the Indian government of inducing a judge to order the multinational company to pay $270 million in interim relief to the victims of the 1984 Bhopal gas disaster, United News of India reported.
The news agency quoted Carbide lawyer Fali Nariman as saying in Jabalpur - where Carbide's appeal against the interim relief is being heard - that the federal Indian government induced the Bhopal district court judge to pass the interim relief order.
Union Carbide filed the appeal one month after a Bhopal district judge on Dec. 17 ordered the company to make an interim relief payment for the victims of the gas disaster by Feb. 17.
Calif. Banker Named
WASHINGTON - California banker Anthony M. Frank, a refugee from Nazi Germany who says he hopes to return some of what his adopted nation has given him, was appointed the nation's 69th postmaster general Tuesday.
Mr. Frank will take over the reins of the U.S. Postal Service on March 1, succeeding Preston R. Tisch, who returns to private business in New York.
Fourth Train Accident
In '88 Kills 10 in China
BEIJING - A bus slammed into a freight train in Northeastern China, killing 10 people, it was reported Tuesday.
The accident near Shuangyashan City in Heilongjiang province was the fourth involving Chinese trains in the past month and came after China's top leaders appealed for improvements in the national railway's safety record.
The overseas edition of the People's Daily newspaper said 49 people were hospitalized, 11 in serious condition.
Shultz Move Seeks
To Aid Palestinians
WASHINGTON - Secretary of State George P. Shultz said Tuesday he is making diplomatic moves designed to provide a greater sense of political control to the 1.5 million Palestinian Arabs who live on the Israeli-held West Bank and Gaza.
But he said King Hussein of Jordan had not eased his opposition to autonomy negotiations under the 1978 Camp David peace agreement.
The king feels he was not included in the Camp David process, Mr. Shultz told the House Foreign Affairs Committee. He rejects it.