AEROSPACE & DEFENSE
From Times Staff and Wire Reports
McDonnell to Make Changes in Salaried Savings Plan: McDonnell Douglas Corp. said it will convert the matching contribution portion of its salaried savings plan to a leveraged Employee Stock Ownership Plan. The leveraged ESOP will permit McDonnell Douglas to fund its matching contributions in advance, the company said. The ESOP will borrow up to $50 million to acquire McDonnell Douglas common stock in the open market. Analyst David C. Jones of Pauli & Co. said establishing the leveraged ESOP will allow McDonnell Douglas to contribute to the savings plan without affecting its cash flow. McDonnell Douglas shares jumped $3.125 to $40.75 on the New York Stock Exchange.
