OTHER NEWS - March 22, 1995

Morrison Knudsen Unit Forms External Team: MK Rail Corp. said it has formed a team of outside advisers to “explore options” after Morrison Knudsen Corp. announced it may sell its interests in the company. Board spokesman Tim Wesley would not disclose further details. Gilbert E. Carmichael was elected chairman of MK Rail on March 7, one day after Morrison Knudsen said it might sell several of its business interests, including a 65% stake in MK Rail. He resigned Tuesday as a senior vice president of Morrison Knudsen. Morrison Knudsen’s stock dropped 20% Monday after the builder projected a loss of $310 million for 1994--nearly double the $175-million loss initially foreseen--and acting Chairman William P. Clark said he was stepping down.