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The article examines the effort of president Robert D. Krebs of Santa Fe Southern Pacific Corp. in Chicago, Illinois to enhance the stockholders values and keep investors. As a response to the $63 a share offered by Henley Group Inc. and Olympia & York Developments Ltd. to control the company, Kreb was forced to sell of Southern Pacific assets and about $930 million worth of noncore assets. Cash proceeds will then be used to buy 60 million shares of Santa Fe's outstanding shares.

The article discusses some critical business issues, which Chicago, Illinois will face in 2006 and beyond. Many Chicago companies could take significant hits to profits and shareholder equity when new accounting rules force them to change the way they book stock options and if new rules also are adopted on recording pension liabilities. Any pain those changes inflict this year would be well worth what shareholders will gain in the long term--greater accuracy and transparency in financial statements.

The article reports that billions of dollars in unfunded pension and retiree health care obligations are threatening the balance sheets of some large companies based in Illinois. Boeing Co., Caterpillar Inc., Deere & Co. and Navistar International Corp. are among Illinois companies that would have to book big new liabilities if rules on how to account for such shortfalls are changed next year, a report by Credit Suisse First Boston shows. Warrenville-based Navistar's unfunded obligations would completely eliminate shareholder equity, the study found.

Reports that QCR Holdings, Inc. of Moline Illinois plans to issue 260,000 shares to certain stockholders to help fund the creation of a banking subsidiary. Placement which would price each share of common stock at $19.50; How the proceeds will help establish the Rockford Bank & Trust Company which will be the third subsidiary of QCR.